IMAX (IMAX) AI Stock Analysis

• Market Cap: $1.49B
• Dividend Yield: N/A
• Average Volume (3M): 1.11M
• Price to Earnings (P/E): 46.2
• Beta (1Y): 0.13
• Revenue Growth: 1.25%
• EPS Growth: 55.54%
• Country: US
• Employees: 700
• Sector: Communication Services
• Sector Strength: 90
• Industry: Entertainment
• EPS (TTM): 0.26
• Shares Outstanding: 53,782,520
• 10 Day Avg. Volume: 852,442
• 30 Day Avg. Volume: 1,113,122
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.20
• Enterprise Value/Revenue: 4.95
• Enterprise Value/Gross Profit: 8.71
• Enterprise Value/Ebitda: 16.42
• 1Y Price Target: $31.90
• Price Target Upside: 10.15% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 71 Outperform
• Price Target: $29.00 ▲(0.14% Upside)

IMAX's overall stock score is driven by strong financial performance and positive earnings call sentiment, highlighting robust growth and strategic initiatives. However, technical analysis and valuation present challenges, with mixed market signals and a high P/E ratio indicating potential overvaluation.

Positive Factors

Brand and Market Position

The IMAX brand and value proposition are clearly resonating with consumers, driving sustained market share gains and reinforcing IMAX as the premium platform for blockbuster and local-language cinema alike.

Earnings

IMAX is on track to deliver another outperformance with global box office already above expectations and on a path to exceed consensus view for the quarter.

Future Growth

The company modified its expectations for installations for 2025, raising the low end of the range by 5 screens, which is a positive sign for growth.

Negative Factors

Free Cash Flow

Free Cash Flow was lower than expected, driven by lower CFFO but partially offset by lower JRSA system install capital intensity.

Stock Valuation

Shares remain overvalued relative to peers given the company’s exposure to the secular supply and demand side risks impacting the broader theatrical ecosystem.

IMAX Business Overview & Revenue Model

Company Description

IMAX Corporation, together with its subsidiaries, operates as an entertainment technology company worldwide. It offers cinematic solution through proprietary software, theater architecture, intellectual property, and specialized equipment. The company offers IMAX Digital Re-Mastering (DMR), a proprietary technology that digitally enhances the image resolution, visual clarity, and sound quality of motion picture films for projection on IMAX screens; IMAX theater systems to exhibitor customers through sales, leases, and joint revenue sharing arrangements; and digital projection systems. It also provides preventative and emergency maintenance services to IMAX network; distributes large-format documentary films; film post-production and quality control services for large-format films, and digital post-production services; owns and operates IMAX theaters; and rents 2D and 3D large-format film and digital cameras, as well as offers production advice and technical assistance services to documentary and Hollywood filmmakers. The company markets its theater systems through a direct sales force and marketing staff to science and natural history museums, zoos, aquaria, and other educational and cultural centers, as well as theme parks, private home theaters, tourist destination sites, fairs, and expositions. It owns or otherwise has rights to trademarks and trade names, which include IMAX, IMAX Dome, IMAX 3D, IMAX 3D Dome, Experience It in IMAX, The IMAX Experience, An IMAX Experience, An IMAX 3D Experience, IMAX DMR, DMR, IMAX Enhanced, IMAX nXos, and Films To The Fullest. As of December 31, 2021, the company had a network of 1,683 IMAX theater systems comprising 1,599 commercial multiplexes, 12 commercial destinations, and 72 institutional facilities operating in 87 countries and territories. IMAX Corporation was founded in 1967 and is headquartered in Mississauga, Canada.

How the Company Makes Money

IMAX generates revenue through several key streams. Primarily, the company earns money from the licensing of its proprietary technology and theater systems to cinema operators, which includes both initial setup fees and ongoing royalty payments based on box office sales. Additionally, IMAX receives revenue from film distribution agreements, where it partners with filmmakers to convert and distribute films in the IMAX format, often sharing in the box office earnings. The company also benefits from a growing number of strategic partnerships with major film studios, enhancing its content library and driving audience attendance. Furthermore, IMAX's expanding presence in international markets and its ventures into at-home cinema solutions contribute to its revenue diversification and growth potential.

IMAX Financial Statement Overview

Summary

IMAX shows a strong financial position with solid revenue growth and improving cash flow management. The company effectively manages its costs, reflected in a stable gross profit margin. While profitability metrics indicate potential for improvement, the balance sheet remains stable with a manageable level of debt.

Income Statement

IMAX has shown solid revenue growth over the years, with a notable recovery post-2020. The gross profit margin is strong, reflecting efficient cost management. However, profitability metrics like the EBIT and net profit margins have room for improvement, as they have fluctuated over the analyzed periods.

Balance Sheet

The balance sheet reflects a stable equity position with a moderate debt-to-equity ratio. However, the company has seen a slight decrease in stockholders' equity over time. The return on equity has improved, suggesting better utilization of equity, though further strengthening could be beneficial.

Cash Flow

IMAX has demonstrated strong cash flow management, with positive operating cash flow trends and improving free cash flow. The free cash flow growth rate signals effective capital expenditure management, supporting long-term sustainability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	362.48M	352.21M	374.84M	300.81M	254.88M	137.00M
Gross Profit	206.16M	190.20M	214.34M	156.35M	134.41M	21.54M
EBITDA	109.39M	111.28M	112.96M	52.77M	74.16M	-69.41M
Net Income	32.78M	26.06M	25.34M	-22.80M	-22.33M	-143.78M
Balance Sheet
Total Assets	868.58M	830.40M	814.67M	821.15M	883.25M	997.75M
Cash, Cash Equivalents and Short-Term Investments	109.25M	100.59M	76.20M	97.40M	189.71M	317.38M
Total Debt	278.02M	266.26M	252.06M	263.02M	226.11M	305.68M
Total Liabilities	463.51M	452.18M	469.08M	491.39M	452.88M	532.98M
Stockholders Equity	320.41M	299.47M	273.14M	263.36M	356.08M	394.00M
Cash Flow
Free Cash Flow	47.36M	29.62M	25.78M	-15.30M	-11.71M	-32.27M
Operating Cash Flow	76.95M	70.84M	58.62M	17.32M	6.07M	-23.01M
Investing Cash Flow	-47.63M	-41.22M	-31.79M	-53.29M	-7.00K	-9.26M
Financing Cash Flow	-12.17M	-6.04M	-48.53M	-58.51M	-132.72M	240.57M

IMAX Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 28.96
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IMAX, the sentiment is Positive. The current price of 28.96 is above the 20-day moving average (MA) of 25.89, above the 50-day MA of 26.91, and above the 200-day MA of 25.66, indicating a bullish trend. The MACD of 0.26 indicates Negative momentum. The RSI at 71.18 is Negative, neither overbought nor oversold. The STOCH value of 91.14 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IMAX.

IMAX Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IMAX	71 Outperform	$1.49B	46.21	11.16%	―	1.25%	55.54%
CNK	61 Neutral	$2.98B	14.36	70.99%	0.93%	13.80%	109.00%
Sector *	60 Neutral	$43.56B	4.52	-12.81%	4.07%	1.87%	-43.08%
AMC	51 Neutral	$1.47B	―	20.03%	―	9.42%	39.83%
MSGE	50 Neutral	$1.89B	52.75	1222.83%	―	-1.72%	-75.17%
LGF.A	47 Neutral		―		―	-2.85%	75.96%
LGF.B	42 Neutral		―		―	-2.85%	75.96%

IMAX Corporate Events

IMAX Extends CEO Richard Gelfond’s Term to 2028

On July 17, 2025, IMAX Corporation announced an amendment to the employment agreement of its CEO, Richard L. Gelfond, extending his term until December 31, 2028. The amendment outlines his compensation, including a base salary of $1.2 million, potential bonuses, and equity awards contingent on performance metrics. The agreement also details conditions for severance and equity vesting, ensuring continuity in leadership and aligning executive incentives with company performance goals.

IMAX Expands Credit Agreement with Wells Fargo

On July 14, 2025, IMAX Corporation entered into a Seventh Amended and Restated Credit Agreement with Wells Fargo Bank and other lenders, increasing its revolving borrowing capacity to $375 million, with potential expansion to $515 million or more. The agreement, which matures in 2030, includes various financial covenants and is secured by the company’s assets. The proceeds are intended for working capital and general corporate purposes, with $52 million used to repay previous credit facility balances.

IMAX Expands Share Repurchase Program by $100 Million

On June 11, 2025, IMAX Corporation held its Annual General Meeting where shareholders elected directors, approved PricewaterhouseCoopers LLP as auditors, and endorsed executive compensation. On June 12, 2025, IMAX announced a $100 million increase to its share repurchase program, extending it through June 30, 2027, bringing the total authorization to $500 million. This move reflects IMAX’s strategic focus on enhancing shareholder value and maintaining a strong market position.