IMAX (IMAX) AI Stock Analysis

• Market Cap: $1.55B
• Dividend Yield: N/A
• Average Volume (3M): 748.48K
• Price to Earnings (P/E): 62.3
• Beta (1Y): 0.13
• Revenue Growth: -1.98%
• EPS Growth: -1.18%
• Country: US
• Employees: 700
• Sector: Communication Services
• Sector Strength: 85
• Industry: Entertainment
• EPS (TTM): 0.13
• Shares Outstanding: 53,742,016
• 10 Day Avg. Volume: 838,233
• 30 Day Avg. Volume: 748,482
• PEG Ratio: -0.35
• Price to Book (P/B): 3.15
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -54.30
• Enterprise Value/Market Cap: 0.75
• Enterprise Value/Revenue: 0.82
• Enterprise Value/Gross Profit: 5.91
• Enterprise Value/Ebitda: 2.75
• 1Y Price Target: $32.56
• Price Target Upside: 12.74% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

• Rating: 77 Outperform
• Price Target: $33.00 ▲(14.27%Upside)

IMAX's overall stock score is buoyed by strong financial performance and growth potential from strategic corporate initiatives. While technical indicators and earnings sentiment are positive, high valuation metrics present some risk. The company's proactive steps to enhance shareholder value and expand its market presence contribute positively to the score.

Positive Factors

Market Expansion

IMAX is positioned to deliver accelerated financial growth in 2025, driven by a record number of Filmed for IMAX titles, a robust local-language pipeline in China, and continued global expansion of its premium exhibition network.

Revenue Growth

IMAX reported strong Q1 2025 results with total revenue of $86.7M, marking a 10 percent YoY increase.

Strategic Positioning

IMAX is well-positioned in China, and it maintained its FY guidance for box office, installs, and margins.

Negative Factors

Market Challenges

Despite recent rhetoric from China on reducing its Hollywood film slate, IMAX remains well-positioned to thrive in the current environment, given its robust upcoming release slate and strong positioning with China.

Market Competition

Local language box office is likely to exceed 2023’s 21% market share given the strong Chinese New Year and many other local language films on tap from Chinese and other studios for later in the year.

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 Corporation generates revenue through several key streams. Primarily, the company earns money by leasing its proprietary IMAX systems to commercial theaters under joint revenue sharing arrangements, where it receives a percentage of box office receipts. Additionally, IMAX earns from the sale of its projection systems and related equipment. The company also generates revenue through maintenance services, the digital re-mastering of films into the IMAX format (IMAX DMR), and licensing its technology to third-party theaters. Significant partnerships with major film studios to release blockbuster movies in the IMAX format further bolster its earnings, as these partnerships often lead to higher ticket prices and increased audience turnout.

IMAX Financial Statement Overview

Summary

IMAX exhibits a promising financial trajectory with improved profitability, stable leverage, and strong cash flow generation. However, monitoring debt levels and sustaining revenue growth are crucial for maintaining momentum.

Income Statement

IMAX has shown solid improvement in its profitability metrics. The TTM gross profit margin stands strong at 54.6%, and the net profit margin has improved to 12.6% from a negative position in prior years. Revenue growth has stabilized post-pandemic, with a slight increase in TTM revenue compared to the previous year. EBIT and EBITDA margins are healthy, indicating efficient operations.

Balance Sheet

The company maintains a stable financial position with a debt-to-equity ratio of 0.77, indicating a balanced leverage. ROE improved to 15.2% in the TTM, showcasing enhanced profitability for shareholders. The equity ratio slightly decreased to 35.3%, reflecting a cautious approach to asset financing.

Cash Flow

IMAX demonstrated strong cash flow management with a significant increase in free cash flow, growing by 79.0% in the TTM. The operating cash flow to net income ratio is robust at 1.95, and free cash flow to net income ratio stands at 1.17, indicating effective cash conversion from profits.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
359.75M	352.21M	374.84M	300.81M	254.88M	137.00M
	Gross Profit
196.49M	190.20M	214.34M	156.35M	134.41M	21.54M
	EBIT
48.53M	43.86M	50.40M	-4.83M	10.98M	-121.82M
	EBITDA
100.33M	111.28M	112.96M	52.77M	74.16M	-69.41M
	Net Income Common Stockholders
25.11M	26.06M	25.34M	-22.80M	-22.33M	-143.78M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
97.07M	100.59M	76.20M	97.40M	189.71M	317.38M
	Total Assets
848.30M	830.40M	814.67M	821.15M	883.25M	997.75M
	Total Debt
279.60M	266.26M	252.06M	263.02M	226.11M	305.68M
	Net Debt
182.53M	165.66M	175.85M	165.62M	36.40M	-11.70M
	Total Liabilities
464.01M	452.18M	469.08M	491.39M	452.88M	532.98M
	Stockholders Equity
299.50M	299.47M	273.14M	263.36M	356.08M	385.49M
Cash Flow		Free Cash Flow
53.03M	29.62M	25.78M	-15.30M	-11.71M	-32.27M
	Operating Cash Flow
88.76M	70.84M	58.62M	17.32M	6.07M	-23.01M
	Investing Cash Flow
-48.70M	-41.22M	-31.79M	-53.29M	-7.00K	-9.26M
	Financing Cash Flow
-24.60M	-6.04M	-48.53M	-58.51M	-132.72M	240.57M

IMAX Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 28.88
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 28.88 is above the 20-day moving average (MA) of 27.59, above the 50-day MA of 25.49, and above the 200-day MA of 24.13, indicating a bullish trend. The MACD of 0.66 indicates Positive momentum. The RSI at 69.48 is Neutral, neither overbought nor oversold. The STOCH value of 65.64 is Neutral, 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	77 Outperform	$1.55B	62.34	9.00%	―	-1.98%	-1.18%
CNK	74 Outperform	$3.70B	21.22	71.46%	1.00%	-0.80%	13.07%
MSGE	63 Neutral	$1.73B	13.31	1222.83%	―	5.81%	133.05%
Sector *	61 Neutral	$14.56B	5.82	-4.02%	6.41%	2.72%	-31.67%
LGF.A	47 Neutral	$1.93B	―	168.75%	―	-2.85%	75.96%
AMC	47 Neutral	$1.36B	―	20.03%	―	-5.43%	26.07%
LGF.B	42 Neutral	$1.93B	―	259.47%	―	-2.85%	75.96%

IMAX Corporate Events

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.

The most recent analyst rating on (IMAX) stock is a Hold with a $20.00 price target. To see the full list of analyst forecasts on IMAX stock, see the IMAX Stock Forecast page.

IMAX Appoints Jose Zlatar as New Accounting Officer

On April 23, 2025, IMAX Corporation’s Board of Directors appointed Jose Zlatar as the new principal accounting officer, effective April 30, 2025. Zlatar, who joined the company in February 2025 as Senior Vice President, Finance, will take over the accounting responsibilities from CFO Natasha Fernandes, who will continue as the principal financial officer. Zlatar brings extensive experience from his previous roles at Canadian National Railway and Yamana Gold Inc., and his appointment is expected to strengthen IMAX’s financial leadership and operations.