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IMAX
(NYSE:IMAX)
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Rating:74Outperform
Price Target:
$57.00
▲(31.40% Upside)
Action:Reiterated
Date:07/24/26
IMAX scores well primarily on improving financial performance (profitability recovery plus strong TTM free cash flow) and a very constructive earnings update with reaffirmed guidance and margin/EPS expansion. Technicals support the view with price above key moving averages, though momentum indicators are mixed. The main offset is valuation, as the elevated P/E implies high expectations and reduces the margin of safety.
Positive Factors
Strong cash generation
TTM operating cash flow ($132.6M) and FCF ($126.4M) show durable cash generation versus prior loss years. Strong free cash flow supports network investment, JV/leasing programs, opportunistic buybacks and provides a cushion through theatrical cycles, improving strategic optionality.
Negative Factors
Moderate leverage
Debt-to-equity near 0.9 and mid-single-digit net leverage limits flexibility if box-office weakens or management increases JV/lease incentives. While manageable today given cash flow, leverage raises refinancing and interest-rate sensitivity risk if profitability deteriorates.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
TTM operating cash flow ($132.6M) and FCF ($126.4M) show durable cash generation versus prior loss years. Strong free cash flow supports network investment, JV/leasing programs, opportunistic buybacks and provides a cushion through theatrical cycles, improving strategic optionality.
Read all positive factors
IMAX (IMAX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.62B
Dividend YieldN/A
Average Volume (3M)1.26M
Price to Earnings (P/E)63.8
Beta (1Y)0.33
Revenue Growth14.79%
EPS Growth22.14%
CountryUS
Employees679
SectorCommunication Services
Sector Strength97
IndustryEntertainment
Share Statistics
EPS (TTM)0.75
Shares Outstanding54,842,113
10 Day Avg. Volume1,788,223
30 Day Avg. Volume1,263,727
Financial Highlights & Ratios
PEG Ratio1.74
Price to Book (P/B)5.87
Price to Sales (P/S)4.83
P/FCF Ratio16.67
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$50.10Price Target Upside15.49% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering10
EPS Forecast (FY)1.77
Revenue Forecast (FY)$443.54M
IMAX Business Overview & Revenue Model
Company Description
IMAX Corporation operates as a global entertainment technology firm, specializing in delivering advanced cinematic experiences. It achieves this by leveraging its proprietary software, unique theater designs, intellectual property, and specialized...
How the Company Makes Money
IMAX makes money through a combination of theater-system economics and film-content economics. On the theater side (Technology Products and Services), the company generates revenue by selling or leasing IMAX theater systems to exhibitors and multi...
IMAX Earnings Call Summary
Earnings Call Date:Jul 23, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 22, 2026
Earnings Call Sentiment Positive
The call conveyed strong financial and operational momentum driven by a breakout theatrical event (The Odyssey) and robust underlying business performance: double-digit revenue growth, 65% EPS growth, materially expanded EBITDA margin, accelerating system signings/installs, and early success in merchandising and product innovation. Key risks noted include earlier China softness (with recent improvement), limited scalability of high-end 70mm film deployments, release-date congestion risk, and near-term cash outlays to support network growth. On balance, positive catalysts and measurable upside materially outweigh the contained challenges.Positive Updates
Revenue Growth
Q2 revenue of $103 million, up 12% year-over-year (from $92 million prior-year quarter).
Negative Updates
China Box Office Weakness Earlier in 2026
China underperformed in the first half of 2026, though recent weeks showed improvement and Spider-Man presales in China are reportedly tracking well. Management characterized near-term China outlook as cautiously optimistic rather than fully recovered.
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue Growth
Q2 revenue of $103 million, up 12% year-over-year (from $92 million prior-year quarter).
Read all positive updates
Company Guidance
Management said they are keeping their full‑year guidance intact, reiterating a mid‑40s adjusted EBITDA margin target and remaining on track for a record ~$1.4 billion in global box office; Natasha also referenced a $160–$175 million range they are “aiming towards” (as stated on the call). They noted Q2 outperformance versus consensus — revenue $103M (+12% YoY), adjusted EBITDA $48M (46.6% margin, +400 bps YoY), adjusted EPS $0.43 (+65% YoY) — and strong cash metrics (H1 operating cash flow $36M, cash $160M, debt $292M, net leverage 0.7x) plus $13.7M of opportunistic share repurchases; management expects substantial box office growth in H2 anchored by Odyssey and Dune Part Three and will continue investing in network expansion and JV/leasing programs.IMAX Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
69
Positive
Cash Flow
82
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 416.08M | 410.21M | 352.21M | 374.84M | 300.81M | 254.88M |
| Gross Profit | 246.08M | 237.57M | 190.20M | 214.34M | 156.35M | 134.41M |
| EBITDA | 118.26M | 133.10M | 111.28M | 112.96M | 52.77M | 74.16M |
| Net Income | 40.92M | 34.88M | 26.06M | 25.34M | -22.80M | -22.33M |
Balance Sheet | ||||||
| Total Assets | 917.90M | 894.03M | 830.40M | 814.67M | 821.15M | 883.25M |
| Cash, Cash Equivalents and Short-Term Investments | 159.92M | 151.17M | 100.59M | 76.20M | 97.40M | 189.71M |
| Total Debt | 282.64M | 297.41M | 278.12M | 252.06M | 263.02M | 226.11M |
| Total Liabilities | 467.46M | 466.30M | 452.18M | 469.08M | 491.39M | 452.88M |
| Stockholders Equity | 355.89M | 337.89M | 299.47M | 273.14M | 263.36M | 356.08M |
Cash Flow | ||||||
| Free Cash Flow | 126.39M | 118.90M | 29.62M | 25.78M | -15.30M | -11.71M |
| Operating Cash Flow | 132.65M | 127.07M | 70.84M | 58.62M | 17.32M | 6.07M |
| Investing Cash Flow | -32.60M | -41.92M | -41.22M | -31.79M | -53.29M | -7.00K |
| Financing Cash Flow | -48.91M | -34.08M | -6.04M | -48.53M | -58.51M | -132.72M |
IMAX Technical Analysis
Positive
43.38
Price Trends
41.82
Positive
39.25
Positive
37.72
Positive
Market Momentum
2.82
Negative
73.42
Negative
95.50
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 43.38 is above the 20-day moving average (MA) of 43.17, above the 50-day MA of 41.82, and above the 200-day MA of 37.72, indicating a bullish trend. The MACD of 2.82 indicates Negative momentum. The RSI at 73.42 is Negative, neither overbought nor oversold. The STOCH value of 95.50 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IMAX.
IMAX Risk Analysis
IMAX disclosed 33 risk factors in its most recent earnings report. IMAX reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
IMAX Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $2.62B | 63.80 | 11.87% | ― | 14.79% | 22.14% | |
69 Neutral | $3.65B | 140.47 | -10.08% | ― | 4.51% | -62.44% | |
64 Neutral | $4.24B | 19.67 | 19.79% | 1.07% | 4.54% | -23.98% | |
63 Neutral | $5.13B | 154.76 | 1.51% | ― | 17.17% | -187.98% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
50 Neutral | $2.52B | -2.65 | 31.43% | ― | 6.41% | -19.34% | |
48 Neutral | $3.95B | -18.70 | 16.27% | ― | -17.64% | -54.79% |
* Communication Services Sector Average
IMAX
IMAX
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LION
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IMAX Corporate Events
Executive/Board ChangesShareholder Meetings
IMAX Shareholders Approve Directors, Auditor and Executive Pay
Positive
Jun 11, 2026
At its 2026 Annual General Meeting of Shareholders held on June 10, 2026, IMAX Corporation shareholders elected ten directors, including CEO Richard L. Gelfond, to serve until the next annual meeting in 2027 or until their successors are chosen. T...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.