Cineplex (CGX) AI Stock Analysis

• Market Cap: $583.53M
• Dividend Yield: N/A
• Average Volume (3M): 273.46K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.99
• Revenue Growth: -4.21%
• EPS Growth: -122.43%
• Country: CA
• Employees: 10,000
• Sector: Communication Services
• Sector Strength: 98
• Industry: Entertainment
• EPS (TTM): -0.59
• Shares Outstanding: 63,427,074
• 10 Day Avg. Volume: 277,079
• 30 Day Avg. Volume: 273,460
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.47
• Price to Cash Flow (P/CF): 1.50
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$12.72
• Price Target Upside: 39.04% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

Cineplex's overall stock score reflects significant financial challenges, particularly in profitability and high leverage. While recent earnings call data and corporate events indicate promising growth and strategic initiatives, the financial instability and negative technical indicators weigh heavily. Investors should be cautious due to these financial and technical challenges, despite some positive strategic developments.

Positive Factors

Film Slate

The second quarter movie slate carries names such as Thunderbolts, Mission: Impossible – The Final Reckoning, Lilo & Stitch, Karate Kid: Legends, Ballerina, How to Train Your Dragon, Elio, and F1, which are expected to boost performance.

Shareholder Returns

There is potential for a dividend announcement and more meaningful share buybacks as the leverage ratio becomes more manageable.

Negative Factors

Box Office Performance

The box office results for Q1/25 came in notably lower than expected totalling $101.9M, compared to the original projection of $130.1M, ~65% of pre-pandemic levels.

Financial Estimates

Considering the Q1 box office returns, financial estimates for F2025 have been adjusted downward.

Cineplex Business Overview & Revenue Model

Company Description

Cineplex (CGX) is a leading entertainment and media company headquartered in Canada. It operates in several sectors, including film exhibition, digital commerce, and entertainment venues. The company is best known for its extensive chain of movie theaters across Canada, offering a variety of cinematic experiences ranging from the latest blockbuster films to specialized screenings. In addition to traditional movie theaters, Cineplex also provides digital commerce services through its online platforms and operates entertainment venues such as amusement centers and digital media solutions.

How the Company Makes Money

Cineplex makes money primarily through several key revenue streams. The primary source of revenue is its box office sales from moviegoers attending films at its theater locations. In addition to ticket sales, the company generates significant income through concessions sold at its theaters, such as popcorn, drinks, and other snacks. Cineplex also earns revenue from its digital commerce operations, which include video-on-demand services and the sale of digital content. Moreover, the company benefits from its amusement and leisure segment, which includes entertainment venues like The Rec Room and Playdium, offering various gaming and dining experiences. Advertising revenue from its in-theater and digital media networks is another important income stream. Strategic partnerships and collaborations with film studios and technology providers further enhance its revenue potential by providing exclusive content and innovative viewing experiences.

Cineplex Financial Statement Overview

Summary

Cineplex faces financial challenges with fluctuating revenues and negative profitability. The balance sheet is strained by high debt levels, leading to financial instability. Cash flow management shows resilience with positive operating cash flow, but overall, strategic financial management is needed to improve the company's financial health.

Income Statement

Cineplex has experienced fluctuating revenue with significant declines in net income and EBIT margins in recent years. The gross profit margin remains relatively stable, but the lack of EBIT in 2024 and negative net income highlight profitability challenges. The revenue growth rate shows volatility, reflecting industry pressures and economic conditions post-pandemic.

Balance Sheet

The company's balance sheet is strained by high debt levels, resulting in a negative equity position for multiple years. The debt-to-equity ratio is unfavorable, and negative stockholders' equity indicates financial instability. These factors suggest significant financial leverage and potential risks for stakeholders.

Cash Flow

Operating cash flow remains positive, but free cash flow has shown volatility, with some improvement in recent years. The free cash flow to net income ratio is challenging to evaluate due to negative net income. Despite these issues, the company maintains a positive cash flow from operations, indicating some resilience in cash management.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.33B	1.39B	1.27B	656.67M	418.26M
	Gross Profit
891.71M	926.91M	848.04M	439.81M	280.42M
	EBIT
0.00	149.19M	50.94M	-154.88M	-314.75M
	EBITDA
186.50M	320.15M	319.35M	107.12M	-350.57M
	Net Income Common Stockholders
-37.68M	167.16M	113.00K	-248.72M	-624.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
83.87M	36.67M	34.67M	26.94M	16.25M
	Total Assets
2.29B	2.27B	2.15B	2.11B	2.33B
	Total Debt
1.84B	1.90B	1.93B	1.84B	1.90B
	Net Debt
1.75B	1.86B	1.89B	1.82B	1.88B
	Total Liabilities
2.33B	2.31B	2.36B	2.33B	2.31B
	Stockholders Equity
-39.70M	-39.44M	-211.81M	-219.72M	24.23M
Cash Flow		Free Cash Flow
79.66M	145.68M	32.93M	28.18M	-188.73M
	Operating Cash Flow
162.01M	209.13M	107.15M	61.00M	-106.31M
	Investing Cash Flow
69.94M	-72.94M	-55.75M	40.45M	26.71M
	Financing Cash Flow
-185.10M	-134.34M	-43.35M	-91.13M	71.62M

Cineplex Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 9.15
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CGX, the sentiment is Negative. The current price of 9.15 is below the 20-day moving average (MA) of 9.61, below the 50-day MA of 10.30, and below the 200-day MA of 10.41, indicating a bearish trend. The MACD of -0.21 indicates Negative momentum. The RSI at 43.99 is Neutral, neither overbought nor oversold. The STOCH value of 74.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:CGX.

Cineplex Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RAY.A	64 Neutral	C$570.76M	―	-6.14%	3.87%	9.94%	-147.16%
Sector *	58 Neutral	$27.01B	3.11	-10.53%	4.44%	2.30%	-43.13%
CGX	48 Neutral	$583.53M	―	94.91%	―	-4.21%	-122.43%
BYL	39 Underperform	C$33.34M	―	275.12%	―	―	―

Cineplex Corporate Events

Cineplex Sees Record-Breaking Box Office Success with A Minecraft Movie

Cineplex reported box office revenues of $29.5 million for March 2025, with Disney’s Snow White and Mickey 17 leading the month’s box office. The company experienced a significant impact from the release of A Minecraft Movie in April, marking the biggest domestic debut of 2025 and the best in history for a video game adaptation. This success has already surpassed half of March’s total box office revenue within the first week of April. The strong performance of A Minecraft Movie and a promising lineup for Q2, including titles like Thunderbolts and Mission Impossible – The Final Reckoning, are expected to drive further audience engagement and revenue growth.

Spark’s Take on TSE:CGX Stock

According to Spark, TipRanks’ AI Analyst, TSE:CGX is a Neutral.

Cineplex’s overall stock score reflects significant financial challenges, particularly in profitability and high leverage. While recent earnings call data and corporate events indicate promising growth and strategic initiatives, the financial instability and negative technical indicators weigh heavily. Investors should be cautious due to these financial and technical challenges, despite some positive strategic developments.

To see Spark’s full report on TSE:CGX stock, click here.

Cineplex Achieves Strong February Box Office Growth

Cineplex reported February 2025 box office revenues of $34.9 million, a 124% increase compared to February 2024. The company’s international content strategy contributed significantly, with international films accounting for 24% of the month’s box office. Notably, ‘Ne Zha 2’ became the highest-grossing animated film globally, highlighting Cineplex’s strong market presence and strategic execution. This performance underscores Cineplex’s robust positioning in the entertainment industry and its ability to attract audiences despite challenging conditions, such as the heavy snowstorm during the release of ‘Captain America: Brave New World’.

Cineplex Reports Robust Q4 and Annual 2024 Results with Strategic Growth Initiatives

Cineplex reported a strong financial performance for the fourth quarter and full year 2024, with a 15.1% increase in revenues and a significant rise in net income compared to the previous year. The company achieved record-breaking box office figures, expanded its digital media network, and opened new entertainment venues, reinforcing its market position and commitment to shareholder value. With strategic initiatives like refinancing and divesting non-core assets, Cineplex is poised for future growth, driven by its diversified offerings and expanding media segment.

Cineplex Inc. to Announce Q4 and Year-End 2024 Financial Results

Cineplex Inc. announced that it will release its fourth quarter and year-end 2024 financial results on February 11, 2025, followed by an earnings webcast hosted by its CEO and CFO. This announcement is crucial for stakeholders as it provides insights into the company’s financial health and performance, potentially impacting its market position and investor confidence.

Cineplex Achieves Strong December Box Office Results with Record Performances

Cineplex reported strong box office revenues for December 2024, achieving $64.8 million, which is 125% of December 2023 figures and 86% of 2019 levels. The success was driven by high-performing films such as Wicked, Moana 2, and Sonic the Hedgehog 3, as well as an increase in premium experiences. The company’s international programming also outperformed North American peers, reflecting its diverse audience base. The performance indicates Cineplex’s robust recovery and strategic positioning to leverage varied content and release schedules in 2025.