Cineplex (CGX) AI Stock Analysis

• Market Cap: C$681.35M
• Dividend Yield: N/A
• Average Volume (3M): 307.70K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.10
• Revenue Growth: 15.67%
• EPS Growth: -1396.85%
• Country: CA
• Employees: 10,000
• Sector: Communication Services
• Sector Strength: 86
• Industry: Entertainment
• EPS (TTM): -0.03
• Shares Outstanding: 63,440,470
• 10 Day Avg. Volume: 338,504
• 30 Day Avg. Volume: 307,697
• 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: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$12.86
• Price Target Upside: 21.50% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 51 Neutral
• Price Target: C$11.00 ▲(3.97% Upside)

Cineplex's overall stock score is driven by a positive earnings call that highlights recovery and growth, despite financial challenges such as high leverage and negative profitability. Technical indicators suggest neutral momentum, while valuation remains a concern due to negative earnings.

Positive Factors

Cost Savings

Cineplex initiated a restructuring program with an annualized savings target of ~$10mm.

Market Position

Cineplex is the dominant motion picture exhibitor in Canada with over three-quarters of the box office share.

Revenues

Q2 revenues were 1% ahead of expectations.

Negative Factors

Box Office Performance

Q3 box office momentum will slow as the volume of premium releases decelerate against tough comps.

Film Supply

Film supply remains well below pre-pandemic levels, but trends should improve over the medium-term.

Stock Recommendation

The recommendation has been lowered to HOLD from BUY due to limited upside to the target and sluggish returns in Media.

Cineplex Business Overview & Revenue Model

Company Description

Cineplex Inc., together with its subsidiaries, operates as an entertainment and media company in Canada and internationally. It operates through four segments: Film Entertainment and Content, Media, Amusement and Leisure, and Location-Based Entertainment. The company engages in theatre exhibition and theatre food service activities. It also provides alternative programming service; rents and sells movies in digital form; and operates cineplex.com, an entertainment site that offers streaming video, movie information, showtimes and ability to buy tickets online, entertainment news, and box office reports, as well as advertising and digital commerce opportunities. In addition, the company offers Cineplex mobile app for various devices; incorporates advertising mediums related to theatre exhibition, and digital place-based media that provides digital signage solutions; and designs, installs, maintains, and operates digital signage networks in various verticals, including digital out of home, quick service restaurants, financial institutions, and retailers. Further, it distributes and operates amusement, gaming, and vending equipment; and operates social entertainment destinations featuring gaming, entertainment, and dining under The Rec Room and Playdium names. As of December 31, 2021, the company owned, leased, or had interest in 1,652 screens in 160 theatres, as well as 13 location-based entertainment venues in 6 provinces. Cineplex Inc. was founded in 1912 and is headquartered in Toronto, Canada.

How the Company Makes Money

Cineplex generates revenue through multiple streams. The primary source is ticket sales from its movie theaters, which account for a significant portion of its earnings. Additionally, the company earns substantial income from concessions, including popcorn, beverages, and other snacks sold at its venues. Advertising revenue also plays a crucial role, as Cineplex operates cinema advertising through its Cineplex Media division, which sells advertising space before films and during intermissions. Furthermore, Cineplex has ventured into digital media and gaming, contributing additional revenue through its Cineplex Digital Media and gaming arcade offerings. Strategic partnerships with film studios and brands enhance its content offerings and promotional activities, further bolstering its revenue streams.

Cineplex Financial Statement Overview

Summary

Cineplex faces financial challenges with negative profit margins and high leverage. Despite operational efficiency indicated by a strong EBITDA margin and positive cash flow from operations, the negative equity and reliance on debt pose significant risks.

Income Statement

Cineplex's income statement shows mixed performance. The TTM (Trailing-Twelve-Months) gross profit margin is healthy at 61.21%, but the net profit margin is negative at -6.11% due to a net loss. Revenue growth has been volatile, with a decline in recent periods, indicating challenges in maintaining sales momentum. EBITDA margin is relatively strong at 16.48%, suggesting operational efficiency despite bottom-line losses.

Balance Sheet

The balance sheet indicates financial stress. The negative equity of $74.14 million reflects a highly leveraged position, with a debt-to-equity ratio being undefined due to negative equity. Return on Equity (ROE) is also not calculable for the same reason. The equity ratio is negative, highlighting significant dependence on debt financing, which poses a risk in periods of financial instability.

Cash Flow

Cash flow analysis shows some positive signs with a positive free cash flow and an operating cash flow to net income ratio of -1.26, indicating operational cash generation despite net losses. However, free cash flow growth has been inconsistent, and financing cash flow is negative, suggesting repayment of debt or reduction in financing activities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.38B	1.33B	1.39B	1.10B	656.67M	418.26M
Gross Profit	817.65M	891.71M	926.91M	724.29M	439.81M	280.42M
EBITDA	246.98M	186.50M	320.15M	294.67M	93.63M	-350.57M
Net Income	-60.22M	-37.68M	167.16M	113.00K	-248.72M	-628.95M
Balance Sheet
Total Assets	2.21B	2.29B	2.27B	2.15B	2.11B	2.33B
Cash, Cash Equivalents and Short-Term Investments	42.06M	83.87M	36.67M	34.67M	26.94M	16.25M
Total Debt	1.87B	1.84B	1.90B	1.93B	1.84B	1.90B
Total Liabilities	2.29B	2.33B	2.31B	2.36B	2.33B	2.31B
Stockholders Equity	-75.59M	-39.70M	-39.44M	-211.81M	-219.72M	24.23M
Cash Flow
Free Cash Flow	83.57M	79.66M	145.68M	32.93M	28.18M	-188.73M
Operating Cash Flow	155.25M	162.01M	209.13M	107.15M	61.00M	-106.31M
Investing Cash Flow	-64.67M	69.94M	-72.94M	-55.75M	40.45M	26.71M
Financing Cash Flow	-105.15M	-185.10M	-134.34M	-43.35M	-91.13M	71.62M

Cineplex Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 10.58
• 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 10.58 is below the 20-day moving average (MA) of 10.78, below the 50-day MA of 11.15, and below the 200-day MA of 10.83, indicating a bearish trend. The MACD of -0.16 indicates Negative momentum. The RSI at 41.74 is Neutral, neither overbought nor oversold. The STOCH value of 67.13 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
Sector *	60 Neutral	$42.79B	1.96	-13.01%	4.01%	1.89%	-41.77%
CGX	51 Neutral	C$681.35M	―	94.91%	―	15.67%	-1396.85%
CJREF	―	$13.65M	―		―	―	―
WLDBF	―	$269.36M	―	-3581.90%	―	―	―
RAY.B	73 Outperform	C$669.16M	15.52	17.21%	2.87%	10.68%	―
RAY.A	70 Outperform	C$669.16M	14.63	17.21%	3.04%	10.68%	―
CGO	57 Neutral	C$565.84M	6.36	10.54%	6.29%	-0.87%	9.49%

Cineplex Corporate Events

Cineplex Achieves Record Revenue Growth in Q2 2025

Cineplex reported a strong second quarter in 2025, with a 30.5% increase in total revenues to $361.8 million and a significant rise in theatre attendance by 32.7% compared to the previous year. The company set records in box office and concession revenues per patron, driven by premium experiences that accounted for 46.2% of total box office revenue. Despite broader market challenges, Cineplex’s media and digital media segments showed growth, with digital media revenues increasing by 17.8%. The company’s location-based entertainment segment also saw a 13% revenue increase due to new locations. This performance positions Cineplex for continued growth and value delivery to shareholders.

The most recent analyst rating on (TSE:CGX) stock is a Buy with a C$12.50 price target. To see the full list of analyst forecasts on Cineplex stock, see the TSE:CGX Stock Forecast page.

Cineplex Inc. to Release Q2 2025 Financial Results and Host Webcast

Cineplex Inc. announced it will release its second quarter 2025 financial results on August 12, 2025, followed by an earnings webcast hosted by CEO Ellis Jacob and CFO Gord Nelson. This announcement is significant for investors and stakeholders as it provides insights into the company’s financial performance and strategic direction, potentially impacting its market position and future operations.

The most recent analyst rating on (TSE:CGX) stock is a Buy with a C$12.50 price target. To see the full list of analyst forecasts on Cineplex stock, see the TSE:CGX Stock Forecast page.

Cineplex Achieves Strong Q2 Box Office Performance

Cineplex reported strong box office revenues of $51.8 million for June 2025, marking a standout second quarter with revenues exceeding $50 million each month for the first time since 2019. This growth was driven by a robust film slate and high consumer demand for premium formats, with notable performances from films like ‘How to Train Your Dragon’ and ‘F1: The Movie’. Looking forward, Cineplex anticipates continued momentum in Q3 with upcoming releases such as ‘Jurassic World: Rebirth’ and ‘Superman’.

The most recent analyst rating on (TSE:CGX) stock is a Buy with a C$12.50 price target. To see the full list of analyst forecasts on Cineplex stock, see the TSE:CGX Stock Forecast page.

Cineplex CEO Ellis Jacob to Retire at Year-End 2026

Cineplex announced that its long-time President and CEO, Ellis Jacob, will retire at the end of 2026. Jacob will continue to lead the company during the transition to new leadership. His leadership has been instrumental in building Cineplex into a top-tier entertainment company, and his departure marks a significant transition for the company. The board expressed gratitude for his contributions, and Jacob expressed pride in the company’s achievements and confidence in its future.

The most recent analyst rating on (TSE:CGX) stock is a Buy with a C$12.50 price target. To see the full list of analyst forecasts on Cineplex stock, see the TSE:CGX Stock Forecast page.

Cineplex Reports Strong Box Office Revenues for May 2025

Cineplex reported strong box office revenues of $55.3 million for May 2025, continuing the momentum from a record-breaking April. The success was driven by standout performances from films like Final Destination: Bloodlines, Lilo & Stitch, and Mission: Impossible – the Final Reckoning. The diverse film offerings have bolstered Cineplex’s position in the market, and the company anticipates continued strong performance with upcoming releases in June. This robust performance underscores Cineplex’s strategic positioning to meet sustained demand in the entertainment industry.

The most recent analyst rating on (TSE:CGX) stock is a Buy with a C$12.50 price target. To see the full list of analyst forecasts on Cineplex stock, see the TSE:CGX Stock Forecast page.

Cineplex Shareholders Approve All 2025 Meeting Proposals

Cineplex announced that all items of business at its 2025 Annual and Special Meeting of Shareholders were approved, including the election of directors, appointment of auditors, and an increase in shares for its Omnibus Equity Incentive Plan. These approvals reflect shareholder confidence and support for Cineplex’s strategic direction, potentially strengthening its position in the entertainment industry and impacting stakeholders positively.

The most recent analyst rating on (TSE:CGX) stock is a Buy with a C$12.50 price target. To see the full list of analyst forecasts on Cineplex stock, see the TSE:CGX Stock Forecast page.