Cineplex (CGX) AI Stock Analysis

• Market Cap: $745.90M
• Dividend Yield: N/A
• Average Volume (3M): 198.41K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.10
• Revenue Growth: -3.18%
• EPS Growth: -139.12%
• Country: CA
• Employees: 10,000
• Sector: Communication Services
• Sector Strength: 83
• Industry: Entertainment
• EPS (TTM): -0.58
• Shares Outstanding: 63,427,074
• 10 Day Avg. Volume: 248,210
• 30 Day Avg. Volume: 198,411
• PEG Ratio: 0.08
• Price to Book (P/B): -8.94
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 40.62
• 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: $13.55
• Price Target Upside: 15.19% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 60 Neutral
• Price Target: C$11.00 ▼(-6.46%Downside)

Cineplex's overall stock score reflects a complex mix of financial challenges and technical strengths. The most significant factors are financial performance risks from high leverage and negative profitability. However, positive technical momentum and optimistic future guidance provide a counterbalance, highlighting potential growth opportunities.

Positive Factors

Market Position

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

Revenue Growth

Q1 revenues were 1% ahead of expectations.

Upcoming Movie 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.

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.

Economic Conditions

Economic slowdown is expected to reduce F25 same-store LBE revenues by ~3-5%.

Profitability Challenges

Rec Room same store revenue fell 8.1% due to a number of factors while profitability in the segment was negative.

Cineplex Business Overview & Revenue Model

Company Description

Cineplex Inc. (CGX) is a leading entertainment and media company in Canada, primarily known for its chain of movie theatres. It operates in several sectors, including film exhibition, media, amusement, and leisure, offering a diverse array of entertainment options. Cineplex's core services include movie screenings, live events, and gaming, while also providing food and beverage services at its locations. The company is headquartered in Toronto and is a major player in the Canadian entertainment industry.

How the Company Makes Money

Cineplex makes money through multiple revenue streams, with the primary source being box office sales from movie screenings. Additional significant revenue comes from concessions, where the company sells food and beverages to moviegoers. Cineplex also generates income from its media division by selling advertising space in its theatres and on its digital platforms. The amusement and leisure segment, which includes gaming and entertainment venues like The Rec Room and Playdium, contributes to the company's earnings. Lastly, Cineplex benefits from strategic partnerships and distribution agreements, enhancing its content offerings and driving additional revenue.

Cineplex Financial Statement Overview

Summary

Cineplex is facing financial challenges characterized by revenue volatility, negative profit margins, and high leverage. While operational efficiency is evident from EBITDA margins and positive cash flow from operations, the heavy reliance on debt and negative equity position pose significant risks. Future performance will depend on stabilizing revenue and improving profitability to ease financial leverage.

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
1.30B	1.33B	1.39B	1.27B	656.67M	418.26M
	Gross Profit
795.79M	891.71M	926.91M	848.04M	439.81M	280.42M
	EBIT
35.68M	87.93M	149.19M	50.94M	-154.88M	-314.75M
	EBITDA
214.27M	189.94M	320.15M	319.35M	107.12M	-350.57M
	Net Income Common Stockholders
-79.46M	-37.68M	167.16M	113.00K	-248.72M	-624.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
17.95M	83.87M	36.67M	34.67M	26.94M	16.25M
	Total Assets
2.14B	2.29B	2.27B	2.15B	2.11B	2.33B
	Total Debt
1.82B	1.84B	1.90B	1.93B	1.84B	1.90B
	Net Debt
1.80B	1.75B	1.86B	1.89B	1.82B	1.88B
	Total Liabilities
2.22B	2.33B	2.31B	2.36B	2.33B	2.31B
	Stockholders Equity
-74.14M	-39.70M	-39.44M	-211.81M	-219.72M	24.23M
Cash Flow		Free Cash Flow
16.32M	79.66M	145.68M	32.93M	28.18M	-188.73M
	Operating Cash Flow
100.46M	162.01M	209.13M	107.15M	61.00M	-106.31M
	Investing Cash Flow
-70.09M	69.94M	-72.94M	-55.75M	40.45M	26.71M
	Financing Cash Flow
-104.89M	-185.10M	-134.34M	-43.35M	-91.13M	71.62M

Cineplex Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 11.76
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CGX, the sentiment is Positive. The current price of 11.76 is above the 20-day moving average (MA) of 10.84, above the 50-day MA of 10.01, and above the 200-day MA of 10.67, indicating a bullish trend. The MACD of 0.52 indicates Negative momentum. The RSI at 67.46 is Neutral, neither overbought nor oversold. The STOCH value of 85.52 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:CGX.

Cineplex Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CGO	74 Outperform	C$630.35M	7.22	10.38%	5.49%	0.06%	115.11%
RAY.A	64 Neutral	C$578.17M	―	-6.14%	3.52%	9.94%	-147.16%
Sector *	61 Neutral	$14.20B	5.93	-4.31%	3.70%	2.75%	-35.73%
CGX	60 Neutral	$745.90M	―	94.91%	―	-3.18%	-139.12%
WILD	56 Neutral	C$454.35M	―	-3581.90%	―	8.40%	-137.80%
RAY.B	50 Neutral	C$578.17M	―	-6.14%	3.79%	9.94%	-147.16%
CJR.B	45 Neutral	$18.95M	―	175.81%	―	-14.72%	-99.07%

Cineplex Corporate Events

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.

Cineplex Reports Q1 2025 Financial Results Amid Revenue Decline and Optimistic Outlook

Cineplex reported its financial results for the first quarter of 2025, showing a decline in total revenues by 10.3% compared to the previous year, with a net loss from continuing operations of $36.6 million. Despite the softer performance in March, the company experienced growth in cinema media and digital media revenues, driven by increased advertising interest and the expansion of its digital out-of-home network. The company is optimistic about future growth due to a strong film slate and the resolution of industry strikes, which is expected to enhance shareholder value.

Cineplex Reports Q1 2025 Financial Results with Optimism for Future Growth

Cineplex reported its financial results for the first quarter of 2025, highlighting a revenue of $264.3 million despite a softer performance in March. The company entertained 8.4 million moviegoers and achieved a record concession per patron. Notably, cinema advertising saw a 38% increase in media revenues, and digital media revenue grew by 26.5%, driven by an expanded digital out-of-home network. The company also reported a record quarterly location-based entertainment revenue increase of 10.5%. Despite a net loss from continuing operations, Cineplex remains optimistic about future growth, buoyed by a strong film slate and industry momentum.

Cineplex to Announce Q1 2025 Earnings and Host Webcast

Cineplex Inc. has announced that it will release its first quarter 2025 financial results on May 9, 2025, followed by an earnings webcast hosted by its CEO and CFO. This announcement is significant for stakeholders as it provides insights into the company’s financial health and strategic direction in the competitive entertainment industry.

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.

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’.