Cineplex (CGX) AI Stock Analysis

• Market Cap: $702.77M
• Dividend Yield: N/A
• Average Volume (3M): 192.09K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.04
• Revenue Growth: -3.18%
• EPS Growth: -139.12%
• Country: CA
• Employees: 10,000
• Sector: Communication Services
• Sector Strength: 88
• Industry: Entertainment
• EPS (TTM): -0.58
• Shares Outstanding: 63,427,246
• 10 Day Avg. Volume: 147,681
• 30 Day Avg. Volume: 192,094
• PEG Ratio: -45.12
• Price to Book (P/B): -2.41
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 15.49
• 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: $13.59
• Price Target Upside: 19.81% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 61 Neutral
• Price Target: C$12.00 ▲(5.82%Upside)

Cineplex's overall score reflects significant financial challenges and valuation concerns, partially offset by positive technical momentum and strategic growth initiatives. The mixed earnings call suggests potential for recovery, but risks remain due to financial leverage and profitability issues.

Positive Factors

Earnings

Q1 revenues were 1% ahead of expectations.

Financial Prospects

Potential catalysts include the possibility of a dividend announcement and more meaningful share buybacks as the leverage ratio moderates.

Market Position

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

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.

Financial Performance

In terms of profitability, adj. EBITDAaL both missed expectations, primarily due to the lower box office attendance.

Revenue Challenges

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

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 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 faces financial challenges with volatile revenue, negative profit margins, and high leverage. Positive operational efficiency is noted from EBITDA margins and operational cash flow, but the negative equity and heavy debt reliance 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	1.30B	1.33B	1.39B	1.10B	656.67M	418.26M
Gross Profit	873.72M	891.71M	926.91M	724.29M	439.81M	280.42M
EBITDA	220.97M	186.50M	320.15M	294.67M	93.63M	-350.57M
Net Income	-79.46M	-37.68M	167.16M	113.00K	-248.72M	-628.95M
Balance Sheet
Total Assets	2.14B	2.29B	2.27B	2.15B	2.11B	2.33B
Cash, Cash Equivalents and Short-Term Investments	17.95M	83.87M	36.67M	34.67M	26.94M	16.25M
Total Debt	1.82B	1.84B	1.90B	1.93B	1.84B	1.90B
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: 11.34
• 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 TSE:CGX, the sentiment is Positive. The current price of 11.34 is below the 20-day moving average (MA) of 11.43, above the 50-day MA of 10.64, and above the 200-day MA of 10.72, indicating a neutral trend. The MACD of 0.13 indicates Positive momentum. The RSI at 54.35 is Neutral, neither overbought nor oversold. The STOCH value of 25.10 is Neutral, 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
CGX	61 Neutral	$702.77M	―	94.91%	―	-3.18%	-139.12%
Sector *	61 Neutral	$40.08B	-1.19	-13.44%	3.97%	2.29%	-73.14%
CJREF		$16.09M	―		―	―	―
WLDBF		$325.21M	―	-3581.90%	―	―	―
RAY.A	74 Outperform	C$674.20M	18.65	14.14%	4.15%	12.00%	―
CGO	74 Outperform	C$625.82M	7.21	10.38%	7.76%	0.06%	115.11%
RAY.B	73 Outperform	C$674.20M	18.44	14.14%	4.19%	12.00%	―

Cineplex Corporate Events

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.

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.