Cineplex (CGX) AI Stock Analysis

• Market Cap: $626.66M
• Dividend Yield: N/A
• Average Volume (3M): 288.23K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.04
• Revenue Growth: -4.21%
• EPS Growth: -122.43%
• Country: CA
• Employees: 10,000
• Sector: Communication Services
• Sector Strength: 84
• Industry: Entertainment
• EPS (TTM): 0.05
• Shares Outstanding: 63,427,074
• 10 Day Avg. Volume: 157,292
• 30 Day Avg. Volume: 288,226
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• 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: $13.27
• Price Target Upside: 32.34% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

Cineplex's stock score reflects its financial instability, with profitability and high leverage being significant concerns. While technical indicators show positive momentum, valuation remains a challenge due to negative earnings. Recent earnings call and corporate events provide optimism with strategic growth initiatives and strong box office performance. Overall, the stock presents a mixed outlook with caution advised due to financial and valuation concerns despite promising operational developments.

Positive Factors

Film Slate

Q2 could see better trends, led by Minecraft’s strong box office opening earlier this month, combined with a robust upcoming slate.

Market Dominance

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

Shareholder Returns

There is prospect of a dividend announcement late in 2025 or early 2026, and more meaningful share buy backs as the leverage ratio moderates.

Negative Factors

Attendance Levels

Attendance came in at 66.1% of pre-pandemic levels, and adjusted EBITDAal was lower than expected due to higher costs and small misses in higher-margin Cinema Media line.

Financial Performance

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

Industry Challenges

Longer term, there remains caution on the exhibition business given challenges at the studio level and the plethora of consumption options for consumers.

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 significant financial challenges, marked by fluctuating revenues, negative profitability, and high leverage. While cash flow management shows resilience, persistent negative equity and profitability issues pose significant risks.

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: Neutral
• Last Price: 10.03
• 50DMA: Positive
• 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 Neutral. The current price of 10.03 is above the 20-day moving average (MA) of 9.36, above the 50-day MA of 9.70, and below the 200-day MA of 10.52, indicating a neutral trend. The MACD of 0.09 indicates Negative momentum. The RSI at 55.45 is Neutral, neither overbought nor oversold. The STOCH value of 68.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:CGX.

Cineplex Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CGO	66 Neutral	C$608.27M	6.90	10.38%	5.64%	0.06%	115.11%
RAY.A	64 Neutral	C$594.91M	―	-6.14%	3.42%	9.94%	-147.16%
Sector *	60 Neutral	$13.74B	7.25	-2.74%	3.81%	2.21%	-37.97%
CGX	52 Neutral	$626.66M	―	94.91%	―	-4.21%	-122.43%
RAY.B	50 Neutral	C$594.91M	―	-6.14%	4.05%	9.94%	-147.16%

Cineplex Corporate Events

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.

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 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.