Cineplex (TSE:CGX)
TSX:CGX
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Cineplex
(TSX:CGX)
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Rating:52Neutral
Price Target:
C$11.00
▼(-8.94% Downside)
Action:Reiterated
Date:05/14/26
The score is held back mainly by balance-sheet risk (high leverage and negative equity) and ongoing net losses despite positive free cash flow. Earnings-call commentary is constructive on 2026 demand and liquidity, but technicals are neutral-to-soft and valuation support is limited due to losses and no stated dividend.
Positive Factors
Positive free cash flow
Cineplex produces positive trailing-twelve-month operating and free cash flow even while GAAP net income is negative. Durable FCF funds maintenance capex, opportunistic buybacks and debt reduction, providing management tangible leverage to improve liquidity and deleverage over several quarters.
Negative Factors
High leverage & negative equity
The balance sheet is structurally stretched with very large total debt and negative equity historically. This thin capital cushion elevates refinancing and covenant risk, increases cost of capital, and constrains the company's ability to invest or respond to a prolonged downturn despite operational cash generation.
Read all positive and negative factors
Positive Factors
Negative Factors
Positive free cash flow
Cineplex produces positive trailing-twelve-month operating and free cash flow even while GAAP net income is negative. Durable FCF funds maintenance capex, opportunistic buybacks and debt reduction, providing management tangible leverage to improve liquidity and deleverage over several quarters.
Read all positive factors
Cineplex (CGX) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$667.83M
Dividend YieldN/A
Average Volume (3M)294.77K
Price to Earnings (P/E)―
Beta (1Y)1.41
Revenue Growth2.81%
EPS Growth66.70%
CountryCA
Employees10,000
SectorCommunication Services
Sector Strength97
IndustryEntertainment
Share Statistics
EPS (TTM)-0.42
Shares Outstanding63,002,834
10 Day Avg. Volume312,350
30 Day Avg. Volume294,768
Financial Highlights & Ratios
PEG Ratio10.60
Price to Book (P/B)-8.42
Price to Sales (P/S)0.52
P/FCF Ratio7.26
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$13.13Price Target Upside8.65% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
EPS Forecast (FY)0.37
Revenue Forecast (FY)C$1.41B
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 Entert...
How the Company Makes Money
Cineplex primarily generates revenue from (1) box office admissions sold through its theatres, where it retains a portion of ticket sales under film rental arrangements with movie distributors; (2) food and beverage sales (concession items and oth...
Cineplex Earnings Call Summary
Earnings Call Date:Feb 11, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Aug 06, 2026
Earnings Call Sentiment Positive
The call highlighted several operational strengths — record per-patron metrics, strong premium mix and robust growth in Cinema Media, along with a strategic $60 million divestiture that strengthened liquidity. Full-year revenue and adjusted EBITDAaL edged higher, and management is optimistic about a materially stronger 2026 film slate and industry box office recovery. However, material near-term challenges remain: attendance declined notably in Q4 (-8.9%), film-segment EBITDA compressed significantly, October was the weakest since 2020, same-store LBE revenue fell, and there is ongoing legal uncertainty around a $39 million booking fee penalty (already accrued). Overall, positive momentum around pricing, mix, media monetization and balance sheet flexibility outweighs the operational headwinds and cyclicality in content, supporting a constructive outlook.Positive Updates
Record Per-Patron Metrics
Q4 delivered the highest quarterly box office per patron (BPP) in company history at $13.87, up 4.6% year-over-year, and a Q4 record for concession per patron (CPP) at $9.92, up 5.4% year-over-year.
Negative Updates
Attendance Decline and Box Office Pressure
Q4 attendance fell 8.9% year-over-year to 10.1 million guests, contributing to a 4.7% decline in Q4 box office revenue for the Film Entertainment & Content segment to $140.7 million.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Per-Patron Metrics
Q4 delivered the highest quarterly box office per patron (BPP) in company history at $13.87, up 4.6% year-over-year, and a Q4 record for concession per patron (CPP) at $9.92, up 5.4% year-over-year.
Read all positive updates
Company Guidance
Cineplex guided 2026 net capital expenditures of $50 million and said it expects a materially stronger film slate next year (industry box office forecasts of +8–15% vs 2025) that should drive higher box office, attendance and improved EBITDAaL versus 2025’s adjusted EBITDAaL of $91.6 million; capital-allocation priorities remain maintenance CapEx, reaching target leverage, shareholder returns (buybacks/dividends) and selective growth. Management has $134 million cash, no draw on its $100 million credit facility, received roughly $60 million initial proceeds from the sale of Cineplex Digital Media (to be used for debt reduction, opportunistic buybacks or other corporate purposes), and has repurchased about $7 million in Q4 plus $5 million in January (≈$12 million of a ~ $17.5 million buyback capacity). They expect a modest net theater count decline of 2–3 locations, reiterated the previously accrued $39 million administrative penalty (seeking leave to appeal), and signaled that stronger 2026 box office should translate into higher company EBITDAaL.Cineplex Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
28
Negative
Cash Flow
71
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.34B | 1.28B | 1.33B | 1.39B | 1.10B | 656.67M |
| Gross Profit | 702.97M | 852.75M | 891.71M | 926.91M | 724.29M | 439.81M |
| EBITDA | 276.18M | 251.85M | 186.50M | 321.96M | 294.67M | 93.63M |
| Net Income | -23.01M | -37.23M | -37.68M | 167.16M | 113.00K | -248.72M |
Balance Sheet | ||||||
| Total Assets | 2.06B | 2.19B | 2.29B | 2.27B | 2.15B | 2.11B |
| Cash, Cash Equivalents and Short-Term Investments | 77.85M | 134.00M | 83.87M | 36.67M | 34.67M | 26.94M |
| Total Debt | 1.77B | 1.79B | 1.84B | 1.90B | 1.93B | 1.84B |
| Total Liabilities | 2.16B | 2.27B | 2.33B | 2.31B | 2.36B | 2.33B |
| Stockholders Equity | -104.03M | -79.49M | -39.70M | -39.44M | -211.81M | -219.72M |
Cash Flow | ||||||
| Free Cash Flow | 112.31M | 92.19M | 79.66M | 145.68M | 32.93M | 28.18M |
| Operating Cash Flow | 148.68M | 140.78M | 162.01M | 209.13M | 107.15M | 61.00M |
| Investing Cash Flow | 17.86M | 12.23M | 69.94M | -72.94M | -55.75M | 40.45M |
| Financing Cash Flow | -106.67M | -102.92M | -185.10M | -134.34M | -43.35M | -91.13M |
Cineplex Technical Analysis
Negative
12.08
Price Trends
10.80
Negative
10.50
Positive
11.08
Negative
Market Momentum
-0.04
Positive
42.07
Neutral
13.30
Positive
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 12.08 is above the 20-day moving average (MA) of 11.24, above the 50-day MA of 10.80, and above the 200-day MA of 11.08, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 42.07 is Neutral, neither overbought nor oversold. The STOCH value of 13.30 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:CGX.
Cineplex Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
52 Neutral | C$667.83M | -7.43 | 27.72% | ― | 2.81% | 66.70% | |
51 Neutral | C$266.81M | 0.17 | -3531.06% | ― | -14.24% | ― | |
49 Neutral | C$948.74K | -0.46 | -1.44% | ― | -40.44% | 34.33% | |
46 Neutral | C$613.37M | -0.17 | -72.77% | ― | -59.51% | -545.36% | |
42 Neutral | C$6.98M | -0.29 | ― | ― | -14.27% | 64.07% |
* Communication Services Sector Average
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Cineplex Corporate Events
Business Operations and StrategyFinancial Disclosures
Cineplex Delivers Best First-Quarter Box Office Since 2019 on Premium and International Hits
Positive
Apr 10, 2026
Cineplex reported March 2026 box office revenues of $52.4 million, helping drive first-quarter box office up 25% year over year to the company’s strongest Q1 performance since 2019. The company continues to leverage premium formats and a bro...
Business Operations and StrategyFinancial Disclosures
Cineplex Sets Date for First-Quarter 2026 Results and Investor Webcast
Neutral
Apr 8, 2026
Cineplex Inc., a diversified Canadian entertainment company spanning film exhibition, amusement venues, and media operations, continues to build on its national footprint through 171 theatres and related attractions. Its portfolio includes branded...
Business Operations and StrategyPrivate Placements and Financing
Cineplex Extends Covenant-Lite Credit Facility, Bolstering Liquidity
Positive
Mar 19, 2026
Cineplex Inc. has extended the maturity of its $100 million covenant-lite revolving bank credit facility, pushing the term out from March 2027 to as late as March 2029, depending on the status of its 7.625% senior secured notes. The amendment also...
Business Operations and StrategyFinancial Disclosures
Cineplex February Box Office Nears 2025 Levels as Diverse Slate Offsets Lack of Blockbusters
Positive
Mar 11, 2026
Cineplex reported February 2026 box office revenue of $32.4 million, or 93% of the prior year’s February, bringing first-quarter box office to date to 104% of 2025 levels. With no blockbuster releases and weaker contributions from internatio...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.