Cineplex (CGX) AI Stock Analysis

• Market Cap: $673.10M
• Dividend Yield: N/A
• Average Volume (3M): 294.77K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.26
• Revenue Growth: 18.50%
• EPS Growth: 31.15%
• Country: CA
• Employees: 10,000
• Sector: Communication Services
• Sector Strength: 97
• Industry: Entertainment
• EPS (TTM): 0.02
• Shares Outstanding: 63,440,470
• 10 Day Avg. Volume: 312,350
• 30 Day Avg. Volume: 294,768
• PEG Ratio: 0.17
• Price to Book (P/B): -19.54
• Price to Sales (P/S): 0.58
• P/FCF Ratio: 9.74
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $13.39
• Price Target Upside: 26.16% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 43 Neutral
• Price Target: C$10.50 ▼(-1.04% Downside)

Cineplex's overall stock score reflects significant financial and technical challenges. The company's high leverage and negative profitability metrics weigh heavily on its financial performance score. Technical analysis indicates bearish momentum, further impacting the score. Valuation concerns, with a negative P/E ratio, also contribute to the low score. While the earnings call provided some positive insights, such as growth in premium experiences, these are not enough to offset the broader challenges.

Positive Factors

Premium Experiences Growth

The growth in premium experiences indicates a successful strategy in enhancing customer value and differentiating offerings, which can drive higher revenue per patron and improve long-term profitability.

Location-Based Entertainment Expansion

The expansion in location-based entertainment reflects a diversification strategy that can mitigate risks associated with traditional cinema operations and capture new revenue streams.

Strategic Asset Sale

The sale of Cineplex Digital Media provides liquidity to reduce debt and potentially fund share buybacks, improving financial flexibility and shareholder value.

Negative Factors

High Financial Leverage

Significant leverage poses a risk to financial stability, limiting the company's ability to invest in growth opportunities and withstand economic downturns.

Declining Attendance

A decline in attendance affects core revenue streams and suggests challenges in attracting audiences, which could impact long-term revenue growth.

Negative Profit Margins

Ongoing profitability challenges with negative margins indicate operational inefficiencies and pressure on financial performance, affecting long-term sustainability.

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 key streams. The primary source is box office sales from ticket purchases for films showcased in its theaters. Additionally, the company earns substantial income from concession sales, which include snacks, beverages, and merchandise sold at its cinema locations. Cineplex also benefits from its loyalty program, Scene, which drives repeat customer visits and encourages spending. Other revenue sources include advertising sales through Cineplex's digital media platforms and partnerships with film studios for promotional events. Furthermore, the company has expanded its revenue model to include alternative entertainment offerings, such as live events and esports tournaments, which attract diverse audiences and contribute to overall earnings.

Cineplex Financial Statement Overview

Summary

Cineplex's financial performance shows mixed results. While there is a strong gross profit margin of 67.21%, the negative net profit margin of -6.11% indicates profitability challenges. The balance sheet is concerning with a negative debt-to-equity ratio due to negative stockholders' equity, and cash flow shows improvement but remains insufficient to cover net losses.

Income Statement

Cineplex's income statement shows a mixed performance. The TTM (Trailing-Twelve-Months) gross profit margin is strong at 67.21%, indicating efficient cost management. However, the net profit margin is negative at -6.11%, reflecting ongoing profitability challenges. Revenue growth is positive at 6.5% TTM, showing recovery, but the EBIT and EBITDA margins are relatively low at 3.41% and 16.99%, respectively, suggesting limited operational efficiency.

Balance Sheet

The balance sheet reveals significant financial leverage with a concerning debt-to-equity ratio of -24.48 TTM, due to negative stockholders' equity. Return on equity is positive at 1.90% TTM, but this is primarily due to the negative equity base. The equity ratio is not calculable due to negative equity, indicating potential financial instability.

Cash Flow

Cineplex's cash flow statement shows improvement, with a substantial free cash flow growth rate of 412.08% TTM. The operating cash flow to net income ratio is 0.21, indicating some cash generation capability despite negative net income. The free cash flow to net income ratio is 0.16, suggesting some ability to cover net losses with free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.34B	1.33B	1.39B	1.10B	656.67M	418.26M
Gross Profit	753.19M	891.71M	926.91M	724.29M	439.81M	280.42M
EBITDA	265.42M	186.50M	321.96M	294.67M	93.63M	-350.57M
Net Income	-34.27M	-37.68M	167.16M	113.00K	-248.72M	-628.95M
Balance Sheet
Total Assets	2.17B	2.29B	2.27B	2.15B	2.11B	2.33B
Cash, Cash Equivalents and Short-Term Investments	38.65M	83.87M	36.67M	34.67M	26.94M	16.25M
Total Debt	1.81B	1.84B	1.90B	1.93B	1.84B	1.90B
Total Liabilities	2.24B	2.33B	2.31B	2.36B	2.33B	2.31B
Stockholders Equity	-72.88M	-39.70M	-39.44M	-211.81M	-219.72M	24.23M
Cash Flow
Free Cash Flow	106.31M	79.66M	145.68M	32.93M	28.18M	-188.73M
Operating Cash Flow	165.49M	162.01M	209.13M	107.15M	61.00M	-106.31M
Investing Cash Flow	-55.79M	69.94M	-72.94M	-55.75M	40.45M	26.71M
Financing Cash Flow	-102.98M	-185.10M	-134.34M	-43.35M	-91.13M	71.62M

Cineplex Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 10.61
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• 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 10.61 is below the 20-day moving average (MA) of 11.44, below the 50-day MA of 11.85, and below the 200-day MA of 11.07, indicating a bearish trend. The MACD of -0.37 indicates Positive momentum. The RSI at 29.11 is Positive, neither overbought nor oversold. The STOCH value of 24.43 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
RAY.A	79 Outperform	C$948.54M	18.29	19.09%	2.22%	12.69%	―
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
BAMI	54 Neutral	C$760.67M	-0.23	-38.53%	―	-59.51%	-545.36%
NTE	52 Neutral	C$1.52M	-11.59	-1.44%	―	-7.90%	93.35%
WILD	50 Neutral	C$418.72M	-4.06	―	―	16.65%	1.41%
CGX	43 Neutral	$673.10M	-19.64	―	―	18.50%	31.15%
CJR.B	40 Underperform	C$6.98M	-0.02	―	―	-11.27%	57.50%

Cineplex Corporate Events

Cineplex Sells Digital Media Division to Creative Realities

Cineplex has completed the sale of its digital place-based media division, Cineplex Digital Media, to Creative Realities, Inc. for $70 million. The transaction allows Cineplex to retain an exclusive advertising sales agency relationship for digital-out-of-home networks in Canada, potentially enhancing its market position and shareholder value.

Cineplex Reports Q3 2025 Results and Board Appointment

Cineplex Inc. reported its third-quarter financial results for 2025, showing a decline in adjusted EBITDAaL due to a 9.1% drop in attendance compared to the previous year. Despite this, premium experiences accounted for a substantial portion of box office revenue, and international films reached a record share. The company also announced the appointment of Kevin Johnson to its Board of Directors, highlighting his expertise in media and advertising as a strategic asset for advancing Cineplex’s priorities. The sale of Cineplex Digital Media is expected to enhance financial flexibility, allowing for strategic share repurchases and capital allocation towards corporate priorities.

Cineplex Sells Digital Media Division to Creative Realities for $70 Million

Cineplex Inc. has announced the sale of its digital place-based media division, Cineplex Digital Media (CDM), to Creative Realities Inc. for $70 million. This strategic divestment is expected to strengthen Cineplex’s balance sheet, allowing for share buybacks, debt reduction, and other corporate purposes. Cineplex will retain an exclusive advertising sales agency relationship with CDM for digital-out-of-home networks in Canada, ensuring continued influence in this sector. The transaction, which is subject to regulatory approvals, highlights Cineplex’s focus on unlocking shareholder value and optimizing its operations.

Cineplex Sells Digital Media Division to Creative Realities for $70 Million

Cineplex Inc. has announced the sale of its digital place-based media division, Cineplex Digital Media (CDM), to Creative Realities Inc. for $70 million. This strategic move is expected to strengthen Cineplex’s balance sheet, allowing for share buybacks, debt reduction, and other corporate purposes. Cineplex will retain its role as the exclusive advertising sales agent for CDM’s digital-out-of-home networks in Canada, ensuring continued involvement in this sector. The transaction, pending regulatory approvals, highlights Cineplex’s strategy to unlock shareholder value and maintain its market position.

Cineplex to Release Q3 2025 Financial Results and Host Webcast

Cineplex Inc. announced it will release its third quarter 2025 financial results on November 6, 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, potentially impacting its market positioning and investor confidence.

Cineplex’s September Box Office Surges with Record-Breaking Releases

Cineplex reported September 2025 box office revenues of $37.7 million, marking a 107% increase compared to the same month in 2024. The month saw significant milestones with ‘The Conjuring: Last Rites’ achieving the third-largest opening for a horror film and ‘Demon Slayer: Kimetsu no Yaiba – The Movie: Infinity Castle’ becoming the second highest-grossing foreign-language film in Cineplex’s history. These successes highlight the demand for diverse film content and reinforce Cineplex’s commitment to offering varied entertainment experiences. The strong performance in September and the successful launch of Taylor Swift’s event signal a promising start to the fourth quarter, emphasizing Cineplex’s focus on delivering memorable experiences to Canadian audiences.

Cineplex Achieves Milestones with September Box Office Success

Cineplex reported box office revenues of $37.7 million for September 2025, highlighting a 107% increase compared to September 2024. The month saw significant milestones with ‘The Conjuring: Last Rites’ achieving the third-largest opening for a horror film and ‘Demon Slayer: Kimetsu no Yaiba – The Movie: Infinity Castle’ becoming the highest-grossing entry in its franchise. These successes underscore the demand for diverse content and reinforce Cineplex’s commitment to delivering varied films to Canadian audiences, positioning the company for a strong fourth quarter.