Cineplex (CGX) AI Stock Analysis

• Market Cap: C$616.26M
• Dividend Yield: N/A
• Average Volume (3M): 294.77K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.23
• 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: 63,002,834
• 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: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$12.51
• Price Target Upside: 32.19% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 43 Neutral
• Price Target: C$9.00 ▼(-4.86% 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

Free Cash Flow Growth

Sustained 27.22% TTM free cash flow growth signals improving core cash generation. That durable cash inflow supports deleveraging, targeted capital expenditure, and strategic uses like buybacks or capex for premium formats, reducing refinancing dependence over the medium term.

Premium Format Mix

A near-45% share of box office from premium formats raises average ticket revenue and margins over time. This structural product mix gives Cineplex pricing power and resilience: fewer patrons can generate outsized revenue, supporting margin sustainability and investment in differentiated experiences.

Strategic Asset Sale

The $70M sale of Cineplex Digital Media is a structural balance-sheet action that immediately increases liquidity. Proceeds earmarked for debt reduction or buybacks materially improve financial flexibility, lower leverage, and reduce refinancing risk over the coming quarters.

Negative Factors

High Leverage & Negative Equity

A negative equity base and a debt-to-equity ratio of -24.71 indicate elevated leverage and weakened solvency. This structural capital weakness raises interest and covenant risks, constrains strategic investment capacity, and makes recovery dependent on sustained cash generation or asset monetization.

Negative Profitability & Revenue Decline

A persistent negative net margin and declining revenues point to structural profitability challenges. Even with healthy gross and EBITDA margins, bottom-line losses reduce retained earnings and slow deleveraging, limiting the company's ability to fund growth or absorb cyclical film revenue variability.

Attendance & LBE Margin Pressure

A 9.1% attendance drop and weaker LBE same-store revenue with compressed margins suggest structural demand variability and margin pressure in growth areas. Reduced foot traffic and softer LBE economics hinder revenue scalability and slow the pace at which Cineplex can restore profitability.

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 faces challenges with profitability and high leverage, as indicated by negative net profit margins and a high debt-to-equity ratio. However, the company shows some operational efficiency and cash flow improvements. The entertainment industry context suggests potential for recovery, but financial stability remains a concern due to negative equity and reliance on debt.

Income Statement

Cineplex's income statement shows a mixed performance. The TTM (Trailing-Twelve-Months) data reveals a negative net profit margin of -4.35%, indicating ongoing profitability challenges. The revenue growth rate is negative at -3.37%, suggesting a decline in sales. However, the company has managed to maintain a reasonable gross profit margin of 59.06% and an EBITDA margin of 17.84%, reflecting some operational efficiency. The EBIT margin is modest at 5.25%, showing limited earnings before interest and taxes.

Balance Sheet

Cineplex's balance sheet indicates significant financial leverage with a high debt-to-equity ratio of -24.71 in the TTM period, which is concerning. The negative stockholders' equity suggests financial instability. Return on equity is positive at 105.11%, but this is due to the negative equity base rather than strong performance. The equity ratio is negative, highlighting the company's reliance on debt financing.

Cash Flow

The cash flow statement shows some positive trends. Free cash flow growth is strong at 27.22% in the TTM period, indicating improved cash generation. The operating cash flow to net income ratio is 0.32, suggesting that operating cash flows are covering net losses to some extent. The free cash flow to net income ratio is 0.54, showing that free cash flow is relatively healthy compared to net income.

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: 9.46
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: 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 9.46 is below the 20-day moving average (MA) of 10.23, below the 50-day MA of 10.81, and below the 200-day MA of 11.19, indicating a bearish trend. The MACD of -0.35 indicates Positive momentum. The RSI at 23.91 is Positive, neither overbought nor oversold. The STOCH value of 17.62 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RAY.A	79 Outperform	C$1.11B	21.28	19.09%	2.19%	12.69%	―
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
NTE	52 Neutral	C$2.09M	-15.94	-1.44%	―	-7.90%	93.35%
BAMI	46 Neutral	C$885.65M	-0.24	-38.53%	―	-59.51%	-545.36%
CGX	43 Neutral	C$616.26M	-17.51	―	―	18.50%	31.15%
WILD	41 Neutral	C$309.80M	-2.88	―	―	16.65%	1.41%
CJR.B	40 Underperform	C$6.98M	-0.02	―	―	-11.27%	57.50%

Cineplex Corporate Events

Cineplex to Seek Supreme Court Appeal After Losing Online Booking Fee Case

Cineplex said the Federal Court of Appeal has upheld the Competition Tribunal’s September 2024 ruling over the company’s presentation of its online booking fee, including a $39 million administrative monetary penalty. The company stated it disagrees with the decision, maintains that its online booking fee has always been clearly and prominently disclosed in compliance with the law, and announced it will seek leave to appeal the case to the Supreme Court of Canada, extending a high-profile legal battle with potential financial and reputational implications for the theatre operator and its digital pricing practices.

The most recent analyst rating on (TSE:CGX) stock is a Hold with a C$11.50 price target. To see the full list of analyst forecasts on Cineplex stock, see the TSE:CGX Stock Forecast page.

Cineplex Sets February 11 Webcast for Fourth-Quarter and Year-End 2025 Results

Cineplex Inc. will publish its fourth quarter and full-year 2025 financial results on February 11, 2026, followed by a webcast at 10:00 a.m. ET hosted by CEO Ellis Jacob and CFO Gord Nelson to review the company’s performance. The event, accessible via an online audio webcast with a subsequent archive, signals an upcoming update for investors and analysts on Cineplex’s operational and financial trajectory across its diversified entertainment and media platforms, with media invited to attend in listen-only mode.

The most recent analyst rating on (TSE:CGX) stock is a Hold with a C$11.50 price target. To see the full list of analyst forecasts on Cineplex stock, see the TSE:CGX Stock Forecast page.

Cineplex Ends 2025 with Record December Driven by Premium and International Content

Cineplex reported December 2025 box office revenue of $67.0 million, surpassing the prior year’s December performance and bringing its fourth-quarter box office to 95% of 2024 levels. The company attributed the strong finish to a varied film slate led by Avatar: Fire and Ash, robust demand for premium formats that generated about 90% of that title’s box office, and solid contributions from family and animated releases such as Zootopia 2.

International and alternative content continued to underpin Cineplex’s strategy and market differentiation, with Hindi-language title Dhurandhar becoming the highest-grossing Hindi film ever in North America and generating over 30% of its regional box office through Cineplex locations. Additional momentum came from sold-out theatrical screenings of the Stranger Things series finale and strong December performances from Cineplex Pictures releases The Housemaid and Jujutsu Kaisen: Execution, reinforcing the company’s emphasis on premium, event-style experiences and diverse programming as it heads into 2026 with a robust slate of upcoming releases.

The most recent analyst rating on (TSE:CGX) stock is a Hold with a C$10.50 price target. To see the full list of analyst forecasts on Cineplex stock, see the TSE:CGX Stock Forecast page.

Cineplex Reports Strong November Box Office and Anticipates Robust Q4 Finish

Cineplex reported box office revenues of $43.8 million for November 2025, with significant contributions from films like Predator: Badlands, Wicked: For Good, and Zootopia 2. Despite a slight decline compared to November 2024, the company saw strong audience engagement through its premium experiences. The upcoming release of Avatar: Fire and Ash and other anticipated films are expected to drive a strong finish to the fourth quarter, enhancing Cineplex’s market positioning and stakeholder value.

The most recent analyst rating on (TSE:CGX) stock is a Hold with a C$10.50 price target. To see the full list of analyst forecasts on Cineplex stock, see the TSE:CGX Stock Forecast page.

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.

The most recent analyst rating on (TSE:CGX) stock is a Buy with a C$14.00 price target. To see the full list of analyst forecasts on Cineplex stock, see the TSE:CGX Stock Forecast page.

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.

The most recent analyst rating on (TSE:CGX) stock is a Buy with a C$14.00 price target. To see the full list of analyst forecasts on Cineplex stock, see the TSE:CGX Stock Forecast page.