Cineplex (CGX) AI Stock Analysis

• Market Cap: $631.92M
• Dividend Yield: N/A
• Average Volume (3M): 294.77K
• Price to Earnings (P/E): 453.2
• Beta (1Y): 1.18
• Revenue Growth: 18.50%
• EPS Growth: 31.15%
• Country: CA
• Employees: 10,000
• Sector: Communication Services
• Sector Strength: 97
• Industry: Entertainment
• EPS (TTM): -0.05
• Shares Outstanding: 63,002,834
• 10 Day Avg. Volume: 312,350
• 30 Day Avg. Volume: 294,768
• PEG Ratio: 10.60
• Price to Book (P/B): -8.42
• Price to Sales (P/S): 0.52
• P/FCF Ratio: 7.26
• Enterprise Value/Market Cap: 3.63
• Enterprise Value/Revenue: 1.75
• Enterprise Value/Gross Profit: 3.15
• Enterprise Value/Ebitda: 8.89
• 1Y Price Target: $11.31
• Price Target Upside: 12.80% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): 0.42
• Revenue Forecast (FY): $1.40B

• Rating: 47 Neutral
• Price Target: C$10.00 ▼(-0.30% Downside)
• Action: Reiterated Date: 03/13/26
• Date: Action: Reiterated 03/13/26

The score is held back primarily by elevated financial risk from very high leverage and negative equity, despite positive operating/free cash flow. Technicals are also weak with the stock trading below major moving averages. Valuation further detracts due to an extremely high P/E and no dividend yield provided.

Positive Factors

Cash generation

Consistent positive operating and free cash flow provides a durable internal funding source for working capital, maintenance capex and selective investments. Over 2–6 months this supports operations and debt service capacity even if earnings stay volatile, improving resilience.

Strong gross margins

Sustained high gross margins indicate strong underlying profitability on core offerings (ticketing, concessions, premium formats and F&B). This margin base delivers operating leverage and helps absorb cost swings, supporting medium-term margin sustainability if attendance stabilizes.

Diversified revenue streams

A multi-channel model (box office, concessions, advertising, premium formats and location-based entertainment) reduces reliance on any single film or season. Structural diversification helps stabilize receipts across cycles and supports cross-selling and pricing power over the medium term.

Negative Factors

Very high leverage

Elevated absolute debt increases refinancing and interest-rate risk and makes the company sensitive to cyclical attendance. High leverage limits strategic flexibility, raises fixed costs and can force conservative capital allocation, impairing long-term growth options.

Persistently negative shareholders' equity

Negative equity reduces the balance-sheet cushion for shocks, may constrain access to traditional equity capital and could trigger restrictive covenants. Structurally it heightens vulnerability to protracted downturns and limits M&A or reinvestment capacity.

Earnings volatility and recent net losses

Reversion to net losses and shrinking revenue after a rebound undermines sustainable profitability. This earnings volatility makes deleveraging harder, increases refinancing risk and weakens the ability to reliably fund growth or cushion bad slate cycles over the coming months.

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 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 other in-theatre food and drink), which are typically a major contributor to profitability due to higher margins relative to admissions; and (3) advertising and media revenues, including on-screen pre-show ads and other in-cinema marketing inventory sold to brands (commonly executed via cinema advertising networks and agency relationships). Additional revenue comes from (4) fees tied to premium experiences and ancillary theatre services, such as premium large-format screens and reserved seating where applicable, and (5) amusement/entertainment activities and location-based entertainment offerings operated by the company, which produce revenue from game play, attractions, and related food and beverage where offered. Other contributors can include (6) loyalty and membership programs (e.g., paid subscriptions or member benefits that drive recurring revenue and increased visit frequency), (7) online convenience fees and other service fees related to ticketing, and (8) venue rentals and corporate/group events hosted at theatres and entertainment locations. Key factors influencing earnings include film slate strength and attendance trends, the mix of premium formats (which can support higher ticket prices), concession attachment rates and pricing, advertising demand, and the performance of non-theatre entertainment concepts. Specific partnership names or contractual terms not publicly confirmed are null.

Cineplex Financial Statement Overview

Summary

Operating and free cash flow are positive (cash flow score 62) and gross margins are strong (~66–67%), but the balance sheet is a major risk with very high debt (~$1.79B) and persistently negative equity (balance sheet score 24). Net losses returned in 2024–2025 (income statement score 54), keeping overall financial quality constrained.

Income Statement

Revenue has stabilized but is drifting lower recently (down ~4% in 2025 after a slight decline in 2024), following a strong post-reopening rebound in 2022–2023. Profitability is mixed: gross margin is consistently strong (~66–67%), and operating profitability improved meaningfully in 2025 versus 2024 (higher operating and EBITDA margins), but the company swung from solid profitability in 2023 to net losses again in 2024–2025 (about -3% net margin). Overall, the core business shows decent operating leverage, but bottom-line results remain volatile and not yet consistently profitable.

Balance Sheet

Leverage remains the key weakness. Total debt is very high (~$1.79B in 2025) relative to the business size, and shareholders’ equity is negative across most recent years (negative in 2021–2025), which is a material balance-sheet risk and limits financial flexibility. While total assets are sizable (~$2.19B in 2025) and debt has edged down versus prior years, the capital structure is still stressed, making the company more sensitive to earnings volatility and refinancing conditions.

Cash Flow

Cash generation is a relative bright spot. Operating cash flow is positive and improving versus earlier years (about $141M in 2025), and free cash flow remains positive (about $92M in 2025), although it declined year-over-year in both 2024 and 2025. Importantly, cash flow is holding up better than reported earnings in the loss years, suggesting non-cash charges and/or working-capital support, but the pace of cash generation is not strong enough to fully offset the balance-sheet leverage risk.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.28B	1.33B	1.39B	1.10B	656.67M
Gross Profit	852.75M	891.71M	926.91M	724.29M	439.81M
EBITDA	251.85M	186.50M	321.96M	294.67M	93.63M
Net Income	-37.23M	-37.68M	167.16M	113.00K	-248.72M
Balance Sheet
Total Assets	2.19B	2.29B	2.27B	2.15B	2.11B
Cash, Cash Equivalents and Short-Term Investments	134.00M	83.87M	36.67M	34.67M	26.94M
Total Debt	1.79B	1.84B	1.90B	1.93B	1.84B
Total Liabilities	2.27B	2.33B	2.31B	2.36B	2.33B
Stockholders Equity	-79.49M	-39.70M	-39.44M	-211.81M	-219.72M
Cash Flow
Free Cash Flow	92.19M	79.66M	145.68M	32.93M	28.18M
Operating Cash Flow	140.78M	162.01M	209.13M	107.15M	61.00M
Investing Cash Flow	12.23M	69.94M	-72.94M	-55.75M	40.45M
Financing Cash Flow	-102.92M	-185.10M	-134.34M	-43.35M	-91.13M

Cineplex Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 10.03
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• 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 10.03 is below the 20-day moving average (MA) of 10.21, below the 50-day MA of 10.17, and below the 200-day MA of 11.20, indicating a bearish trend. The MACD of 0.06 indicates Positive momentum. The RSI at 46.14 is Neutral, neither overbought nor oversold. The STOCH value of 15.14 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
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
NTE	52 Neutral	C$1.52M	4.43	-1.44%	―	-7.90%	93.35%
CGX	47 Neutral	$631.92M	453.21	―	―	18.50%	31.15%
BAMI	46 Neutral	C$611.35M	-0.08	-38.53%	―	-59.51%	-545.36%
WILD	43 Neutral	$260.66M	-224.02	―	―	16.65%	1.41%
CJR.B	41 Neutral	C$6.98M	-0.16	―	―	-11.27%	57.50%

Cineplex Corporate Events

Cineplex February Box Office Nears 2025 Levels as Diverse Slate Offsets Lack of Blockbusters

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 international titles than a year earlier, performance was driven by original films such as Wuthering Heights, GOAT and Send Help, underscoring the importance of a deep and diversified slate.

The company highlighted the strong late-month debut of Scream 7, which delivered the highest opening weekend in the franchise’s history and boosted early March results, reinforcing the enduring draw of long-running series. Management also pointed to unconventional successes like independently funded Iron Lung and flagged a robust upcoming release calendar, including major animated and international titles, as a promising catalyst for audience traffic and box office momentum in the coming months.

The most recent analyst rating on (TSE:CGX) stock is a Sell with a C$9.00 price target. To see the full list of analyst forecasts on Cineplex stock, see the TSE:CGX Stock Forecast page.

Cineplex Narrows Loss, Sets Per-Patron Records and Refreshes Board as It Eyes Stronger 2026 Slate

Cineplex reported full-year 2025 revenue of $1.28 billion, modestly higher than a year earlier, while narrowing its net loss to $36.9 million as record box office and concession spending per patron helped offset softer attendance and the absence of mega-blockbuster titles. Premium formats and international films reached their highest-ever shares of box office receipts, cinema media revenue rose 13.1% with record media per patron, and the location-based entertainment segment improved profitability.

The company completed the $70 million sale of its Cineplex Digital Media unit, using proceeds in part to repurchase 636,602 shares under its normal course issuer bid and bolster balance sheet flexibility for debt reduction and future capital allocation. Cineplex also announced board changes, with long-serving director Robert Bruce retiring and former Scotiabank Group Head and CFO Sean McGuckin joining the board, a move expected to strengthen financial oversight and support long-term strategic planning ahead of a stronger 2026 film slate.

The most recent analyst rating on (TSE:CGX) stock is a Hold with a C$9.00 price target. To see the full list of analyst forecasts on Cineplex stock, see the TSE:CGX Stock Forecast page.

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.