Cineplex Inc. Fundamental Analysis (TSX: CGX.TO)
Cineplex Inc. (TSX: CGX.TO) shows moderate financial fundamentals with a PE ratio of -60.43, profit margin of -0.96%, and ROE of 14.84%. The company generates $1.4B in annual revenue with weak year-over-year growth of -3.43%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 222.6/100 based on profitability, valuation, growth, and balance sheet metrics. The A grade reflects excellent fundamentals and strong overall stability.
Fundamental Health Score
We analyze CGX.TO's fundamental strength across five key dimensions:
Efficiency Score
WeakCGX.TO struggles to generate sufficient returns from assets.
Valuation Score
ExcellentCGX.TO trades at attractive valuation levels.
Growth Score
WeakCGX.TO faces weak or negative growth trends.
Financial Health Score
ModerateCGX.TO shows balanced financial health with some risks.
Profitability Score
WeakCGX.TO struggles to sustain strong margins.
Key Financial Metrics
Is CGX.TO Expensive or Cheap?
P/E Ratio
CGX.TO trades at -60.43 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, CGX.TO's PEG of -0.39 indicates potential undervaluation.
Price to Book
The market values Cineplex Inc. at -8.52 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -2.93 times EBITDA. This is generally considered low.
How Well Does CGX.TO Make Money?
Net Profit Margin
For every $100 in sales, Cineplex Inc. keeps $-0.96 as profit after all expenses.
Operating Margin
Core operations generate 9.49 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $14.84 in profit for every $100 of shareholder equity.
ROA
Cineplex Inc. generates $-0.62 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Cineplex Inc. produces operating cash flow of $168.32M, showing steady but balanced cash generation.
Free Cash Flow
Cineplex Inc. produces free cash flow of $132.49M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $2.09 in free cash annually.
FCF Yield
CGX.TO converts 16.30% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-60.43
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.39
vs 25 benchmark
P/B Ratio
Price to book value ratio
-8.52
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.59
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-18.66
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.44
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.15
vs 25 benchmark
ROA
Return on assets percentage
-0.01
vs 25 benchmark
ROCE
Return on capital employed
0.08
vs 25 benchmark
How CGX.TO Stacks Against Its Sector Peers
| Metric | CGX.TO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -60.43 | 19.41 | Better (Cheaper) |
| ROE | 14.84% | 578.00% | Weak |
| Net Margin | -0.96% | 922.00% | Weak |
| Debt/Equity | -18.66 | -0.50 (disorted) | Distorted |
| Current Ratio | 0.44 | 1.90 | Weak Liquidity |
| ROA | -0.62% | 257.00% | Weak |
CGX.TO outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Cineplex Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
206.49%
Industry Style: Growth, Technology, Streaming
High GrowthEPS CAGR
94.09%
Industry Style: Growth, Technology, Streaming
High GrowthFCF CAGR
232.13%
Industry Style: Growth, Technology, Streaming
High Growth