Cinemark Holdings, Inc.
Cinemark Holdings, Inc. Fundamental Analysis
Cinemark Holdings, Inc. (CNK) shows moderate financial fundamentals with a PE ratio of 22.40, profit margin of 4.42%, and ROE of 25.84%. The company generates $3.1B in annual revenue with weak year-over-year growth of -0.56%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 27.1/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze CNK's fundamental strength across five key dimensions:
Efficiency Score
WeakCNK struggles to generate sufficient returns from assets.
Valuation Score
ExcellentCNK trades at attractive valuation levels.
Growth Score
ModerateCNK shows steady but slowing expansion.
Financial Health Score
WeakCNK carries high financial risk with limited liquidity.
Profitability Score
ModerateCNK maintains healthy but balanced margins.
Key Financial Metrics
Is CNK Expensive or Cheap?
P/E Ratio
CNK trades at 22.40 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, CNK's PEG of -2.31 indicates potential undervaluation.
Price to Book
The market values Cinemark Holdings, Inc. at 7.61 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 4.56 times EBITDA. This is generally considered low.
How Well Does CNK Make Money?
Net Profit Margin
For every $100 in sales, Cinemark Holdings, Inc. keeps $4.42 as profit after all expenses.
Operating Margin
Core operations generate 11.02 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $25.84 in profit for every $100 of shareholder equity.
ROA
Cinemark Holdings, Inc. generates $3.10 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Cinemark Holdings, Inc. produces operating cash flow of $399.08M, showing steady but balanced cash generation.
Free Cash Flow
Cinemark Holdings, Inc. produces free cash flow of $178.53M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $1.52 in free cash annually.
FCF Yield
CNK converts 5.67% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
22.40
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-2.31
vs 25 benchmark
P/B Ratio
Price to book value ratio
7.61
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.00
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
2.77
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.41
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.26
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.10
vs 25 benchmark
How CNK Stacks Against Its Sector Peers
| Metric | CNK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 22.40 | 21.66 | Neutral |
| ROE | 25.84% | 1190.00% | Weak |
| Net Margin | 4.42% | -55754.00% (disorted) | Weak |
| Debt/Equity | 2.77 | 1.32 | Weak (High Leverage) |
| Current Ratio | 0.41 | 1.59 | Weak Liquidity |
| ROA | 3.10% | -202359.00% (disorted) | Weak |
CNK outperforms its industry in 0 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Cinemark Holdings, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-9.90%
Industry Style: Growth, Technology, Streaming
DecliningEPS CAGR
56.97%
Industry Style: Growth, Technology, Streaming
High GrowthFCF CAGR
-19.57%
Industry Style: Growth, Technology, Streaming
Declining