IMAX Corporation
IMAX Corporation Fundamental Analysis
IMAX Corporation (IMAX) shows weak financial fundamentals with a PE ratio of 51.65, profit margin of 10.48%, and ROE of 12.47%. The company generates $0.4B in annual revenue with weak year-over-year growth of -6.04%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 38.7/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze IMAX's fundamental strength across five key dimensions:
Efficiency Score
WeakIMAX struggles to generate sufficient returns from assets.
Valuation Score
WeakIMAX trades at a premium to fair value.
Growth Score
WeakIMAX faces weak or negative growth trends.
Financial Health Score
ExcellentIMAX maintains a strong and stable balance sheet.
Profitability Score
WeakIMAX struggles to sustain strong margins.
Key Financial Metrics
Is IMAX Expensive or Cheap?
P/E Ratio
IMAX trades at 51.65 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, IMAX's PEG of 2.63 indicates potential overvaluation.
Price to Book
The market values IMAX Corporation at 5.84 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 18.18 times EBITDA. This signals the market has high growth expectations.
How Well Does IMAX Make Money?
Net Profit Margin
For every $100 in sales, IMAX Corporation keeps $10.48 as profit after all expenses.
Operating Margin
Core operations generate 18.46 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $12.47 in profit for every $100 of shareholder equity.
ROA
IMAX Corporation generates $4.45 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
IMAX Corporation generates strong operating cash flow of $109.20M, reflecting robust business health.
Free Cash Flow
IMAX Corporation generates strong free cash flow of $91.58M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.70 in free cash annually.
FCF Yield
IMAX converts 4.50% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
51.65
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.63
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.84
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.42
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.74
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.84
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.12
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.10
vs 25 benchmark
How IMAX Stacks Against Its Sector Peers
| Metric | IMAX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 51.65 | 21.66 | Worse (Expensive) |
| ROE | 12.47% | 1190.00% | Weak |
| Net Margin | 10.48% | -55754.00% (disorted) | Strong |
| Debt/Equity | 0.74 | 1.32 | Strong (Low Leverage) |
| Current Ratio | 1.84 | 1.59 | Neutral |
| ROA | 4.45% | -202359.00% (disorted) | Weak |
IMAX outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews IMAX Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
3.66%
Industry Style: Growth, Technology, Streaming
GrowingEPS CAGR
-35.25%
Industry Style: Growth, Technology, Streaming
DecliningFCF CAGR
-8.73%
Industry Style: Growth, Technology, Streaming
Declining