IMAX Corporation
IMAX Corporation Fundamental Analysis
IMAX Corporation (IMAX) shows moderate financial fundamentals with a PE ratio of 58.35, profit margin of 8.51%, and ROE of 10.67%. The company generates $0.4B in annual revenue with strong year-over-year growth of 16.47%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 56.4/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
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
ModerateIMAX shows balanced valuation metrics.
Growth Score
ExcellentIMAX delivers strong and consistent growth momentum.
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 58.35 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, IMAX's PEG of -5.32 indicates potential undervaluation.
Price to Book
The market values IMAX Corporation at 6.02 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 18.29 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 $8.51 as profit after all expenses.
Operating Margin
Core operations generate 22.56 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $10.67 in profit for every $100 of shareholder equity.
ROA
IMAX Corporation generates $3.90 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 $127.65M, reflecting robust business health.
Free Cash Flow
IMAX Corporation generates strong free cash flow of $119.48M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2.21 in free cash annually.
FCF Yield
IMAX converts 5.79% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
58.35
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-5.32
vs 25 benchmark
P/B Ratio
Price to book value ratio
6.02
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.00
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.88
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.67
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.11
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.13
vs 25 benchmark
How IMAX Stacks Against Its Sector Peers
| Metric | IMAX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 58.35 | 23.32 | Worse (Expensive) |
| ROE | 10.67% | 1104.00% | Weak |
| Net Margin | 8.51% | -55937.00% (disorted) | Weak |
| Debt/Equity | 0.88 | 1.38 | Strong (Low Leverage) |
| Current Ratio | 1.67 | 1.56 | Neutral |
| ROA | 3.90% | -45352.00% (disorted) | Weak |
IMAX outperforms its industry in 1 out of 6 key metrics, 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
230.69%
Industry Style: Growth, Technology, Streaming
High GrowthEPS CAGR
162.27%
Industry Style: Growth, Technology, Streaming
High GrowthFCF CAGR
709.87%
Industry Style: Growth, Technology, Streaming
High Growth