TSX:CGX

Stock Analysis Report

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Executive Summary

Cineplex Inc., through its subsidiaries, operates as an entertainment and media company in Canada and internationally.


Snowflake Analysis

Average dividend payer and slightly overvalued.


Similar Companies

Share Price & News

How has Cineplex's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CGX's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

25.9%

CGX

11.4%

CA Entertainment

3.4%

CA Market


1 Year Return

-36.5%

CGX

-35.5%

CA Entertainment

-11.0%

CA Market

Return vs Industry: CGX underperformed the Canadian Entertainment industry which returned -35.5% over the past year.

Return vs Market: CGX underperformed the Canadian Market which returned -11% over the past year.


Shareholder returns

CGXIndustryMarket
7 Day25.9%11.4%3.4%
30 Day-5.1%7.2%2.2%
90 Day-55.1%-47.6%-7.8%
1 Year-33.5%-36.5%-33.3%-35.5%-7.9%-11.0%
3 Year-66.1%-71.0%-63.1%-68.3%0.1%-9.2%
5 Year-62.8%-70.2%-62.6%-69.3%15.3%-1.9%

Price Volatility Vs. Market

How volatile is Cineplex's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Cineplex undervalued compared to its fair value and its price relative to the market?

47.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CGX (CA$14.82) is trading below our estimate of fair value (CA$28.19)

Significantly Below Fair Value: CGX is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: CGX is poor value based on its PE Ratio (25.7x) compared to the Entertainment industry average (22.8x).

PE vs Market: CGX is poor value based on its PE Ratio (25.7x) compared to the Canadian market (12.7x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate CGX's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: CGX is overvalued based on its PB Ratio (1.6x) compared to the CA Entertainment industry average (1.4x).


Next Steps

Future Growth

How is Cineplex forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

-11.1%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if CGX's forecast earnings growth is above the savings rate (1.7%).

Earnings vs Market: Insufficient data to determine if CGX's earnings are forecast to grow faster than the Canadian market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: CGX's revenue is expected to decline over the next 3 years (-11.1% per year).

High Growth Revenue: CGX's revenue is forecast to decline over the next 3 years (-11.1% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CGX's Return on Equity is forecast to be low in 3 years time (10.9%).


Next Steps

Past Performance

How has Cineplex performed over the past 5 years?

-13.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CGX has high quality earnings.

Growing Profit Margin: CGX's current net profit margins (2.2%) are lower than last year (5.3%).


Past Earnings Growth Analysis

Earnings Trend: CGX's earnings have declined by -13.5% per year over the past 5 years.

Accelerating Growth: CGX's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CGX had negative earnings growth (-57.3%) over the past year, making it difficult to compare to the Entertainment industry average (14.6%).


Return on Equity

High ROE: CGX's Return on Equity (6.2%) is considered low.


Next Steps

Financial Health

How is Cineplex's financial position?


Financial Position Analysis

Short Term Liabilities: CGX's short term assets (CA$256.7M) do not cover its short term liabilities (CA$590.6M).

Long Term Liabilities: CGX's short term assets (CA$256.7M) do not cover its long term liabilities (CA$1.9B).


Debt to Equity History and Analysis

Debt Level: CGX's debt to equity ratio (107.9%) is considered high.

Reducing Debt: CGX's debt to equity ratio has increased from 45.4% to 107.9% over the past 5 years.

Debt Coverage: CGX's debt is well covered by operating cash flow (50.5%).

Interest Coverage: CGX's interest payments on its debt are not well covered by EBIT (1.6x coverage).


Balance Sheet


Next Steps

Dividend

What is Cineplex's current dividend yield, its reliability and sustainability?

12.15%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CGX's dividend (12.15%) is higher than the bottom 25% of dividend payers in the Canadian market (2.04%).

High Dividend: CGX's dividend (12.15%) is in the top 25% of dividend payers in the Canadian market (6.37%)


Stability and Growth of Payments

Stable Dividend: CGX's dividends per share have been stable in the past 10 years.

Growing Dividend: CGX's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (308.5%), CGX's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CGX's dividends in 3 years are not forecast to be well covered by earnings (204.5% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

12.3yrs

Average management tenure


CEO

Ellis Jacob (65yo)

16.5yrs

Tenure

CA$4,158,879

Compensation

Mr. Ellis Jacob, CM, FCA, CMA, MBA, serves as Independent Director at Rogers Communications Inc. since April 22, 2020. He has been the Chief Executive Officer and President of Cineplex Inc. since November  ...


CEO Compensation Analysis

Compensation vs Market: Ellis's total compensation ($USD3.02M) is above average for companies of similar size in the Canadian market ($USD1.76M).

Compensation vs Earnings: Ellis's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Ellis Jacob
President16.5yrsCA$4.16m0.17% CA$1.6m
Gord Nelson
Chief Financial Officer17.33yrsCA$1.10m0.13% CA$1.2m
Dan McGrath
Chief Operating Officer9.17yrsCA$1.49m0.11% CA$1.1m
Anne Fitzgerald
Executive VP of Real Estate & Chief Legal Officer2.42yrsCA$606.18k0.027% CA$257.1k
Michael Kennedy
Executive Vice President of Filmed Entertainment15.33yrsCA$767.84k0.019% CA$179.7k
Shawn Mandel
Chief Digital & Technology Officer1.08yrsno datano data
Melissa Pressacco
Senior Manager of Communications & Investor Relationsno datano datano data
Sarah Van Lange
Executive Director of Communicationsno datano datano data
George Sautter
Executive Vice President of Corporate Development & Strategyno datano data0.012% CA$110.0k
Lorraine Legault
Senior Vice President of Sales - Cineplex Mediano datano datano data

12.3yrs

Average Tenure

Experienced Management: CGX's management team is seasoned and experienced (12.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Ellis Jacob
President16.5yrsCA$4.16m0.17% CA$1.6m
Nadir Mohamed
Independent Director3yrsCA$115.00kno data
Joan Dea
Independent Director13.5yrsCA$100.00kno data
Donna Hayes
Independent Director3.5yrsCA$100.00k0.00087% CA$8.2k
Robert Bruce
Independent Director10yrsCA$100.00k0.0040% CA$37.1k
Sarabjit Marwah
Independent Director10.5yrsCA$100.00k0.016% CA$148.2k
Ian Greenberg
Independent Chairman of the Board3.5yrsCA$175.00kno data
Janice Fukakusa
Independent Director3yrsCA$120.00kno data
Jordan Banks
Independent Director7yrsCA$100.00k0.014% CA$133.4k

7.0yrs

Average Tenure

63yo

Average Age

Experienced Board: CGX's board of directors are considered experienced (7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Cineplex Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Cineplex Inc.
  • Ticker: CGX
  • Exchange: TSX
  • Founded: 2003
  • Industry: Movies and Entertainment
  • Sector: Media
  • Market Cap: CA$938.599m
  • Shares outstanding: 63.33m
  • Website: https://www.cineplex.com

Number of Employees


Location

  • Cineplex Inc.
  • 1303 Yonge Street
  • Toronto
  • Ontario
  • M4T 2Y9
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CGXTSX (The Toronto Stock Exchange)YesCommon SharesCACADApr 2007
CX0DB (Deutsche Boerse AG)YesCommon SharesDEEURApr 2007
CPXG.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDApr 2007

Biography

Cineplex Inc., through its subsidiaries, operates as an entertainment and media company in Canada and internationally. It operates through three segments: Film Entertainment and Content, Media, and Amusement and Leisure. The Film Entertainment and Content segment operates film theatres; and provides food and in-theatre amusement services, as well as rents theatres and digital commerce. The Media segment provides in-theatre advertising services; and designs, installs, and operates digital signage networks, as well as offers advertising on networks. The Amusement and Leisure segment operates and distributes amusement, gaming, and vending equipment; and operates social entertainment destinations comprising gaming, entertainment, and dining facilities, as well as facilitates tournaments, leagues, and gaming ladders for the competitive gaming community. The company operates theatres under the Cineplex Odeon, SilverCity, Galaxy Cinemas, Scotiabank Theatres, Cineplex Cinemas, Cineplex VIP Cinemas, Famous Players, and Cinema City brands. As of December 31, 2019, it operated 165 theatres in Canada. Cineplex Inc. was founded in 2003 and is headquartered in Toronto, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/29 06:51
End of Day Share Price2020/05/28 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.