TSX:CGX

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Average dividend payer and fair value.


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


Market Performance


7 Day Return

-4.6%

TSX:CGX

-0.1%

CA Entertainment

-0.9%

CA Market


1 Year Return

-25.7%

TSX:CGX

-21.5%

CA Entertainment

-6.1%

CA Market

CGX underperformed the Entertainment industry which returned -20.3% over the past year.

CGX underperformed the Market in Canada which returned -5% over the past year.


Share holder returns

CGXIndustryMarket
7 Day-4.6%-0.1%-0.9%
30 Day1.6%3.7%-3.9%
90 Day-1.9%1.5%-2.9%
1 Year-20.6%-25.7%-17.5%-21.5%-2.8%-6.1%
3 Year-44.8%-52.4%-37.8%-46.0%13.2%3.1%
5 Year-26.8%-40.7%-22.1%-35.6%10.8%-4.7%

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 based on future cash flows and its price relative to the stock market?

22%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Cineplex's share price is below the future cash flow value, and at a moderate discount (> 20%).

Cineplex's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Cineplex is good value based on earnings compared to the North America Entertainment industry average.

Cineplex is overvalued based on earnings compared to the Canada market.


Price Based on Expected Growth

Cineplex is good value based on expected growth next year.


Price Based on Value of Assets

Cineplex is overvalued based on assets compared to the CA Entertainment industry average.


Next Steps

Future Growth

How is Cineplex expected to perform in the next 1 to 3 years based on estimates from 9 analysts?

60.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Cineplex's revenue is expected to grow by 3.8% yearly, however this is not considered high growth (20% yearly).

Cineplex's earnings are expected to grow significantly at over 20% yearly.

Cineplex's revenue growth is positive but not above the Canada market average.

Cineplex's earnings growth is expected to exceed the Canada market average.

Cineplex's earnings growth is expected to exceed the low risk savings rate of 1.9%.


Earnings per Share Growth Estimates


Future Return on Equity

Cineplex is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Cineplex performed over the past 5 years?

-6.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Cineplex's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.

Cineplex's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Cineplex's 1-year earnings growth is negative, it can't be compared to the North America Entertainment industry average.


Return on Equity

Cineplex has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Cineplex used its assets less efficiently than the North America Entertainment industry average last year based on Return on Assets.


Return on Capital Employed

Cineplex's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Cineplex's financial position?


Financial Position Analysis

Cineplex's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Cineplex's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Cineplex's level of debt (105.4%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (50.3% vs 105.4% today).

Debt is well covered by operating cash flow (38.5%, greater than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 2.2x annual interest expense, ideally 3x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.3x debt.


Next Steps

Dividend

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

7.47%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase Cineplex before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

Cineplex's pays a higher dividend yield than the bottom 25% of dividend payers in Canada (1.99%).

Cineplex's dividend is above the markets top 25% of dividend payers in Canada (5.88%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are not well covered by earnings (0.4x coverage).


Future Payout to Shareholders

Dividends after 3 years are not well covered by earnings (0.8x coverage).


Next Steps

Management

What is the CEO of Cineplex's salary, the management and board of directors tenure and is there insider trading?

11.5yrs

Average management tenure


CEO

Ellis Jacob (65yo)

15.8yrs

Tenure

CA$4,158,879

Compensation

Mr. Ellis Jacob, CM, FCA, CMA, MBA, has been the Chief Executive Officer and President of Cineplex Inc. since November 2003. Mr. Jacob serves as the Chief Executive Officer and President of Cineplex Entert ...


CEO Compensation Analysis

Ellis's remuneration is higher than average for companies of similar size in Canada.

Ellis's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

11.5yrs

Average Tenure

The average tenure for the Cineplex management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

7.8yrs

Average Tenure

64yo

Average Age

The tenure for the Cineplex board of directors is about average.


Insider Trading

More shares have been bought than sold by Cineplex individual insiders in the past 3 months.


Recent Insider Transactions

BuyCA$181,20005 Jun 19
Ellis Jacob
EntityIndividual
Role
Chief Executive Officer
President
Shares8,000
Max PriceCA$22.65
BuyCA$28,72505 Jun 19
George Sautter
EntityIndividual
Role
Head of Corporate Development
Senior Vice President of Corporate Development & Strategy
Shares1,250
Max PriceCA$22.98
BuyCA$92,88005 Jun 19
Dan McGrath
EntityIndividual
Role
Chief Operating Officer
Chief Operating Officer
Shares4,000
Max PriceCA$23.22
BuyCA$50,91005 Jun 19
Fabrizio Stanghieri
EntityIndividual
Shares2,228
Max PriceCA$22.85
BuyCA$51,96028 Nov 18
Gord Nelson
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares2,000
Max PriceCA$25.98
BuyCA$102,60027 Nov 18
Dan McGrath
EntityIndividual
Role
Chief Operating Officer
Chief Operating Officer
Shares4,000
Max PriceCA$25.65

Ownership Breakdown


Management Team

  • Ellis Jacob (65yo)

    President

    • Tenure: 15.8yrs
    • Compensation: CA$4.16m
  • Gord Nelson

    Chief Financial Officer

    • Tenure: 16.6yrs
    • Compensation: CA$1.10m
  • Dan McGrath

    Chief Operating Officer

    • Tenure: 8.4yrs
    • Compensation: CA$1.49m
  • Anne Fitzgerald

    Executive VP of Real Estate & Chief Legal Officer

    • Tenure: 1.7yrs
    • Compensation: CA$606.18k
  • Michael Kennedy

    Executive Vice President of Filmed Entertainment

    • Tenure: 14.6yrs
    • Compensation: CA$767.84k
  • George Sautter

    Senior Vice President of Corporate Development & Strategy

    • Tenure: 0.0yrs
  • Lori Legault

    Senior Vice President of Sales - Cineplex Media

    • Tenure: 0.0yrs
  • Melissa Pressacco

    Senior Manager of Communications & Investor Relations

    • Tenure: 0.0yrs
  • Shawn Mandel

    Chief Digital & Technology Officer

    • Tenure: 0.3yrs
  • Sarah Van Lange

    Executive Director of Communications

    • Tenure: 0.0yrs

Board Members

  • Ed Sonshine (72yo)

    Independent Director

    • Tenure: 9.5yrs
    • Compensation: CA$100.00k
  • Nadir Mohamed (62yo)

    Director

    • Tenure: 2.3yrs
    • Compensation: CA$115.00k
  • Joan Dea (55yo)

    Independent Director

    • Tenure: 12.8yrs
    • Compensation: CA$100.00k
  • Donna Hayes (62yo)

    Independent Director

    • Tenure: 2.8yrs
    • Compensation: CA$100.00k
  • Rob Bruce (63yo)

    Independent Director

    • Tenure: 9.3yrs
    • Compensation: CA$100.00k
  • Sabi Marwah (68yo)

    Independent Director

    • Tenure: 9.8yrs
    • Compensation: CA$100.00k
  • Ian Greenberg (77yo)

    Chair of the Board

    • Tenure: 2.8yrs
    • Compensation: CA$175.00k
  • Ellis Jacob (65yo)

    President

    • Tenure: 15.8yrs
    • Compensation: CA$4.16m
  • Janice Fukakusa (65yo)

    Director

    • Tenure: 2.3yrs
    • Compensation: CA$120.00k
  • Jordan Banks (50yo)

    Independent Director

    • Tenure: 6.3yrs
    • Compensation: CA$100.00k

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$1.538b
  • 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 Amuseme ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/24 00:39
End of Day Share Price2019/08/23 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.