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

-1.3%

CGX

-2.2%

CA Entertainment

0.2%

CA Market


1 Year Return

-35.1%

CGX

-26.9%

CA Entertainment

2.4%

CA Market

Return vs Industry: CGX underperformed the Canadian Entertainment industry which returned -26.9% over the past year.

Return vs Market: CGX underperformed the Canadian Market which returned 2.4% over the past year.


Shareholder returns

CGXIndustryMarket
7 Day-1.3%-2.2%0.2%
30 Day-10.1%-6.8%-3.3%
90 Day-3.5%0.1%-1.8%
1 Year-30.5%-35.1%-22.8%-26.9%6.0%2.4%
3 Year-47.4%-55.0%-41.2%-49.4%14.2%4.0%
5 Year-31.6%-45.1%-29.3%-41.9%27.2%8.6%

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?

25.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CGX (CA$23.12) is trading below our estimate of fair value (CA$30.99)

Significantly Below Fair Value: CGX is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: CGX is good value based on its PE Ratio (29.6x) compared to the Entertainment industry average (41.3x).

PE vs Market: CGX is poor value based on its PE Ratio (29.6x) compared to the Canadian market (13.7x).


Price to Earnings Growth Ratio

PEG Ratio: CGX is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: CGX is overvalued based on its PB Ratio (2.3x) compared to the CA Entertainment industry average (1.1x).


Next Steps

  • Explore potentially undervalued companies in the Media industry.

Future Growth

How is Cineplex forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

60.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CGX's forecast earnings growth (60.4% per year) is above the savings rate (1.9%).

Earnings vs Market: CGX's earnings (60.4% per year) are forecast to grow faster than the Canadian market (12.9% per year).

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

Revenue vs Market: CGX's revenue (4.2% per year) is forecast to grow slower than the Canadian market (5.5% per year).

High Growth Revenue: CGX's revenue (4.2% per year) is forecast to grow slower than 20% 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 (9.5%).


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

Earnings Trend: CGX's earnings have declined by -6.9% 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 (-42.2%) over the past year, making it difficult to compare to the Entertainment industry average (5.8%).


Return on Equity

High ROE: CGX's Return on Equity (7.9%) is considered low.


Return on Assets

ROA vs Industry: CGX's Return on Assets is below or equal to the Entertainment industry average last year.


Return on Capital Employed

ROCE Improving: CGX's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Cineplex's financial position?


Financial Position Analysis

Short Term Liabilities: CGX's short term assets (CA$211.9M) do not cover its short term liabilities (CA$476.3M)

Long Term Liabilities: CGX's short term assets (211.9M) do not cover its long term liabilities (2.0B)


Debt to Equity History and Analysis

Debt Level: CGX's debt to equity ratio (105.4%) is considered high

Reducing Debt: CGX's debt to equity ratio has increased from 50.3% to 105.4% over the past 5 years.

Debt Coverage: CGX's debt is well covered by operating cash flow (38.5%).

Interest Coverage: CGX's interest payments on its debt are not well covered by EBIT (2.2x coverage).


Balance Sheet

Inventory Level: CGX has a high level of physical assets or inventory.

Debt Coverage by Assets: CGX's 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?

7.79%

Current Dividend Yield


Dividend Yield vs Market

company7.8%marketbottom25%2.0%markettop25%6.0%industryaverage1.3%forecastin3Years7.8%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: CGX's dividend (7.79%) is higher than the bottom 25% of dividend payers in the Canadian market (2.01%).

High Dividend: CGX's dividend (7.79%) is in the top 25% of dividend payers in the Canadian market (5.96%)

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 (223.8%), 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 (115.3% payout ratio).


Next Steps

Management

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

11.7yrs

Average management tenure


CEO

Ellis Jacob (65yo)

15.9yrs

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

Compensation vs. Market: Ellis's total compensation ($USD3.17M) is above average for companies of similar size in the Canadian market ($USD1.62M).

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


Management Age and Tenure

11.7yrs

Average Tenure

Experienced Management: CGX's management team is seasoned and experienced (11.7 years average tenure).


Board Age and Tenure

7.9yrs

Average Tenure

64yo

Average Age

Experienced Board: CGX's board of directors are considered experienced (7.9 years average tenure).


Insider Trading

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


Recent Insider Transactions

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$181,20005 Jun 19
Ellis Jacob
EntityIndividual
Role
Chief Executive Officer
President
Shares8,000
Max PriceCA$22.65
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: 15.9yrs
    • Compensation: CA$4.16m
  • Gord Nelson

    Chief Financial Officer

    • Tenure: 16.8yrs
    • Compensation: CA$1.10m
  • Dan McGrath

    Chief Operating Officer

    • Tenure: 8.6yrs
    • Compensation: CA$1.49m
  • Anne Fitzgerald

    Executive VP of Real Estate & Chief Legal Officer

    • Tenure: 1.8yrs
    • Compensation: CA$606.18k
  • Michael Kennedy

    Executive Vice President of Filmed Entertainment

    • Tenure: 14.8yrs
    • Compensation: CA$767.84k
  • George Sautter

    Senior Vice President of Corporate Development & Strategy

    • Tenure: 0yrs
  • Lori Legault

    Senior Vice President of Sales - Cineplex Media

    • Tenure: 0yrs
  • Melissa Pressacco

    Senior Manager of Communications & Investor Relations

    • Tenure: 0yrs
  • Shawn Mandel

    Chief Digital & Technology Officer

    • Tenure: 0.5yrs
  • Sarah Van Lange

    Executive Director of Communications

    • Tenure: 0yrs

Board Members

  • Ed Sonshine (72yo)

    Independent Director

    • Tenure: 9.7yrs
    • Compensation: CA$100.00k
  • Nadir Mohamed (62yo)

    Independent Director

    • Tenure: 2.4yrs
    • Compensation: CA$115.00k
  • Joan Dea (55yo)

    Independent Director

    • Tenure: 12.9yrs
    • Compensation: CA$100.00k
  • Donna Hayes (62yo)

    Independent Director

    • Tenure: 2.9yrs
    • Compensation: CA$100.00k
  • Rob Bruce (63yo)

    Independent Director

    • Tenure: 9.4yrs
    • Compensation: CA$100.00k
  • Sabi Marwah (68yo)

    Independent Director

    • Tenure: 9.9yrs
    • Compensation: CA$100.00k
  • Ian Greenberg (77yo)

    Chair of the Board

    • Tenure: 2.9yrs
    • Compensation: CA$175.00k
  • Ellis Jacob (65yo)

    President

    • Tenure: 15.9yrs
    • Compensation: CA$4.16m
  • Janice Fukakusa (65yo)

    Independent Director

    • Tenure: 2.4yrs
    • Compensation: CA$120.00k
  • Jordan Banks (50yo)

    Independent Director

    • Tenure: 6.4yrs
    • 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$1.464b
  • 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 Analysis2019/10/22 00:19
End of Day Share Price2019/10/21 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.