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. More Details


Snowflake Analysis

Limited growth and 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

3.3%

CGX

5.9%

CA Entertainment

1.0%

CA Market


1 Year Return

-67.3%

CGX

-50.3%

CA Entertainment

-5.7%

CA Market

Return vs Industry: CGX underperformed the Canadian Entertainment industry which returned -50.4% over the past year.

Return vs Market: CGX underperformed the Canadian Market which returned -8% over the past year.


Shareholder returns

CGXIndustryMarket
7 Day3.3%5.9%1.0%
30 Day-21.4%-5.0%-2.6%
90 Day-1.2%2.0%5.5%
1 Year-66.6%-67.3%-49.7%-50.3%-2.4%-5.7%
3 Year-76.6%-79.8%-64.0%-68.5%7.3%-3.0%
5 Year-79.6%-83.4%-69.2%-74.6%37.4%16.3%

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?

1.61x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: CGX (CA$7.94) is trading above our estimate of fair value (CA$5.04)

Significantly Below Fair Value: CGX is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: CGX is unprofitable, so we can't compare its PE Ratio to the XN Entertainment industry average.

PE vs Market: CGX is unprofitable, so we can't compare its PE Ratio to the Canadian market.


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 good value based on its PB Ratio (1.6x) compared to the CA Entertainment industry average (3.1x).


Next Steps

Future Growth

How is Cineplex forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

67.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CGX is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: CGX is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: CGX is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: CGX's revenue (31.1% per year) is forecast to grow faster than the Canadian market (5.2% per year).

High Growth Revenue: CGX's revenue (31.1% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CGX is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has Cineplex performed over the past 5 years?

-40.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CGX is currently unprofitable.

Growing Profit Margin: CGX is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: CGX is unprofitable, and losses have increased over the past 5 years at a rate of 40.2% per year.

Accelerating Growth: Unable to compare CGX's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: CGX is unprofitable, making it difficult to compare its past year earnings growth to the Entertainment industry (58.5%).


Return on Equity

High ROE: CGX has a negative Return on Equity (-81.1%), as it is currently unprofitable.


Next Steps

Financial Health

How is Cineplex's financial position?


Financial Position Analysis

Short Term Liabilities: CGX's short term assets (CA$110.9M) do not cover its short term liabilities (CA$1.2B).

Long Term Liabilities: CGX's short term assets (CA$110.9M) do not cover its long term liabilities (CA$1.2B).


Debt to Equity History and Analysis

Debt Level: CGX's debt to equity ratio (220.7%) is considered high.

Reducing Debt: CGX's debt to equity ratio has increased from 53.7% to 220.7% over the past 5 years.

Debt Coverage: CGX's debt is well covered by operating cash flow (35.4%).

Interest Coverage: Insufficient data to determine if CGX's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

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

1.35%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate CGX's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate CGX's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if CGX's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if CGX's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: CGX is not paying a notable dividend for the Canadian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CGX's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

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

9.5yrs

Average management tenure


CEO

Ellis Jacob (66 yo)

16.83yrs

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 ($USD0.00) is below average for companies of similar size in the Canadian market ($USD840.33K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Ellis Jacob
President16.83yrsCA$4.16m0.17%
CA$ 838.1k
Gord Nelson
Chief Financial Officer17.67yrsCA$1.10m0.13%
CA$ 653.7k
Dan McGrath
Chief Operating Officer9.5yrsCA$1.49m0.11%
CA$ 553.8k
Anne Fitzgerald
Executive VP of Real Estate & Chief Legal Officer2.75yrsCA$606.18k0.027%
CA$ 134.6k
Michael Kennedy
Executive Vice President of Filmed Entertainment15.67yrsCA$767.84k0.019%
CA$ 94.1k
Shawn Mandel
Chief Digital & Technology Officer1.42yrsno 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$ 57.6k
Lorraine Legault
Senior Vice President of Sales - Cineplex Mediano datano datano data
Cindy Bush
Chief Human Resources Officer2.67yrsno data0.0043%
CA$ 21.2k
Susan Mandryk
Executive Vice Presidentno datano data0.027%
CA$ 132.4k

9.5yrs

Average Tenure

Experienced Management: CGX's management team is seasoned and experienced (9.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Ellis Jacob
President16.83yrsCA$4.16m0.17%
CA$ 838.1k
Nadir Mohamed
Independent Director3.33yrsCA$115.00kno data
Joan Dea
Independent Director13.83yrsCA$100.00kno data
Phyllis Yaffe
Independent Chairman0.25yrCA$150.00k0.039%
CA$ 194.0k
Donna Hayes
Independent Director3.83yrsCA$100.00k0.00087%
CA$ 4.3k
Robert Bruce
Independent Director10.33yrsCA$100.00k0.0040%
CA$ 19.4k
Sarabjit Marwah
Independent Director10.83yrsCA$100.00k0.016%
CA$ 77.6k
Janice Fukakusa
Independent Director3.33yrsCA$120.00k0.0016%
CA$ 7.8k
Jordan Banks
Independent Director7.33yrsCA$100.00k0.014%
CA$ 69.8k

7.3yrs

Average Tenure

64yo

Average Age

Experienced Board: CGX's board of directors are considered experienced (7.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: CGX 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$491.466m
  • 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 Analysis2020/09/28 23:53
End of Day Share Price2020/09/28 00:00
Earnings2020/06/30
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.