DB:ZZA

Stock Analysis Report

Cinemark Holdings

Executive Summary

Cinemark Holdings, Inc., together with its subsidiaries, engages in the motion picture exhibition business.


Snowflake Analysis

Very undervalued 6 star dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

1.9%

ZZA

20.6%

DE Entertainment

7.1%

DE Market


1 Year Return

-69.3%

ZZA

-8.9%

DE Entertainment

-17.5%

DE Market

Return vs Industry: ZZA underperformed the German Entertainment industry which returned -8.9% over the past year.

Return vs Market: ZZA underperformed the German Market which returned -17.5% over the past year.


Shareholder returns

ZZAIndustryMarket
7 Day1.9%20.6%7.1%
30 Day-52.2%-19.0%-20.0%
90 Day-63.8%-27.5%-26.1%
1 Year-67.9%-69.3%-7.7%-8.9%-15.0%-17.5%
3 Year-70.9%-73.9%-3.0%-7.7%-18.8%-25.8%
5 Year-68.3%-73.2%40.5%29.3%-17.9%-29.2%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ZZA (€10.8) is trading below our estimate of fair value (€22.67)

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


Price To Earnings Ratio

PE vs Industry: ZZA is good value based on its PE Ratio (7.5x) compared to the Entertainment industry average (29.6x).

PE vs Market: ZZA is good value based on its PE Ratio (7.5x) compared to the German market (16.5x).


Price to Earnings Growth Ratio

PEG Ratio: ZZA is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: ZZA is good value based on its PB Ratio (1x) compared to the DE Entertainment industry average (1x).


Next Steps

Future Growth

How is Cinemark Holdings forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

10.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ZZA's forecast earnings growth (10.1% per year) is above the savings rate (-0.4%).

Earnings vs Market: ZZA's earnings (10.1% per year) are forecast to grow slower than the German market (14.2% per year).

High Growth Earnings: ZZA's earnings are forecast to grow, but not significantly.

Revenue vs Market: ZZA's revenue (2.6% per year) is forecast to grow slower than the German market (4.2% per year).

High Growth Revenue: ZZA's revenue (2.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ZZA's Return on Equity is forecast to be low in 3 years time (13.2%).


Next Steps

Past Performance

How has Cinemark Holdings performed over the past 5 years?

0.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ZZA has a large one-off loss of $69.0M impacting its December 31 2019 financial results.

Growing Profit Margin: ZZA's current net profit margins (5.8%) are lower than last year (6.6%).


Past Earnings Growth Analysis

Earnings Trend: ZZA's earnings have grown by 0.6% per year over the past 5 years.

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

Earnings vs Industry: ZZA had negative earnings growth (-10.6%) over the past year, making it difficult to compare to the Entertainment industry average (-50.4%).


Return on Equity

High ROE: ZZA's Return on Equity (13.4%) is considered low.


Next Steps

Financial Health

How is Cinemark Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: ZZA's short term assets ($635.0M) do not cover its short term liabilities ($708.8M).

Long Term Liabilities: ZZA's short term assets ($635.0M) do not cover its long term liabilities ($3.7B).


Debt to Equity History and Analysis

Debt Level: ZZA's debt to equity ratio (123.9%) is considered high.

Reducing Debt: ZZA's debt to equity ratio has reduced from 159.6% to 123.9% over the past 5 years.

Debt Coverage: ZZA's debt is well covered by operating cash flow (31.3%).

Interest Coverage: ZZA's interest payments on its debt are well covered by EBIT (3.5x coverage).


Balance Sheet

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

Debt Coverage by Assets: ZZA's debt is not covered by short term assets (assets are 0.4x debt).


Next Steps

Dividend

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

11.71%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ZZA's dividend (11.71%) is higher than the bottom 25% of dividend payers in the German market (1.71%).

High Dividend: ZZA's dividend (11.71%) is in the top 25% of dividend payers in the German market (4.98%)


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (84.4%), ZZA's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ZZA's dividends in 3 years are forecast to be covered by earnings (79.6% payout ratio).


Next Steps

Management

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

4.6yrs

Average management tenure


CEO

Mark Zoradi (65yo)

4.58s

Tenure

US$5,245,256

Compensation

Mr. Mark Zoradi serves as the Chief Executive Officer at Cinemark USA, Inc. Mr. Zoradi has been the Chief Executive Officer of Cinemark Holdings, Inc. since August 24, 2015. He has been a Non Executive Str ...


CEO Compensation Analysis

Compensation vs Market: Mark's total compensation ($USD5.25M) is above average for companies of similar size in the German market ($USD1.86M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Lee Mitchell
Executive Chairman of the Board24yrsUS$2.04m8.7% $112.3m
Mark Zoradi
CEO & Director4.58yrsUS$5.25m0.37% $4.7m
Sean Gamble
CFO & COO5.58yrsUS$2.46m0.11% $1.4m
Michael Cavalier
Executive VP22.67yrsUS$2.11m0.17% $2.2m
Valmir Fernandes
President of Cinemark International LLC13yrsUS$1.81m0.096% $1.2m
Chanda Brashears
Vice President of Investor Relations & Corporate Communicationsno datano datano data
James Meredith
Senior Vice President of Marketing & Communicationsno datano datano data
Wanda Gierhart
Executive VP & Chief Marketing Officer2.17yrsno datano data
Don Harton
Executive Vice President of Design & Construction2.25yrsno datano data
Phillip Couch
Executive Vice President of Food & Beverage3.17yrsno datano data

4.6yrs

Average Tenure

55yo

Average Age

Experienced Management: ZZA's management team is considered experienced (4.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Lee Mitchell
Executive Chairman of the Board24yrsUS$2.04m8.7% $112.3m
Mark Zoradi
CEO & Director4.58yrsUS$5.25m0.37% $4.7m
Benjamin Chereskin
Independent Director15.92yrsUS$198.85k0.065% $837.3k
Enrique Hernández
Independent Director15.92yrsUS$188.85k0.052% $671.8k
Steven Rosenberg
Independent Director11.92yrsUS$198.85k0.047% $603.9k
Raymond Syufy
Director13.42yrsUS$188.85k0.018% $237.4k
Carlos Sepulveda
Lead Director4.17yrsUS$248.85k0.036% $459.8k
Nancy Loewe
Independent Director2.83yrsUS$196.35k0.0078% $100.4k
Nina Vaca
Independent Director5.33yrsUS$201.35k0.018% $237.9k
Darcy Antonellis
Independent Director4.67yrsUS$188.85k0.013% $163.3k

8.6yrs

Average Tenure

60yo

Average Age

Experienced Board: ZZA's board of directors are considered experienced (8.6 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: ZZA 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

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


Key Information

  • Name: Cinemark Holdings, Inc.
  • Ticker: ZZA
  • Exchange: DB
  • Founded: 1984
  • Industry: Movies and Entertainment
  • Sector: Media
  • Market Cap: US$1.431b
  • Listing Market Cap: US$1.291b
  • Shares outstanding: 116.37m
  • Website: https://www.cinemark.com

Number of Employees


Location

  • Cinemark Holdings, Inc.
  • 3900 Dallas Parkway
  • Suite 500
  • Plano
  • Texas
  • 75093
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ZZADB (Deutsche Boerse AG)YesCommon StockDEEURApr 2007
CNKNYSE (New York Stock Exchange)YesCommon StockUSUSDApr 2007

Biography

Cinemark Holdings, Inc., together with its subsidiaries, engages in the motion picture exhibition business. As of February 10, 2020, it operated 548 theatres with 6,082 screens in 41 states of the United States, Brazil, and Argentina, as well as 13 other Latin American countries. The company was founded in 1984 and is headquartered in Plano, Texas. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/29 21:38
End of Day Share Price2020/03/27 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.