NasdaqGM:CIDM

Stock Analysis Report

Executive Summary

Cinedigm Corp., together with its subsidiaries, operates as distributor and aggregator of independent movie, television, and other short form content primarily in the United States.

Rewards

Trading at 12.5% below its fair value

Risk Analysis

Currently unprofitable and not forecast to become profitable over the next 3 years

Highly volatile share price over past 3 months

Shareholders have been diluted in the past year

Does not have a meaningful market cap ($21M)



Snowflake Analysis

Imperfect balance sheet and overvalued.


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Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-8.4%

CIDM

1.2%

US Entertainment

1.5%

US Market


1 Year Return

-57.6%

CIDM

20.7%

US Entertainment

20.1%

US Market

Return vs Industry: CIDM underperformed the US Entertainment industry which returned 20.7% over the past year.

Return vs Market: CIDM underperformed the US Market which returned 20.1% over the past year.


Shareholder returns

CIDMIndustryMarket
7 Day-8.4%1.2%1.5%
30 Day-27.0%1.6%1.4%
90 Day-42.6%7.6%8.7%
1 Year-57.6%-57.6%21.5%20.7%22.7%20.1%
3 Year-67.3%-67.3%55.2%50.2%50.1%40.5%
5 Year-96.6%-96.6%92.4%80.7%73.1%54.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

12.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CIDM ($0.52) is trading below our estimate of fair value ($0.6)

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


Price To Earnings Ratio

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

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: CIDM has negative assets, so we can't compare its PB Ratio to the US Entertainment industry average.


Next Steps

Future Growth

How is Cinedigm forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

12.5%

Forecasted Media industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Cinedigm has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Cinedigm performed over the past 5 years?

15.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CIDM is currently unprofitable.

Growing Profit Margin: CIDM is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: CIDM is unprofitable, but has reduced losses over the past 5 years at a rate of 15.1% per year.

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

Earnings vs Industry: CIDM is unprofitable, making it difficult to compare its past year earnings growth to the Entertainment industry (-8.9%).


Return on Equity

High ROE: CIDM's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Cinedigm's financial position?


Financial Position Analysis

Short Term Liabilities: CIDM has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: CIDM has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: CIDM has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: CIDM's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet

Inventory Level: CIDM has a low level of unsold assets or inventory.

Debt Coverage by Assets: CIDM has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable CIDM has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: CIDM is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -8.4% per year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

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


Next Steps

Management

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

2.8yrs

Average management tenure


CEO

Chris McGurk (62yo)

9.1yrs

Tenure

US$1,743,697

Compensation

Mr. Christopher J. McGurk, also known as Chris, has been the Chairman and Chief Executive Officer of Cinedigm Corp. (alternate name, Cinedigm Digital Cinema Corp.) since January 2011. He is a Director at I ...


CEO Compensation Analysis

Compensation vs Market: Chris's total compensation ($USD1.74M) is above average for companies of similar size in the US market ($USD521.92K).

Compensation vs Earnings: Chris's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Christopher McGurk
Chairman & CEO9.1yrsUS$1.74m2.09% $440.5k
Gary Loffredo
COO, President of Digital Cinema1yrsUS$918.73k0.30% $62.1k
Erick Opeka
President of Digital Networks5.7yrsUS$754.83k0.19% $39.1k
William Sondheim
Consultant0.9yrsUS$959.84k0.23% $48.5k
Mellonie Suen
Executive Director of Accounting & Royalties0yrsno datano data
Jill Calcaterra
Chief Marketing Officer and Executive VP of Corporate Marketing & Communications0yrsno datano data
Daniel Coyle
Senior Vice President of Sales0yrsno datano data
Mark Torres
Vice President of Human Resources1.6yrsno datano data
Ronald Chez
Strategic Advisor2.8yrsno datano data
Yolanda Macias
Executive Vice President of Content Acquisitions6.3yrsno datano data

2.8yrs

Average Tenure

58yo

Average Age

Experienced Management: CIDM's management team is considered experienced (2.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Christopher McGurk
Chairman & CEO9.1yrsUS$1.74m2.09% $440.5k
Peter Brown
Independent Director9.4yrsUS$100.00k0.26% $54.3k
Patrick O'Brien
Lead Independent Director4.1yrsUS$124.00k0.39% $81.4k
Peixin Xu
Director2.3yrsUS$100.00k58.68% $12.3m
Peng Jin
Director2.3yrsUS$100.00k0.19% $39.0k
Laura Sims
Board Observer4.3yrsUS$36.58kno data
Zvi Rhine
Independent Director4.6yrsUS$100.00k0.51% $106.7k

4.3yrs

Average Tenure

48yo

Average Age

Experienced Board: CIDM's board of directors are considered experienced (4.3 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.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 8.6%.


Top Shareholders

Company Information

Cinedigm Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Cinedigm Corp.
  • Ticker: CIDM
  • Exchange: NasdaqGM
  • Founded: 2000
  • Industry: Movies and Entertainment
  • Sector: Media
  • Market Cap: US$21.028m
  • Shares outstanding: 40.29m
  • Website: https://www.cinedigm.com

Number of Employees


Location

  • Cinedigm Corp.
  • 45 West 36th Street
  • 7th Floor
  • New York
  • New York
  • 10018
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CIDMNasdaqGM (Nasdaq Global Market)YesClass A Common StockUSUSDNov 2003
IQ51DB (Deutsche Boerse AG)YesClass A Common StockDEEURNov 2003

Biography

Cinedigm Corp., together with its subsidiaries, operates as distributor and aggregator of independent movie, television, and other short form content primarily in the United States. The company operates through two segments, Cinema Equipment Business and Content and Entertainment Business. It manages a library of distribution rights to various titles and episodes released across digital, physical, and home and mobile entertainment platforms, as well as services digital cinema assets on approximately 12,000 domestic and foreign movie screens. The company distributes its products for various brands, such as Hallmark, Televisa, ZDF, Shout! Factory, NFL, NHL, and Scholastic, as well as international and domestic content creators, movie producers, television producers, and other short form digital content producers. It also collaborates with producers, various brands, and other content owners to market, source, curate, and distribute content to targeted audiences through existing and emerging digital home entertainment platforms, including Apple, Amazon Prime, Netflix, Hulu, Xbox, PlayStation, Walmart Now, and cable/satellite video-on-demand; and distributes DVD and Blu-ray discs to wholesalers and retailers with sales coverage to approximately 60,000 brick and mortar storefronts, including Walmart, Target, Best Buy, and Amazon. In addition, the company operates various branded and curated over-the-top entertainment channels, including Docurama, CONtv, and Dove Channel. Cinedigm Corp. has a strategic alliance with Starrise Media Holdings Limited to release films in China theatrically and to digital platforms, as well as to evaluate opportunities to jointly produce Chinese/American film co-productions. The company was formerly known as Cinedigm Digital Cinema Corp. and changed its name to Cinedigm Corp. in September 2013. Cinedigm Corp. was founded in 2000 and is based in New York, New York. Cinedigm Corp. operates as a subsidiary of Bison Capital Holding Company Limited 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 00:16
End of Day Share Price2020/02/14 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


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.