NYSE:IMAX

Stock Analysis Report

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Executive Summary

IMAX Corporation, together with its subsidiaries, operates as an entertainment technology company that specializes in digital and film-based motion picture technologies worldwide. More Details


Snowflake Analysis

High growth potential with imperfect balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: IMAX is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: IMAX's weekly volatility (8%) has been stable over the past year.


Market Performance


7 Day Return

-3.3%

IMAX

1.2%

US Entertainment

0.6%

US Market


1 Year Return

-28.6%

IMAX

40.3%

US Entertainment

22.7%

US Market

Return vs Industry: IMAX underperformed the US Entertainment industry which returned 38.8% over the past year.

Return vs Market: IMAX underperformed the US Market which returned 21% over the past year.


Shareholder returns

IMAXIndustryMarket
7 Day-3.3%1.2%0.6%
30 Day31.2%13.7%13.1%
90 Day-4.8%2.3%4.5%
1 Year-28.6%-28.6%40.9%40.3%25.5%22.7%
3 Year-37.6%-37.6%87.7%83.7%49.0%39.1%
5 Year-61.1%-61.1%106.0%96.8%98.3%76.5%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

2.23x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: IMAX ($15.13) is trading above our estimate of fair value ($1.1)

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


Price To Earnings Ratio

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

PE vs Market: IMAX 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 IMAX's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: IMAX is good value based on its PB Ratio (2.2x) compared to the US Entertainment industry average (3.7x).


Next Steps

Future Growth

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

90.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IMAX is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).

Earnings vs Market: IMAX is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: IMAX's is expected to become profitable in the next 3 years.

Revenue vs Market: IMAX's revenue (31.7% per year) is forecast to grow faster than the US market (10.3% per year).

High Growth Revenue: IMAX's revenue (31.7% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: IMAX's Return on Equity is forecast to be low in 3 years time (13.8%).


Next Steps

Past Performance

How has IMAX performed over the past 5 years?

-48.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IMAX is currently unprofitable.

Growing Profit Margin: IMAX is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: IMAX is unprofitable, and losses have increased over the past 5 years at a rate of 48.4% per year.

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

Earnings vs Industry: IMAX is unprofitable, making it difficult to compare its past year earnings growth to the Entertainment industry (33.7%).


Return on Equity

High ROE: IMAX has a negative Return on Equity (-24.54%), as it is currently unprofitable.


Next Steps

Financial Health

How is IMAX's financial position?


Financial Position Analysis

Short Term Liabilities: IMAX's short term assets ($520.0M) exceed its short term liabilities ($74.9M).

Long Term Liabilities: IMAX's short term assets ($520.0M) exceed its long term liabilities ($457.5M).


Debt to Equity History and Analysis

Debt Level: IMAX's debt to equity ratio (62.7%) is considered high.

Reducing Debt: IMAX's debt to equity ratio has increased from 4.5% to 62.7% over the past 5 years.

Debt Coverage: IMAX's operating cash flow is negative, therefore debt is not well covered.

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


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

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

High Dividend: Unable to evaluate IMAX'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 IMAX's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if IMAX'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 IMAX'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?

1.8yrs

Average management tenure


CEO

Rich Gelfond (64 yo)

11.58yrs

Tenure

US$7,111,903

Compensation

Mr. Richard Lewis Gelfond, also known as Rich, has been the Chief Executive Officer at IMAX Corporation since April 1, 2009. Mr. Gelfond serves as the Co-Chief Executive Officer and Co-Chairman of Clarion ...


CEO Compensation Analysis

Compensation vs Market: Rich's total compensation ($USD7.11M) is above average for companies of similar size in the US market ($USD2.59M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Richard Gelfond
CEO & Director11.58yrsUS$7.11m0.53%
$ 4.7m
Patrick McClymont
Executive VP & CFO4.25yrsUS$2.73m0.056%
$ 502.5k
Robert Lister
Chief Legal Officer & Senior EVP8.83yrsUS$2.61m0.11%
$ 944.9k
Megan Colligan
Executive VP & President of IMAX Entertainment1.75yrsUS$4.20m0.019%
$ 165.2k
Mark Welton
President of IMAX Theatres9.08yrsUS$2.38m0.040%
$ 355.5k
Graeme Ferguson
Co-Founderno datano datano data
Bruce Markoe
Senior Vice President of Post Productionno datano datano data
Kevin Delaney
Senior VP of Finance0.75yrno datano data
Pablo Calamera
Executive VP & CTO0.67yrno datano data
Stephen Davidson
Head of Investor Relations1.33yrsno datano data
Mark Jafar
Global Head of Corporate Communications1.42yrsno datano data
Denny Tu
Chief Marketing Officer & Senior VP1.75yrsno data0.0041%
$ 36.6k

1.8yrs

Average Tenure

51yo

Average Age

Experienced Management: IMAX's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Richard Gelfond
CEO & Director11.58yrsUS$7.11m0.53%
$ 4.7m
Dana Settle
Independent Director5.33yrsUS$183.74k0.057%
$ 508.0k
Michael I. MacMillan
Independent Director7.42yrsUS$179.99k0.039%
$ 351.7k
Bradley Wechsler
Chairman of the Board11.58yrsUS$475.74k0.34%
$ 3.0m
Eric Demirian
Independent Director10.17yrsUS$199.99k0.077%
$ 685.1k
Neil Braun
Independent Director17.42yrsUS$189.99k0.082%
$ 732.2k
Kevin Douglas
Independent Director4.08yrsUS$182.49k15.15%
$ 134.9m
David Leebron
Lead Independent Director2.08yrsUS$199.99k0.16%
$ 1.5m
Darren Throop
Independent Director5.42yrsUS$187.49k0.027%
$ 238.0k

7.4yrs

Average Tenure

63yo

Average Age

Experienced Board: IMAX's board of directors are considered experienced (7.4 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

IMAX Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: IMAX Corporation
  • Ticker: IMAX
  • Exchange: NYSE
  • Founded: 1967
  • Industry: Movies and Entertainment
  • Sector: Media
  • Market Cap: US$890.570m
  • Shares outstanding: 58.86m
  • Website: https://www.imax.com

Number of Employees


Location

  • IMAX Corporation
  • 2525 Speakman Drive
  • Mississauga
  • Ontario
  • L5K 1B1
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
IMAXNYSE (New York Stock Exchange)YesCommon SharesUSUSDJun 1994
IMADB (Deutsche Boerse AG)YesCommon SharesDEEURJun 1994

Biography

IMAX Corporation, together with its subsidiaries, operates as an entertainment technology company that specializes in digital and film-based motion picture technologies worldwide. It offers cinematic solut...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/02 00:10
End of Day Share Price2020/12/01 00:00
Earnings2020/09/30
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.