NYSE:IMAX

Stock Analysis Report

Executive Summary

IMAX Corporation, together with its subsidiaries, operates as an entertainment technology company that specializes in motion picture technologies and presentations worldwide.

Snowflake

Fundamentals

Excellent balance sheet with acceptable track record.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.9%

IMAX

1.3%

US Entertainment

0.5%

US Market


1 Year Return

14.0%

IMAX

24.2%

US Entertainment

16.1%

US Market

Return vs Industry: IMAX underperformed the US Entertainment industry which returned 24.2% over the past year.

Return vs Market: IMAX underperformed the US Market which returned 16.1% over the past year.


Shareholder returns

IMAXIndustryMarket
7 Day2.9%1.3%0.5%
30 Day3.8%7.7%3.9%
90 Day0.5%5.4%6.6%
1 Year14.0%14.0%25.1%24.2%18.7%16.1%
3 Year-36.6%-36.6%64.4%59.0%47.2%37.7%
5 Year-30.8%-30.8%101.4%88.3%61.5%43.7%

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?

43.76x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: IMAX ($21.63) is trading above our estimate of fair value ($18.48)

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


Price To Earnings Ratio

PE vs Industry: IMAX is poor value based on its PE Ratio (43.8x) compared to the Entertainment industry average (25.2x).

PE vs Market: IMAX is poor value based on its PE Ratio (43.8x) compared to the US market (18x).


Price to Earnings Growth Ratio

PEG Ratio: IMAX is poor value based on its PEG Ratio (2.9x)


Price to Book Ratio

PB vs Industry: IMAX is good value based on its PB Ratio (2.5x) compared to the US Entertainment industry average (2.7x).


Next Steps

Future Growth

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

14.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IMAX's forecast earnings growth (14.9% per year) is above the savings rate (2.7%).

Earnings vs Market: IMAX's earnings (14.9% per year) are forecast to grow faster than the US market (14.3% per year).

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

Revenue vs Market: IMAX's revenue (4.5% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: IMAX's revenue (4.5% per year) is forecast to grow slower 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 (11.5%).


Next Steps

Past Performance

How has IMAX performed over the past 5 years?

-22.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IMAX has large one-off items impacting its financial results.

Growing Profit Margin: IMAX's current net profit margins (8%) are higher than last year (6.6%).


Past Earnings Growth Analysis

Earnings Trend: IMAX's earnings have declined by -22.7% per year over the past 5 years.

Accelerating Growth: IMAX's earnings growth over the past year (17%) exceeds its 5-year average (-22.7% per year).

Earnings vs Industry: IMAX earnings growth over the past year (17%) exceeded the Entertainment industry 12%.


Return on Equity

High ROE: IMAX's Return on Equity (6.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is IMAX's financial position?


Financial Position Analysis

Short Term Liabilities: IMAX's short term assets ($330.0M) exceeds its short term liabilities ($108.4M)

Long Term Liabilities: IMAX's short term assets ($330.0M) exceeds its long term liabilities (142.2M)


Debt to Equity History and Analysis

Debt Level: IMAX's debt to equity ratio (2.9%) is considered satisfactory.

Reducing Debt: IMAX's debt to equity ratio has increased from 0.01% to 2.9% over the past 5 years.

Debt Coverage: IMAX's debt is well covered by operating cash flow (603%).

Interest Coverage: IMAX's interest payments on its debt are well covered by EBIT (1139.8x coverage).


Balance Sheet

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

Debt Coverage by Assets: IMAX's debt is covered by short term assets (assets are 18.2x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.2%forecastin3Years0%

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate IMAX'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 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

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

7.8yrs

Average management tenure


CEO

Rich Gelfond (63yo)

10.6yrs

Tenure

US$6,286,123

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 ($USD6.29M) is above average for companies of similar size in the US market ($USD3.85M).

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


Management Age and Tenure

7.8yrs

Average Tenure

50yo

Average Age

Experienced Management: IMAX's management team is seasoned and experienced (7.8 years average tenure).


Board Age and Tenure

7.8yrs

Average Tenure

62yo

Average Age

Experienced Board: IMAX's board of directors are considered experienced (7.8 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

SellUS$62,25807 May 19
Kenneth Weissman
EntityIndividual
Shares2,500
Max PriceUS$24.90
SellUS$372,47401 May 19
Mark Welton
EntityIndividual
Shares15,000
Max PriceUS$24.83
SellUS$773,63011 Mar 19
Robert Lister
EntityIndividual
Role
Chief Legal Officer
Chief Legal Officer & Senior EVP
Shares34,052
Max PriceUS$23.08

Ownership Breakdown

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


Management Team

  • Rich Gelfond (63yo)

    CEO & Director

    • Tenure: 10.6yrs
    • Compensation: US$6.29m
  • Robert Lister (50yo)

    Chief Legal Officer & Senior EVP

    • Tenure: 7.8yrs
    • Compensation: US$2.58m
  • Brian Bonnick (62yo)

    CTO & Executive VP

    • Tenure: 8.1yrs
  • Edward MacNeil (54yo)

    Senior Vice President of Finance

    • Tenure: 18.2yrs
    • Compensation: US$460.51k
  • Stephen Davidson

    Head of Investor Relations

    • Tenure: 0.3yrs
  • Carrie Lindzon-Jacobs (42yo)

    Chief Human Resources Officer & Executive VP

    • Tenure: 8.5yrs
  • Graeme Ferguson

    Co-Founder

    • Tenure: 0yrs
  • Patrick McClymont (49yo)

    Executive VP & CFO

    • Tenure: 3.3yrs
    • Compensation: US$2.61m
  • Denny Tu (42yo)

    Chief Marketing Officer & Senior VP

    • Tenure: 0.8yrs
  • Giovanni Dolci

    Interim Head of Global Sales

    • Tenure: 0.8yrs

Board Members

  • Dana Settle (46yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: US$180.00k
  • Michael I. MacMillan (62yo)

    Independent Director

    • Tenure: 6.4yrs
    • Compensation: US$180.00k
  • Bradley Wechsler (68yo)

    Chairman of the Board

    • Tenure: 10.6yrs
    • Compensation: US$461.80k
  • Rich Gelfond (63yo)

    CEO & Director

    • Tenure: 10.6yrs
    • Compensation: US$6.29m
  • Eric Demirian (60yo)

    Independent Director

    • Tenure: 9.2yrs
    • Compensation: US$200.00k
  • Neil Braun (66yo)

    Independent Director

    • Tenure: 16.4yrs
    • Compensation: US$190.00k
  • Kevin Douglas (56yo)

    Independent Director

    • Tenure: 3.1yrs
    • Compensation: US$182.50k
  • David Leebron (64yo)

    Lead Independent Director

    • Tenure: 0yrs
    • Compensation: US$200.00k
  • Darren Throop (54yo)

    Independent Director

    • Tenure: 4.4yrs
    • Compensation: US$182.50k

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$1.326b
  • Shares outstanding: 61.29m
  • 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 motion picture technologies and presentations worldwide. It offers cinematic solution c ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/20 23:36
End of Day Share Price2019/11/20 00:00
Earnings2019/09/30
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.