Cinemark Holdings (CNK) AI Stock Analysis

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Cinemark Holdings

(NYSE:CNK)

Select Model

Neutral 66 (OpenAI - 4o)

Rating:66Neutral

Price Target:

$30.00

▲(7.07% Upside)

Cinemark Holdings' overall score reflects strong earnings performance and reasonable valuation, offset by high leverage and neutral technical indicators. The company's robust revenue growth and strategic initiatives are positive, but financial stability concerns due to leverage and international market challenges temper the outlook.

Positive Factors

Revenue Growth

The significant revenue growth reflects strong demand and effective strategic execution, indicating a positive trajectory for future earnings.

Cash Flow Generation

Strong cash flow generation enhances financial flexibility, enabling Cinemark to invest in growth opportunities and manage debt effectively.

Loyalty Program Growth

Increased loyalty program participation boosts customer retention and repeat business, strengthening Cinemark's market position.

Negative Factors

High Leverage

Significant leverage poses a risk to financial stability, potentially limiting the company's ability to navigate economic downturns.

Higher Expenses

Rising expenses could pressure margins and profitability, challenging Cinemark's ability to maintain its financial performance.

International Market Challenges

Flat attendance in key international markets may hinder growth prospects, affecting Cinemark's global expansion strategy.

Cinemark Holdings (CNK) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$3.17B

Dividend Yield0.86%

Average Volume (3M)3.85M

Price to Earnings (P/E)15.1

Beta (1Y)0.53

Revenue Growth13.80%

EPS Growth109.00%

CountryUS

Employees9,252

SectorCommunication Services

Sector Strength97

IndustryEntertainment

Share Statistics

EPS (TTM)0.63

Shares Outstanding115,035,515

10 Day Avg. Volume3,795,970

30 Day Avg. Volume3,848,992

Financial Highlights & Ratios

PEG Ratio0.25

Price to Book (P/B)6.25

Price to Sales (P/S)1.22

P/FCF Ratio11.78

Enterprise Value/Market Cap2.22

Enterprise Value/Revenue2.19

Enterprise Value/Gross Profit5.32

Enterprise Value/Ebitda10.63

Forecast

1Y Price Target

$35.38

Price Target Upside26.27% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering8

Cinemark Holdings Business Overview & Revenue Model

Company DescriptionCinemark Holdings, Inc., together with its subsidiaries, engages in the motion picture exhibition business. As of June 30, 2022, it operated 522 theatres with 5,868 screens in the United States, and South and Central America. The company was founded in 1984 and is headquartered in Plano, Texas.

How the Company Makes MoneyCinemark generates revenue primarily through ticket sales and concession sales. The ticket sales constitute the bulk of the revenue, as they capture the income from moviegoers purchasing admission to screenings. Additionally, concession sales, including popcorn, beverages, and other snacks, contribute significantly to profitability, often carrying higher margins than ticket sales. The company may also earn revenue from advertising and promotional partnerships within its theaters, as well as from loyalty programs that encourage repeat business. Special events, such as advanced screenings and private rentals, further diversify its revenue streams. Cinemark has established partnerships with film studios that can enhance its offerings and attract larger audiences by showcasing exclusive content or early releases.

Cinemark Holdings Key Performance Indicators (KPIs)

Any

Total Attendance

Total Attendance
Measures the total number of patrons visiting theaters, indicating overall popularity and demand for movie experiences.

Chart InsightsCinemark's total attendance is rebounding strongly post-pandemic, with a notable uptick in 2025 driven by a robust film slate and strategic initiatives. Despite a typical seasonal dip in early 2025, attendance surged in the second quarter, aligning with record-breaking box office revenues and a 28% increase in global revenue. The company's focus on family films and nontraditional programming has paid off, though challenges remain in international markets and inflationary pressures. Looking ahead, Cinemark anticipates continued momentum with major releases expected to boost attendance further.

Data provided by:

Main Street Data

Cinemark Holdings Earnings Call Summary

Earnings Call Date:Aug 01, 2025

(Q2-2025)

% Change Since: |

Next Earnings Date:Oct 31, 2025

Earnings Call Sentiment Positive

The earnings call highlighted Cinemark's strong financial performance with record-breaking box office results and significant revenue growth. Key achievements included increased loyalty program participation and robust market share in both domestic and international segments. However, the company faced challenges with higher expenses and flat attendance in Latin America. Overall, the positive aspects outweighed the challenges, indicating a strong performance in the quarter.

Q2-2025 Updates

Positive Updates

Record-Breaking Box Office Performance

The Minecraft movie generated over $950 million in global box office proceeds, contributing to a 35% year-over-year increase in North American industry box office to $2.7 billion.

Significant Revenue and EBITDA Growth

Cinemark's revenue grew 28% year-over-year to $941 million, and adjusted EBITDA increased 63% to $232 million with a 500 basis point margin expansion.

Strong U.S. Market Performance

Domestic segment generated its highest quarterly revenue ever at $759.3 million, with a 33% increase year-over-year. Domestic concession revenue exceeded $300 million for the first time.

International Market Resilience

International adjusted EBITDA increased 32% to $44.1 million with a 380 basis point margin expansion to 24.3%.

Increased Loyalty Program Participation

Cinemark's loyalty programs accounted for over 55% of domestic box office proceeds, with Movie Club subscriptions up 12% year-over-year.

Negative Updates

Higher Expenses Impact

Film rental and advertising expenses increased by 220 basis points year-over-year, and concession costs rose due to a higher mix of merchandise sales and inflationary pressures.

International Market Challenges

The Latin American market faced challenges, with attendance remaining flat year-over-year due to tough comparisons with previous hits like Inside Out 2.

Deferred Maintenance Costs

Utilities and other expenses increased by 19% year-over-year, partly due to elevated repairs and maintenance expenses addressing deferred maintenance needs.

Company Guidance

During Cinemark Holdings' second quarter 2025 earnings call, the company provided robust guidance reflecting a strong film slate and effective strategic execution. Key metrics highlighted include a 28% year-over-year revenue increase to $941 million, driven by a 16% rise in global attendance to 58 million patrons. The company's adjusted EBITDA surged by 63% to $232 million, with a margin expansion of over 500 basis points to 24.7%. Domestically, the average ticket price increased by 5% to $10.39, while concession revenue hit an all-time high, growing 33% year-over-year to $307.6 million. Cinemark also reported that its Movie Club membership rose by 12% year-over-year to 1.45 million members. The company is optimistic about the upcoming film slate and expects continued financial growth, supported by strategic pricing initiatives and capital investments aimed at enhancing customer experiences.

Cinemark Holdings Financial Statement Overview

Summary

Cinemark Holdings exhibited a strong recovery with significant profitability improvements. The income statement shows a positive turnaround, though revenue growth has slowed. The balance sheet reveals high leverage, suggesting focus on debt reduction is needed despite better equity positioning. Cash flow performance is robust, supporting operations and debt servicing.

Income Statement

Positive

Cinemark Holdings showed a robust improvement in profitability with a TTM Gross Profit Margin of 47.12% and a Net Profit Margin of 8.17%. The company has managed to recover from previous losses, demonstrating strong revenue growth since the pandemic lows. However, recent revenue growth has been somewhat stagnant, and the decrease in revenue from the previous year indicates a challenge in maintaining growth momentum.

Balance Sheet

Neutral

The company's balance sheet reflects a high Debt-to-Equity Ratio of 4.57 in the latest TTM period, indicating significant leverage. Despite this, the Equity Ratio stands at 7.46%, showing some improvement in equity positioning. Return on Equity improved to 70.48% in the TTM, reflecting better profitability. However, the high leverage poses potential risks, and continued focus on debt reduction would be beneficial.

Cash Flow

Positive

Cinemark's cash flow performance is notably strong, with a Free Cash Flow to Net Income Ratio of 0.90 and an Operating Cash Flow to Net Income Ratio of 1.50 in the TTM period. These metrics suggest efficient cash conversion and operational performance. The Free Cash Flow growth has been positive, although the capital expenditure remains a necessary burden due to industry demands.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.22B	3.05B	3.07B	2.45B	1.51B	686.31M
Gross Profit	1.32B	1.96B	570.60M	1.58B	997.60M	450.85M
EBITDA	661.80M	616.30M	603.90M	140.90M	-3.79M	-511.73M
Net Income	292.50M	309.70M	188.20M	-268.00M	-422.21M	-617.95M
Balance Sheet
Total Assets	4.91B	5.07B	4.84B	4.82B	5.23B	5.56B
Cash, Cash Equivalents and Short-Term Investments	931.60M	1.06B	849.10M	674.50M	707.34M	655.34M
Total Debt	3.46B	3.46B	3.55B	3.78B	3.94B	3.93B
Total Liabilities	4.46B	4.46B	4.52B	4.70B	4.90B	4.76B
Stockholders Equity	447.80M	594.40M	309.80M	110.20M	322.90M	787.97M
Cash Flow
Free Cash Flow	304.80M	315.20M	294.80M	25.30M	70.68M	-414.03M
Operating Cash Flow	460.60M	466.00M	444.30M	136.00M	166.22M	-330.10M
Investing Cash Flow	-145.70M	-146.90M	-131.80M	-96.30M	-89.30M	-83.37M
Financing Cash Flow	-181.30M	-103.10M	-125.40M	-52.20M	-19.93M	584.41M

Cinemark Holdings Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price28.02

Price Trends

50DMA

26.92

Positive

100DMA

29.03

Negative

200DMA

28.62

Negative

Market Momentum

MACD

0.40

Positive

RSI

53.66

Neutral

STOCH

35.59

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CNK, the sentiment is Neutral. The current price of 28.02 is above the 20-day moving average (MA) of 27.68, above the 50-day MA of 26.92, and below the 200-day MA of 28.62, indicating a neutral trend. The MACD of 0.40 indicates Positive momentum. The RSI at 53.66 is Neutral, neither overbought nor oversold. The STOCH value of 35.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CNK.

Cinemark Holdings Risk Analysis

Cinemark Holdings disclosed 31 risk factors in its most recent earnings report. Cinemark Holdings reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Cinemark Holdings Peers Comparison

Overall Rating

UnderperformOutperform

Sector (60)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IMAX	71 Outperform	$1.74B	54.56	10.23%	―	1.25%	55.54%
CNK	66 Neutral	$3.17B	15.12	70.99%	0.86%	13.80%	109.00%
MCS	66 Neutral	$472.05M	34.86	1.46%	1.87%	13.28%	―
AMC	44 Neutral	$1.54B	-3.26	21.04%	―	9.42%	39.83%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%

* Communication Services Sector Average

Performance Comparison

CNK

Cinemark Holdings

28.02

0.90

3.32%

IMAX

32.75

12.26

59.83%

MCS

Marcus

15.25

-0.59

-3.72%

AMC

AMC Entertainment

2.95

-1.42

-32.49%

LGF.A

Lions Gate Entertainment Class A

8.59

0.75

9.57%

LGF.B

Lions Gate Entertainment Class B

7.69

0.76

10.97%

Cinemark Holdings Corporate Events

Business Operations and StrategyPrivate Placements and Financing

Cinemark Holdings Finalizes Warrant Unwind Agreements

Neutral

Aug 18, 2025

On August 15, 2025, Cinemark Holdings entered into warrant unwind and termination agreements with its counterparties, related to previously issued convertible senior notes from 2020. These agreements involve delivering a mix of cash and common stock to the counterparties, with the settlement based on the company’s stock price over a specified observation period.

The most recent analyst rating on (CNK) stock is a Buy with a $34.00 price target. To see the full list of analyst forecasts on Cinemark Holdings stock, see the CNK Stock Forecast page.

Dividends

Cinemark Holdings Declares Quarterly Cash Dividend

Positive

Aug 13, 2025

On August 13, 2025, Cinemark Holdings, Inc. announced that its Board of Directors declared a quarterly cash dividend of $0.08 per share, payable on September 10, 2025, to stockholders of record as of August 27, 2025. This announcement reflects Cinemark’s ongoing commitment to returning value to its shareholders and may positively impact investor confidence in the company’s financial health and strategic direction.

The most recent analyst rating on (CNK) stock is a Buy with a $34.00 price target. To see the full list of analyst forecasts on Cinemark Holdings stock, see the CNK Stock Forecast page.

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Sep 30, 2025