IMAX (IMAX) AI Stock Analysis

• Market Cap: $1.35B
• Dividend Yield: N/A
• Average Volume (3M): 1.27M
• Price to Earnings (P/E): 54.0
• Beta (1Y): 0.14
• Revenue Growth: -1.98%
• EPS Growth: -1.18%
• Country: US
• Employees: 700
• Sector: Communication Services
• Sector Strength: 84
• Industry: Entertainment
• EPS (TTM): 0.13
• Shares Outstanding: 53,742,016
• 10 Day Avg. Volume: 1,187,316
• 30 Day Avg. Volume: 1,265,063
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.29
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 9.09
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $31.63
• Price Target Upside: 22.31% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

IMAX's overall score is driven by its strong financial performance and positive earnings outlook, despite high valuation and mixed technical signals. The company's robust cash flow and profitability, along with strategic expansion and leadership appointments, support a favorable long-term view. However, the high P/E ratio and absence of dividend yield temper short-term enthusiasm.

Positive Factors

Box Office Success

IMAX delivered a strong start to 2025, setting a new Q1 global box office record of $298M, with China playing a dominant role in the result.

Market Expansion

System signings jumped by 87 units YoY to 95, while installations increased 40% to 21 systems, marking an acceleration in network growth and signaling continued strength in global exhibitor demand.

Revenue Growth

IMAX reported strong Q1 2025 results with total revenue of $86.7M, marking a 10 percent YoY increase.

Negative Factors

Market Risks

Despite recent rhetoric from China on reducing its Hollywood film slate, IMAX remains well-positioned to thrive in the current environment, given its robust upcoming release slate and strong positioning with China.

IMAX Business Overview & Revenue Model

Company Description

IMAX Corporation, together with its subsidiaries, operates as an entertainment technology company worldwide. It offers cinematic solution through proprietary software, theater architecture, intellectual property, and specialized equipment. The company offers IMAX Digital Re-Mastering (DMR), a proprietary technology that digitally enhances the image resolution, visual clarity, and sound quality of motion picture films for projection on IMAX screens; IMAX theater systems to exhibitor customers through sales, leases, and joint revenue sharing arrangements; and digital projection systems. It also provides preventative and emergency maintenance services to IMAX network; distributes large-format documentary films; film post-production and quality control services for large-format films, and digital post-production services; owns and operates IMAX theaters; and rents 2D and 3D large-format film and digital cameras, as well as offers production advice and technical assistance services to documentary and Hollywood filmmakers. The company markets its theater systems through a direct sales force and marketing staff to science and natural history museums, zoos, aquaria, and other educational and cultural centers, as well as theme parks, private home theaters, tourist destination sites, fairs, and expositions. It owns or otherwise has rights to trademarks and trade names, which include IMAX, IMAX Dome, IMAX 3D, IMAX 3D Dome, Experience It in IMAX, The IMAX Experience, An IMAX Experience, An IMAX 3D Experience, IMAX DMR, DMR, IMAX Enhanced, IMAX nXos, and Films To The Fullest. As of December 31, 2021, the company had a network of 1,683 IMAX theater systems comprising 1,599 commercial multiplexes, 12 commercial destinations, and 72 institutional facilities operating in 87 countries and territories. IMAX Corporation was founded in 1967 and is headquartered in Mississauga, Canada.

How the Company Makes Money

IMAX Corporation generates revenue primarily through several key streams: technology licensing, theater system sales and maintenance, and film distribution. The company licenses its proprietary projection and sound systems to movie theaters, which pay for the installation and ongoing use of IMAX technology. This includes both the initial sale or lease of the equipment and subsequent maintenance and service contracts. Additionally, IMAX earns revenue by distributing specially formatted films and co-producing IMAX-specific content, often partnering with major film studios to release blockbusters in the IMAX format. These partnerships enhance the company's earnings through box office revenue shares and distribution fees. Thus, IMAX's business model capitalizes on its unique technological offerings and strategic alliances within the global film industry.

IMAX Financial Statement Overview

Summary

IMAX shows a promising financial trajectory with improving profitability, stable leverage, and strong cash flow generation. However, the company should continue to monitor its debt levels and focus on sustaining revenue growth to maintain its upward momentum.

Income Statement

IMAX has shown solid improvement in its profitability metrics. The TTM gross profit margin stands strong at 54.6%, and the net profit margin has improved to 12.6% from a negative position in prior years. Revenue growth has stabilized post-pandemic, with a slight increase in TTM revenue compared to the previous year. EBIT and EBITDA margins are healthy, indicating efficient operations.

Balance Sheet

The company maintains a stable financial position with a debt-to-equity ratio of 0.77, indicating a balanced leverage. ROE improved to 15.2% in the TTM, showcasing enhanced profitability for shareholders. The equity ratio slightly decreased to 35.3%, reflecting a cautious approach to asset financing.

Cash Flow

IMAX demonstrated strong cash flow management with a significant increase in free cash flow, growing by 79.0% in the TTM. The operating cash flow to net income ratio is robust at 1.95, and free cash flow to net income ratio stands at 1.17, indicating effective cash conversion from profits.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
352.21M	374.84M	300.81M	254.88M	137.00M
	Gross Profit
190.20M	214.34M	156.35M	134.41M	21.54M
	EBIT
43.86M	50.40M	-4.83M	10.98M	-121.82M
	EBITDA
111.28M	112.96M	52.77M	74.16M	-69.41M
	Net Income Common Stockholders
26.06M	25.34M	-22.80M	-22.33M	-143.78M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
100.59M	76.20M	97.40M	189.71M	317.38M
	Total Assets
830.40M	814.67M	821.15M	883.25M	997.75M
	Total Debt
266.26M	252.06M	263.02M	226.11M	305.68M
	Net Debt
165.66M	175.85M	165.62M	36.40M	-11.70M
	Total Liabilities
452.18M	469.08M	491.39M	452.88M	532.98M
	Stockholders Equity
299.47M	273.14M	263.36M	356.08M	385.49M
Cash Flow		Free Cash Flow
29.62M	25.78M	-15.30M	-11.71M	-32.27M
	Operating Cash Flow
70.84M	58.62M	17.32M	6.07M	-23.01M
	Investing Cash Flow
-41.22M	-31.79M	-53.29M	-7.00K	-9.26M
	Financing Cash Flow
-6.04M	-48.53M	-58.51M	-132.72M	240.57M

IMAX Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 25.86
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IMAX, the sentiment is Positive. The current price of 25.86 is above the 20-day moving average (MA) of 23.53, above the 50-day MA of 24.61, and above the 200-day MA of 23.24, indicating a bullish trend. The MACD of 0.26 indicates Negative momentum. The RSI at 61.68 is Neutral, neither overbought nor oversold. The STOCH value of 92.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IMAX.

IMAX Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CNK	75 Outperform	$3.54B	19.67	71.46%	0.26%	-0.80%	13.07%
IMAX	70 Outperform	$1.35B	54.03	9.00%	―	-1.98%	-1.18%
MSGE	66 Neutral	$1.69B	13.03	1222.83%	―	5.81%	133.05%
Sector *	60 Neutral	$13.74B	7.25	-2.74%	3.81%	2.21%	-37.97%
LGF.A	47 Neutral	$1.93B	―	168.75%	―	-2.85%	75.96%
AMC	45 Neutral	$1.16B	―	20.03%	―	-3.64%	48.94%
LGF.B	42 Neutral	$1.93B	―	259.47%	―	-2.85%	75.96%

IMAX Corporate Events

IMAX Appoints Jose Zlatar as New Accounting Officer

On April 23, 2025, IMAX Corporation’s Board of Directors appointed Jose Zlatar as the new principal accounting officer, effective April 30, 2025. Zlatar, who joined the company in February 2025 as Senior Vice President, Finance, will take over the accounting responsibilities from CFO Natasha Fernandes, who will continue as the principal financial officer. Zlatar brings extensive experience from his previous roles at Canadian National Railway and Yamana Gold Inc., and his appointment is expected to strengthen IMAX’s financial leadership and operations.

Spark’s Take on IMAX Stock

According to Spark, TipRanks’ AI Analyst, IMAX is a Neutral.

IMAX’s strong financial performance and positive earnings call outlook are significant strengths, indicating robust profitability and strategic expansion. However, technical analysis shows potential bearish trends, and the high P/E ratio implies valuation challenges. The absence of a dividend yield also limits appeal for income-seeking investors.

To see Spark’s full report on IMAX stock, click here.