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Cineplex (TSE:CGX)
TSX:CGX
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Cineplex (CGX) AI Stock Analysis

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TSE:CGX

Cineplex

(TSX:CGX)

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Neutral 59 (OpenAI - Gpt-5.6Sol)
Rating:59Neutral
Price Target:
C$13.00
▲(4.00% Upside)
Action:Reiterated
Date:08/19/26
The score is driven primarily by solid cash flow and improving operating performance, but materially constrained by a highly leveraged, negative-equity balance sheet and still-unstable net profitability. Technicals are supportive (uptrend with neutral momentum), and the latest earnings call added confidence via strong quarterly execution and a credible path to deleveraging, while valuation remains unattractive/uncertain due to negative earnings and no dividend yield data.
Positive Factors
Growing Attendance and Revenue
Higher attendance and revenue per patron indicate renewed demand for theatrical entertainment. Sustained content momentum, pricing, and premium experiences can support durable revenue growth across admissions and concessions.
Negative Factors
High Leverage and Negative Equity
Heavy debt and negative equity materially limit financial flexibility and increase refinancing risk. A large portion of future cash generation may need to support creditors, leaving less capacity for investment, dividends, or unexpected downturns.
Read all positive and negative factors
Positive Factors
Negative Factors
Growing Attendance and Revenue
Higher attendance and revenue per patron indicate renewed demand for theatrical entertainment. Sustained content momentum, pricing, and premium experiences can support durable revenue growth across admissions and concessions.
Read all positive factors

Cineplex (CGX) vs. iShares MSCI Canada ETF (EWC)

Cineplex Business Overview & Revenue Model

Company Description
Cineplex Inc. stands as a prominent entertainment and media conglomerate, conducting its diverse operations throughout Canada and on an international level, primarily via its subsidiaries. Its extensive business is segmented into four key division...
How the Company Makes Money
Cineplex primarily makes money by monetizing moviegoing and venue attendance across several revenue streams. (1) Box office admissions: Cineplex sells tickets for theatrical releases; a portion of each ticket sale is typically remitted to film dis...

Cineplex Earnings Call Summary

Earnings Call Date:Aug 11, 2026
(Q2-2026)
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% Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Positive
The call emphasized multiple record-breaking operational and financial outcomes: revenue (+9.8%), attendance (+9.3%), adjusted EBITDA (+20.4%), record concession and merchandise performance (merchandise +45%), and strengthening liquidity and deleveraging progress. Management acknowledged near-term softness in the LBE segment, modest media headwinds versus an elevated prior-year comparison, and one-time LTIP and JV marketing expenses. On balance, the positives—broad content-driven demand, strong margin expansion in exhibition, improved cash and leverage trajectory, and strategic loyalty/distribution gains—substantially outweighed the isolated and largely one-time or localized negatives.
Positive Updates
Record Quarterly Revenue
Total revenue of $383.7 million, a new second-quarter record, up 9.8% year-over-year, driven by stronger attendance and higher revenue-per-patron metrics.
Negative Updates
Location-Based Entertainment (LBE) Softness
LBE revenues declined to $32.0 million, down 3.7% YoY. Segment adjusted EBITDA fell to $1.7 million from $4.4 million year-over-year. Adjusted store-level EBITDA decreased to $3.9 million (from $5.8 million) and adjusted store-level margin dropped to 12.2% from 17.5% (same-store margin excluding 24 new builds was 15.3%). Management cited macro discretionary pressure and localized competition.
Read all updates
Q2-2026 Updates
Negative
Record Quarterly Revenue
Total revenue of $383.7 million, a new second-quarter record, up 9.8% year-over-year, driven by stronger attendance and higher revenue-per-patron metrics.
Read all positive updates
Company Guidance
Cineplex's forward guidance emphasized disciplined capital allocation and a clear path to deleveraging: net capital expenditures for 2026 are guided to about $50 million (Q2 net capex was $7 million) with preliminary 2027 capex of roughly $60 million; management reiterated its target net leverage range of 2.5–3.0x (leverage has fallen ~1.5 turns over the past 18 months and management expects to reach the target in the near term, potentially by Q4 if the domestic box office tracks toward the ~$10 billion industry forecast); achieving that leverage range would enable opportunistic share repurchases under the NCIB and the potential reintroduction of a dividend. They closed Q2 with $116.8 million of cash, no drawings on the $100 million covenant‑light revolver and about $92.5 million available after letters of credit, flagged a one‑time LTIP expense of ~ $6 million for 2026 (≈$3 million recorded in H1), and said improving adjusted EBITDA and cash‑flow momentum (Q2 adjusted EBITDA $40.8 million, revenue $383.7 million, attendance 12.7 million) underpins the balance‑sheet and capital‑return priorities.

Cineplex Financial Statement Overview

Summary
Operating recovery and cash generation are positive (TTM revenue +163.9%, EBITDA margin ~20.9%, positive operating cash flow ~$167M and free cash flow ~$132M). However, overall financial risk remains elevated due to the weak balance sheet (high debt ~$1.76B and negative equity ~-$94M) and continued bottom-line fragility (TTM net margin ~-1.0% with recent full-year losses after a profitable 2023).
Income Statement
56
Neutral
Balance Sheet
24
Negative
Cash Flow
64
Positive
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue1.36B1.28B1.33B1.39B1.10B656.67M
Gross Profit675.87M852.75M891.71M926.91M724.29M439.81M
EBITDA284.56M251.85M186.50M321.96M294.67M93.63M
Net Income-13.01M-37.23M-37.68M167.16M113.00K-248.72M
Balance Sheet
Total Assets2.09B2.19B2.29B2.27B2.15B2.11B
Cash, Cash Equivalents and Short-Term Investments116.82M134.00M83.87M36.67M34.67M26.94M
Total Debt1.76B1.79B1.84B1.90B1.93B1.84B
Total Liabilities2.18B2.27B2.33B2.31B2.36B2.33B
Stockholders Equity-94.27M-79.49M-39.70M-39.44M-211.81M-219.72M
Cash Flow
Free Cash Flow131.70M92.19M79.66M145.68M32.93M28.18M
Operating Cash Flow167.32M140.78M162.01M209.13M107.15M61.00M
Investing Cash Flow13.12M12.23M69.94M-72.94M-55.75M40.45M
Financing Cash Flow-105.93M-102.92M-185.10M-134.34M-43.35M-91.13M

Cineplex Technical Analysis

Technical Analysis Sentiment
Negative
Last Price12.50
Price Trends
50DMA
12.13
Negative
100DMA
11.74
Positive
200DMA
11.14
Positive
Market Momentum
MACD
>-0.01
Positive
RSI
46.51
Neutral
STOCH
47.83
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CGX, the sentiment is Negative. The current price of 12.5 is above the 20-day moving average (MA) of 12.36, above the 50-day MA of 12.13, and above the 200-day MA of 11.14, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 46.51 is Neutral, neither overbought nor oversold. The STOCH value of 47.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:CGX.

Cineplex Peers Comparison

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
61
Neutral
C$361.49M0.89-3531.06%2.28%-14.24%
60
Neutral
$48.67B4.58-11.27%4.14%2.83%-41.78%
59
Neutral
C$782.50M-57.4214.84%5.27%-1.88%72.81%
47
Neutral
C$1.14M-0.60-25.21%-40.44%34.33%
40
Underperform
C$7.98M-0.0245.72%12.16%-15.93%-329.69%
33
Underperform
C$630.67M-3.33-72.77%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:CGX
Cineplex
12.11
0.12
1.00%
TSE:CJR.B
Corus Entertainment
0.04
-0.06
-57.89%
TSE:WILD
WildBrain
1.68
-0.33
-16.42%
TSE:NTE
Network Media
0.06
-0.08
-55.56%
TSE:BAMI
Blue Ant Media
6.00
-1.20
-16.67%
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: Aug 19, 2026