Cineplex (CGX) AI Stock Analysis

• Market Cap: $792.37M
• Dividend Yield: N/A
• Average Volume (3M): 294.77K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.18
• Revenue Growth: 15.67%
• EPS Growth: -1396.85%
• Country: CA
• Employees: 10,000
• Sector: Communication Services
• Sector Strength: 97
• Industry: Entertainment
• EPS (TTM): -0.03
• Shares Outstanding: 63,440,470
• 10 Day Avg. Volume: 312,350
• 30 Day Avg. Volume: 294,768
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 3.23
• Enterprise Value/Revenue: 1.85
• Enterprise Value/Gross Profit: 3.13
• Enterprise Value/Ebitda: 10.37
• 1Y Price Target: $13.29
• Price Target Upside: 5.11% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 52 Neutral
• Price Target: C$12.00 ▼(-5.06% Downside)

Cineplex's overall stock score is primarily driven by its positive earnings call, which highlights strong revenue growth and strategic initiatives. However, financial performance and valuation are weighed down by profitability challenges and high leverage, impacting the overall score.

Positive Factors

Revenue Growth

The significant increase in box office revenue indicates strong recovery and demand, positioning Cineplex well for sustained growth as consumer interest in premium experiences rises.

CineClub Membership Growth

The growth in CineClub memberships enhances customer loyalty and recurring revenue, supporting long-term engagement and financial stability through a dedicated customer base.

Digital Media Expansion

The long-term digital media contract expands Cineplex's footprint in digital signage, diversifying revenue streams and leveraging technology for sustained business growth.

Negative Factors

High Leverage

High leverage and negative equity pose financial risks, potentially limiting investment capacity and increasing vulnerability to economic downturns.

Profitability Challenges

Ongoing profitability issues, reflected in the negative net profit margin, could hinder long-term financial health and reinvestment capabilities, affecting growth prospects.

Same-Store Revenue Decline

A decline in same-store revenue suggests potential challenges in maintaining consistent performance across locations, impacting overall revenue stability.

Cineplex Business Overview & Revenue Model

Company Description

Cineplex Inc., together with its subsidiaries, operates as an entertainment and media company in Canada and internationally. It operates through four segments: Film Entertainment and Content, Media, Amusement and Leisure, and Location-Based Entertainment. The company engages in theatre exhibition and theatre food service activities. It also provides alternative programming service; rents and sells movies in digital form; and operates cineplex.com, an entertainment site that offers streaming video, movie information, showtimes and ability to buy tickets online, entertainment news, and box office reports, as well as advertising and digital commerce opportunities. In addition, the company offers Cineplex mobile app for various devices; incorporates advertising mediums related to theatre exhibition, and digital place-based media that provides digital signage solutions; and designs, installs, maintains, and operates digital signage networks in various verticals, including digital out of home, quick service restaurants, financial institutions, and retailers. Further, it distributes and operates amusement, gaming, and vending equipment; and operates social entertainment destinations featuring gaming, entertainment, and dining under The Rec Room and Playdium names. As of December 31, 2021, the company owned, leased, or had interest in 1,652 screens in 160 theatres, as well as 13 location-based entertainment venues in 6 provinces. Cineplex Inc. was founded in 1912 and is headquartered in Toronto, Canada.

How the Company Makes Money

Cineplex generates revenue through multiple streams. The primary source is ticket sales from its movie theaters, which account for a significant portion of its earnings. Additionally, the company earns substantial income from concessions, including popcorn, beverages, and other snacks sold at its venues. Advertising revenue also plays a crucial role, as Cineplex operates cinema advertising through its Cineplex Media division, which sells advertising space before films and during intermissions. Furthermore, Cineplex has ventured into digital media and gaming, contributing additional revenue through its Cineplex Digital Media and gaming arcade offerings. Strategic partnerships with film studios and brands enhance its content offerings and promotional activities, further bolstering its revenue streams.

Cineplex Financial Statement Overview

Summary

Cineplex faces financial challenges with negative profit margins and high leverage. Despite operational efficiency indicated by a strong EBITDA margin and positive cash flow from operations, the negative equity and reliance on debt pose significant risks.

Income Statement

Cineplex's income statement shows mixed performance. The TTM (Trailing-Twelve-Months) gross profit margin is healthy at 61.21%, but the net profit margin is negative at -6.11% due to a net loss. Revenue growth has been volatile, with a decline in recent periods, indicating challenges in maintaining sales momentum. EBITDA margin is relatively strong at 16.48%, suggesting operational efficiency despite bottom-line losses.

Balance Sheet

The balance sheet indicates financial stress. The negative equity of $74.14 million reflects a highly leveraged position, with a debt-to-equity ratio being undefined due to negative equity. Return on Equity (ROE) is also not calculable for the same reason. The equity ratio is negative, highlighting significant dependence on debt financing, which poses a risk in periods of financial instability.

Cash Flow

Cash flow analysis shows some positive signs with a positive free cash flow and an operating cash flow to net income ratio of -1.26, indicating operational cash generation despite net losses. However, free cash flow growth has been inconsistent, and financing cash flow is negative, suggesting repayment of debt or reduction in financing activities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.38B	1.33B	1.39B	1.10B	656.67M	418.26M
Gross Profit	817.65M	891.71M	926.91M	724.29M	439.81M	280.42M
EBITDA	246.98M	186.50M	320.15M	294.67M	93.63M	-350.57M
Net Income	-60.22M	-37.68M	167.16M	113.00K	-248.72M	-628.95M
Balance Sheet
Total Assets	2.21B	2.29B	2.27B	2.15B	2.11B	2.33B
Cash, Cash Equivalents and Short-Term Investments	42.06M	83.87M	36.67M	34.67M	26.94M	16.25M
Total Debt	1.87B	1.84B	1.90B	1.93B	1.84B	1.90B
Total Liabilities	2.29B	2.33B	2.31B	2.36B	2.33B	2.31B
Stockholders Equity	-75.59M	-39.70M	-39.44M	-211.81M	-219.72M	24.23M
Cash Flow
Free Cash Flow	83.57M	79.66M	145.68M	32.93M	28.18M	-188.73M
Operating Cash Flow	155.25M	162.01M	209.13M	107.15M	61.00M	-106.31M
Investing Cash Flow	-64.67M	69.94M	-72.94M	-55.75M	40.45M	26.71M
Financing Cash Flow	-105.15M	-185.10M	-134.34M	-43.35M	-91.13M	71.62M

Cineplex Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 12.64
• 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 TSE:CGX, the sentiment is Positive. The current price of 12.64 is above the 20-day moving average (MA) of 11.96, above the 50-day MA of 11.90, and above the 200-day MA of 10.93, indicating a bullish trend. The MACD of 0.24 indicates Negative momentum. The RSI at 64.18 is Neutral, neither overbought nor oversold. The STOCH value of 80.61 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:CGX.

Cineplex Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RAY.B	―	C$771.22M	16.90	17.21%	2.47%	10.68%	―
RAY.A	―	C$771.22M	16.80	17.21%	2.55%	10.68%	―
CGO	―	C$538.16M	6.51	10.16%	6.29%	-0.87%	9.49%
Sector *	―	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
CGX	―	$792.37M	-13.18	―	―	15.67%	-1396.85%
WILD	―	$331.31M	-4.11	―	―	14.90%	26.37%
CJR.B	―	$18.95M	-0.25	―	―	-13.09%	88.95%

Cineplex Corporate Events

Cineplex Sells Digital Media Division to Creative Realities for $70 Million

Cineplex Inc. has announced the sale of its digital place-based media division, Cineplex Digital Media (CDM), to Creative Realities Inc. for $70 million. This strategic divestment is expected to strengthen Cineplex’s balance sheet, allowing for share buybacks, debt reduction, and other corporate purposes. Cineplex will retain an exclusive advertising sales agency relationship with CDM for digital-out-of-home networks in Canada, ensuring continued influence in this sector. The transaction, which is subject to regulatory approvals, highlights Cineplex’s focus on unlocking shareholder value and optimizing its operations.

The most recent analyst rating on (TSE:CGX) stock is a Hold with a C$11.00 price target. To see the full list of analyst forecasts on Cineplex stock, see the TSE:CGX Stock Forecast page.

Cineplex Sells Digital Media Division to Creative Realities for $70 Million

Cineplex Inc. has announced the sale of its digital place-based media division, Cineplex Digital Media (CDM), to Creative Realities Inc. for $70 million. This strategic move is expected to strengthen Cineplex’s balance sheet, allowing for share buybacks, debt reduction, and other corporate purposes. Cineplex will retain its role as the exclusive advertising sales agent for CDM’s digital-out-of-home networks in Canada, ensuring continued involvement in this sector. The transaction, pending regulatory approvals, highlights Cineplex’s strategy to unlock shareholder value and maintain its market position.

The most recent analyst rating on (TSE:CGX) stock is a Hold with a C$11.00 price target. To see the full list of analyst forecasts on Cineplex stock, see the TSE:CGX Stock Forecast page.

Cineplex to Release Q3 2025 Financial Results and Host Webcast

Cineplex Inc. announced it will release its third quarter 2025 financial results on November 6, 2025, followed by an earnings webcast hosted by its CEO and CFO. This announcement is significant for stakeholders as it provides insights into the company’s financial health and strategic direction, potentially impacting its market positioning and investor confidence.

The most recent analyst rating on (TSE:CGX) stock is a Hold with a C$11.00 price target. To see the full list of analyst forecasts on Cineplex stock, see the TSE:CGX Stock Forecast page.

Cineplex’s September Box Office Surges with Record-Breaking Releases

Cineplex reported September 2025 box office revenues of $37.7 million, marking a 107% increase compared to the same month in 2024. The month saw significant milestones with ‘The Conjuring: Last Rites’ achieving the third-largest opening for a horror film and ‘Demon Slayer: Kimetsu no Yaiba – The Movie: Infinity Castle’ becoming the second highest-grossing foreign-language film in Cineplex’s history. These successes highlight the demand for diverse film content and reinforce Cineplex’s commitment to offering varied entertainment experiences. The strong performance in September and the successful launch of Taylor Swift’s event signal a promising start to the fourth quarter, emphasizing Cineplex’s focus on delivering memorable experiences to Canadian audiences.

The most recent analyst rating on (TSE:CGX) stock is a Hold with a C$11.00 price target. To see the full list of analyst forecasts on Cineplex stock, see the TSE:CGX Stock Forecast page.

Cineplex Achieves Milestones with September Box Office Success

Cineplex reported box office revenues of $37.7 million for September 2025, highlighting a 107% increase compared to September 2024. The month saw significant milestones with ‘The Conjuring: Last Rites’ achieving the third-largest opening for a horror film and ‘Demon Slayer: Kimetsu no Yaiba – The Movie: Infinity Castle’ becoming the highest-grossing entry in its franchise. These successes underscore the demand for diverse content and reinforce Cineplex’s commitment to delivering varied films to Canadian audiences, positioning the company for a strong fourth quarter.

The most recent analyst rating on (TSE:CGX) stock is a Hold with a C$11.00 price target. To see the full list of analyst forecasts on Cineplex stock, see the TSE:CGX Stock Forecast page.

Cineplex Inc. Reports Strong Q2 2025 Recovery

Cineplex Inc. recently held its earnings call, revealing a generally positive sentiment driven by significant revenue growth and strategic achievements. The company showcased a strong recovery in box office revenues and growth in CineClub memberships and media revenues, despite facing challenges such as a decline in same-store revenue in location-based entertainment (LBE) and a restructuring charge.

Cineplex Inc. Reports Mixed Q2 2025 Financial Results

Cineplex Inc., one of Canada’s largest entertainment organizations, operates theatres and location-based entertainment venues across the country, along with businesses in cinema media and digital place-based media. In its latest earnings report, Cineplex Inc. revealed a mixed financial performance for the second quarter of 2025. The company reported a net loss of $2.2 million from continuing operations, a significant improvement from the $21.3 million loss in the same period last year. Despite the loss, revenues showed a positive trend, with total revenues increasing to $361.8 million from $277.3 million in the previous year. Key financial metrics highlighted in the report include a rise in box office revenues to $158.5 million and food service revenues to $130.4 million, indicating a recovery in consumer demand. However, the company continues to face challenges with a shareholders’ deficit of $75.6 million and total liabilities of $2.3 billion. Looking ahead, Cineplex Inc. remains focused on navigating the evolving entertainment landscape, with management optimistic about leveraging its diverse portfolio to drive future growth.

Cineplex Achieves Record Revenue Growth in Q2 2025

Cineplex reported a strong second quarter in 2025, with a 30.5% increase in total revenues to $361.8 million and a significant rise in theatre attendance by 32.7% compared to the previous year. The company set records in box office and concession revenues per patron, driven by premium experiences that accounted for 46.2% of total box office revenue. Despite broader market challenges, Cineplex’s media and digital media segments showed growth, with digital media revenues increasing by 17.8%. The company’s location-based entertainment segment also saw a 13% revenue increase due to new locations. This performance positions Cineplex for continued growth and value delivery to shareholders.

The most recent analyst rating on (TSE:CGX) stock is a Buy with a C$12.50 price target. To see the full list of analyst forecasts on Cineplex stock, see the TSE:CGX Stock Forecast page.