TSE:CGX
Cineplex Inc (CGX.TO)
11.80
+0.11 (0.94%)
as of Jul 23, 2026, 8:00:01 pm Market Open.
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Financials 
Technical Analysis 0
Investor Insights
Jul 23, 2026, 12:00 amThis summary was created by AI, based on 3 opinions in the last 12 months.
Cineplex Inc. has been facing challenges since the pandemic, particularly with disappointing box office performance in Q3 and Q4 of the previous year, although Q1 shows promise. The company's future is further complicated by the impending retirement of its CEO, with speculation about a potential sale before his departure. While some experts believe the stock can rebound, they express concerns about the impact of streaming services and changing consumer behaviors in the film industry. However, others see a possible upside through strategic management decisions, particularly regarding divestitures and capitalizing on real estate. Overall, opinions on Cineplex's future vary, with some experts holding a more optimistic view of valuation and risk-reward potential.
Consensus
Mixed
Valuation
Undervalued
Similar
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WEAK BUY
Box office revenues have been quite robust and near term outlook is quite good. 3-D movies are high margin. They make their money on concessions. They are a virtual monopoly and are priced that way. Downside is that they have no control over their product. Whatever Hollywood sends them they have to show.
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BUY ON WEAKNESS
Very solid base. Box office has been very strong. Shifting towards digital and 3-D technology. Concessions have been strong. Media business is a great source of directed advertising. About $600 million in tax pools so well positioned for conversion. A little expensive.
Michele RobitailleOwned
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TOP PICK
Makes money Movie tickets, refreshments and advertising. Looking for them to do very well on 3-D movies. Own a lot of real estate and will be sheltered from tax for 3 or 4 years when they convert to a corporation. About 60% payout. 7.6% distribution.
David BaskinOwned
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BUY ON WEAKNESS
His favourite trust. Just reported a really good quarter. Firing on all cylinders. Distribution is consistent and stable and they've committed to paying this once they've converted to a corp. Excellent balance sheet. Try to buy in the $16 range.
Barry SchwartzOwned
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TOP PICK
With 130 theatres they are the largest operator in Canada. Recession resistant. Good management. Looking for alternative sources of revenue such as 3-D movies. 7.5% yield is very safe and at a low payout ratio.
Christine PooleOwned
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TOP PICK
Movie concessions have 80% gross margins. 3D has some real potential for movie theatres. When it converts to a corporation in 2011, it has a tremendous amount of tax shelters because of all the real estate it owns. Distributing about half its cash flow so they have a big margin to raise their distribution. 8% distribution.
David BaskinOwned
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TOP PICK
Good balance sheet. 60% payout ratio. Have tax losses for 3 or 4 years beyond 2011. Great management and cash flow. Growing EBITDA. Deploying new technology giving them a greater market share. 7.8% yield.
Paul Gardner, CFAOwned
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BUY
Have had good earnings this year because the box office has been really strong. Also benefiting from strong concession revenues.
Michele RobitailleOwned
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TOP PICK
Great management team. Benefited from a great slate of movies in the first half of 2009 with another strong slate coming in the 2nd half. People are returning to movies versus going on luxury vacations, buying new cars, etc. 7.6% yield should be safe.
Ben ChengOwned
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TOP PICK
Very good balance sheet. Payout ratio is 58%. Almost a quasi-monopoly in the theatre space. Recession resistant. Margins on concessions and loyalty programs are helping the bottom line.
Paul Gardner, CFAOwned
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COMMENT
Well run company. Just did a financing. He thinks the dividend is safe. The only problem he has with the industry is that they can't control the end product, the movies. Will do really well if a bunch of blockbusters comes along but if Hollywood produces a bunch of stinkers they won't do well.
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TOP PICK
Cineplex theatres. In an economy like this they are recession resistant. Box office revenues went through the roof. Cheap form of entertainment. Spending a lot of money on 3 D's and new technology. Basically own the majority of theatres in Canada. Pristine balance sheet. Payout ratio of about 60% and 8% yield should be safe. $6 million of tax losses when they have to convert to a corporation.
Paul Gardner, CFAOwned
other services
BUY
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