TSE:CGX

Cineplex Inc (CGX.TO)

11.20
-0.01 (0.09%)
as of Jun 5, 2026, 8:00:00 pm Market Open.
343 watching
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Investor Insights
star iconJun 6, 2026, 12:00 am

This summary was created by AI, based on 3 opinions in the last 12 months.

Cineplex Inc (CGX-T) has faced significant challenges since the COVID pandemic, with a disappointing box office performance in Q3 and Q4, though Q1 shows signs of improvement thanks to a strong December. Some analysts believe that the company's current struggles might present a fantastic risk/return opportunity, especially as the retiring CEO's departure may catalyze a potential sale by mid-2026. There is skepticism about the long-term impact of streaming on Cineplex's business model, suggesting that while it may not be the same company as before, it still has potential assets to be divested or capitalized upon. Overall, there is uncertainty regarding the next strategic move, prompting some experts to recommend exploring energy infrastructure investments as alternatives.

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Consensus
Mixed
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Valuation
Undervalued
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AMC
HOLD
Growth rates have come down. It is a box office name. They have diversified but BO is still 75% of their revenues. in the end they are modeling 11% earnings growth. Trading at 19 times 2019 earnings. Dividend is safe-ish.
PAST TOP PICK
(A Top Pick Feb 20/18, Down 11%) Disappointed. He got stopped out last November. He's more interested in the experience factor: Rec Room and Top Golf. If they accelerate both those, this could be a good player.
WEAK BUY
You own it for the dividend, but it is paying out everything they make right now. They have great management. He would buy for the dividend but he does to expect a full recovery.
BUY
Excellent management team – they have done all the right things. It got expensive and then the stock came down. The box-office has been very stable for decades. They added a lot of services. Now is a time to buy it. The game centers are where the growth will come from. It is at a neutral valuation and he does not see a lot of downside from here. (Analysts’ price target is $33.00)
DON'T BUY

It got hit hard in the first half of 2018 over premium video on demand (shrinking shorter release windows of movies from cinemas to streaming/TV). It then got hit hard in Q4. This continues to be a show-me story. The Rec Room and gaming investments are still TBD in terms of how they affect the bottom line. He keeps passing on this stock; their future is too uncertain given Netflix and home viewing. 6.3% yield.

WATCH
A controversial stock. Has performed badly, after being a market darling. Under secular threat, as people flock to streaming. Is trying to reinvent itself, pivoting to new revenue sources such as liquor and the "Rec Room." Tapping into digitization. Likes the strategy, but it's too early. Look for signs that share price is turning around, such as earnings momentum and beating forecasts. Beware the dead cat bounce.
HOLD
It moves up and down along with the success of the movie business. The new businesses they are getting into – he does not know if they are really going to work. It is extremely well managed and has done extremely well. It should come back. He feels it is a stock he should look at. (Analysts’ price target is $34.00)
HOLD
Sell underperformers and switch to those with more potential in a recovery? It's always hard. It's a game of averages. You have to go with your best idea that you have the most conviction in. Small caps do worse in a lousy market compared to big caps. It's cheap here. Got hammered last quarter with concerns about the media division, but he thinks this is temporary. But his opinion may not be the best, as he's liked this for 3 years and it's only gone one way.
PAST TOP PICK
(A Top Pick Oct 31/18, Down 30%) Liked the dividend. Market didn't like the earnings report. Doesn't like a chart with lower lows, so they removed it from the portfolio.
WATCH
The stock has really fallen out of bed. It is highly depended on filling seats. You need quality product out of Hollywood and you have not been getting that. It is sequel after sequel instead of new entertainment. It could get interesting but you have to wait and see.
COMMENT
They missed on Q3. Trading at an attractive valuation. They are modeling a 11% growth. Good dividend and pretty safe. He likes it here but other names are more attractive at this time. They are doing a good job at adding revenue streams.
COMMENT
Pays a good 6% dividend. It's a long-term play. The box office accounts for 80% of their profits and have been diversifying into areas like the Rec Room--but this will take time. They sell tickets when the movies are popular. Steps like the VIP cinemas and serving alcohol are positive. The dividend should hold up, unless the movie business collapses, which she doesn't see. Don't see a dividend increase, though. Also, people watch movies during recessions.
DON'T BUY
He'd like to get interested in this, but he's not there. It's pulled back, because traffic to movie theatres has been declining (given streamers like Netflix). To its credit, Cineplex is pro-active--it has opened the Rec Room (food, dining, videogames, karaoke) and offering the VIP Lounges and serving alcohol in Ontario. Also offering digital tickets to appeal to the young. He won't jump in until they meet or exceed earnings. They just had a disastrous quarter. Too early to enter this.
HOLD
It's had a premium valuation for a long time and still has it. They've tried to diversify their business. Around $25-30, the stock is okay--hold it, but he isn't jumping into it. It's not cheap enough.
BUY
[Caller wanted a 10 year opinion] It's a tough call. He does not know where this industry will be in 10 years. It finally cracked over the last 12 months because less and less people go to the movies. It snowballed because streaming went to a scale where the family might just want to stay in and watch their mobile devices. It has finally hit their business model. They are doing gaming now. It might do well over the next year. They could get taken out. The stock moves on content so it depends on how good the movie slate is this season.
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