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Investor Insights

This summary was created by AI, based on 6 opinions in the last 12 months.

Cineplex Inc is a company facing challenges due to the pandemic, with a failed acquisition deal and high debt levels. However, experts believe that movies are not going away and there is potential for recovery. The stock has high risk and uncertainty, but also some opportunities for growth and a possible takeover. Overall, it remains a recovery story with a positive outlook for the future.

Consensus
Recovery
Valuation
Undervalued
DON'T BUY
Cineplex Inc

More and more, content is being created for streaming platforms. The "theatrical windows" it used to be able to benefit from are getting shorter and starting to disappear. Struggling on growth. Elevated debt.

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DON'T BUY
Cineplex Inc

Recent pullback since pandemic + sideways range not great for investors. Generally speaking, long term trend is not good. Better options for investors out there. 

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RISKY
Cineplex Inc

Was a great business, cash cow. Deal to be acquired collapsed with the pandemic. Bad luck and bad timing. Stellar management team. Sold off a business to pay down debt, good decision. Movies aren't going away, so you could take a flyer on it.

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RISKY
Cineplex Inc

Not your highest-quality play. Trying to get approval to extend debt schedule. If approved, will add flexibility and improve free cashflows. If all goes well, may be able to reinstate dividend. But a lot has to go right. Pricey at 27x. High risk, but now would be the time to allocate some capital. A lot of the bad news is already out.

Don't own in a registered account, as you want to take capital losses if you're wrong.

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TRADE
Cineplex Inc

He loves movies. Going to be tough to top last year's Barbenheimer. Rumours of the death of movies have been exaggerated. It's going to be a season-to-season, year-to-year stock, rather than a cyclical.

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WATCH
Cineplex Inc

Covid hammered them, while a British company tried to buy them but aborted that deal (now in a lawsuit). It's not cheap seeing a movie, but he goes now and then. Movies are coming back, though. You can't duplicate the experience at home. Still a lot of uncertainty with this stock, though.

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RISKY
Cineplex Inc
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

Revenue growth is coming back a bit, with lower comparables from last year helping the year-over-year figures. Its debt levels are high, with net debt of $1.9B, and a net debt/EBITDA of 6.8X. Interest costs are $137M (last 12 months) and these will likely rise a bit with higher rates. 12-month cash flow was $116M and therein lies the problem. The debt is mostly due in the next five years. With attendance back, and a decent film slate, bankruptcy is becoming less of a concern, but it is still hard to paint a really positive picture here because of the leverage. 

It is somewhat cheap (0.4X forward sales), but also has a fairly high forward P/E of 20.2X. It could become a takeover target, however, we would not place a high level of probability on that at these current levels. 
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PARTIAL BUY
Cineplex Inc
Allan Tong’s Discover Picks

Cineplex remains a recovery story, and its beta of 2.88 signals more risk than usual. It rose 10% in Q1, but the chart was choppy. So, consider Cineplex a partial buy. After all, Covid didn’t kill cinema-going, as some expected, but deferred it. We still love the big screen. Read Dark horses: Nuvei, Cineplex, Boralex for our full analysis.

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DON'T BUY
Cineplex Inc
Too many good shows on competing streaming services. Kids don't go to a movie every Friday the way he used to. Doesn't know what the catalyst is. Dividend gone. Balance sheet probably not in good shape, pandemic did lots of damage. All depends on quality of movies. Media companies all losing money. No growth tailwinds over the next 5 years.
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DON'T BUY
Cineplex Inc
Business increasing with post pandemic business. Hard to make as much profit with rise of streaming. Company doing well with snacks/drinks purchases in theater. Unsure of the future of the theater business.
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DON'T BUY
Cineplex Inc
Negative shareholders' equity of 256M. Trying to hold its level. Movie releases generate positive news, but he can't assess long-term fundamentals. Pass. Look for value elsewhere.
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DON'T BUY
Cineplex Inc
Tricky sector to invest in at the moment(headwinds with the emergence of streaming technology). Large global cinema operators going bankrupt. Consumers looking to reduce spending with higher interest rates and inflation. Hard time to be in this business.
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PARTIAL BUY
Cineplex Inc
Allan Tong’s Discover Picks With a monopoly in Canadian moviegoing, Cineplex stock has nowhere to go but up. But how far? It's no secret that Covid ravaged its operations and killed the Cineworld takeover. That case is now crawling through the courts as the UK chain appeals the C$1.23 billion in damages found against it. I doubt that Cineworld will win, but I also doubt that Cineworld will pay Cineplex the full amount. I also suffer no illusions that Cineplex will return anywhere near its past highs of $50+ back in 2017. However, it should at least return to $16 last seen in June 2021 and even surpass it. Read Looking ahead with 2 Canadian Stocks for our full analysis.
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RISKY
Cineplex Inc
Takeover deal fell through so they might get some sort of breakup fee. Stock's recovered somewhat. Attendance is still very weak. Very high risk play. Should benefit from the economy reopening. For gamblers.
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DON'T BUY
Cineplex Inc
People own this for the dividend, and pre-Covid this company was innovative with preferred seating and cafes, and programming opera and sports. But this is a difficult environment now; he doesn't see people returning to cinemas given social distancing. Also, the studios are releasing films on streaming. True, a lot of blockbusters will be released, but those films will also be released at home, too.
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Cineplex Inc(CGX-T) Rating

Ranking : 4 out of 5

Bullish - Buy Signals / Votes : 3

Neutral - Hold Signals / Votes : 0

Bearish - Sell Signals / Votes : 2

Total Signals / Votes : 5

Stockchase rating for Cineplex Inc is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

Cineplex Inc(CGX-T) Frequently Asked Questions

What is Cineplex Inc stock symbol?

Cineplex Inc is a Canadian stock, trading under the symbol CGX-T on the Toronto Stock Exchange (CGX-CT). It is usually referred to as TSX:CGX or CGX-T

Is Cineplex Inc a buy or a sell?

In the last year, 5 stock analysts published opinions about CGX-T. 3 analysts recommended to BUY the stock. 2 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Cineplex Inc.

Is Cineplex Inc a good investment or a top pick?

Cineplex Inc was recommended as a Top Pick by on . Read the latest stock experts ratings for Cineplex Inc.

Why is Cineplex Inc stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is Cineplex Inc worth watching?

5 stock analysts on Stockchase covered Cineplex Inc In the last year. It is a trending stock that is worth watching.

What is Cineplex Inc stock price?

On 2024-06-18, Cineplex Inc (CGX-T) stock closed at a price of $7.26.