IMAX Corporation (IMAX) Stock Analysis & Winston Score

IMAX Corporation makes giant-screen movie technology used in theaters around the world. Its core products include oversized screens, specialized projectors, and sound systems that make movies look and sound much bigger and more immersive than a regular cinema. Hollywood studios like Disney, Warner Bros., and Universal pay to release their biggest films — think superhero movies and blockbusters — in IMAX format.

IMAX makes money in a few ways: it leases its equipment to theater partners, takes a cut of ticket sales, and charges studios fees to reformat films into IMAX. The company operates in over 85 countries, with a growing presence in China, which is now one of its largest markets. Its main competitive advantage is brand recognition — moviegoers actively seek out IMAX showings and pay a premium for the experience. The biggest risk is that the business depends heavily on a steady flow of big-budget Hollywood releases, so a weak film slate or a Hollywood strike can quickly hurt revenue.

Winston Score History

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-6.1% YoY

YoY Growth Rate

Revenue declining

EPS Growth

+78.3% YoY

YoY Growth Rate

EPS growth accelerating

Insider Activity

24.0%ownership

↑ Rising

Insiders increasing their stake — aligned with shareholders

Cash Position

Cash flow positive

$146M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Revenue declining

IMAX Corporation's revenue is actually shrinking. In a growth stock, that removes the core investment thesis. The low Winston Score here may be warranted — unless there's a turnaround story.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Gross Margin

56.3%

Premium pricing power — 56.3% gross margin

Operating Margin

12.2%

Healthy — 12.2% operating margin

ROCE

1.6%

Weak — 1.6% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY

+12.6%

Fast-growing sales (12.6% YoY)

EPS YoY

+44.1%

Earnings growing fast (44.1% YoY)

Earnings growing 25%+ a year. The compounder zone.

EPS Consistency

6/8 quarters

Earnings grew in most of the last 8 quarters

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Cash Flow

Cash Conversion

337%

Turns 337% of profit into real cash

FCF Margin

28.5%

Converts sales into free cash efficiently (28.5%)

Free cash flow margin above 20%. Out of every $100 in sales, more than $20 is real cash they keep.

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Stability

Debt / Equity

0.87

Moderate — manageable debt (0.87)

Interest Cover

11.65x

Comfortably covers interest (11.6x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

P/E Ratio (TTM)

57.7x

no trend

Expensive — P/E 57.7

P/E over 35. The market is pricing in heavy, sustained growth.

P/E vs Forward

+39.6

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (57.7 → 18.1)

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Dividends

Not applicable for this business.

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