Quality Investor

IMAX Corporation

Rank #254Op. Leverage

IMAX · NYSE · Communication Services

IMAX Corporation (IMAX) — Rank #254 by gross profitability (GP/assets 0.27) · ROE 9.8% · Piotroski F-Score N/A.

As-of 2026-09-15 · CIK 0000921582 · all metrics point-in-time as of the filing date.

About

IMAX Corporation, together with its subsidiaries, operates as a technology platform for entertainment and events in the United States, Canada, Greater China, rest of Asia, Western Europe, Latin America, and internationally.

Show more

It operates through Content Solutions; and Technology Products and Services segments. The company offers IMAX film remastering, a proprietary technology that digitally remasters films and other content into IMAX formats for distribution to the IMAX network; IMAX Enhanced, which provides end-to-end technology across streaming content and entertainment devices at home; AI-driven video quality solutions for media and entertainment companies; and streaming technology software products. It also provides preventative and emergency maintenance services, and quality monitoring to the IMAX network; film post-production services; and IMAX film and digital cameras for content creators. In addition, the company engages in the distribution of format documentary films to institutional theaters, as well as live performances and interactive events with artists and creators; after-market sales of IMAX System parts and 3D glasses; sale or lease of IMAX theater systems; provision of management services to theaters; and rental of company's proprietary 2D and 3D large-format film cameras. The company markets its theater systems through a direct sales force and marketing staff to science and natural history museums, zoos, aquariums, and other educational and cultural centers, as well as theme parks, private home theaters, tourist destination sites, fairs, and expositions. It offers its services under the IMAX, IMAX 3D, Experience It In IMAX, The IMAX Experience, DMR, Filmed For IMAX, IMAX Live, IMAX Enhanced, and IMAX StreamSmart.

IMAX Corporation was founded in 1967 and is headquartered in Mississauga, Canada.

Industry
Entertainment
Sector
Communication Services
State
A6
Filer Category
Large accelerated filer
Fiscal Year End
December 31
Website
imax.com

Price History

IMAX+242.0% · +27.9% CAGRSPY+80.5% · +12.5% CAGR

Company Snapshot

P/E and reverse DCF are the primary valuation lenses at this stage.

Market Cap

$2.92B

P/E (annual)

84.6

P/S (annual)

7.1

P/B

8.2

P/OCF (annual)

23.0

Shareholder Yield

-3.1%

Employees

679

Industry

Entertainment

Exchange

NYSE

Signal Flags

3 green2 yellow
Revenue growth acceleratingGrowth rate increasing year over year
Operating leverage expandingOperating income growing faster than revenue
Sequential beat (rev + EPS)Both revenue and EPS exceeded prior quarter — 2-quarter streak
Dilution above 2%Annual share count increase exceeds 2%. May be acceptable for high-growth companies funding talent via stock compensation
Disclosure regressionA previously-disclosed line item is no longer reported — worth checking the filing for why

Quality Profile

Profitability

1/1 pass
GP / assets
0.27
Return on equity
9.8%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
1.04
Current ratio
Net cash
$159.92M

Cash Flow

3/3 pass
Positive FCF
PASS
Cash-backed earnings
PASS
Accruals healthy
PASS
SBC / revenue
6.5%

Growth

1/2 pass
Revenue growth
16.5%
Piotroski F-Score
N/A
Share dilution
3.1%

Terry Smith quality gate

Passes 3/5 Terry Smith thresholds

2 of 5 thresholds not computable from filed data.

What Growth Is Priced In

Implied revenue growth (10Y)

10.7%

incredible deal

The annual FCF growth rate today's price requires over a 10-year horizon (discount rate 10%, terminal growth 2.5%).

Dilution drag: 3.1% — per-share value needs a total required return of 13.8% once share-count change is priced in.

vs. own 6-year median revenue growth: 17.2%

within its own history

Cost-of-equity sensitivity (implied growth at different discount rates)

r = 8%

6.2%

r = 10% (base)

10.7%

r = 12%

14.6%

Net debt / market cap: -5.4%

Base FCF: $118.9M3Y mean FCF: $77.8M

Valuation History

Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.

P / E

Price / diluted EPS

58.0xFair
34.3xmed 57.9x581.3x

P / S

Price / revenue per share

4.9xExpensive
0.0xmed 2.9x9.0x

P / B

Price / book value per share

6.0xExpensive
0.0xmed 3.2x6.0x

P / GP

Price / gross profit per share

8.2xExpensive
0.0xmed 5.5x57.0x

P / FCF

Price / free cash flow per share

17.1xFair
0.0xmed 16.7x505.0x

Operating margin expansion and free cash flow are the primary reads at this stage.

Profitability

Gross profitability (GP / assets)

0.27

Primary signal (Novy-Marx).

36th pctl of 37 SIC 38 peers

Return on equity

9.8%

Gross margin

60.0%

56th pctl of 37 SIC 38 peers

Revenue growth (YoY)

16.5%

RPO growth (YoY)

6.8%

Remaining performance obligations growth — RPO > revenue = forward demand building.

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2022202320242025
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

10.9%

Revenue CAGR (5Y)

24.5%

Earnings CAGR (3Y)

FCF CAGR (3Y)

137.3%

Anti-fragile safety

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

1.04

41st pctl of 35 SIC 38 peers (best = lowest)

Current ratio

Quick ratio

Net cash

$159.92M

Cash & equivalents minus total debt.

Recession resistance

Revenue through recessions

Worst single-year YoY revenue decline, 17 years of history

Weak
2008-2009 (GFC)
N/AN/A
2020 (COVID)
-65.4%Significant decline
Worst year on record(any fiscal year, not recession-limited)
-65.4%Significant decline

Cash-flow health

Free cash flow

$118.90M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF / net income

2.41

Cash-backing of earnings.

FCF/NI divergence

Unfavorable divergence (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

6.5%

Stock-based comp intensity.

Piotroski F-Score

F-Score

N/A

Only 7/9 components determinable.

Lifecycle Phase History

20202025
Decline
Hypergrowth
Startup
Op. Leverage