IMAX Corporation

IMAX

Entertainment · Communication Services

Price

$52.74

+0.00 (+0.00%)

Market Cap

$2.89B

Winston Score

Winston is happy

A high-quality business with solid fundamentals.

Data as of Aug 23, 2026 · filings through Jun 30, 2026

How the score breaks down

Quality

Strong

Growth

Strong

Cash Flow

Exceptional

Stability

Strong

Valuation

Good

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Share count falling — buybacks

−6.1% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 59.1M (2021) → 55.5M (2025)

Winston Score History

The full picture

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.

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

+12.2% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

+33.3% YoY

YoY Growth Rate

Strong earnings growth

R&D Spend

$4M/ year

↓ Declining (-19% vs prior year)

1.0% of revenue

Below sector average (12%)

R&D spend declining — could signal cost-cutting or efficiency

Insider Activity

24.0%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

$160M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

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

Growth + cash flow

IMAX Corporation is a rare growth stock that's already generating positive cash flow while growing at 12%. The Winston Score doesn't fully credit this transition from "burner" to "earner."

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.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Profit per sale

Gross Margin

61.2%

Premium pricing power — 61.2% gross margin

Profit after running costs

Operating Margin

20.2%

Excellent — 20.2% operating margin

Return on the money invested

ROCE

14.4%

Good — 14.4% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales growth

Sales YoY

+14.8%

Fast-growing sales (+14.8% YoY)

Profit growth

EPS YoY

+22.2%

Earnings growing fast (+22.2% YoY)

Healthy double-digit earnings growth — what compounders look like.

How steady the profit is

EPS Consistency

6/8 quarters

Earnings grew in most of the last 8 quarters

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Cash Flow

Profit that turns into cash

Cash Conversion

324%

Turns 324% of profit into real cash

Spare cash per sale

FCF Margin

30.4%

Converts sales into free cash efficiently (30.4%)

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

What it owes vs what it owns

Debt / Equity

0.79

Moderate — manageable debt (0.79)

Covers its interest

Interest Cover

12.29x

Comfortably covers interest (12.3x)

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

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Valuation

Price vs profit

P/E Ratio (TTM)

70.3x

Expensive — P/E 70.3

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

Cheaper or dearer next year

P/E vs Forward

+48.0

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (70.3 → 22.3)

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Dividends

Not applicable for this business.

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