IMAX still too cheap at $20:
- IMAX (IMAX -1.8%) CEO Richard Gelfond pushes back against the idea that sequel fatigue is holding back box office sales this year.
- Gelfond points to the strong opening run for Spider-Man: Far From Home and success of Avengers:Endgame. He thinks studios will continue to lean on the sequel formula due to structural changes with the movie industry.
- As for him company, he notes IMAX's box office revenue is up 5% YTD, including a 25% rise in China.
- Shares of IMAX are still up 7% YTD, despite a two-month long stumble.
They look at total box office but the blockbuster movies are, of course, on IMAX screens and those things are packing them in. Several times we've wanted to see something in IMAX and that was sold out and we had to go see it on a regular screen.
Spider Man was worth paying the IMAX fee for.
Look at IMAX's nice, steady revenue growth and yes, they spent a lot of money the last few years and it's supposed to start dropping to the bottom line this year and Q1 was $12.5M in profits so on track for $50M even if Q1 wasn't a low Q in the movie Biz. The company is valued at $1.2Bn at $20 so p/e pushing below 20x and the growth is still there and likely to continue:
| Year End 31st Dec | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | TTM | 2019E | 2020E | CAGR / Avg | |
| $m | 287.9 | 290.5 | 373.8 | 377.3 | 380.8 | 374.4 | 369.6 | 397.5 | 412 | +5.4% | |
| $m | 65.1 | 57.9 | 87.8 | 58.6 | 31.4 | 45.2 | 42.2 | -7.0% | |||
| $m | 44.1 | 39.7 | 55.8 | 28.8 | 2.34 | 22.8 | 22.6 | 70.9 | 76.9 | -12.3% | |
| $ | 0.64 | 0.56 | 0.78 | 0.42 | 0.18 | 0.36 | 0.36 | -10.9% | |||
| $ | 0.66 | 0.65 | 0.82 | 0.49 | 0.38 | 0.62 | 0.60 | 1.14 | 1.27 | -1.1% | |
| % | +4.9 | -0.8 | +26.3 | -40.7 | -22.8 | +65.5 | +19.8 | +82.2 | +11.4 | ||
| x | 32.7 | 34.2 | 18.0 | 16.1 | |||||||
| x | 0.40 | 0.42 | 1.57 | 0.99 | |||||||
| Profitability | |||||||||||
At $80M, the p/e is 15 and they are less than 50% rolled out in China.
