Why IMAX Is Poised to Bounce Back

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, jumbo-movie-screen systems maker has earned a respected four-star ranking.

With that in mind, let's take a closer look at IMAX and see what CAPS investors are saying about the stock right now.

IMAXfacts

 

 

Headquarters (founded)

Mississauga, Canada (1967)

Market Cap

$1.6 billion

Industry

Movies and entertainment

Trailing-12-Month Revenue

$277.5 million

Management

CEO Richard Gelfond (since 2009)

CFO Joseph Sparacio (since 2007)

Return on Equity (average, past 3 years)

30%

Cash/Debt

$15.2 million/$18.0 million

Competitors

       


Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 94% of the 1,692 members who have rated IMAX believe the stock will outperform the S&P 500 going forward.   

Just last month, one of those bulls, TMFInnovator, succinctly summed up the bull case for our community:

- Great brand recognition, which is redefining the way that movies are watched. This allows theaters to charge higher prices for IMAX showings.
-Those higher prices are shared with IMAX through Revenue-sharing agreements. They signed deals with 25 new theaters in Q1 alone, with a large part of their expansion coming internationally (China, Indonesia). This business model provides much higher margins to IMAX than simply installing the equipment.
-Backlog of 283 theater systems. There is still plenty of demand for the IMAX experience.

This incredible tech stock is growing twice as fast as Google and Facebook, and more than three times as fast as Amazon.com and Apple. Watch our jaw-dropping investor alert video today to find out why The Motley Fool's chief technology officer is putting $117,238 of his own money on the table. And why he's so confident this will be a huge winner in 2013 and beyond. Just click here to watch!

The article Why IMAX Is Poised to Bounce Back originally appeared on Fool.com.

Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Imax. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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