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File photo of a Cineplex theatre in North Vancouver. (Jonathan Hayward/The Canadian Press)
File photo of a Cineplex theatre in North Vancouver. (Jonathan Hayward/The Canadian Press)

Research Report

Cineplex: the feel-good stock of the holiday season Add to ...

Validea’s pick of the week provides a detailed report on a company that scores well in the stock-screening service’s model portfolios. On Validea.ca, investors can analyze 1,000 Canadian stocks through 12 different guru-based models and get individual reports on each company. Globe Investor has a distribution agreement with Validea.ca. Try it.

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Cineplex Inc. operates 161 movie theatres with 1,635 screens across Canada. It also allows users to rent or buy videos online. Its market cap is $2.6-billion.

The company has grown EPS at a 26.7-per-cent pace over the long term (using an average of the 3-, 4-, and 5-year EPS growth rates).

Cineplex may look pricey, at 27.4 times trailing 12-month EPS, but thanks to its strong growth and 3.4-per-cent dividend yield, it has a solid yield-adjusted P/E-to-growth ratio of 0.91, part of why the Peter Lynch-based model thinks it's still a good value.

Its debt/equity ratio is a reasonable 28.8 per cent, less than half the 64.2-per-cent industry average, which the Lynch- and Martin Zweig-based models like.

Cineplex has solid 13-per-cent return on equity. Its relative strength of 78 over past 12 months shows good momentum. And it has a 43.8-per-cent return on capital, which ranks 40th in the Canadian market, which the Joel Greenblatt-based model likes.

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Cineplex Inc.

5 Year Performance

Add CGX-T to your Watchlist Chart for CGX-T
CGX-T 41.80 -0.16 -0.381 %

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Security Price Change
CGX-T Cineplex Inc. 41.80 -0.16
-0.381 %
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