Stock To Watch: Imax (IMAX) In Perilous Reversal
Trade-Ideas LLC identified
(
) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Imax as such a stock due to the following factors:
- IMAX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $40.3 million.
- IMAX has traded 113,152 shares today.
- IMAX is down 3.1% today.
- IMAX was up 14.4% yesterday.
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More details on IMAX:
IMAX Corporation, together with its subsidiaries, operates as an entertainment technology company specializing in motion picture technologies and presentations worldwide. IMAX has a PE ratio of 44. Currently there are 7 analysts that rate Imax a buy, no analysts rate it a sell, and 1 rates it a hold.
The average volume for Imax has been 625,700 shares per day over the past 30 days. Imax has a market cap of $2.1 billion and is part of the services sector and media industry. The stock has a beta of 1.08 and a short float of 11.4% with 5.18 days to cover. Shares are down 3% year-to-date as of the close of trading on Thursday.
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Analysis:
rates Imax as a
. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and expanding profit margins. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.
Highlights from the ratings report include:
- IMAX's debt-to-equity ratio is very low at 0.05 and is currently below that of the industry average, implying that there has been very successful management of debt levels.
- Net operating cash flow has significantly increased by 150.24% to $31.10 million when compared to the same quarter last year. In addition, IMAX CORP has also vastly surpassed the industry average cash flow growth rate of 3.16%.
- IMAX CORP has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, IMAX CORP increased its bottom line by earning $0.78 versus $0.56 in the prior year. This year, the market expects an improvement in earnings ($0.98 versus $0.78).
- The gross profit margin for IMAX CORP is rather high; currently it is at 62.04%. Regardless of IMAX's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 8.49% trails the industry average.
- IMAX, with its decline in revenue, underperformed when compared the industry average of 4.2%. Since the same quarter one year prior, revenues fell by 14.4%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- You can view the full Imax Ratings Report.
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