New Lifetime High Reached By Imax (IMAX)

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.

Trade-Ideas LLC identified Imax ( IMAX) as a new lifetime high 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 $37.4 million.
  • IMAX has traded 186,326 shares today.
  • IMAX is trading at a new lifetime high.

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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 67.1. Currently there are 6 analysts that rate Imax a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for Imax has been 631,500 shares per day over the past 30 days. Imax has a market cap of $2.6 billion and is part of the services sector and media industry. The stock has a beta of 0.66 and a short float of 20.3% with 10.15 days to cover. Shares are up 21.6% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Imax as a buy. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, solid stock price performance and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • IMAX's debt-to-equity ratio is very low at 0.01 and is currently below that of the industry average, implying that there has been very successful management of debt levels.
  • Compared to its closing price of one year ago, IMAX's share price has jumped by 32.48%, exceeding the performance of the broader market during that same time frame. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
  • The gross profit margin for IMAX CORP is rather high; currently it is at 67.36%. 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, IMAX's net profit margin of 20.48% compares favorably to the industry average.
  • IMAX, with its decline in revenue, slightly underperformed the industry average of 7.2%. Since the same quarter one year prior, revenues slightly dropped by 2.5%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • IMAX CORP's earnings per share declined by 25.0% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, IMAX CORP reported lower earnings of $0.56 versus $0.63 in the prior year. This year, the market expects an improvement in earnings ($1.11 versus $0.56).

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