New Lifetime High For 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 $46.1 million.
  • IMAX has traded 45,285 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 74. 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 779,900 shares per day over the past 30 days. Imax has a market cap of $2.9 billion and is part of the services sector and media industry. The stock has a beta of 0.33 and a short float of 18.4% with 8.55 days to cover. Shares are up 37.4% year-to-date as of the close of trading on Friday.

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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 revenue growth, largely solid financial position with reasonable debt levels by most measures, expanding profit margins and solid stock price performance. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 3.8%. Since the same quarter one year prior, revenues rose by 29.1%. This growth in revenue does not appear to have trickled down to the company's bottom line, displaying stagnant earnings per share.
  • IMAX's debt-to-equity ratio is very low at 0.04 and is currently below that of the industry average, implying that there has been very successful management of debt levels.
  • The gross profit margin for IMAX CORP is rather high; currently it is at 66.37%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, IMAX's net profit margin of 0.62% significantly trails the industry average.
  • This stock has managed to rise its share value by 54.30% over the past twelve months. 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.
  • IMAX CORP has shown no change in earnings for its most recently reported quarter when compared with the same quarter a year earlier. The company has suffered a declining pattern of earnings per share over the past two years. However, we anticipate this trend to reverse 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 ($1.16 versus $0.56).

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