IMAXIMAX Corporation
Is the business good?
A genuinely good business: earnings fully cash-backed (2.1×) and margins widening.
Operating profit is fully backed by cash. Conversion is improving vs a year ago.
Operating margin has widened over the past few years, the business is getting more profitable per dollar of sales.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is IMAX?
IMAX Corporation earns 34% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 25 points above what the capital costs: growth creates value
- Cash conversion
- 2.10×
Cash conversion · 1.65× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- +2.5%
Share count, year on year · shareholders own a smaller slice than a year ago
| Year | Operating margin |
|---|---|
| FY2020 | −89% |
| FY2021 | 4.3% |
| FY2022 | −1.6% |
| FY2023 | 13% |
| FY2024 | 12% |
| FY2025 | 21% |
Details›
- Free cash flow, trailing twelve months
- $127M
- Net income, trailing twelve months
- $41M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 34%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.