NASDAQ:IMAX
$11.88
(2/9 11:05AM)
+2.9%
| Open | $11.8 |
Mkt Cap | $719.6 Million |
| High | $12.12 |
52Wk High | $14.60 |
| Low | $11.61 |
52Wk Low | $3.74 |
| Volume | 387,317 |
Avg Vol 10D | 1.0 Million |
Ockham's Rating/Recommendation Summary
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IMAX Revenue
As a value investing shop, we are interested in seeing how IMAX's revenues measure up against past performances. One easily understandable way of doing that is to compare Price to Sales per share levels over a given time frame. Assuming it is available, Ockham prefers to look at ten years of history (for this stock there are 10 years of history available) and we weigh recent years more heavily. This allows us to find weighted average historical high and low Price to Sales ratios, which give us a better idea of the stock's current underlying value. Using this method, we have established a high range for Price to Sales of 3.48x and the low end of the range at 1.21x.
With respect to these historically rational metrics, notice that the current Price to Sales per share ratio for IMAX of 5.34x is high enough compared with historical norms of IMAX to cause some concern. The current Price to Sales per share is near the upper end of the historical range. In our eyes, this is a negative factor because it is more likely that it will return to the normal range than continue rising outside of the range. At current sales per share levels, we would need to see a decline in the Price to Sales ratio of 127% merely to return IMAX to its historical average.
IMAX Cash Earnings
Looking at IMAX specifically in their Cash Earnings capabilities, Ockham views IMAX as significantly above its historical average multiple of Cash Earnings. Looking at the last 9 years we can get a good understanding of what investors have grown to expect from IMAX. For example, IMAX's Cash Earnings ratio per share has fluctuated between 14.27 and 47.61 over this historical timeframe. This range is based upon a proprietary weighted methodology at Ockham, but can clearly show an investor where IMAX is with respect to prior business periods.
So what does this tell us about IMAX in particular? Basically, we would value the current level of Cash Earnings per share (which is at 66.11) as significantly overvalued. Just by looking at the last closing price of IMAX, which was $12.56, we can see that compared to the historical high Price to Cash Earnings levels we calculated, the market has already rewarded IMAX with a higher stock price. So basically, we don't view this level of Cash Earnings or stock price as compatible with a long term value at this point. Just remember, that does not mean that IMAX may not have other merits with which to find a good investment opportunity, it just means that we would prefer to see either an increase in Cash Earnings or a decrease in stock price before we would become bullish on this metric.
IMAX Dividends
A strong dividend payment history is looked upon as a favorable characteristic on a company’s future and potentially can receive a positive Ockham rating. That being said, we don't require dividend payments for company's whose management has elected to forgo them entirely. IMAX may pay a dividend at this time; however, there is an insufficient amount of history to incorporate it into our analysis. Therefore, we are not utilizing the dividends or lack thereof in our study. As IMAX more consistent dividend history is made available, we will begin to factor this into the Ockham approach.
Imax Corporation Was Talked About by Fox Business
The latest news on Fox Business in regards to IMAX came through on RazorWire recently.
When looking at our entire coverage universe and ranking stocks by the attention they receive on RazorWire, it is clear that Imax Corporation has been talked about more than normal recently. Crowd sentiment is neutral from the millions of opinions submitted through Motley Fool CAPS, which suggests most investors on their platform believe Imax Corporation will perform just about the same as the index. At Ockham, we are not advising buying Imax Corporation at the current price level because according to our methodology it is not supported by the fundamentals.
“… it is the big spectacle and IMAX shows that off by say there are other spectacles but this seems to be a game changer for reasons you cannot articulate. …”
See More News on IMAX from Squawk Box
The latest news from Squawk Box on IMAX is available through Ockham's news analytics platform RazorWire.
At the current price, value investors will want to look elsewhere for a buying opportunity as this stock has heated up and is currently Overvalued. The Motley Fool CAPS crowd believes this stock will perform generally in line with the benchmark, or in other words the crowd is neutral. We noticed recently that in comparison to all other stocks we analyze in the news; IMAX has received less coverage from the financial media in business television and blogs.
“… The answer, IMAX. > > > welcome back, everybody. You know the retailers saw late december rally on better than expected holiday sales. …”
Squawk Box Discussed the Latest Development of Imax Corporation
The latest news on Squawk Box in regards to IMAX came through on RazorWire recently.
Our sentiment indicator, provided through the Motley Fool CAPS survey, suggests that investors are neutral overall towards IMAX and think that it will generally perform in-line with the S&P 500. As of this week's report, we have an Overvalued valuation on IMAX because the price has gotten too high to be justified by the fundamentals. In comparison to the other stocks that we follow, Imax Corporation has seen more discussion in relation to its normal ranking among the group. Be aware that the news sources we track are focusing on this stock more often these days.
“… I saw it in IMAX 3-d. > > wow. > > it was pretty out there. It's a long movie. > > all right. I'm up for it now. . …”
Holding IMAX Stock? See What Is Being Discussed on Mad Money
Staying informed on the news is invaluable for investors, and RazorWire has captured a recently discussion on IMAX from Mad Money.
At the current price, value investors will want to look elsewhere for a buying opportunity as this stock has heated up and is currently Overvalued. The Motley Fool CAPS crowd believes this stock will perform generally in line with the benchmark, or in other words the crowd is neutral. We noticed recently that in comparison to all other stocks we analyze in the news; IMAX has received less coverage from the financial media in business television and blogs.
“… IMAX and palm. > > i'm going to solve that you're not going to buy either one of them. Palm I still need more apps. There's 3 billion apps down loaded since 10:00 tonight. …”
Did You See IMAX's CEO Gelfond on Fast Money?
CEO's are the strategic leaders of their companies, so any mention of them will garner special interest from us.
The Motley Fool CAPS crowd believes this stock will perform generally in line with the benchmark, or in other words the crowd is neutral. We noticed recently that in comparison to all other stocks we analyze in the news; IMAX has received less coverage from the financial media in business television and blogs. At the current price, value investors will want to look elsewhere for a buying opportunity as this stock has heated up and is currently Overvalued.
“… The ceo of IMAX here. It was guys "10 for 10" pick but are there buyers here of IMAX based on what he said? > > I like the stock. It made a 52-week high. T}] averages. …”
Debt a Topic of Conversation for Imax Corporation on Fast Money
In the aftermath of the credit crisis, debt is a key area investors should understand. A recent news story on Fast Money talks about IMAX's debt load.
Crowd sentiment is neutral from the millions of opinions submitted through Motley Fool CAPS, which suggests most investors on their platform believe Imax Corporation will perform just about the same as the index. As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, IMAX has been less covered in the news compared to the rest of our universe of stocks. At Ockham, we are not advising buying Imax Corporation at the current price level because according to our methodology it is not supported by the fundamentals.
“… I think the bigger thing for IMAX is we've been in 3d for 25 it's been a lonely land for us until recently. Our brand has become synonymous with premium 3d and we're really ... …”
Be Aware There is a Lot of News Today On IMAX and This Instance Comes from Fast Money
Something important is going on with IMAX today, as it is getting a lot of attention on business television and influential blogs.
As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, IMAX has been less covered in the news compared to the rest of our universe of stocks. At Ockham, we are not advising buying Imax Corporation at the current price level because according to our methodology it is not supported by the fundamentals. Crowd sentiment is neutral from the millions of opinions submitted through Motley Fool CAPS, which suggests most investors on their platform believe Imax Corporation will perform just about the same as the index.
“… And IMAX announcing 3d tv network. Will it be the next hd, a must-have technology for every living room in america? Joining us IMAX ceo. Great to have you with us. > > …”
Fast Money: Get Plugged into IMAX News Regarding The CEO
Staying in touch with the latest management news is one way we are keeping our clients informed. Notice, RazorWire has a news capture related to IMAX's CEO.
The Motley Fool CAPS crowd believes this stock will perform generally in line with the benchmark, or in other words the crowd is neutral. We noticed recently that in comparison to all other stocks we analyze in the news; IMAX has received less coverage from the financial media in business television and blogs. At the current price, value investors will want to look elsewhere for a buying opportunity as this stock has heated up and is currently Overvalued.
“… The ceo of IMAX how he adds another dimension to the flat screen. Meantime, jon najarian's "avatar" joins us with the stock he thinks is the good buy for the next decade. > > …”
Fast Money: IMAX is Among Most Active Stocks in the News Today
Something important is going on with IMAX today, as it is getting a lot of attention on business television and influential blogs.
At the current price, value investors will want to look elsewhere for a buying opportunity as this stock has heated up and is currently Overvalued. We noticed recently that in comparison to all other stocks we analyze in the news; IMAX has received less coverage from the financial media in business television and blogs. The Motley Fool CAPS crowd believes this stock will perform generally in line with the benchmark, or in other words the crowd is neutral.
“… unreal picture. 3d is coming from the big screen to the living room. The IMAX ceo on why this trade is just getting started . …”
A Discussion of IMAX's CEO Occurred on Closing Bell
CEO's are the strategic leaders of their companies, so any mention of them will garner special interest from us.
As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, IMAX has been less covered in the news compared to the rest of our universe of stocks. At Ockham, we are not advising buying Imax Corporation at the current price level because according to our methodology it is not supported by the fundamentals. Crowd sentiment is neutral from the millions of opinions submitted through Motley Fool CAPS, which suggests most investors on their platform believe Imax Corporation will perform just about the same as the index.
“… we've also gotten with all the hype about 3d tv in your home, the ceo of IMAX to join us about the prospects of what that will actually be in terms of consumer cost and also how ... …”