4-Star Stocks Poised to Pop: IMAX

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, jumbo-movie-screen systems maker IMAX (NYSE: IMAX  ) has earned a respected four-star ranking.

With that in mind, let's take a closer look at IMAX's business and see what CAPS investors are saying about the stock right now.

IMAX facts

Headquarters (Founded) Mississauga, Canada (1967)
Market Cap $1.32 billion
Industry Movies and entertainment
Trailing-12-Month Revenue $238 million
Management CEO Richard Gelfond (since 2009)
CFO Joseph Sparacio (since 2007)
Return on Capital (Average, Past 3 Years) 12%
Cash/Debt $18.8 million / $39.6 million
Competitors AMC Entertainment
Regal Entertainment
SimEx-Iwerks

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 93% of the 1,588 members who have rated IMAX believe the stock will outperform the S&P 500 going forward.  

This past fall, one of those bulls, Yacabe, tapped the stock as a solid growth opportunity:

From what I can see, IMAX is building new theaters in China, meaning that there is rising demand for their products, and that's going to bring in income. Also, we see that there are several movies coming out that are going to help IMAX out quite a bit. ... I've also seen several reports that [IMAX stock] is overpriced. Then when you hear that, you think, is he crazy? I say that I'm not crazy. What these things paired together mean is not falling into a bottomless pit, it's going up an endless escalator. Have fun with it people.

What do you think about IMAX, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!

Want to see how well (or not so well) the stocks in this series are performing? Follow the new TrackPoisedTo CAPS account.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of IMAX. Try any of our Foolish newsletter services free for 30 days.

We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.


Read/Post Comments (1) | Recommend This Article (3)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On January 10, 2012, at 10:58 AM, thisisdavidbell wrote:

    Im not so sure its fairly valued currently. If you remove the 4Q 2010 tax benefit, the P/E at the end of 2010 was over 40, and the trailing 4 quarters P/E is currently 135.

    Add to that the large proportion of earnings that are being spent on compensation for the executive officers and others, I don't think a share price rise is a certainty even if they increase revenue from the growing number of cinemas, and tie ups with the film makers for early releases such as MI4.

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12/19/2014 4:05 PM
IMAX $29.99 Up +0.39 +1.32%
Imax CAPS Rating: *****

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