Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, jumbo-movie-screen systems maker IMAX (Nasdaq: IMAX ) 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.
|Headquarters (Founded)||Mississauga, Canada (1967)|
|Market Cap||$1.7 billion|
|Industry||Movies and entertainment|
|Trailing-12-Month Revenue||$233.3 million|
CEO Richard Gelfond (since 2009)
CFO Joseph Sparacio (since 2007)
|Return on Capital (Average, Past 3 Years)||4.5%|
|Cash/Debt||$45.5 million / $21.9 million|
RealD (NYSE: RLD )
Regal Entertainment (NYSE: RGC )
Cinemark Holdings (NYSE: CNK )
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 92.5% of the 1,410 members who have rated IMAX believe the stock will outperform the S&P 500 going forward. These bulls include Grumpee and All-Star pencils2, who is ranked in the top 0.2% of our community.
Earlier this month, Grumpee noted that IMAX "is a very profitable company which will double in size in the next couple of years." Our CAPS member concludes: "Every theatre in the world is converting to digital projection and 3-D and IMAX is the premium experience in the category."
Thanks to its unrivaled premium-commanding movie experience and new joint-venture strategy, IMAX's fundamentals are becoming too attractive for Fools to ignore. In fact, IMAX's trailing-12-month operating margin (23.9%) easily tops that of its main 3-D foe RealD (-11.6%), as well as theater chains Regal (10.1%) and Cinemark (14.7%), both of whom are also developing their own premium formats.
CAPS All-Star pencils2 also offers a rave review:
Management is confident in their expansion goals, cash flow and financials are solid, and I know more and more people who are talking about the IMAX experience. Good economy or bad, people will want their entertainment, and it's about time that the theater industry got revamped on a bigger, better, 3-D-ish scale. I like IMAX right now and expect the stock to be a strong performer over the next few years. IMAX is past the point of being a pure risk/reward [Motley Fool Rule Breakers] play because the financials are pretty steady and strong. The company is in a great position to continue expanding and taking advantage of new opportunities.
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!