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 (IMAX -1.77%) has earned a respected four-star ranking.

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

IMAX facts

 

 

Headquarters (founded)

Mississauga, Canada (1967)

Market Cap

$1.6 billion

Industry

Movies and entertainment

Trailing-12-Month Revenue

$277.5 million

Management

CEO Richard Gelfond (since 2009)

CFO Joseph Sparacio (since 2007)

Return on Equity (average, past 3 years)

30%

Cash/Debt

$15.2 million/$18.0 million

Competitors

AMC Entertainment

RealD

Regal Entertainment        

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

On CAPS, 94% of the 1,692 members who have rated IMAX believe the stock will outperform the S&P 500 going forward.   

Just last month, one of those bulls, TMFInnovator, succinctly summed up the bull case for our community:

- Great brand recognition, which is redefining the way that movies are watched. This allows theaters to charge higher prices for IMAX showings.
-Those higher prices are shared with IMAX through Revenue-sharing agreements. They signed deals with 25 new theaters in Q1 alone, with a large part of their expansion coming internationally (China, Indonesia). This business model provides much higher margins to IMAX than simply installing the equipment.
-Backlog of 283 theater systems. There is still plenty of demand for the IMAX experience.