Based on the aggregated intelligence of 125,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, jumbo-movie-screen systems maker IMAX (NASDAQ:IMAX) has earned a respected four-star ranking. While five-star stocks have been the best performers, our data has shown that four-star stocks still outshine the market by a significant margin and shouldn't be taken lightly; conversely, low-rated stocks have woefully lagged the market average.

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

$174.28 million


Movies and Entertainment

TTM Revenue

$103.73 million


Co-CEO Richard Gelfond (since 1996)

Co-CEO Bradley Wechsler (since 1996)

Return on Capital (average, last three years)



Regal Entertainment (NYSE:RGC)

CAPS members bullish on IMAX also bullish on:


General Electric (NYSE:GE),

Johnson & Johnson (NYSE:JNJ)

CAPS members bearish on IMAX also bearish on:

Citigroup (NYSE:C),


Sources: Capital IQ (a division of Standard & Poor's), and Motley Fool CAPS. TTM = trailing 12 months.

Over on CAPS, 902 of the 973 members who have rated IMAX -- or 93% -- believe the stock will outperform the S&P 500 going forward. These bulls include stockworldpicks and CAPS All-Star 1stock1.

Earlier this month, stockworldpicks reminded Fools that IMAX recently "announced a five picture deal with Disney (NYSE:DIS) starting with A Christmas Carol in 2009. This is great news for the company and may pave the way for potential partnerships."

In a pitch from late October, 1stock1 tapped IMAX as a super-sized turnaround opportunity:

This is an ideal recession industry, as people trade down from more expensive forms of entertainment to the (relatively) cheap going to the movies. Meanwhile the company has been a good turnaround story for the past several years as they have gotten their house back in order, and transitioned from niche science firms to blockbuster movies. They are continuing to add theaters and growing at a healthy pace. ... They will do great if they can continue to execute well.

What do you think about IMAX, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. CAPS is 100% free, so simply click here to get started.

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This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.