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IMAXImax CorporationSell5.3·$40.47-1.48%
SellModerate Confidence
Investment thesis

Exceptional free cash flow conversion and strong analyst sentiment stand out in an otherwise challenged picture: two consecutive and sizable earnings misses, revenue contracting at roughly 6%, an 18% short float, and the stock trading just 30 basis points below its near-term resistance target leave almost no reward for the risk of a new position at the current price.

Thesis pillars

  • Exceptional Free Cashflow ConversionStable
  • Consecutive Large Earnings MissesStable
  • Revenue Contracting Six PercentStable
  • +1 more pillar — see the Why tab for full reasoning

Full reasoning →

Open full analysis

Imax Corporation (IMAX) Stock Analysis

Range Bound setup

SellVALUE-TRAP 2/5Moderate Confidence

Communication Services · Entertainment

Sell if holding. Analyst target reached at $40.47 — A.R:R 0.3:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Negative momentum.

IMAX Corporation (the "Company" or "IMAX") is a Canadian corporation that was formed in March 1994 as a result of an amalgamation between WGIM Acquisition Corp. and the former IMAX Corporation ("Predecessor IMAX"). Predecessor IMAX was incorporated in 1967.

$40.47+2.4% A.UpsideScore 5.3/10#14 of 28 Entertainment
QualityF-score8 / 9FCF yield4.50%
Stop $37.64Target $41.44(analyst − 13%)A.R:R 0.3:1
Analyst target$47.64+17.7%11 analysts
$41.44our TP
$40.47price
$47.64mean
$60

Sell if holding. Analyst target reached at $40.47 — A.R:R 0.3:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Negative momentum. Chart setup: RSI 56 mid-range, Bollinger mid-band. Score 5.3/10, moderate confidence.

Passes 5/8 gates (clean insider activity, news events none recent, earnings proximity 31d clear, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and favorable risk/reward ratio. Suitability: aggressive.

news + 30-day 8-K events · 5-min refresh

Recent developments

updated 2026-06-29
TrendMatrix Research · upcoming catalyst calendar

Upcoming dated catalysts

Thu, Jul 30, 202631d to earnings· next earnings call

Thesis

Rewards
Strong earnings beat streak (4/4)
Risks
Analyst target reached - limited upside remaining
Negative momentum
Value-trap signals (2/5): Revenue declining (-6.1% YoY), Material insider selling (9 sells, 0.61% of cap)

Key Metrics

P/E (TTM)61.3
P/E (Fwd)21.1
Mkt Cap$2.3B
EV/EBITDA19.2
Profit Mgn9.1%
ROE10.7%
Rev Growth-6.1%
Beta0.37
DividendNone
Rating analysts18

Quality Signals

Piotroski F8/9

Options Flow

P/C0.21bullish
IV55%elevated
Max Pain$29-28.3% vs spot

Material Events(8-K, last 90d)

  • 2026-04-17Item 5.02MEDIUM
    Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
    SEC filing →

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.

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Methodology · Editorial policy & full disclaimer

Rating Breakdown

2 floor-breakers

Momentum below the gate floor. Component breakdown shows what dragged the score down.static

Macd
0.0
Obv
1.0
Volume
3.6
Rsi
5.5
Ma Position
6.0
Volume distribution (falling OBV)Above 200-day MA

Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static

Growth Rank
1.1
Value Rank
2.2
Quality Rank
6.5
GatesMomentum 3.2<4.5A.R:R 0.3 < 1.5@spotExecutive change: officer departure/appointmentInsider activity: OKNEWS EVENTS NONE RECENTEARNINGS PROXIMITY 31d clearSEMI CYCLE PEAK CLEARMATERIALS CYCLE PEAK CLEARRange BoundSuitability: Aggressive
RSI
56 · Neutral
20D MA 50D MA 200D MAGOLDEN CROSSSupport $38.58Resistance $45.52

Price Targets

$38
$41
A.Upside+2.4%
A.R:R0.3:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeSteady

Risk Alerts

! Target reached (2.4% upside)
! momentum at 3.2 (below the engine's 4.5 threshold)
! asymmetry at 0.3 (below the engine's 1.5 threshold)@spot

Earnings

B
B
B
B
4/4 beats
Next Earnings2026-07-30 (31d)

Verdict History

reverse chrono — latest first
Loading history...
Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is IMAX stock a buy right now?

Sell if holding. Analyst target reached at $40.47 — A.R:R 0.3:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Negative momentum. Chart setup: RSI 56 mid-range, Bollinger mid-band. Prior stop was $37.64. Score 5.3/10, moderate confidence.

What is the IMAX stock price target?

Take-profit target: $41.44 (+2.4% upside). Prior stop was $37.64. Stop-loss: $37.64.

What are the risks of investing in IMAX?

Analyst target reached - limited upside remaining; Negative momentum; Value-trap signals (2/5): Revenue declining (-6.1% YoY), Material insider selling (9 sells, 0.61% of cap).

Is IMAX overvalued or undervalued?

Imax Corporation trades at a P/E of 61.3 (forward 21.1). TrendMatrix value score: 5.4/10. Verdict: Sell.

What do analysts say about IMAX?

18 analysts cover IMAX with a consensus score of 4.1/5. Average price target: $48.

What does Imax Corporation do?IMAX Corporation (the "Company" or "IMAX") is a Canadian corporation that was formed in March 1994 as a result of an...

IMAX Corporation (the "Company" or "IMAX") is a Canadian corporation that was formed in March 1994 as a result of an amalgamation between WGIM Acquisition Corp. and the former IMAX Corporation ("Predecessor IMAX"). Predecessor IMAX was incorporated in 1967.

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