CINEMARK HOLDINGS INC (CNK) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CNK - US17243V1026 - Common Stock
23.52 USD
+0.4 (+1.73%)
23.52 USD
0 (0%)
Overall CNK gets a fundamental rating of 5 out of 10. We evaluated CNK against 80 industry peers in the Entertainment industry. While CNK belongs to the best of the industry regarding profitability, there are concerns on its financial health. CNK has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- In the past year CNK was profitable.
- In the past year CNK had a positive cash flow from operations.
- In multiple years CNK reported negative net income over the last 5 years.
- CNK had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- CNK's Return On Assets of 3.46% is fine compared to the rest of the industry. CNK outperforms 77.50% of its industry peers.
- CNK has a better Return On Equity (40.04%) than 93.75% of its industry peers.
- CNK has a better Return On Invested Capital (8.98%) than 83.75% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for CNK is below the industry average of 8.74%.
- The last Return On Invested Capital (8.98%) for CNK is above the 3 year average (5.91%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.46% | ||
| ROE | 40.04% | ||
| ROIC | 8.98% |
ROA(3y)1.43%
ROA(5y)-2.94%
ROE(3y)-43.93%
ROE(5y)-67.71%
ROIC(3y)5.91%
ROIC(5y)N/A
1.3 Margins
- CNK has a Profit Margin of 4.87%. This is in the better half of the industry: CNK outperforms 71.25% of its industry peers.
- CNK's Profit Margin has improved in the last couple of years.
- Looking at the Operating Margin, with a value of 11.65%, CNK is in the better half of the industry, outperforming 72.50% of the companies in the same industry.
- In the last couple of years the Operating Margin of CNK has remained more or less at the same level.
- With a decent Gross Margin value of 63.95%, CNK is doing good in the industry, outperforming 71.25% of the companies in the same industry.
- In the last couple of years the Gross Margin of CNK has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.65% | ||
| PM (TTM) | 4.87% | ||
| GM | 63.95% |
OM growth 3YN/A
OM growth 5Y-0.86%
PM growth 3YN/A
PM growth 5Y11.48%
GM growth 3Y-0.83%
GM growth 5Y0.4%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CNK is destroying value.
- CNK has more shares outstanding than it did 1 year ago.
- Compared to 5 years ago, CNK has more shares outstanding
- The debt/assets ratio for CNK has been reduced compared to a year ago.
2.2 Solvency
- CNK has an Altman-Z score of 1.30. This is a bad value and indicates that CNK is not financially healthy and even has some risk of bankruptcy.
- CNK has a Altman-Z score (1.30) which is comparable to the rest of the industry.
- CNK has a debt to FCF ratio of 7.15. This is a slightly negative value and a sign of low solvency as CNK would need 7.15 years to pay back of all of its debts.
- CNK's Debt to FCF ratio of 7.15 is fine compared to the rest of the industry. CNK outperforms 70.00% of its industry peers.
- CNK has a Debt/Equity ratio of 5.13. This is a high value indicating a heavy dependency on external financing.
- CNK's Debt to Equity ratio of 5.13 is on the low side compared to the rest of the industry. CNK is outperformed by 77.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.13 | ||
| Debt/FCF | 7.15 | ||
| Altman-Z | 1.3 |
ROIC/WACC0.92
WACC9.81%
2.3 Liquidity
- CNK has a Current Ratio of 0.76. This is a bad value and indicates that CNK is not financially healthy enough and could expect problems in meeting its short term obligations.
- The Current ratio of CNK (0.76) is worse than 66.25% of its industry peers.
- CNK has a Quick Ratio of 0.76. This is a bad value and indicates that CNK is not financially healthy enough and could expect problems in meeting its short term obligations.
- CNK has a worse Quick ratio (0.72) than 66.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.72 |
3. Growth
3.1 Past
- The earnings per share for CNK have decreased by -4.52% in the last year.
- The Earnings Per Share has been growing slightly by 4.49% on average over the past years.
- Looking at the last year, CNK shows a quite strong growth in Revenue. The Revenue has grown by 9.70% in the last year.
- Measured over the past years, CNK shows a decrease in Revenue. The Revenue has been decreasing by -1.47% on average per year.
EPS 1Y (TTM)-4.52%
EPS 3YN/A
EPS 5Y4.49%
EPS Q2Q%-29.41%
Revenue 1Y (TTM)9.7%
Revenue growth 3Y26.39%
Revenue growth 5Y-1.47%
Sales Q2Q%-6.98%
3.2 Future
- Based on estimates for the next years, CNK will show a small growth in Earnings Per Share. The EPS will grow by 6.38% on average per year.
- CNK is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.91% yearly.
EPS Next Y-32.5%
EPS Next 2Y1.57%
EPS Next 3Y6.38%
EPS Next 5YN/A
Revenue Next Year4.65%
Revenue Next 2Y6.55%
Revenue Next 3Y5.66%
Revenue Next 5Y4.91%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 15.89, CNK is valued correctly.
- 86.25% of the companies in the same industry are more expensive than CNK, based on the Price/Earnings ratio.
- The average S&P500 Price/Earnings ratio is at 28.60. CNK is valued slightly cheaper when compared to this.
- The Price/Forward Earnings ratio is 11.23, which indicates a very decent valuation of CNK.
- Based on the Price/Forward Earnings ratio, CNK is valued cheaper than 92.50% of the companies in the same industry.
- CNK's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.89 | ||
| Fwd PE | 11.23 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, CNK is valued a bit cheaper than the industry average as 78.75% of the companies are valued more expensively.
- 93.75% of the companies in the same industry are more expensive than CNK, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.92 | ||
| EV/EBITDA | 7.5 |
4.3 Compensation for Growth
- CNK has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)3.54
EPS Next 2Y1.57%
EPS Next 3Y6.38%
5. Dividend
5.1 Amount
- CNK has a Yearly Dividend Yield of 1.49%.
- Compared to an average industry Dividend Yield of 7.58, CNK pays a better dividend. On top of this CNK pays more dividend than 87.50% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, CNK has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.49% |
5.2 History
- CNK has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DPN/A
EPS Next 2Y1.57%
EPS Next 3Y6.38%
CINEMARK HOLDINGS INC / CNK FAQ
What is the ChartMill fundamental rating of CINEMARK HOLDINGS INC (CNK) stock?
ChartMill assigns a fundamental rating of 5 / 10 to CNK.
What is the valuation status of CINEMARK HOLDINGS INC (CNK) stock?
ChartMill assigns a valuation rating of 6 / 10 to CINEMARK HOLDINGS INC (CNK). This can be considered as Fairly Valued.
Can you provide the profitability details for CINEMARK HOLDINGS INC?
CINEMARK HOLDINGS INC (CNK) has a profitability rating of 7 / 10.
What is the expected EPS growth for CINEMARK HOLDINGS INC (CNK) stock?
The Earnings per Share (EPS) of CINEMARK HOLDINGS INC (CNK) is expected to decline by -32.5% in the next year.