Back to top

Growth & Income

Zacks Equity Research

Cinemark Holdings

CNK

 ZacksTrade Now

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

Cinemark Holdings Inc. (CNK - Snapshot Report) reported solid third quarter results early last month as this motion picture exhibitor had a company record for worldwide attendance. The Zacks #2 Rank (Buy) has seen nearly every analyst revise estimates higher in the past 30 days, as shares trade near its 52-week high of $27.50. Furthermore, the company offers a dividend yield of 3.2%.

Strong Third Quarter

Cinemark Holdings reported strong third quarter results on November 6 as attendance reached 69.7 million patrons. Earnings of 41 cents per share exceeded the Zacks Consensus Estimate by 17.1%.

Total revenues were $633.6 million, which topped the Zacks Consensus Estimate of $630 million. Admissions revenue was $402.4 million and concession revenue was $200.1 million. Adjusted EBITDA stood at $148.4 million.

Surge in Earnings Estimate Revisions

Over the past 30 days, the Zacks Consensus Estimate for 2012 increased 5.3% to $1.59, as 12 of 13 earnings estimates moved higher. This implies a year-over-year growth of 29.5%. For 2013, the Zacks Consensus Estimate is up 6.3% to $1.85 over the same period, as 11 of 13 earnings estimates moved upward. This represents growth of 16.2%.

Dividend Payout

Cinemark Holdings paid a dividend of 21 cents per share in the third quarter of 2012. The company has maintained a steady dividend payout over the past several quarters since November 2010. The current dividend payment affirms a yield of 3.2%.

Attractive Valuation

Shares of Cinemark Holdings look attractive on a price-to-earnings (P/E) and price-to-sales (P/S) basis. It currently trades at a forward P/E of 16.60x versus the peer group average of 17.14x. On a P/S basis, shares trade at 1.27x versus 1.35x for the peer group average. Its PEG ratio is 1.09, based on a 5-year EPS growth rate of 15.2%.

Since February 13, 2012, Cinemark shares have consistently fared better than the simple moving average for 200 days or SMA (200). The year-to-date return for the stock is 47.8%, compared to the S&P 500 tally of 10.4%.

The Bottom Line

With rising earnings estimates, robust growth projections and a decent dividend yield, Cinemark Holdings offers an enticing upside potential going forward. In addition, a geographic diversity with strong U.S. and Latin American footprints bodes well for its long-term growth.

Cinemark Holdings Inc. is a leader in the motion picture exhibition industry, operating 461 theatres with 5,207 screens in 39 U.S. states, as well as in Brazil, Mexico, Argentina and 10 other Latin American countries. The company currently has a market cap of $3.1 billion.


Want More of Our Best Recommendations?

Zacks' Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Then each week he hand-selects the most compelling trades and serves them up to you in a new program called Zacks Confidential.

Learn More>>


Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
DIXIE GRP IN DXYN 15.84 +7.90%
BOFI HLDG IN BOFI 85.30 +4.97%
RAMBUS INC RMBS 12.31 +4.41%
VIPSHOP HOLD VIPS 148.73 +4.35%
NETFLIX INC NFLX 345.74 +4.32%