Analysis of Cinemark's Return on Equity
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 01 2026
0mins
Should l Buy CNK?
Source: Yahoo Finance
- Return on Equity (ROE): Cinemark Holdings boasts a 40% ROE, indicating that for every $1 of shareholder investment, the company generates $0.40 in profit, showcasing effective management of investor funds, although high ROE may mask risks associated with high debt levels.
- Industry Comparison Advantage: Cinemark's ROE significantly exceeds the entertainment industry average of 12%, suggesting strong profitability within the sector, which may attract increased investor interest in its stock performance.
- Debt Impact Analysis: With a debt-to-equity ratio of 4.78, Cinemark's impressive ROE could mislead investors regarding the company's true profitability due to the high debt burden, thereby increasing financial risk.
- Cautious Investment Advice: While Cinemark's ROE is high, the market often prices high-quality companies at a premium, prompting investors to carefully consider the company's future profit growth potential; reviewing analyst forecast reports is recommended for further insights.
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Analyst Views on CNK
Wall Street analysts forecast CNK stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CNK is 33.67 USD with a low forecast of 28.00 USD and a high forecast of 37.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
6 Analyst Rating
5 Buy
1 Hold
0 Sell
Strong Buy
Current: 25.370
Low
28.00
Averages
33.67
High
37.00
Current: 25.370
Low
28.00
Averages
33.67
High
37.00
About CNK
Cinemark Holdings, Inc. is a movie theatre company. The Company is engaged in the motion picture exhibition industry, with theaters in the United States, Brazil, Argentina, Chile, Colombia, Peru, Honduras, El Salvador, Nicaragua, Costa Rica, Panama, Guatemala, Bolivia, and Paraguay. Its segments include U.S. markets and international markets. Its circuit, comprised of various brands that also include Century, Tinseltown and Rave, operates approximately 497 theaters with 5,653 screens in 42 states domestically and 13 countries throughout South and Central America. It plays mainstream films from many different genres, such as animated films, family films, dramas, comedies, horror and action films. It offers content in both 2-D and 3-D formats in all of its theaters, and in many locations, it offers either its own premium large format, XD, IMAX or ScreenX. It offers a variety of alternative entertainment content for its guests, such as concert, sporting and gaming events, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Analysis of Cinemark's Return on Equity
- Return on Equity (ROE): Cinemark Holdings boasts a 40% ROE, indicating that for every $1 of shareholder investment, the company generates $0.40 in profit, showcasing effective management of investor funds, although high ROE may mask risks associated with high debt levels.
- Industry Comparison Advantage: Cinemark's ROE significantly exceeds the entertainment industry average of 12%, suggesting strong profitability within the sector, which may attract increased investor interest in its stock performance.
- Debt Impact Analysis: With a debt-to-equity ratio of 4.78, Cinemark's impressive ROE could mislead investors regarding the company's true profitability due to the high debt burden, thereby increasing financial risk.
- Cautious Investment Advice: While Cinemark's ROE is high, the market often prices high-quality companies at a premium, prompting investors to carefully consider the company's future profit growth potential; reviewing analyst forecast reports is recommended for further insights.
See More
LAIKA Announces U.S. Release Date for 'Wildwood' on October 23, 2026, with Fathom as Distributor
- Global Distribution Strategy: LAIKA has partnered with Fathom Entertainment to release 'Wildwood' nationwide in the U.S. on October 23, 2026, marking a new phase in LAIKA's global distribution strategy aimed at enhancing market impact through a combination of independent strategies and top-tier partners.
- International Market Expansion: FilmNation Entertainment will handle international sales for 'Wildwood' and will introduce the film to international buyers at next month's European Film Market in Berlin, which is expected to further expand LAIKA's influence in global markets.
- Art and Technology Integration: 'Wildwood' showcases LAIKA's innovative capabilities by combining handcrafted artistry with large-scale cinematic storytelling, emphasizing the importance of hand-made films in modern audiences, and is anticipated to attract a significant fanbase.
- Ticketing Information Release: Tickets for 'Wildwood' in the U.S. will be available later this summer through Fathom Entertainment and participating theater box offices, reflecting LAIKA's commitment to audience experience and engagement.
See More
Cinemark Receives Buy Rating with $35 Price Target from Benchmark
- Optimistic Rating: Mike Hickey from Benchmark & Co reiterated his positive outlook on Cinemark Holdings (NYSE:CNK) on December 10, assigning a Buy rating with a $35 price target, implying over 55% upside for investors, reflecting strong market confidence in the stock.
- Industry Tailwinds: Hickey noted that the ongoing sale process involving Warner Bros. and Discovery is positively impacting theater exhibition businesses, as aggressive bidders plan to generate a larger volume of films and maintain a stable slate output, thereby enhancing support for traditional theater windows.
- Share Repurchase Program: Despite a relatively high Price-to-Book ratio of 7.48x, Cinemark's management is executing a share repurchase program, signaling strong confidence in the business outlook, which could attract more investor interest.
- Analyst Consensus: As of December 7, consensus views for Cinemark remain strong, with a median one-year price target of $33.67 offering over 49% upside, and 5 out of 6 analysts covering the stock have issued Buy ratings, indicating optimistic expectations for its future performance.
See More
IMAX Achieves Record $1.28 Billion Global Box Office in 2025
- Box Office Growth: IMAX achieved a record global box office of $1.28 billion in 2025, representing over a 40% increase from 2024, not only setting a new high but also surpassing its previous record from 2019, showcasing its strong performance in the theatrical industry.
- Market Share Increase: In 2025, over 16% of domestic ticket sales came from premium large format theaters, up from 15% in 2024, indicating a growing consumer preference for high-quality viewing experiences, which IMAX is well-positioned to capitalize on.
- Strong Profitability: IMAX reported a net income of $43 million in the first three quarters of 2025, a 67% increase from the same period in 2024, demonstrating the advantages of its asset-light model that allows it to remain profitable in a competitive market.
- Optimistic Future Outlook: IMAX forecasts a new record global box office of $1.4 billion in 2026, bolstered by upcoming blockbuster releases such as
See More
IMAX Reports Record $1.28B Global Box Office in 2025, Stock Surges 44%
- Significant Box Office Growth: IMAX achieved a record $1.28 billion in global box office revenue for 2025, representing over a 40% increase from 2024, indicating the company's strong performance amidst industry turmoil and reinforcing its market leadership.
- Market Share Increase: In 2025, over 16% of domestic ticket sales came from premium large format (PLF) theaters, up from 15% in 2024, reflecting consumer preference for high-quality viewing experiences, which benefits IMAX.
- Strong Profitability: IMAX reported a net income of $43 million in the first three quarters of 2025, a 67% increase year-over-year, while competitors AMC, Cinemark, and Marcus faced losses, highlighting IMAX's asset-light business model advantage.
- Optimistic Future Outlook: IMAX forecasts a new record of $1.4 billion in global box office for 2026, with CEO Rich Gelfond stating that the continued growth in market share will attract filmmakers and audiences, signaling long-term growth potential.
See More
Cinemark Achieves Highest Domestic Box Office Since Pandemic in 2025
- Outstanding Box Office Performance: Cinemark achieved its highest domestic box office in 2025 since the pandemic, surpassing its 2023 peak, which underscores its market strength and growth potential.
- Effective Strategic Initiatives: The company successfully attracted audiences and enhanced content performance through sustained investments and targeted marketing strategies, maintaining strong market share in a competitive landscape.
- Enhanced Viewing Experience: Cinemark offers advanced audiovisual technology and luxury amenities, such as Barco laser projection and Luxury Lounger seats, which further enhance consumer viewing experiences and promote customer loyalty.
- Future Growth Opportunities: CEO Sean Gamble stated that the 2025 box office performance lays a solid foundation for future growth, demonstrating the company's adaptability and competitive advantages in a changing market environment.
See More
Analysis of Cinemark's Return on Equity
- Return on Equity (ROE): Cinemark Holdings boasts a 40% ROE, indicating that for every $1 of shareholder investment, the company generates $0.40 in profit, showcasing effective management of investor funds, although high ROE may mask risks associated with high debt levels.
- Industry Comparison Advantage: Cinemark's ROE significantly exceeds the entertainment industry average of 12%, suggesting strong profitability within the sector, which may attract increased investor interest in its stock performance.
- Debt Impact Analysis: With a debt-to-equity ratio of 4.78, Cinemark's impressive ROE could mislead investors regarding the company's true profitability due to the high debt burden, thereby increasing financial risk.
- Cautious Investment Advice: While Cinemark's ROE is high, the market often prices high-quality companies at a premium, prompting investors to carefully consider the company's future profit growth potential; reviewing analyst forecast reports is recommended for further insights.
See More
LAIKA Announces U.S. Release Date for 'Wildwood' on October 23, 2026, with Fathom as Distributor
- Global Distribution Strategy: LAIKA has partnered with Fathom Entertainment to release 'Wildwood' nationwide in the U.S. on October 23, 2026, marking a new phase in LAIKA's global distribution strategy aimed at enhancing market impact through a combination of independent strategies and top-tier partners.
- International Market Expansion: FilmNation Entertainment will handle international sales for 'Wildwood' and will introduce the film to international buyers at next month's European Film Market in Berlin, which is expected to further expand LAIKA's influence in global markets.
- Art and Technology Integration: 'Wildwood' showcases LAIKA's innovative capabilities by combining handcrafted artistry with large-scale cinematic storytelling, emphasizing the importance of hand-made films in modern audiences, and is anticipated to attract a significant fanbase.
- Ticketing Information Release: Tickets for 'Wildwood' in the U.S. will be available later this summer through Fathom Entertainment and participating theater box offices, reflecting LAIKA's commitment to audience experience and engagement.
See More
Cinemark Receives Buy Rating with $35 Price Target from Benchmark
- Optimistic Rating: Mike Hickey from Benchmark & Co reiterated his positive outlook on Cinemark Holdings (NYSE:CNK) on December 10, assigning a Buy rating with a $35 price target, implying over 55% upside for investors, reflecting strong market confidence in the stock.
- Industry Tailwinds: Hickey noted that the ongoing sale process involving Warner Bros. and Discovery is positively impacting theater exhibition businesses, as aggressive bidders plan to generate a larger volume of films and maintain a stable slate output, thereby enhancing support for traditional theater windows.
- Share Repurchase Program: Despite a relatively high Price-to-Book ratio of 7.48x, Cinemark's management is executing a share repurchase program, signaling strong confidence in the business outlook, which could attract more investor interest.
- Analyst Consensus: As of December 7, consensus views for Cinemark remain strong, with a median one-year price target of $33.67 offering over 49% upside, and 5 out of 6 analysts covering the stock have issued Buy ratings, indicating optimistic expectations for its future performance.
See More
IMAX Achieves Record $1.28 Billion Global Box Office in 2025
- Box Office Growth: IMAX achieved a record global box office of $1.28 billion in 2025, representing over a 40% increase from 2024, not only setting a new high but also surpassing its previous record from 2019, showcasing its strong performance in the theatrical industry.
- Market Share Increase: In 2025, over 16% of domestic ticket sales came from premium large format theaters, up from 15% in 2024, indicating a growing consumer preference for high-quality viewing experiences, which IMAX is well-positioned to capitalize on.
- Strong Profitability: IMAX reported a net income of $43 million in the first three quarters of 2025, a 67% increase from the same period in 2024, demonstrating the advantages of its asset-light model that allows it to remain profitable in a competitive market.
- Optimistic Future Outlook: IMAX forecasts a new record global box office of $1.4 billion in 2026, bolstered by upcoming blockbuster releases such as
See More
IMAX Reports Record $1.28B Global Box Office in 2025, Stock Surges 44%
- Significant Box Office Growth: IMAX achieved a record $1.28 billion in global box office revenue for 2025, representing over a 40% increase from 2024, indicating the company's strong performance amidst industry turmoil and reinforcing its market leadership.
- Market Share Increase: In 2025, over 16% of domestic ticket sales came from premium large format (PLF) theaters, up from 15% in 2024, reflecting consumer preference for high-quality viewing experiences, which benefits IMAX.
- Strong Profitability: IMAX reported a net income of $43 million in the first three quarters of 2025, a 67% increase year-over-year, while competitors AMC, Cinemark, and Marcus faced losses, highlighting IMAX's asset-light business model advantage.
- Optimistic Future Outlook: IMAX forecasts a new record of $1.4 billion in global box office for 2026, with CEO Rich Gelfond stating that the continued growth in market share will attract filmmakers and audiences, signaling long-term growth potential.
See More
Cinemark Achieves Highest Domestic Box Office Since Pandemic in 2025
- Outstanding Box Office Performance: Cinemark achieved its highest domestic box office in 2025 since the pandemic, surpassing its 2023 peak, which underscores its market strength and growth potential.
- Effective Strategic Initiatives: The company successfully attracted audiences and enhanced content performance through sustained investments and targeted marketing strategies, maintaining strong market share in a competitive landscape.
- Enhanced Viewing Experience: Cinemark offers advanced audiovisual technology and luxury amenities, such as Barco laser projection and Luxury Lounger seats, which further enhance consumer viewing experiences and promote customer loyalty.
- Future Growth Opportunities: CEO Sean Gamble stated that the 2025 box office performance lays a solid foundation for future growth, demonstrating the company's adaptability and competitive advantages in a changing market environment.
See More
