Cinemark Holdings Inc.CNK

Morningstar Rating

Stock Research and Analysis

by Warren Miller

Although Cinemark realizes some advantages of scale as one of the largest theater operators in the world, tough negotiations with film studios and intense competition for consumers' discretionary income put the company in no-moat territory.

The movie Read more

Bulls Say

Cinemark's expansion into Latin America is an avenue for growth in a less competitive market.

Downturns in consumer spending could actually help Cinemark, as movies are one of the cheapest forms of out-of-home entertainment.

Cinemark's size and modern theater portfolio gives it greater leverage when negotiating film licenses relative to smaller competitors. Read more

Bears Say

Cinemark's high level of fixed costs could force it to choose among keeping its dividend, investing in theaters, and making attractive acquisitions if a year of poor movie quality hurts cash flow.

By rushing film production to precede the upcoming, conflict-ridden contract negotiations with writers, directors, and actors, the studios have increased the probability of poor movie quality.

A material reduction in the theatrical release window could hurt Cinemark's ability to generate revenue from the films it licenses.

Cinemark carries a very large amount of debt on its balance sheet. If the theater industry fell on very hard times, servicing this debt could become more difficult. Read more

Strategy

Cinemark seeks acquisitions that will enhance its asset base at a fair price. The company's screen and theater count are in constant flux because of the acquisition and construction of new theaters while Read more

Management

Alan W. Stock took the CEO reins from Lee Roy Mitchell in December 2006. Stock previously served as president and COO and has been with the company since its inception in 1987. Cinemark's management has ample industry experience, but we would prefer Read more

Profile

Cinemark Holdings is the third-largest motion picture exhibitor in the United States. The company operates 4,568 screens in 37 states and 12 Latin American countries. In Read more

First Name

Last Name

Email Address

Zip Code

Create Password

Verify Password

(6-15 characters; case sensitive)

What is your occupation or job title?

Select...

Your registration indicates agreement to the terms of use.

Static in the Comcast-NBC Universal Deal
Watch more