Is IMAX (NYSE:IMAX) Using Too Much Debt?
Is IMAX (NYSE:IMAX) Using Too Much Debt?
Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of permanent loss is the risk I worry about... and every practical investor I know worries about.' So it might be obvious that you need to consider debt, when you think about how risky any given stock is, because too much debt can sink a company. We can see that IMAX Corporation (NYSE:IMAX) does use debt in its business. But should shareholders be worried about its use of debt?
What Risk Does Debt Bring?
Debt and other liabilities become risky for a business when it cannot easily fulfill those obligations, either with free cash flow or by raising capital at an attractive price. Ultimately, if the company can't fulfill its legal obligations to repay debt, shareholders could walk away with nothing. However, a more usual (but still expensive) situation is where a company must dilute shareholders at a cheap share price simply to get debt under control. Of course, the upside of debt is that it often represents cheap capital, especially when it replaces dilution in a company with the ability to reinvest at high rates of return. The first step when considering a company's debt levels is to consider its cash and debt together.
See our latest analysis for IMAX
What Is IMAX's Net Debt?
As you can see below, at the end of December 2022, IMAX had US$263.0m of debt, up from US$226.1m a year ago. Click the image for more detail. However, it also had US$97.4m in cash, and so its net debt is US$165.6m.
How Healthy Is IMAX's Balance Sheet?
Zooming in on the latest balance sheet data, we can see that IMAX had liabilities of US$122.5m due within 12 months and liabilities of US$368.8m due beyond that. Offsetting this, it had US$97.4m in cash and US$253.8m in receivables that were due within 12 months. So it has liabilities totalling US$140.1m more than its cash and near-term receivables, combined.
Since publicly traded IMAX shares are worth a total of US$927.2m, it seems unlikely that this level of liabilities would be a major threat. However, we do think it is worth keeping an eye on its balance sheet strength, as it may change over time. The balance sheet is clearly the area to focus on when you are analysing debt. But ultimately the future profitability of the business will decide if IMAX can strengthen its balance sheet over time. So if you want to see what the professionals think, you might find this free report on analyst profit forecasts to be interesting.
Over 12 months, IMAX reported revenue of US$301m, which is a gain of 18%, although it did not report any earnings before interest and tax. That rate of growth is a bit slow for our taste, but it takes all types to make a world.
Caveat Emptor
Over the last twelve months IMAX produced an earnings before interest and tax (EBIT) loss. To be specific the EBIT loss came in at US$347k. Considering that alongside the liabilities mentioned above does not give us much confidence that company should be using so much debt. So we think its balance sheet is a little strained, though not beyond repair. Another cause for caution is that is bled US$15m in negative free cash flow over the last twelve months. So suffice it to say we do consider the stock to be risky. There's no doubt that we learn most about debt from the balance sheet. But ultimately, every company can contain risks that exist outside of the balance sheet. To that end, you should be aware of the 1 warning sign we've spotted with IMAX .
If you're interested in investing in businesses that can grow profits without the burden of debt, then check out this free list of growing businesses that have net cash on the balance sheet.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
馬克斯說得很好,他不是擔心股價波動,而是我擔心的是永久虧損的可能性……我認識的每個實際投資者都擔心。因此,當你考慮到任何一隻股票的風險有多大時,你需要考慮債務可能是顯而易見的,因為太多的債務可能會讓一家公司倒閉。我們可以看到IMAX公司(紐約證券交易所代碼:IMAX)確實在其業務中使用債務。但股東是否應該擔心它的債務使用情況?
債務會帶來什麼風險?
當一家企業無法輕鬆履行這些義務時,債務和其他債務就會變得有風險,無論是通過自由現金流還是通過以有吸引力的價格籌集資本。最終,如果公司不能履行其償還債務的法定義務,股東可能會一無所有地離開。然而,一種更常見(但仍然昂貴)的情況是,一家公司必須以低廉的股價稀釋股東的股份,才能控制債務。當然,債務的好處是,它往往代表著廉價資本,特別是當它用能夠以高回報率進行再投資的能力取代公司的稀釋時。在考慮一家公司的債務水準時,第一步是同時考慮其現金和債務。
查看我們對IMAX的最新分析
IMAX的淨債務是多少?
如下所示,截至2022年12月底,IMAX的債務為2.63億美元,高於一年前的2.261億美元。單擊圖像瞭解更多詳細資訊。然而,它也有9740萬美元的現金,因此它的淨債務為1.566億美元。
IMAX的資產負債表有多健康?
放大最新的資產負債表數據,我們可以看到,IMAX有1.225億美元的負債在12個月內到期,超過12個月的負債有3.688億美元到期。作為抵消,它有9740萬美元的現金和2.538億美元的應收賬款在12個月內到期。因此,它的負債總額比現金和近期應收賬款的總和高出1.401億美元。
由於公開交易的IMAX股票總價值為9.272億美元,這種負債水準似乎不太可能構成重大威脅。然而,我們確實認為值得關注其資產負債表的實力,因為它可能會隨著時間的推移而變化。當你分析債務時,資產負債表顯然是你關注的領域。但最終,該業務未來的盈利能力將決定IMAX能否隨著時間的推移加強其資產負債表。因此,如果你想看看專業人士的想法,你可能會發現這份關於分析師利潤預測的免費報告很有趣。
在12個月的時間裡,IMAX報告了3.01億美元的收入,增長了18%,儘管它沒有公佈任何息稅前收益。這種增長速度對我們的品味來說有點慢,但它需要所有類型的人來創造一個世界。
告誡買入者
在過去12個月中,IMAX產生了息稅前收益(EBIT)虧損。具體地說,息稅前利潤損失為34.7萬美元。考慮到除了上面提到的債務,我們對公司應該使用如此多的債務沒有太大的信心。因此,我們認為它的資產負債表有點緊張,但並不是無法修復。另一個值得謹慎的理由是,在過去12個月裡,自由現金流為負1500萬美元。因此,可以說,我們確實認為這只股票是有風險的。毫無疑問,我們從資產負債表中瞭解到的債務最多。但歸根結底,每家公司都可能包含存在於資產負債表之外的風險。為此,您應該意識到1個警告標誌我們發現了IMAX。
如果你有興趣投資於可以在沒有債務負擔的情況下增長利潤的企業,那麼看看這個免費資產負債表上有淨現金的成長型企業名單。
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本文由Simply Wall St.撰寫,具有概括性。我們僅使用不偏不倚的方法提供基於歷史數據和分析師預測的評論,我們的文章並不打算作為財務建議。它不構成買賣任何股票的建議,也沒有考慮你的目標或你的財務狀況。我們的目標是為您帶來由基本面數據驅動的長期重點分析。請注意,我們的分析可能不會將最新的對價格敏感的公司公告或定性材料考慮在內。Simply Wall St.對上述任何一隻股票都沒有持倉。
譯文內容由第三人軟體翻譯。
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