CNK - Cinemark Q4: Slight Improvements But Stock Remains A Sell
2024-02-16 18:20:24 ET
Summary
- Cinemark Holdings, Inc. improved its Free Cash Flow in 2023, recording three consecutive quarters of positive free cash flow and a twelve-fold increase from 2022.
- The company reduced its debt by $100 million in 2023, resulting in a $5 million decrease in interest expense. However, it still has a substantial net debt of $1.67 billion.
- Stock remains a sell with many company-level challenges in an industry that is likely well past the post-COVID recovery stage.
Cinemark Holdings, Inc. ( CNK ) reported its Q4 and FY 2023 earnings results pre-market today (February 16th, 2024) as Seeking Alpha has covered here . My only previous coverage of Cinemark was back in April 2023, where I rated the stock a "Sell" on the back of its huge debt and Free Cash Flow [FCF] worries. Since then, the stock has gone up <1% while the market has gained nearly 22% in the same time period. Today's earnings report offers the perfect opportunity to see how things have changed for Cinemark after almost a year....
Cinemark Q4: Slight Improvements But Stock Remains A Sell