Cineworld Group (CINE)

Sector:

Tourism and Leisure Services

Index:

FTSE 250

215.00p
   
  • Change Today:
      0.80p
  • 52 Week High: 321.00
  • 52 Week Low: 191.00
  • Currency: UK Pounds
  • Shares Issued: 1,371.95m
  • Volume: 3,970,521
  • Market Cap: £2,949.69m
  • RiskGrade: 178
  • Beta: 1.15

Berenberg reiterates 'buy' rating on Cineworld

By Iain Gilbert

Date: Thursday 05 Sep 2019

LONDON (ShareCast) - (Sharecast News) - Analysts at Berenberg stood by their 'buy' rating on British theatre operator Cineworld on Thursday after taking its time to delve through the group's first-half results.
While Berenberg thinks some concerns surrounding the group are warranted, the analysts believe that the majority should be addressed in the second half.

The German bank acknowledged that one of the main areas of worry regarding Cineworld was that its US business had underperformed at the box office by roughly nine or 10 percentage points.

However, Berenberg said it was "confident" that the US unit's performance should improve in the second half "for a number of reasons", such as evidence of "solid traction" in Cineworld's recently launched Regal Unlimited programme, site closures beginning to annualise and "a growing tailwind from 2020 onwards" as a result of refurbishments.

"All considered, the impressive margin performance in H1 more than offset the weaker top line, and combined with an improved release slate in H2, we remain comfortable that Cineworld will achieve consensus estimates," said the analysts.

It also believed the group's cash conversion was set to improve in the tail end of 2019 thanks to "big reversals" in working capital, capital expenditures and interest costs.

"With the shares trading on a double-digit free-cash-flow yield, risk looks skewed to the upside," concluded Berenberg, which also reiterated its 360p target price for Cineworld.

Cineworld's free cash flow was pegged at £400.0m in 2019 for a FCF yield of 11%, with a medium-term upside to consensus FCF estimates from greater capex efficiency in its regal refurbishment programme.

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

Cineworld Group Market Data

Currency UK Pounds
Share Price 215.00p
Change Today 0.80p
% Change 0.37 %
52 Week High 321.00
52 Week Low 191.00
Volume 3,970,521
Shares Issued 1,371.95m
Market Cap £2,949.69m
Beta 1.15
RiskGrade 178

Cineworld Group Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
37.44% above the market average37.44% above the market average37.44% above the market average37.44% above the market average37.44% above the market average
65.71% above the sector average65.71% above the sector average65.71% above the sector average65.71% above the sector average65.71% above the sector average
Price Trend
56.67% below the market average56.67% below the market average56.67% below the market average56.67% below the market average56.67% below the market average
61.64% below the sector average61.64% below the sector average61.64% below the sector average61.64% below the sector average61.64% below the sector average
Income
83.63% above the market average83.63% above the market average83.63% above the market average83.63% above the market average83.63% above the market average
72.09% above the sector average72.09% above the sector average72.09% above the sector average72.09% above the sector average72.09% above the sector average
Growth
97.77% above the market average97.77% above the market average97.77% above the market average97.77% above the market average97.77% above the market average
100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average

What The Brokers Say

Strong Buy 10
Buy 0
Neutral 1
Sell 0
Strong Sell 1
Total 12
strong_buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

Cineworld Group Dividends

  Latest Previous
  Special Q3
Ex-Div 20-Jun-19 12-Dec-19
Paid 05-Jul-19 10-Jan-20
Amount 20.27¢ 3.75¢

Trades for 06-Dec-2019

Time Volume / Share Price
16:35 1,547,671 @ 215.00p
16:29 456 @ 215.00p
16:29 131 @ 215.00p
16:29 376 @ 215.00p
16:29 272 @ 214.80p

Cineworld Group Key Personnel

Chair Anthony Herbert Bloom
CEO Moshe (Mooky) Greidinger

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