10 Most Undervalued Mid Cap Stocks to Buy According to Hedge Funds

6. Cinemark Holdings Inc. (NYSE:CNK)

Forward P/E Ratio as of March 5: 13.76

Number of Hedge Fund Holders: 50

Cinemark Holdings Inc. (NYSE:CNK) is involved in the motion picture exhibition business. It operates theatres in the US and Latin America mainly. In its theatrical exhibition, it provides a premium movie-going experience. In 2024, it entertained over 200 million guests globally, which showcased the enduring appeal of cinema.

The North American box office reached ~$8.8 billion in 2024, which marked a recovery despite industry-wide challenges. This company outperformed the industry and exceeded benchmarks by 3% domestically and 1% internationally. It achieved worldwide revenue exceeding $3 billion and also made $315 million in free cash flow. It achieved record-breaking concession sales, with a domestic food and beverage per capita record of $7.89.

The company’s loyalty program, Movie Club, grew by 10% in 2024 to ~1.4 million subscribers, which contributed to 25% of domestic box office sales. Premium Large Format (PLF) screens, which make up 5.5% of the company’s total screens, accounted for 13.4% of its box office proceeds. Cinemark Holdings Inc. (NYSE:CNK) now plans to enhance the guest experience through investments in laser projectors, premium recliner seats, and PLF screens. It’s also focusing on concession innovation, expanding hot food options, and improving ordering processes.

Carillon Chartwell Small Cap Value Fund stated the following regarding Cinemark Holdings Inc. (NYSE:CNK) in its Q3 2024 investor letter:

“Cinemark Holdings, Inc. (NYSE:CNK) operates movie theaters across North and South America. Recent results benefited from a better than expected summer box office performance. Investors also began to anticipate a stronger slate of movie releases in coming years.”