PARAMOUNT GLOBAL-CLASS B (PARA)
US92556H2067 - Common Stock
We assign a fundamental rating of 4 out of 10 to PARA. PARA was compared to 92 industry peers in the Media industry. PARA has a bad profitability rating. Also its financial health evaluation is rather negative. PARA scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
PARA had positive earnings in the past year.
PARA had a positive operating cash flow in the past year.
Of the past 5 years PARA 4 years were profitable.
Each year in the past 5 years PARA had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of -11.33%, PARA is not doing good in the industry: 77.53% of the companies in the same industry are doing better.
PARA has a Return On Equity of -31.53%. This is in the lower half of the industry: PARA underperforms 66.29% of its industry peers.
With a decent Return On Invested Capital value of 5.49%, PARA is doing good in the industry, outperforming 67.42% of the companies in the same industry.
PARA had an Average Return On Invested Capital over the past 3 years of 4.90%. This is below the industry average of 7.20%.
The 3 year average ROIC (4.90%) for PARA is below the current ROIC(5.49%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -11.33% | ||
| ROE | -31.53% | ||
| ROIC | 5.49% |
ROA(3y)2.74%
ROA(5y)3.9%
ROE(3y)7.22%
ROE(5y)12.49%
ROIC(3y)4.9%
ROIC(5y)6.46%
1.3 Margins
PARA has a Operating Margin of 8.43%. This is comparable to the rest of the industry: PARA outperforms 59.55% of its industry peers.
In the last couple of years the Operating Margin of PARA has declined.
With a Gross Margin value of 33.59%, PARA perfoms like the industry average, outperforming 41.57% of the companies in the same industry.
PARA's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.43% | ||
| PM (TTM) | N/A | ||
| GM | 33.59% |
OM growth 3Y-34.31%
OM growth 5Y-24.08%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-9.01%
GM growth 5Y-5.68%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so PARA is destroying value.
PARA has more shares outstanding than it did 1 year ago.
PARA has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, PARA has a worse debt to assets ratio.
2.2 Solvency
PARA has an Altman-Z score of 1.27. This is a bad value and indicates that PARA is not financially healthy and even has some risk of bankruptcy.
PARA's Altman-Z score of 1.27 is in line compared to the rest of the industry. PARA outperforms 56.18% of its industry peers.
PARA has a debt to FCF ratio of 16.11. This is a negative value and a sign of low solvency as PARA would need 16.11 years to pay back of all of its debts.
The Debt to FCF ratio of PARA (16.11) is comparable to the rest of the industry.
PARA has a Debt/Equity ratio of 0.88. This is a neutral value indicating PARA is somewhat dependend on debt financing.
PARA's Debt to Equity ratio of 0.88 is in line compared to the rest of the industry. PARA outperforms 42.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | 16.11 | ||
| Altman-Z | 1.27 |
ROIC/WACC0.78
WACC7%
2.3 Liquidity
PARA has a Current Ratio of 1.30. This is a normal value and indicates that PARA is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.30, PARA is not doing good in the industry: 66.29% of the companies in the same industry are doing better.
A Quick Ratio of 1.15 indicates that PARA should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.15, PARA is not doing good in the industry: 67.42% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.3 | ||
| Quick Ratio | 1.15 |
3. Growth
3.1 Past
PARA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 127.27%, which is quite impressive.
The earnings per share for PARA have been decreasing by -36.66% on average. This is quite bad
PARA shows a decrease in Revenue. In the last year, the revenue decreased by -2.20%.
Measured over the past years, PARA shows a small growth in Revenue. The Revenue has been growing by 2.33% on average per year.
EPS 1Y (TTM)127.27%
EPS 3Y-50.35%
EPS 5Y-36.66%
EPS Q2Q%440%
Revenue 1Y (TTM)-2.2%
Revenue growth 3Y5.45%
Revenue growth 5Y2.33%
Sales Q2Q%-10.54%
3.2 Future
Based on estimates for the next years, PARA will show a very strong growth in Earnings Per Share. The EPS will grow by 38.15% on average per year.
Based on estimates for the next years, PARA will show a small growth in Revenue. The Revenue will grow by 1.87% on average per year.
EPS Next Y195.7%
EPS Next 2Y72.47%
EPS Next 3Y50.08%
EPS Next 5Y38.15%
Revenue Next Year-0.15%
Revenue Next 2Y-0.05%
Revenue Next 3Y0.57%
Revenue Next 5Y1.87%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 7.29, the valuation of PARA can be described as very cheap.
Based on the Price/Earnings ratio, PARA is valued cheaply inside the industry as 93.26% of the companies are valued more expensively.
PARA's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 30.16.
A Price/Forward Earnings ratio of 6.94 indicates a rather cheap valuation of PARA.
Based on the Price/Forward Earnings ratio, PARA is valued cheaply inside the industry as 95.51% of the companies are valued more expensively.
PARA's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.06.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.29 | ||
| Fwd PE | 6.94 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PARA is valued cheaper than 82.02% of the companies in the same industry.
77.53% of the companies in the same industry are more expensive than PARA, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.04 | ||
| EV/EBITDA | 6.74 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PARA's earnings are expected to grow with 50.08% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.04
PEG (5Y)N/A
EPS Next 2Y72.47%
EPS Next 3Y50.08%
5. Dividend
5.1 Amount
PARA has a Yearly Dividend Yield of 1.94%. Purely for dividend investing, there may be better candidates out there.
PARA's Dividend Yield is a higher than the industry average which is at 4.00.
PARA's Dividend Yield is comparable with the S&P500 average which is at 2.22.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.94% |
5.2 History
The dividend of PARA decreases each year by -10.62%.
PARA has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-10.62%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
The earnings of PARA are negative and hence is the payout ratio. PARA will probably not be able to sustain this dividend level.
DP-3.81%
EPS Next 2Y72.47%
EPS Next 3Y50.08%
PARAMOUNT GLOBAL-CLASS B
NASDAQ:PARA (10/31/2024, 7:48:56 PM)
After market: 10.85 -0.09 (-0.82%)10.94
+0.28 (+2.63%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap7.29B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.94% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
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EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.29 | ||
| Fwd PE | 6.94 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.04
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -11.33% | ||
| ROE | -31.53% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 8.43% | ||
| PM (TTM) | N/A | ||
| GM | 33.59% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.64
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.3 | ||
| Quick Ratio | 1.15 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)127.27%
EPS 3Y-50.35%
EPS 5Y
EPS Q2Q%
EPS Next Y195.7%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-2.2%
Revenue growth 3Y5.45%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y