11.04 USD
-0.71 (-6.04%)
11.17 USD
+0.13 (+1.18%)
Overall PARA gets a fundamental rating of 4 out of 10. We evaluated PARA against 92 industry peers in the Media industry. PARA has a bad profitability rating. Also its financial health evaluation is rather negative. PARA has a decent growth rate and is not valued too expensively.
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.
- The reported net income has been mixed in the past 5 years: PARA reported negative net income in multiple years.
- In the past 5 years PARA always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of PARA (-12.08%) is worse than 64.36% of its industry peers.
- PARA has a Return On Equity of -33.16%. This is in the lower half of the industry: PARA underperforms 60.40% of its industry peers.
- PARA has a Return On Invested Capital of 5.34%. This is in the better half of the industry: PARA outperforms 67.33% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for PARA is below the industry average of 7.07%.
- The 3 year average ROIC (4.75%) for PARA is below the current ROIC(5.34%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -12.08% | ||
| ROE | -33.16% | ||
| ROIC | 5.34% |
ROA(3y)-4.3%
ROA(5y)-0.12%
ROE(3y)-12.14%
ROE(5y)-0.12%
ROIC(3y)4.75%
ROIC(5y)5.84%
1.3 Margins
- PARA has a Operating Margin of 8.49%. This is in the better half of the industry: PARA outperforms 63.37% of its industry peers.
- PARA's Operating Margin has declined in the last couple of years.
- PARA's Gross Margin of 32.58% is in line compared to the rest of the industry. PARA outperforms 43.56% of its industry peers.
- In the last couple of years the Gross Margin of PARA has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.49% | ||
| PM (TTM) | N/A | ||
| GM | 32.58% |
OM growth 3Y-13.02%
OM growth 5Y-10.41%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-4.09%
GM growth 5Y-2.56%
2. Health
2.1 Basic Checks
- PARA has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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 has a Altman-Z score of 1.27. This is comparable to the rest of the industry: PARA outperforms 56.44% of its industry peers.
- The Debt to FCF ratio of PARA is 36.00, which is on the high side as it means it would take PARA, 36.00 years of fcf income to pay off all of its debts.
- PARA has a Debt to FCF ratio of 36.00. This is comparable to the rest of the industry: PARA outperforms 52.48% of its industry peers.
- PARA has a Debt/Equity ratio of 0.86. This is a neutral value indicating PARA is somewhat dependend on debt financing.
- PARA's Debt to Equity ratio of 0.86 is in line compared to the rest of the industry. PARA outperforms 47.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 36 | ||
| Altman-Z | 1.27 |
ROIC/WACC0.64
WACC8.31%
2.3 Liquidity
- A Current Ratio of 1.29 indicates that PARA should not have too much problems paying its short term obligations.
- Looking at the Current ratio, with a value of 1.29, PARA is in line with its industry, outperforming 49.51% of the companies in the same industry.
- PARA has a Quick Ratio of 1.18. This is a normal value and indicates that PARA is financially healthy and should not expect problems in meeting its short term obligations.
- PARA has a Quick ratio (1.18) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.29 | ||
| Quick Ratio | 1.18 |
3. Growth
3.1 Past
- PARA shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -24.67%.
- Measured over the past years, PARA shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -19.12% on average per year.
- Looking at the last year, PARA shows a decrease in Revenue. The Revenue has decreased by -1.48% in the last year.
- The Revenue has been growing slightly by 1.59% on average over the past years.
EPS 1Y (TTM)-24.67%
EPS 3Y-24.01%
EPS 5Y-19.12%
EPS Q2Q%-14.81%
Revenue 1Y (TTM)-1.48%
Revenue growth 3Y0.73%
Revenue growth 5Y1.59%
Sales Q2Q%0.53%
3.2 Future
- The Earnings Per Share is expected to grow by 9.48% on average over the next years. This is quite good.
- PARA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.30% yearly.
EPS Next Y-17.18%
EPS Next 2Y-2.06%
EPS Next 3Y-2.97%
EPS Next 5Y9.48%
Revenue Next Year-3.2%
Revenue Next 2Y-1.33%
Revenue Next 3Y-0.76%
Revenue Next 5Y2.3%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- PARA is valuated reasonably with a Price/Earnings ratio of 9.77.
- Compared to the rest of the industry, the Price/Earnings ratio of PARA indicates a somewhat cheap valuation: PARA is cheaper than 79.21% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 28.39, PARA is valued rather cheaply.
- With a Price/Forward Earnings ratio of 7.47, the valuation of PARA can be described as very cheap.
- 79.21% of the companies in the same industry are more expensive than PARA, based on the Price/Forward Earnings ratio.
- When comparing the Price/Forward Earnings ratio of PARA to the average of the S&P500 Index (25.72), we can say PARA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.77 | ||
| Fwd PE | 7.47 |
4.2 Price Multiples
- 74.26% of the companies in the same industry are more expensive than PARA, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, PARA is valued a bit cheaper than 66.34% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.47 | ||
| EV/EBITDA | 6.84 |
4.3 Compensation for Growth
- PARA's earnings are expected to decrease with -2.97% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-2.06%
EPS Next 3Y-2.97%
5. Dividend
5.1 Amount
- PARA has a Yearly Dividend Yield of 1.81%. 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 1.22.
- PARA's Dividend Yield is comparable with the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.81% |
5.2 History
- The dividend of PARA decreases each year by -23.51%.
- PARA has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-23.51%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- PARA has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-2.83%
EPS Next 2Y-2.06%
EPS Next 3Y-2.97%
PARAMOUNT GLOBAL-CLASS B / PARA FAQ
Can you provide the ChartMill fundamental rating for PARAMOUNT GLOBAL-CLASS B?
ChartMill assigns a fundamental rating of 3 / 10 to PARA.
Can you provide the valuation status for PARAMOUNT GLOBAL-CLASS B?
ChartMill assigns a valuation rating of 6 / 10 to PARAMOUNT GLOBAL-CLASS B (PARA). This can be considered as Fairly Valued.
What is the profitability of PARA stock?
PARAMOUNT GLOBAL-CLASS B (PARA) has a profitability rating of 3 / 10.
What are the PE and PB ratios of PARAMOUNT GLOBAL-CLASS B (PARA) stock?
The Price/Earnings (PE) ratio for PARAMOUNT GLOBAL-CLASS B (PARA) is 9.77 and the Price/Book (PB) ratio is 0.45.
Can you provide the financial health for PARA stock?
The financial health rating of PARAMOUNT GLOBAL-CLASS B (PARA) is 3 / 10.