PARAMOUNT GLOBAL-CLASS B (PARA) Stock Fundamental Analysis
NASDAQ:PARA - Nasdaq - US92556H2067 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to PARA. PARA was compared to 97 industry peers in the Media industry. Both the profitability and financial health of PARA have multiple concerns. PARA has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year PARA was profitable.
In the past year PARA had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: PARA reported negative net income in multiple years.
Each year in the past 5 years PARA had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of -12.08%, PARA is not doing good in the industry: 70.10% of the companies in the same industry are doing better.
PARA's Return On Equity of -33.16% is on the low side compared to the rest of the industry. PARA is outperformed by 65.98% of its industry peers.
PARA has a better Return On Invested Capital (5.80%) than 67.01% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PARA is below the industry average of 7.56%.
The last Return On Invested Capital (5.80%) for PARA is above the 3 year average (4.90%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -12.08% | ||
| ROE | -33.16% | ||
| ROIC | 5.8% |
ROA(3y)-4.3%
ROA(5y)-0.12%
ROE(3y)-12.14%
ROE(5y)-0.12%
ROIC(3y)4.9%
ROIC(5y)5.93%
1.3 Margins
Looking at the Operating Margin, with a value of 9.23%, PARA is in the better half of the industry, outperforming 61.86% of the companies in the same industry.
In the last couple of years the Operating Margin of PARA has declined.
PARA has a Gross Margin of 33.32%. This is comparable to the rest of the industry: PARA outperforms 44.33% of its industry peers.
In the last couple of years the Gross Margin of PARA has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.23% | ||
| PM (TTM) | N/A | ||
| GM | 33.32% |
OM growth 3Y-10.83%
OM growth 5Y-9.07%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-3.4%
GM growth 5Y-2.14%
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.
Compared to 1 year ago, PARA has more shares outstanding
Compared to 5 years ago, PARA has more shares outstanding
PARA has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.31, we must say that PARA is in the distress zone and has some risk of bankruptcy.
PARA has a Altman-Z score (1.31) which is in line with its industry peers.
PARA has a debt to FCF ratio of 36.00. This is a negative value and a sign of low solvency as PARA would need 36.00 years to pay back of all of its debts.
With a Debt to FCF ratio value of 36.00, PARA perfoms like the industry average, outperforming 51.55% of the companies in the same industry.
A Debt/Equity ratio of 0.86 indicates that PARA is somewhat dependend on debt financing.
The Debt to Equity ratio of PARA (0.86) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 36 | ||
| Altman-Z | 1.31 |
ROIC/WACC0.86
WACC6.72%
2.3 Liquidity
PARA has a Current Ratio of 1.29. 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 Current ratio (1.29) which is in line with its industry peers.
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.
The Quick ratio of PARA (1.18) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.29 | ||
| Quick Ratio | 1.18 |
3. Growth
3.1 Past
PARA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.15%, which is quite good.
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.
The Revenue has decreased by -4.50% in the past year.
The Revenue has been growing slightly by 1.59% on average over the past years.
EPS 1Y (TTM)14.15%
EPS 3Y-24.01%
EPS 5Y-19.12%
EPS Q2Q%-53.23%
Revenue 1Y (TTM)-4.5%
Revenue growth 3Y0.73%
Revenue growth 5Y1.59%
Sales Q2Q%-6.42%
3.2 Future
PARA is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.48% yearly.
Based on estimates for the next years, PARA will show a small growth in Revenue. The Revenue will grow by 1.82% on average per year.
EPS Next Y-17.3%
EPS Next 2Y-2.59%
EPS Next 3Y-3.47%
EPS Next 5Y9.48%
Revenue Next Year-3.13%
Revenue Next 2Y-1.21%
Revenue Next 3Y-0.52%
Revenue Next 5Y1.82%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 10.54, the valuation of PARA can be described as very reasonable.
79.38% of the companies in the same industry are more expensive than PARA, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.30, PARA is valued rather cheaply.
A Price/Forward Earnings ratio of 8.73 indicates a reasonable valuation of PARA.
PARA's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. PARA is cheaper than 78.35% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, PARA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.54 | ||
| Fwd PE | 8.73 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PARA indicates a somewhat cheap valuation: PARA is cheaper than 74.23% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, PARA is valued a bit cheaper than the industry average as 63.92% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.33 | ||
| EV/EBITDA | 6.75 |
4.3 Compensation for Growth
PARA's earnings are expected to decrease with -3.47% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-2.59%
EPS Next 3Y-3.47%
5. Dividend
5.1 Amount
PARA has a Yearly Dividend Yield of 1.55%.
PARA's Dividend Yield is a higher than the industry average which is at 4.62.
PARA's Dividend Yield is slightly below the S&P500 average, which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.55% |
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
The earnings of PARA are negative and hence is the payout ratio. PARA will probably not be able to sustain this dividend level.
DP-2.83%
EPS Next 2Y-2.59%
EPS Next 3Y-3.47%
12.75
-0.02 (-0.16%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners76.1%
Inst Owner Change0%
Ins Owners0.48%
Ins Owner ChangeN/A
Market Cap8.60B
Analysts50.32
Price Target11.79 (-7.53%)
Short Float %14.41%
Short Ratio11.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.55% |
Yearly Dividend0.25
Dividend Growth(5Y)-23.51%
DP-2.83%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-90.11%
Min EPS beat(2)-193.35%
Max EPS beat(2)13.14%
EPS beat(4)3
Avg EPS beat(4)63.48%
Min EPS beat(4)-193.35%
Max EPS beat(4)331.15%
EPS beat(8)7
Avg EPS beat(8)405.1%
EPS beat(12)8
Avg EPS beat(12)259.81%
EPS beat(16)9
Avg EPS beat(16)193.08%
Revenue beat(2)0
Avg Revenue beat(2)-1.92%
Min Revenue beat(2)-3.31%
Max Revenue beat(2)-0.54%
Revenue beat(4)0
Avg Revenue beat(4)-4.08%
Min Revenue beat(4)-7.38%
Max Revenue beat(4)-0.54%
Revenue beat(8)1
Avg Revenue beat(8)-3.04%
Revenue beat(12)2
Avg Revenue beat(12)-2.75%
Revenue beat(16)3
Avg Revenue beat(16)-2.09%
PT rev (1m)-4.62%
PT rev (3m)-6.69%
EPS NQ rev (1m)-0.45%
EPS NQ rev (3m)-25.97%
EPS NY rev (1m)1.6%
EPS NY rev (3m)-13.62%
Revenue NQ rev (1m)-0.2%
Revenue NQ rev (3m)-3.1%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.54 | ||
| Fwd PE | 8.73 | ||
| P/S | 0.3 | ||
| P/FCF | 21.33 | ||
| P/OCF | 12.79 | ||
| P/B | 0.52 | ||
| P/tB | 2.36 | ||
| EV/EBITDA | 6.75 |
EPS(TTM)1.21
EY9.49%
EPS(NY)1.46
Fwd EY11.46%
FCF(TTM)0.6
FCFY4.69%
OCF(TTM)1
OCFY7.82%
SpS42.6
BVpS24.53
TBVpS5.41
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -12.08% | ||
| ROE | -33.16% | ||
| ROCE | 7.34% | ||
| ROIC | 5.8% | ||
| ROICexc | 6.26% | ||
| ROICexgc | 10.19% | ||
| OM | 9.23% | ||
| PM (TTM) | N/A | ||
| GM | 33.32% | ||
| FCFM | 1.4% |
ROA(3y)-4.3%
ROA(5y)-0.12%
ROE(3y)-12.14%
ROE(5y)-0.12%
ROIC(3y)4.9%
ROIC(5y)5.93%
ROICexc(3y)5.24%
ROICexc(5y)6.44%
ROICexgc(3y)9.03%
ROICexgc(5y)11.54%
ROCE(3y)6.21%
ROCE(5y)7.5%
ROICexcg growth 3Y-6.68%
ROICexcg growth 5Y-8.15%
ROICexc growth 3Y-2.85%
ROICexc growth 5Y-4.55%
OM growth 3Y-10.83%
OM growth 5Y-9.07%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-3.4%
GM growth 5Y-2.14%
F-Score4
Asset Turnover0.63
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 36 | ||
| Debt/EBITDA | 4.67 | ||
| Cap/Depr | 70.79% | ||
| Cap/Sales | 0.94% | ||
| Interest Coverage | 3.05 | ||
| Cash Conversion | 22.18% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.29 | ||
| Quick Ratio | 1.18 | ||
| Altman-Z | 1.31 |
F-Score4
WACC6.72%
ROIC/WACC0.86
Cap/Depr(3y)77.99%
Cap/Depr(5y)80.01%
Cap/Sales(3y)1.06%
Cap/Sales(5y)1.14%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)14.15%
EPS 3Y-24.01%
EPS 5Y-19.12%
EPS Q2Q%-53.23%
EPS Next Y-17.3%
EPS Next 2Y-2.59%
EPS Next 3Y-3.47%
EPS Next 5Y9.48%
Revenue 1Y (TTM)-4.5%
Revenue growth 3Y0.73%
Revenue growth 5Y1.59%
Sales Q2Q%-6.42%
Revenue Next Year-3.13%
Revenue Next 2Y-1.21%
Revenue Next 3Y-0.52%
Revenue Next 5Y1.82%
EBIT growth 1Y54.61%
EBIT growth 3Y-10.19%
EBIT growth 5Y-7.62%
EBIT Next Year155.49%
EBIT Next 3Y36.63%
EBIT Next 5Y22.43%
FCF growth 1Y143.19%
FCF growth 3Y-6.54%
FCF growth 5Y-11.03%
OCF growth 1Y220.86%
OCF growth 3Y-7.59%
OCF growth 5Y-9.37%