PARAMOUNT GLOBAL-CLASS B (PARA) Stock Fundamental Analysis
USA - NASDAQ:PARA - US92556H2067 - Common Stock
11.04 USD
-0.71 (-6.04%)
11.17 USD
+0.13 (+1.18%)
PARA gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 99 industry peers in the Media industry. PARA has a bad profitability rating. Also its financial health evaluation is rather negative. PARA is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year PARA was profitable.
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.
PARA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of PARA (-12.08%) is worse than 64.36% of its industry peers.
Looking at the Return On Equity, with a value of -33.16%, PARA is doing worse than 60.40% of the companies in the same industry.
With a decent Return On Invested Capital value of 5.34%, PARA is doing good in the industry, outperforming 67.33% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for PARA is below the industry average of 8.87%.
The last Return On Invested Capital (5.34%) for PARA is above the 3 year average (4.75%), which is a sign of increasing profitability.
| 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
The Operating Margin of PARA (8.49%) is better than 63.37% of its industry peers.
In the last couple of years the Operating Margin of PARA has declined.
Looking at the Gross Margin, with a value of 32.58%, PARA is in line with its industry, outperforming 43.56% of the companies in the same industry.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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.
PARA has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.27, we must say that PARA is in the distress zone and 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 56.44% 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 (36.00) which is comparable to the rest of the industry.
PARA has a Debt/Equity ratio of 0.86. This is a neutral value indicating PARA is somewhat dependend on debt financing.
PARA has a Debt to Equity ratio of 0.86. This is comparable 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.
PARA's Current ratio of 1.29 is in line compared to the rest of the industry. PARA outperforms 49.51% of 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.
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
The earnings per share for PARA have decreased strongly by -24.67% in the last year.
The earnings per share for PARA have been decreasing by -19.12% on average. This is quite bad
Looking at the last year, PARA shows a decrease in Revenue. The Revenue has decreased by -1.48% in the last year.
Measured over the past years, PARA shows a small growth in Revenue. The Revenue has been growing by 1.59% on average per year.
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.
The Revenue is expected to grow by 2.30% on average over the next years.
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
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 9.77, the valuation of PARA can be described as very reasonable.
79.21% of the companies in the same industry are more expensive than PARA, based on the Price/Earnings ratio.
PARA is valuated cheaply when we compare the Price/Earnings ratio to 27.27, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 7.47, the valuation of PARA can be described as very cheap.
PARA's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. PARA is cheaper than 79.21% of the companies in the same industry.
PARA is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.77, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.77 | ||
| Fwd PE | 7.47 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PARA is valued a bit cheaper than 74.26% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, PARA is valued a bit cheaper than the industry average as 66.34% of the companies are valued more expensively.
| 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%.
Compared to an average industry Dividend Yield of 4.58, PARA pays a bit more dividend than its industry peers.
PARA's Dividend Yield is slightly below the S&P500 average, which is at 2.38.
| 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%
11.04
-0.71 (-6.04%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst OwnersN/A
Inst Owner Change0%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap7.44B
Analysts49.68
Price Target11.81 (6.97%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.81% |
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)0.19%
PT rev (3m)-4.44%
EPS NQ rev (1m)-0.73%
EPS NQ rev (3m)5.36%
EPS NY rev (1m)0%
EPS NY rev (3m)1.74%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)-0.44%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)-0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.77 | ||
| Fwd PE | 7.47 | ||
| P/S | 0.26 | ||
| P/FCF | 18.47 | ||
| P/OCF | 11.08 | ||
| P/B | 0.45 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.84 |
EPS(TTM)1.13
EY10.24%
EPS(NY)1.48
Fwd EY13.38%
FCF(TTM)0.6
FCFY5.41%
OCF(TTM)1
OCFY9.03%
SpS42.6
BVpS24.53
TBVpS-15.41
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -12.08% | ||
| ROE | -33.16% | ||
| ROCE | 6.76% | ||
| ROIC | 5.34% | ||
| ROICexc | 5.76% | ||
| ROICexgc | 29.61% | ||
| OM | 8.49% | ||
| PM (TTM) | N/A | ||
| GM | 32.58% | ||
| FCFM | 1.4% |
ROA(3y)-4.3%
ROA(5y)-0.12%
ROE(3y)-12.14%
ROE(5y)-0.12%
ROIC(3y)4.75%
ROIC(5y)5.84%
ROICexc(3y)5.08%
ROICexc(5y)6.35%
ROICexgc(3y)19.34%
ROICexgc(5y)17.73%
ROCE(3y)6.01%
ROCE(5y)7.39%
ROICexcg growth 3Y30.95%
ROICexcg growth 5Y12.55%
ROICexc growth 3Y-5.24%
ROICexc growth 5Y-5.96%
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%
F-Score4
Asset Turnover0.63
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 36 | ||
| Debt/EBITDA | 5.02 | ||
| Cap/Depr | 70.79% | ||
| Cap/Sales | 0.94% | ||
| Interest Coverage | 2.81 | ||
| Cash Conversion | 23.84% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.29 | ||
| Quick Ratio | 1.18 | ||
| Altman-Z | 1.27 |
F-Score4
WACC8.31%
ROIC/WACC0.64
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)-24.67%
EPS 3Y-24.01%
EPS 5Y-19.12%
EPS Q2Q%-14.81%
EPS Next Y-17.18%
EPS Next 2Y-2.06%
EPS Next 3Y-2.97%
EPS Next 5Y9.48%
Revenue 1Y (TTM)-1.48%
Revenue growth 3Y0.73%
Revenue growth 5Y1.59%
Sales Q2Q%0.53%
Revenue Next Year-3.2%
Revenue Next 2Y-1.33%
Revenue Next 3Y-0.76%
Revenue Next 5Y2.3%
EBIT growth 1Y42.3%
EBIT growth 3Y-12.39%
EBIT growth 5Y-8.99%
EBIT Next Year156.1%
EBIT Next 3Y36.57%
EBIT Next 5Y22.29%
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%