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 may be in some trouble as it scores bad on both profitability and health. 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
- With a Return On Assets value of -12.08%, PARA is not doing good in the industry: 64.36% of the companies in the same industry are doing better.
- 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 7.07%.
- 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
- PARA's Operating Margin of 8.49% is fine compared to the rest of the industry. PARA outperforms 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
- 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.
- 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 1.27, we must say that PARA is in the distress zone and has some risk of bankruptcy.
- The Altman-Z score of PARA (1.27) is comparable to the rest of the industry.
- 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.
- PARA's Debt to FCF ratio of 36.00 is in line compared to the rest of the industry. PARA outperforms 52.48% of its industry peers.
- A Debt/Equity ratio of 0.86 indicates that 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.
- PARA has a Current ratio (1.29) which is comparable to the rest of the 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.
- Looking at the Quick ratio, with a value of 1.18, PARA is in line with its industry, outperforming 46.53% of the companies in the same industry.
| 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%.
- PARA shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -19.12% yearly.
- PARA shows a decrease in Revenue. In the last year, the revenue decreased by -1.48%.
- PARA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.59% yearly.
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
- 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 2.30% on average per year.
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.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
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.
- PARA's Price/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/Earnings ratio to 27.21, 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.
- 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 (25.98), we can say PARA is valued rather cheaply.
| 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.
- PARA's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. PARA is 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
- With a Yearly Dividend Yield of 1.81%, PARA has a reasonable but not impressive dividend return.
- 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 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.81% |
5.2 History
- The dividend of PARA decreases each year by -23.51%.
- PARA has been paying a dividend for at least 10 years, so it has 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.