PARAMOUNT GLOBAL-CLASS B (PARA)
US92556H2067 - Common Stock
We assign a fundamental rating of 4 out of 10 to PARA. PARA was compared to 91 industry peers in the Media industry. PARA may be in some trouble as it scores bad on both profitability and health. PARA may be a bit undervalued, certainly considering the very reasonable score on growth
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.
PARA had positive earnings in 4 of the past 5 years.
In the past 5 years PARA always reported a positive cash flow from operatings.
1.2 Ratios
PARA's Return On Assets of -11.85% is on the low side compared to the rest of the industry. PARA is outperformed by 78.02% of its industry peers.
PARA has a worse Return On Equity (-32.96%) than 65.93% of its industry peers.
With a decent Return On Invested Capital value of 5.82%, PARA is doing good in the industry, outperforming 70.33% 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 6.97%.
The 3 year average ROIC (4.90%) for PARA is below the current ROIC(5.82%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -11.85% | ||
| ROE | -32.96% | ||
| ROIC | 5.82% |
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
Looking at the Operating Margin, with a value of 9.07%, PARA is in line with its industry, outperforming 59.34% of the companies in the same industry.
PARA's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 33.84%, PARA perfoms like the industry average, outperforming 43.96% 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 | 9.07% | ||
| PM (TTM) | N/A | ||
| GM | 33.84% |
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
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
The number of shares outstanding for PARA has been increased compared to 5 years ago.
Compared to 1 year ago, PARA has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.26, we must say that PARA is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of PARA (1.26) is comparable to the rest of the industry.
The Debt to FCF ratio of PARA is 19.19, which is on the high side as it means it would take PARA, 19.19 years of fcf income to pay off all of its debts.
PARA has a Debt to FCF ratio (19.19) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.87 indicates that PARA is somewhat dependend on debt financing.
PARA has a Debt to Equity ratio (0.87) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | 19.19 | ||
| Altman-Z | 1.26 |
ROIC/WACC0.85
WACC6.87%
2.3 Liquidity
A Current Ratio of 1.27 indicates that PARA should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.27, PARA is in line with its industry, outperforming 41.76% of the companies in the same industry.
A Quick Ratio of 1.10 indicates that PARA should not have too much problems paying its short term obligations.
PARA has a worse Quick ratio (1.10) than 64.84% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.27 | ||
| Quick Ratio | 1.1 |
3. Growth
3.1 Past
PARA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 196.49%, 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 -4.24%.
The Revenue has been growing slightly by 2.33% on average over the past years.
EPS 1Y (TTM)196.49%
EPS 3Y-50.35%
EPS 5Y-36.66%
EPS Q2Q%63.33%
Revenue 1Y (TTM)-4.24%
Revenue growth 3Y5.45%
Revenue growth 5Y2.33%
Sales Q2Q%-5.64%
3.2 Future
PARA is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 38.15% yearly.
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 Y201.77%
EPS Next 2Y68.92%
EPS Next 3Y49.43%
EPS Next 5Y38.15%
Revenue Next Year-0.49%
Revenue Next 2Y-0.31%
Revenue Next 3Y0.37%
Revenue Next 5Y1.87%
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.
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
The Price/Earnings ratio is 6.44, which indicates a rather cheap valuation of PARA.
Based on the Price/Earnings ratio, PARA is valued cheaply inside the industry as 90.11% of the companies are valued more expensively.
PARA is valuated cheaply when we compare the Price/Earnings ratio to 29.29, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 7.19, the valuation of PARA can be described as very cheap.
PARA's Price/Forward Earnings ratio is rather cheap when compared to the industry. PARA is cheaper than 94.51% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of PARA to the average of the S&P500 Index (24.01), we can say PARA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.44 | ||
| Fwd PE | 7.19 |
4.2 Price Multiples
PARA's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. PARA is cheaper than 82.42% 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 78.02% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.52 | ||
| EV/EBITDA | 6.43 |
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.
A more expensive valuation may be justified as PARA's earnings are expected to grow with 49.43% in the coming years.
PEG (NY)0.03
PEG (5Y)N/A
EPS Next 2Y68.92%
EPS Next 3Y49.43%
5. Dividend
5.1 Amount
PARA has a Yearly Dividend Yield of 1.80%.
PARA's Dividend Yield is a higher than the industry average which is at 4.12.
PARA's Dividend Yield is comparable with the S&P500 average which is at 2.19.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.8% |
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-3.36%
EPS Next 2Y68.92%
EPS Next 3Y49.43%
PARAMOUNT GLOBAL-CLASS B
NASDAQ:PARA (11/22/2024, 8:00:02 PM)
After market: 10.86 -0.02 (-0.18%)10.88
-0.21 (-1.89%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
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Ins Owner Change
Market Cap7.26B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.8% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
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EPS NQ rev (1m)
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Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.44 | ||
| Fwd PE | 7.19 | ||
| 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)0.03
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -11.85% | ||
| ROE | -32.96% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 9.07% | ||
| PM (TTM) | N/A | ||
| GM | 33.84% | ||
| 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 Turnover0.62
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.27 | ||
| Quick Ratio | 1.1 | ||
| 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)196.49%
EPS 3Y-50.35%
EPS 5Y
EPS Q2Q%
EPS Next Y201.77%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-4.24%
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