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PARAMOUNT GLOBAL-CLASS B (PARA) Stock Fundamental Analysis

NASDAQ:PARA - Nasdaq - US92556H2067 - Common Stock

10.48  +0.21 (+2.04%)

Premarket: 10.47 -0.01 (-0.1%)

Fundamental Rating

4

PARA gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 92 industry peers in the Media industry. There are concerns on the financial health of PARA while its profitability can be described as average. PARA is valued quite cheap, while showing a decent growth score. This is a good combination!


Dividend Valuation Growth Profitability Health

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4

1. Profitability

1.1 Basic Checks

PARA had positive earnings in the past year.
In the past year PARA had a positive cash flow from operations.
PARA had positive earnings in 4 of the past 5 years.
PARA had a positive operating cash flow in each of the past 5 years.
PARA Yearly Net Income VS EBIT VS OCF VS FCFPARA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 2B 4B

1.2 Ratios

PARA has a worse Return On Assets (-11.85%) than 80.46% of its industry peers.
PARA's Return On Equity of -32.96% is on the low side compared to the rest of the industry. PARA is outperformed by 67.82% of its industry peers.
PARA has a better Return On Invested Capital (6.29%) than 72.41% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PARA is in line with the industry average of 6.90%.
The 3 year average ROIC (5.15%) for PARA is below the current ROIC(6.29%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA -11.85%
ROE -32.96%
ROIC 6.29%
ROA(3y)2.74%
ROA(5y)3.9%
ROE(3y)7.22%
ROE(5y)12.49%
ROIC(3y)5.15%
ROIC(5y)6.61%
PARA Yearly ROA, ROE, ROICPARA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20 40 60 80 100

1.3 Margins

PARA has a Operating Margin of 9.79%. This is in the better half of the industry: PARA outperforms 62.07% of its industry peers.
In the last couple of years the Operating Margin of PARA has declined.
The Gross Margin of PARA (34.56%) is comparable to the rest of the industry.
PARA's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 9.79%
PM (TTM) N/A
GM 34.56%
OM growth 3Y-29.13%
OM growth 5Y-20.54%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-7.71%
GM growth 5Y-4.88%
PARA Yearly Profit, Operating, Gross MarginsPARA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 10 20 30 40

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2

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PARA is destroying value.
Compared to 1 year ago, PARA has more shares outstanding
PARA has more shares outstanding than it did 5 years ago.
PARA has a worse debt/assets ratio than last year.
PARA Yearly Shares OutstandingPARA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M
PARA Yearly Total Debt VS Total AssetsPARA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 10B 20B 30B 40B 50B

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.
With a Altman-Z score value of 1.27, PARA perfoms like the industry average, outperforming 56.32% of the companies in the same 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.
The Debt to FCF ratio of PARA (19.19) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.87 indicates that PARA is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.87, PARA perfoms like the industry average, outperforming 47.13% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.87
Debt/FCF 19.19
Altman-Z 1.27
ROIC/WACC0.94
WACC6.72%
PARA Yearly LT Debt VS Equity VS FCFPARA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 5B 10B 15B 20B

2.3 Liquidity

PARA has a Current Ratio of 1.27. 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 of 1.27. This is comparable to the rest of the industry: PARA outperforms 41.38% of its industry peers.
PARA has a Quick Ratio of 1.10. 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 of 1.10. This is in the lower half of the industry: PARA underperforms 65.52% of its industry peers.
Industry RankSector Rank
Current Ratio 1.27
Quick Ratio 1.1
PARA Yearly Current Assets VS Current LiabilitesPARA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 5B 10B 15B

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4

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.
Measured over the past years, PARA shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -36.66% on average per year.
PARA shows a decrease in Revenue. In the last year, the revenue decreased by -4.24%.
PARA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.33% yearly.
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 33.40% yearly.
Based on estimates for the next years, PARA will show a small growth in Revenue. The Revenue will grow by 0.59% on average per year.
EPS Next Y254.32%
EPS Next 2Y76%
EPS Next 3Y52.15%
EPS Next 5Y33.4%
Revenue Next Year-1.98%
Revenue Next 2Y-1.34%
Revenue Next 3Y-0.33%
Revenue Next 5Y0.59%

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 decreasing: in the next years the growth will be less than in the last years.
PARA Yearly Revenue VS EstimatesPARA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 10B 20B 30B
PARA Yearly EPS VS EstimatesPARA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 1 2 3 4 5

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9

4. Valuation

4.1 Price/Earnings Ratio

PARA is valuated cheaply with a Price/Earnings ratio of 6.20.
PARA's Price/Earnings ratio is rather cheap when compared to the industry. PARA is cheaper than 89.66% of the companies in the same industry.
When comparing the Price/Earnings ratio of PARA to the average of the S&P500 Index (28.29), we can say PARA is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 6.38, 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 93.10% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of PARA to the average of the S&P500 Index (24.44), we can say PARA is valued rather cheaply.
Industry RankSector Rank
PE 6.2
Fwd PE 6.38
PARA Price Earnings VS Forward Price EarningsPARA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, PARA is valued cheaper than 82.76% 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 77.01% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 9.17
EV/EBITDA 5.93
PARA Per share dataPARA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40

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.
PARA's earnings are expected to grow with 52.15% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.02
PEG (5Y)N/A
EPS Next 2Y76%
EPS Next 3Y52.15%

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3

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 1.97%, PARA has a reasonable but not impressive dividend return.
PARA's Dividend Yield is a higher than the industry average which is at 4.46.
Compared to an average S&P500 Dividend Yield of 2.28, PARA has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 1.97%

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
PARA Yearly Dividends per sharePARA Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0.2 0.4 0.6 0.8

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 2Y76%
EPS Next 3Y52.15%
PARA Yearly Income VS Free CF VS DividendPARA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 1B 2B 3B 4B

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PARAMOUNT GLOBAL-CLASS B

NASDAQ:PARA (1/21/2025, 8:00:02 PM)

Premarket: 10.47 -0.01 (-0.1%)

10.48

+0.21 (+2.04%)

Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)11-08 2024-11-08/bmo
Earnings (Next)02-12 2025-02-12/amc
Inst Owners73.05%
Inst Owner Change0%
Ins Owners0.27%
Ins Owner ChangeN/A
Market Cap6.99B
Analysts54.19
Price Target12.62 (20.42%)
Short Float %10.52%
Short Ratio6.06
Dividend
Industry RankSector Rank
Dividend Yield 1.97%
Yearly Dividend0.69
Dividend Growth(5Y)-10.62%
DP-3.36%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)217.08%
Min EPS beat(2)103%
Max EPS beat(2)331.15%
EPS beat(4)4
Avg EPS beat(4)266.95%
Min EPS beat(4)70.11%
Max EPS beat(4)563.54%
EPS beat(8)6
Avg EPS beat(8)413.3%
EPS beat(12)8
Avg EPS beat(12)272.69%
EPS beat(16)10
Avg EPS beat(16)205.76%
Revenue beat(2)0
Avg Revenue beat(2)-6.23%
Min Revenue beat(2)-7.38%
Max Revenue beat(2)-5.08%
Revenue beat(4)0
Avg Revenue beat(4)-4.88%
Min Revenue beat(4)-7.38%
Max Revenue beat(4)-2.51%
Revenue beat(8)1
Avg Revenue beat(8)-3.33%
Revenue beat(12)3
Avg Revenue beat(12)-2.28%
Revenue beat(16)3
Avg Revenue beat(16)-2.59%
PT rev (1m)2.94%
PT rev (3m)0.36%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-7.75%
EPS NY rev (1m)0%
EPS NY rev (3m)19.83%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.36%
Revenue NY rev (1m)-0.1%
Revenue NY rev (3m)-1.83%
Valuation
Industry RankSector Rank
PE 6.2
Fwd PE 6.38
P/S 0.24
P/FCF 9.17
P/OCF 6.8
P/B 0.42
P/tB 1.9
EV/EBITDA 5.93
EPS(TTM)1.69
EY16.13%
EPS(NY)1.64
Fwd EY15.66%
FCF(TTM)1.14
FCFY10.9%
OCF(TTM)1.54
OCFY14.71%
SpS43.28
BVpS24.93
TBVpS5.5
PEG (NY)0.02
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -11.85%
ROE -32.96%
ROCE 7.66%
ROIC 6.29%
ROICexc 6.73%
ROICexgc 10.79%
OM 9.79%
PM (TTM) N/A
GM 34.56%
FCFM 2.64%
ROA(3y)2.74%
ROA(5y)3.9%
ROE(3y)7.22%
ROE(5y)12.49%
ROIC(3y)5.15%
ROIC(5y)6.61%
ROICexc(3y)5.66%
ROICexc(5y)7.07%
ROICexgc(3y)10.26%
ROICexgc(5y)13.21%
ROCE(3y)6.28%
ROCE(5y)8.05%
ROICexcg growth 3Y-25.69%
ROICexcg growth 5Y-24.07%
ROICexc growth 3Y-25.29%
ROICexc growth 5Y-21.24%
OM growth 3Y-29.13%
OM growth 5Y-20.54%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-7.71%
GM growth 5Y-4.88%
F-Score5
Asset Turnover0.62
Health
Industry RankSector Rank
Debt/Equity 0.87
Debt/FCF 19.19
Debt/EBITDA 4.48
Cap/Depr 65.68%
Cap/Sales 0.92%
Interest Coverage 3.21
Cash Conversion 31.81%
Profit Quality N/A
Current Ratio 1.27
Quick Ratio 1.1
Altman-Z 1.27
F-Score5
WACC6.72%
ROIC/WACC0.94
Cap/Depr(3y)85.88%
Cap/Depr(5y)82.53%
Cap/Sales(3y)1.18%
Cap/Sales(5y)1.22%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)196.49%
EPS 3Y-50.35%
EPS 5Y-36.66%
EPS Q2Q%63.33%
EPS Next Y254.32%
EPS Next 2Y76%
EPS Next 3Y52.15%
EPS Next 5Y33.4%
Revenue 1Y (TTM)-4.24%
Revenue growth 3Y5.45%
Revenue growth 5Y2.33%
Sales Q2Q%-5.64%
Revenue Next Year-1.98%
Revenue Next 2Y-1.34%
Revenue Next 3Y-0.33%
Revenue Next 5Y0.59%
EBIT growth 1Y983.44%
EBIT growth 3Y-25.27%
EBIT growth 5Y-18.69%
EBIT Next Year128.94%
EBIT Next 3Y30.37%
EBIT Next 5Y19.57%
FCF growth 1Y205.25%
FCF growth 3Y-57.9%
FCF growth 5Y-45.69%
OCF growth 1Y375.6%
OCF growth 3Y-40.84%
OCF growth 5Y-32.79%