PARAMOUNT GLOBAL-CLASS A (PARAA) Stock Fundamental Analysis
USA - NASDAQ:PARAA - US92556H1077 - Common Stock
16.91 USD
-0.96 (-5.37%)
16.911 USD
+0 (+0.01%)
We assign a fundamental rating of 3 out of 10 to PARAA. PARAA was compared to 99 industry peers in the Media industry. PARAA has a bad profitability rating. Also its financial health evaluation is rather negative. PARAA has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year PARAA was profitable.
In the past year PARAA had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: PARAA reported negative net income in multiple years.
Each year in the past 5 years PARAA had a positive operating cash flow.
1.2 Ratios
PARAA's Return On Assets of -12.08% is on the low side compared to the rest of the industry. PARAA is outperformed by 66.34% of its industry peers.
PARAA has a worse Return On Equity (-33.16%) than 62.38% of its industry peers.
PARAA's Return On Invested Capital of 5.34% is fine compared to the rest of the industry. PARAA outperforms 65.35% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PARAA is below the industry average of 8.87%.
The 3 year average ROIC (4.75%) for PARAA is below the current ROIC(5.34%), indicating increased profibility in the last year.
| 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
PARAA's Operating Margin of 8.49% is fine compared to the rest of the industry. PARAA outperforms 61.39% of its industry peers.
In the last couple of years the Operating Margin of PARAA has declined.
With a Gross Margin value of 32.58%, PARAA perfoms like the industry average, outperforming 41.58% of the companies in the same industry.
In the last couple of years the Gross Margin of PARAA 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
PARAA has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for PARAA has been increased compared to 1 year ago.
PARAA has more shares outstanding than it did 5 years ago.
The debt/assets ratio for PARAA is higher compared to a year ago.
2.2 Solvency
PARAA has an Altman-Z score of 1.34. This is a bad value and indicates that PARAA is not financially healthy and even has some risk of bankruptcy.
PARAA's Altman-Z score of 1.34 is in line compared to the rest of the industry. PARAA outperforms 58.42% of its industry peers.
PARAA has a debt to FCF ratio of 36.00. This is a negative value and a sign of low solvency as PARAA would need 36.00 years to pay back of all of its debts.
With a Debt to FCF ratio value of 36.00, PARAA perfoms like the industry average, outperforming 50.49% of the companies in the same industry.
PARAA has a Debt/Equity ratio of 0.86. This is a neutral value indicating PARAA is somewhat dependend on debt financing.
The Debt to Equity ratio of PARAA (0.86) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 36 | ||
| Altman-Z | 1.34 |
ROIC/WACC0.64
WACC8.39%
2.3 Liquidity
PARAA has a Current Ratio of 1.29. This is a normal value and indicates that PARAA is financially healthy and should not expect problems in meeting its short term obligations.
PARAA has a Current ratio (1.29) which is in line with its industry peers.
PARAA has a Quick Ratio of 1.18. This is a normal value and indicates that PARAA 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, PARAA is in line with its industry, outperforming 44.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.29 | ||
| Quick Ratio | 1.18 |
3. Growth
3.1 Past
PARAA shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -24.67%.
PARAA shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -19.12% yearly.
PARAA shows a decrease in Revenue. In the last year, the revenue decreased by -1.48%.
The Revenue has been growing slightly by 1.59% on average over the past years.
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
PARAA is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.48% yearly.
PARAA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.30% yearly.
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
PARAA is valuated correctly with a Price/Earnings ratio of 14.96.
Based on the Price/Earnings ratio, PARAA is valued a bit cheaper than 71.29% of the companies in the same industry.
PARAA's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.38.
Based on the Price/Forward Earnings ratio of 11.45, the valuation of PARAA can be described as reasonable.
Based on the Price/Forward Earnings ratio, PARAA is valued a bit cheaper than the industry average as 70.30% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.86, PARAA is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.96 | ||
| Fwd PE | 11.45 |
4.2 Price Multiples
PARAA's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. PARAA is cheaper than 63.37% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as PARAA.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.55 | ||
| EV/EBITDA | 7.99 |
4.3 Compensation for Growth
PARAA'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
PARAA has a Yearly Dividend Yield of 1.18%.
In the last 3 months the price of PARAA has falen by -24.78%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 4.58, PARAA pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, PARAA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.18% |
5.2 History
The dividend of PARAA decreases each year by -23.51%.
PARAA 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 PARAA are negative and hence is the payout ratio. PARAA will probably not be able to sustain this dividend level.
DP-2.83%
EPS Next 2Y-2.06%
EPS Next 3Y-2.97%
16.91
-0.96 (-5.37%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners75.86%
Inst Owner ChangeN/A
Ins Owners0.44%
Ins Owner ChangeN/A
Market Cap10.70B
Analysts49.68
Price Target17.85 (5.56%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.18% |
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)-19.71%
PT rev (3m)-27.55%
EPS NQ rev (1m)-0.73%
EPS NQ rev (3m)-17.25%
EPS NY rev (1m)0%
EPS NY rev (3m)-10.84%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)-2.9%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)-0.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.96 | ||
| Fwd PE | 11.45 | ||
| P/S | 0.37 | ||
| P/FCF | 26.55 | ||
| P/OCF | 15.92 | ||
| P/B | 0.65 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.99 |
EPS(TTM)1.13
EY6.68%
EPS(NY)1.48
Fwd EY8.74%
FCF(TTM)0.64
FCFY3.77%
OCF(TTM)1.06
OCFY6.28%
SpS45.4
BVpS26.14
TBVpS-16.42
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 | 1.34 |
F-Score4
WACC8.39%
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%