PARAMOUNT GLOBAL-CLASS A (PARAA) Stock Fundamental Analysis
NASDAQ:PARAA - Nasdaq - US92556H1077 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to PARAA. PARAA was compared to 93 industry peers in the Media industry. PARAA has a medium profitability rating, but doesn't score so well on its financial health evaluation. PARAA has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
PARAA had positive earnings in the past year.
PARAA had a positive operating cash flow in the past year.
Of the past 5 years PARAA 4 years were profitable.
Each year in the past 5 years PARAA had a positive operating cash flow.
1.2 Ratios
PARAA has a Return On Assets of -11.85%. This is amonst the worse of the industry: PARAA underperforms 81.61% of its industry peers.
PARAA has a Return On Equity of -32.96%. This is in the lower half of the industry: PARAA underperforms 70.11% of its industry peers.
PARAA has a Return On Invested Capital of 6.29%. This is in the better half of the industry: PARAA outperforms 68.97% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PARAA is in line with the industry average of 7.01%.
The last Return On Invested Capital (6.29%) for PARAA is above the 3 year average (5.15%), which is a sign of increasing profitability.
| Industry Rank | Sector 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%
1.3 Margins
With a decent Operating Margin value of 9.79%, PARAA is doing good in the industry, outperforming 60.92% of the companies in the same industry.
PARAA's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 34.56%, PARAA perfoms like the industry average, outperforming 41.38% of the companies in the same industry.
PARAA's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector 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%
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.
PARAA has more shares outstanding than it did 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 1.44. This is a bad value and indicates that PARAA is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.44, PARAA perfoms like the industry average, outperforming 58.62% of the companies in the same industry.
The Debt to FCF ratio of PARAA is 19.19, which is on the high side as it means it would take PARAA, 19.19 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 19.19, PARAA perfoms like the industry average, outperforming 47.13% of the companies in the same industry.
PARAA has a Debt/Equity ratio of 0.87. This is a neutral value indicating PARAA is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.87, PARAA perfoms like the industry average, outperforming 45.98% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | 19.19 | ||
| Altman-Z | 1.44 |
ROIC/WACC0.78
WACC8.07%
2.3 Liquidity
PARAA has a Current Ratio of 1.27. 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 Current ratio, with a value of 1.27, PARAA is in line with its industry, outperforming 40.23% of the companies in the same industry.
PARAA has a Quick Ratio of 1.10. 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 worse Quick ratio (1.10) than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.27 | ||
| Quick Ratio | 1.1 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 196.49% over the past year.
PARAA shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -36.66% yearly.
PARAA 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
PARAA is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 33.40% yearly.
PARAA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.59% yearly.
EPS Next Y245.03%
EPS Next 2Y68.63%
EPS Next 3Y48.63%
EPS Next 5Y33.4%
Revenue Next Year-1.97%
Revenue Next 2Y-1.45%
Revenue Next 3Y-0.37%
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 13.43, PARAA is valued correctly.
PARAA's Price/Earnings ratio is a bit cheaper when compared to the industry. PARAA is cheaper than 68.97% of the companies in the same industry.
PARAA's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.63.
A Price/Forward Earnings ratio of 15.06 indicates a correct valuation of PARAA.
Based on the Price/Forward Earnings ratio, PARAA is valued a bit cheaper than the industry average as 70.11% of the companies are valued more expensively.
PARAA is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.43 | ||
| Fwd PE | 15.06 |
4.2 Price Multiples
PARAA's Enterprise Value to EBITDA is on the same level as the industry average.
PARAA's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.87 | ||
| EV/EBITDA | 8.48 |
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.
PARAA's earnings are expected to grow with 48.63% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.05
PEG (5Y)N/A
EPS Next 2Y68.63%
EPS Next 3Y48.63%
5. Dividend
5.1 Amount
PARAA has a Yearly Dividend Yield of 1.77%. Purely for dividend investing, there may be better candidates out there.
PARAA's Dividend Yield is a higher than the industry average which is at 4.48.
PARAA's Dividend Yield is slightly below the S&P500 average, which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.77% |
5.2 History
The dividend of PARAA decreases each year by -10.62%.
PARAA 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
PARAA has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-3.36%
EPS Next 2Y68.63%
EPS Next 3Y48.63%
22.7
-0.13 (-0.57%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners73.05%
Inst Owner ChangeN/A
Ins Owners0.27%
Ins Owner ChangeN/A
Market Cap15.14B
Analysts54.19
Price Target25.44 (12.07%)
Short Float %0.06%
Short Ratio9.75
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.77% |
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)-5.11%
PT rev (3m)-0.49%
EPS NQ rev (1m)-35.66%
EPS NQ rev (3m)-40.65%
EPS NY rev (1m)-2.62%
EPS NY rev (3m)14.34%
Revenue NQ rev (1m)-0.27%
Revenue NQ rev (3m)-1.62%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-1.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.43 | ||
| Fwd PE | 15.06 | ||
| P/S | 0.52 | ||
| P/FCF | 19.87 | ||
| P/OCF | 14.73 | ||
| P/B | 0.91 | ||
| P/tB | 4.13 | ||
| EV/EBITDA | 8.48 |
EPS(TTM)1.69
EY7.44%
EPS(NY)1.51
Fwd EY6.64%
FCF(TTM)1.14
FCFY5.03%
OCF(TTM)1.54
OCFY6.79%
SpS43.28
BVpS24.93
TBVpS5.5
PEG (NY)0.05
PEG (5Y)N/A
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 1.44 |
F-Score5
WACC8.07%
ROIC/WACC0.78
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 Y245.03%
EPS Next 2Y68.63%
EPS Next 3Y48.63%
EPS Next 5Y33.4%
Revenue 1Y (TTM)-4.24%
Revenue growth 3Y5.45%
Revenue growth 5Y2.33%
Sales Q2Q%-5.64%
Revenue Next Year-1.97%
Revenue Next 2Y-1.45%
Revenue Next 3Y-0.37%
Revenue Next 5Y0.59%
EBIT growth 1Y983.44%
EBIT growth 3Y-25.27%
EBIT growth 5Y-18.69%
EBIT Next Year127.84%
EBIT Next 3Y30.26%
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%