PARAMOUNT GLOBAL-CLASS A (PARAA) Stock Fundamental Analysis
NASDAQ:PARAA - Nasdaq - US92556H1077 - Common Stock - Currency: USD
Overall PARAA gets a fundamental rating of 3 out of 10. We evaluated PARAA against 97 industry peers in the Media industry. PARAA may be in some trouble as it scores bad on both profitability and health. PARAA is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year PARAA was profitable.
PARAA had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: PARAA reported negative net income in multiple years.
In the past 5 years PARAA always reported a positive cash flow from operatings.
1.2 Ratios
PARAA has a worse Return On Assets (-12.08%) than 71.13% of its industry peers.
PARAA has a Return On Equity of -33.16%. This is in the lower half of the industry: PARAA underperforms 67.01% of its industry peers.
PARAA has a better Return On Invested Capital (5.80%) than 65.98% of its industry peers.
PARAA had an Average Return On Invested Capital over the past 3 years of 4.90%. This is below the industry average of 7.56%.
The last Return On Invested Capital (5.80%) for PARAA is above the 3 year average (4.90%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -12.08% | ||
| ROE | -33.16% | ||
| ROIC | 5.8% |
ROA(3y)-4.3%
ROA(5y)-0.12%
ROE(3y)-12.14%
ROE(5y)-0.12%
ROIC(3y)4.9%
ROIC(5y)5.93%
1.3 Margins
The Operating Margin of PARAA (9.23%) is better than 60.82% of its industry peers.
PARAA's Operating Margin has declined in the last couple of years.
PARAA's Gross Margin of 33.32% is in line compared to the rest of the industry. PARAA outperforms 43.30% of its industry peers.
In the last couple of years the Gross Margin of PARAA has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.23% | ||
| PM (TTM) | N/A | ||
| GM | 33.32% |
OM growth 3Y-10.83%
OM growth 5Y-9.07%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-3.4%
GM growth 5Y-2.14%
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.
The number of shares outstanding for PARAA has been increased compared to 5 years ago.
Compared to 1 year ago, PARAA has a worse debt to assets ratio.
2.2 Solvency
PARAA has an Altman-Z score of 1.45. This is a bad value and indicates that PARAA is not financially healthy and even has some risk of bankruptcy.
PARAA has a Altman-Z score of 1.45. This is comparable to the rest of the industry: PARAA outperforms 57.73% 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.
PARAA has a Debt to FCF ratio (36.00) which is in line with its industry peers.
PARAA has a Debt/Equity ratio of 0.86. This is a neutral value indicating PARAA is somewhat dependend on debt financing.
PARAA has a Debt to Equity ratio (0.86) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 36 | ||
| Altman-Z | 1.45 |
ROIC/WACC0.85
WACC6.83%
2.3 Liquidity
A Current Ratio of 1.29 indicates that PARAA should not have too much problems paying its short term obligations.
PARAA's Current ratio of 1.29 is in line compared to the rest of the industry. PARAA outperforms 45.36% of 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.
PARAA's Quick ratio of 1.18 is in line compared to the rest of the industry. PARAA outperforms 41.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.29 | ||
| Quick Ratio | 1.18 |
3. Growth
3.1 Past
PARAA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.15%, which is quite good.
Measured over the past years, PARAA shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -19.12% on average per year.
PARAA shows a decrease in Revenue. In the last year, the revenue decreased by -4.50%.
PARAA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.59% yearly.
EPS 1Y (TTM)14.15%
EPS 3Y-24.01%
EPS 5Y-19.12%
EPS Q2Q%-53.23%
Revenue 1Y (TTM)-4.5%
Revenue growth 3Y0.73%
Revenue growth 5Y1.59%
Sales Q2Q%-6.42%
3.2 Future
The Earnings Per Share is expected to grow by 9.48% on average over the next years. This is quite good.
The Revenue is expected to grow by 1.82% on average over the next years.
EPS Next Y-17.3%
EPS Next 2Y-2.59%
EPS Next 3Y-3.47%
EPS Next 5Y9.48%
Revenue Next Year-3.13%
Revenue Next 2Y-1.21%
Revenue Next 3Y-0.52%
Revenue Next 5Y1.82%
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
PARAA is valuated rather expensively with a Price/Earnings ratio of 19.03.
Compared to the rest of the industry, the Price/Earnings ratio of PARAA indicates a somewhat cheap valuation: PARAA is cheaper than 68.04% of the companies listed in the same industry.
PARAA is valuated rather cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
PARAA is valuated correctly with a Price/Forward Earnings ratio of 15.76.
Based on the Price/Forward Earnings ratio, PARAA is valued a bit cheaper than the industry average as 65.98% of the companies are valued more expensively.
PARAA is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.03 | ||
| Fwd PE | 15.76 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PARAA is valued a bit cheaper than 61.86% 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 | 38.53 | ||
| EV/EBITDA | 9.03 |
4.3 Compensation for Growth
A cheap valuation may be justified as PARAA's earnings are expected to decrease with -3.47% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-2.59%
EPS Next 3Y-3.47%
5. Dividend
5.1 Amount
PARAA has a Yearly Dividend Yield of 1.55%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.62, PARAA pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.37, PARAA is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.55% |
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
PARAA has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-2.83%
EPS Next 2Y-2.59%
EPS Next 3Y-3.47%
23.03
+0.02 (+0.09%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners76.1%
Inst Owner ChangeN/A
Ins Owners0.48%
Ins Owner ChangeN/A
Market Cap15.53B
Analysts50.32
Price Target22.23 (-3.47%)
Short Float %0.05%
Short Ratio10.91
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.55% |
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)-9.77%
PT rev (3m)-7.51%
EPS NQ rev (1m)-0.45%
EPS NQ rev (3m)-25.97%
EPS NY rev (1m)1.6%
EPS NY rev (3m)-13.62%
Revenue NQ rev (1m)-0.2%
Revenue NQ rev (3m)-3.1%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.03 | ||
| Fwd PE | 15.76 | ||
| P/S | 0.54 | ||
| P/FCF | 38.53 | ||
| P/OCF | 23.1 | ||
| P/B | 0.94 | ||
| P/tB | 4.26 | ||
| EV/EBITDA | 9.03 |
EPS(TTM)1.21
EY5.25%
EPS(NY)1.46
Fwd EY6.35%
FCF(TTM)0.6
FCFY2.6%
OCF(TTM)1
OCFY4.33%
SpS42.6
BVpS24.53
TBVpS5.41
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -12.08% | ||
| ROE | -33.16% | ||
| ROCE | 7.34% | ||
| ROIC | 5.8% | ||
| ROICexc | 6.26% | ||
| ROICexgc | 10.19% | ||
| OM | 9.23% | ||
| PM (TTM) | N/A | ||
| GM | 33.32% | ||
| FCFM | 1.4% |
ROA(3y)-4.3%
ROA(5y)-0.12%
ROE(3y)-12.14%
ROE(5y)-0.12%
ROIC(3y)4.9%
ROIC(5y)5.93%
ROICexc(3y)5.24%
ROICexc(5y)6.44%
ROICexgc(3y)9.03%
ROICexgc(5y)11.54%
ROCE(3y)6.21%
ROCE(5y)7.5%
ROICexcg growth 3Y-6.68%
ROICexcg growth 5Y-8.15%
ROICexc growth 3Y-2.85%
ROICexc growth 5Y-4.55%
OM growth 3Y-10.83%
OM growth 5Y-9.07%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-3.4%
GM growth 5Y-2.14%
F-Score4
Asset Turnover0.63
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 36 | ||
| Debt/EBITDA | 4.67 | ||
| Cap/Depr | 70.79% | ||
| Cap/Sales | 0.94% | ||
| Interest Coverage | 3.05 | ||
| Cash Conversion | 22.18% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.29 | ||
| Quick Ratio | 1.18 | ||
| Altman-Z | 1.45 |
F-Score4
WACC6.83%
ROIC/WACC0.85
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)14.15%
EPS 3Y-24.01%
EPS 5Y-19.12%
EPS Q2Q%-53.23%
EPS Next Y-17.3%
EPS Next 2Y-2.59%
EPS Next 3Y-3.47%
EPS Next 5Y9.48%
Revenue 1Y (TTM)-4.5%
Revenue growth 3Y0.73%
Revenue growth 5Y1.59%
Sales Q2Q%-6.42%
Revenue Next Year-3.13%
Revenue Next 2Y-1.21%
Revenue Next 3Y-0.52%
Revenue Next 5Y1.82%
EBIT growth 1Y54.61%
EBIT growth 3Y-10.19%
EBIT growth 5Y-7.62%
EBIT Next Year155.49%
EBIT Next 3Y36.63%
EBIT Next 5Y22.43%
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%