PARAMOUNT GLOBAL-CLASS A (PARAA) Stock Fundamental Analysis
NASDAQ:PARAA - Nasdaq - US92556H1077 - Common Stock
Taking everything into account, PARAA scores 4 out of 10 in our fundamental rating. PARAA was compared to 91 industry peers in the Media industry. While PARAA is still in line with the averages on profitability rating, there are concerns on its financial health. 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.
PARAA had positive earnings in 4 of the past 5 years.
In the past 5 years PARAA always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of PARAA (-11.85%) is worse than 82.56% of its industry peers.
PARAA has a worse Return On Equity (-32.96%) than 69.77% of its industry peers.
PARAA's Return On Invested Capital of 6.29% is fine compared to the rest of the industry. PARAA outperforms 70.93% 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 6.90%.
The 3 year average ROIC (5.15%) for PARAA is below the current ROIC(6.29%), indicating increased profibility in the last year.
| 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
The Operating Margin of PARAA (9.79%) is better than 60.47% of its industry peers.
In the last couple of years the Operating Margin of PARAA has declined.
PARAA has a Gross Margin (34.56%) which is in line with its industry peers.
In the last couple of years the Gross Margin of PARAA has declined.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PARAA 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 1.43. 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 1.43 is fine compared to the rest of the industry. PARAA outperforms 60.47% of its industry peers.
PARAA has a debt to FCF ratio of 19.19. This is a negative value and a sign of low solvency as PARAA would need 19.19 years to pay back of all of its debts.
PARAA 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 PARAA is somewhat dependend on debt financing.
PARAA has a Debt to Equity ratio of 0.87. This is comparable to the rest of the industry: PARAA outperforms 46.51% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | 19.19 | ||
| Altman-Z | 1.43 |
ROIC/WACC0.89
WACC7.05%
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.
PARAA has a Current ratio (1.27) which is in line with its industry peers.
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's Quick ratio of 1.10 is on the low side compared to the rest of the industry. PARAA is outperformed by 66.28% 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.
Measured over the past years, PARAA shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -36.66% on average per year.
PARAA shows a decrease in Revenue. In the last year, the revenue decreased by -4.24%.
Measured over the past years, PARAA shows a small growth in Revenue. The Revenue has been growing by 2.33% on average per year.
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
Based on estimates for the next years, PARAA will show a very strong growth in Earnings Per Share. The EPS will grow by 33.40% on average per year.
Based on estimates for the next years, PARAA 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
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 13.40, the valuation of PARAA can be described as correct.
PARAA's Price/Earnings ratio is a bit cheaper when compared to the industry. PARAA is cheaper than 69.77% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.96. PARAA is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 13.79, the valuation of PARAA can be described as correct.
PARAA's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. PARAA is cheaper than 63.95% of the companies in the same industry.
PARAA's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.11.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.4 | ||
| Fwd PE | 13.79 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PARAA is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PARAA is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.82 | ||
| EV/EBITDA | 8.42 |
4.3 Compensation for Growth
PARAA's 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 PARAA's earnings are expected to grow with 52.15% in the coming years.
PEG (NY)0.05
PEG (5Y)N/A
EPS Next 2Y76%
EPS Next 3Y52.15%
5. Dividend
5.1 Amount
PARAA has a Yearly Dividend Yield of 1.88%.
PARAA's Dividend Yield is a higher than the industry average which is at 4.36.
Compared to an average S&P500 Dividend Yield of 2.33, PARAA has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.88% |
5.2 History
The dividend of PARAA decreases each year by -10.62%.
PARAA has been paying a dividend for at least 10 years, so it has 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 2Y76%
EPS Next 3Y52.15%
PARAMOUNT GLOBAL-CLASS A
NASDAQ:PARAA (1/17/2025, 8:19:54 PM)
22.64
+0.12 (+0.53%)
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 Cap15.10B
Analysts54.19
Price Target26.8 (18.37%)
Short Float %0.07%
Short Ratio8.96
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.88% |
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)4.22%
PT rev (3m)1.02%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-7.75%
EPS NY rev (1m)0.62%
EPS NY rev (3m)19.83%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.36%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)-1.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.4 | ||
| Fwd PE | 13.79 | ||
| P/S | 0.52 | ||
| P/FCF | 19.82 | ||
| P/OCF | 14.69 | ||
| P/B | 0.91 | ||
| P/tB | 4.11 | ||
| EV/EBITDA | 8.42 |
EPS(TTM)1.69
EY7.46%
EPS(NY)1.64
Fwd EY7.25%
FCF(TTM)1.14
FCFY5.05%
OCF(TTM)1.54
OCFY6.81%
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 | 1.43 |
F-Score5
WACC7.05%
ROIC/WACC0.89
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 Year130.51%
EBIT Next 3Y30.33%
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%