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PARAMOUNT GLOBAL-CLASS B (PARA) Stock Fundamental Analysis

NASDAQ:PARA - Nasdaq - US92556H2067 - Common Stock - Currency: USD

11.87  +0.09 (+0.76%)

After market: 11.8401 -0.03 (-0.25%)

Fundamental Rating

4

We assign a fundamental rating of 4 out of 10 to PARA. PARA was compared to 96 industry peers in the Media industry. While PARA is still in line with the averages on profitability rating, there are concerns on its financial health. PARA has a correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

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4

1. Profitability

1.1 Basic Checks

In the past year PARA was profitable.
PARA had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: PARA reported negative net income in multiple 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 2024 0 2B -2B 4B -4B -6B

1.2 Ratios

Looking at the Return On Assets, with a value of -12.08%, PARA is doing worse than 70.83% of the companies in the same industry.
With a Return On Equity value of -33.16%, PARA is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
PARA has a Return On Invested Capital of 5.80%. This is in the better half of the industry: PARA outperforms 67.71% of its industry peers.
PARA had an Average Return On Invested Capital over the past 3 years of 4.90%. This is in line with the industry average of 6.73%.
The 3 year average ROIC (4.90%) for PARA is below the current ROIC(5.80%), indicating increased profibility in the last year.
Industry RankSector 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%
PARA Yearly ROA, ROE, ROICPARA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50 100

1.3 Margins

PARA has a Operating Margin of 9.23%. This is in the better half of the industry: PARA outperforms 66.67% of its industry peers.
PARA's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 33.32%, PARA is in line with its industry, outperforming 45.83% of the companies in the same industry.
In the last couple of years the Gross Margin of PARA has declined.
Industry RankSector 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%
PARA Yearly Profit, Operating, Gross MarginsPARA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 40

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3

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so PARA is destroying value.
PARA has more shares outstanding than it did 1 year ago.
PARA has more shares outstanding than it did 5 years ago.
The debt/assets ratio for PARA is higher compared to a year ago.
PARA Yearly Shares OutstandingPARA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 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 2024 10B 20B 30B 40B 50B

2.2 Solvency

Based on the Altman-Z score of 1.30, we must say that PARA is in the distress zone and has some risk of bankruptcy.
PARA has a Altman-Z score of 1.30. This is comparable to the rest of the industry: PARA outperforms 56.25% of its industry peers.
The Debt to FCF ratio of PARA is 36.00, which is on the high side as it means it would take PARA, 36.00 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 36.00, PARA perfoms like the industry average, outperforming 48.96% of the companies in the same industry.
A Debt/Equity ratio of 0.86 indicates that PARA is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.86, PARA is in line with its industry, outperforming 52.08% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.86
Debt/FCF 36
Altman-Z 1.3
ROIC/WACC0.78
WACC7.45%
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 2024 0 5B 10B 15B 20B

2.3 Liquidity

A Current Ratio of 1.29 indicates that PARA should not have too much problems paying its short term obligations.
PARA has a Current ratio (1.29) which is comparable to the rest of the industry.
A Quick Ratio of 1.18 indicates that PARA should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.18, PARA is in line with its industry, outperforming 45.83% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.29
Quick Ratio 1.18
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 2024 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 14.15%, which is quite good.
Measured over the past years, PARA shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -19.12% on average per year.
The Revenue has decreased by -4.50% in the past year.
PARA 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 12.37% on average over the next years. This is quite good.
The Revenue is expected to grow by 1.92% on average over the next years.
EPS Next Y-18.6%
EPS Next 2Y-2.35%
EPS Next 3Y-2.7%
EPS Next 5Y12.37%
Revenue Next Year-3.14%
Revenue Next 2Y-1.23%
Revenue Next 3Y-0.44%
Revenue Next 5Y1.92%

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.
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.
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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6

4. Valuation

4.1 Price/Earnings Ratio

PARA is valuated reasonably with a Price/Earnings ratio of 9.81.
Based on the Price/Earnings ratio, PARA is valued cheaper than 80.21% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.60, PARA is valued rather cheaply.
The Price/Forward Earnings ratio is 8.08, which indicates a very decent valuation of PARA.
Based on the Price/Forward Earnings ratio, PARA is valued a bit cheaper than 79.17% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.43, PARA is valued rather cheaply.
Industry RankSector Rank
PE 9.81
Fwd PE 8.08
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 a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
62.50% of the companies in the same industry are more expensive than PARA, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 19.76
EV/EBITDA 6.53
PARA Per share dataPARA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40

4.3 Compensation for Growth

PARA's earnings are expected to decrease with -2.70% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-2.35%
EPS Next 3Y-2.7%

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3

5. Dividend

5.1 Amount

PARA has a Yearly Dividend Yield of 1.68%.
Compared to an average industry Dividend Yield of 4.91, PARA pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.36, PARA is paying slightly less dividend.
Industry RankSector Rank
Dividend Yield 1.68%

5.2 History

The dividend of PARA decreases each year by -23.51%.
PARA 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
PARA Yearly Dividends per sharePARA Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.2 0.4 0.6 0.8

5.3 Sustainability

PARA has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-2.83%
EPS Next 2Y-2.35%
EPS Next 3Y-2.7%
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 2024 0 2B -2B 4B -4B -6B

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PARAMOUNT GLOBAL-CLASS B

NASDAQ:PARA (5/20/2025, 8:25:45 PM)

After market: 11.8401 -0.03 (-0.25%)

11.87

+0.09 (+0.76%)

Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)05-08 2025-05-08/amc
Earnings (Next)08-06 2025-08-06/bmo
Inst Owners78.78%
Inst Owner Change0%
Ins Owners0.47%
Ins Owner ChangeN/A
Market Cap7.96B
Analysts53.33
Price Target12.36 (4.13%)
Short Float %11.22%
Short Ratio7.54
Dividend
Industry RankSector Rank
Dividend Yield 1.68%
Yearly Dividend0.25
Dividend Growth(5Y)-23.51%
DP-2.83%
Div Incr Years0
Div Non Decr Years0
Ex-Date03-17 2025-03-17 (0.05)
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)-2.17%
PT rev (3m)-1.42%
EPS NQ rev (1m)-21.46%
EPS NQ rev (3m)-13.05%
EPS NY rev (1m)-12.36%
EPS NY rev (3m)-16.83%
Revenue NQ rev (1m)-2.46%
Revenue NQ rev (3m)-3.83%
Revenue NY rev (1m)-1.07%
Revenue NY rev (3m)-2.25%
Valuation
Industry RankSector Rank
PE 9.81
Fwd PE 8.08
P/S 0.28
P/FCF 19.76
P/OCF 11.85
P/B 0.48
P/tB 2.18
EV/EBITDA 6.53
EPS(TTM)1.21
EY10.19%
EPS(NY)1.47
Fwd EY12.37%
FCF(TTM)0.6
FCFY5.06%
OCF(TTM)1
OCFY8.44%
SpS42.82
BVpS24.66
TBVpS5.44
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector 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 RankSector 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 1.3
F-Score4
WACC7.45%
ROIC/WACC0.78
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-18.6%
EPS Next 2Y-2.35%
EPS Next 3Y-2.7%
EPS Next 5Y12.37%
Revenue 1Y (TTM)-4.5%
Revenue growth 3Y0.73%
Revenue growth 5Y1.59%
Sales Q2Q%-6.42%
Revenue Next Year-3.14%
Revenue Next 2Y-1.23%
Revenue Next 3Y-0.44%
Revenue Next 5Y1.92%
EBIT growth 1Y54.61%
EBIT growth 3Y-10.19%
EBIT growth 5Y-7.62%
EBIT Next Year158.11%
EBIT Next 3Y37.22%
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%