PARAMOUNT GLOBAL-CLASS B (PARA) Stock Fundamental Analysis
NASDAQ:PARA - Nasdaq - US92556H2067 - Common Stock - Currency: USD
Overall PARA gets a fundamental rating of 4 out of 10. We evaluated PARA against 97 industry peers in the Media industry. PARA has a bad profitability rating. Also its financial health evaluation is rather negative. PARA is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year PARA was profitable.
PARA had a positive operating cash flow in the past year.
In multiple years PARA reported negative net income over the last 5 years.
In the past 5 years PARA always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of PARA (-12.08%) is worse than 70.10% of its industry peers.
PARA has a Return On Equity of -33.16%. This is in the lower half of the industry: PARA underperforms 65.98% of its industry peers.
PARA has a Return On Invested Capital of 5.80%. This is in the better half of the industry: PARA outperforms 67.01% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PARA is below the industry average of 7.56%.
The 3 year average ROIC (4.90%) for PARA is below the current ROIC(5.80%), indicating increased profibility in the last year.
| 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
Looking at the Operating Margin, with a value of 9.23%, PARA is in the better half of the industry, outperforming 61.86% of the companies in the same industry.
In the last couple of years the Operating Margin of PARA has declined.
PARA has a Gross Margin (33.32%) which is in line with its industry peers.
In the last couple of years the Gross Margin of PARA 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
PARA has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
PARA has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, PARA has more shares outstanding
Compared to 1 year ago, PARA has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.31, we must say that PARA is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of PARA (1.31) is comparable to the rest of the industry.
PARA has a debt to FCF ratio of 36.00. This is a negative value and a sign of low solvency as PARA would need 36.00 years to pay back of all of its debts.
PARA has a Debt to FCF ratio (36.00) which is in line with its industry peers.
A Debt/Equity ratio of 0.86 indicates that PARA is somewhat dependend on debt financing.
PARA has a Debt to Equity ratio of 0.86. This is comparable to the rest of the industry: PARA outperforms 46.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 36 | ||
| Altman-Z | 1.31 |
ROIC/WACC0.86
WACC6.75%
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 in line with its industry peers.
A Quick Ratio of 1.18 indicates that PARA should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.18, PARA perfoms like the industry average, outperforming 42.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.29 | ||
| Quick Ratio | 1.18 |
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.
Looking at the last year, PARA shows a decrease in Revenue. The Revenue has decreased by -4.50% in the last 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 9.48% on average over the next years. This is quite good.
PARA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.82% yearly.
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 10.54, the valuation of PARA can be described as very reasonable.
Based on the Price/Earnings ratio, PARA is valued a bit cheaper than 79.38% of the companies in the same industry.
When comparing the Price/Earnings ratio of PARA to the average of the S&P500 Index (27.30), we can say PARA is valued rather cheaply.
A Price/Forward Earnings ratio of 8.73 indicates a reasonable valuation of PARA.
Based on the Price/Forward Earnings ratio, PARA is valued a bit cheaper than the industry average as 78.35% of the companies are valued more expensively.
PARA's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.54 | ||
| Fwd PE | 8.73 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PARA is valued a bit cheaper than the industry average as 74.23% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PARA indicates a somewhat cheap valuation: PARA is cheaper than 63.92% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.33 | ||
| EV/EBITDA | 6.75 |
4.3 Compensation for Growth
PARA's earnings are expected to decrease with -3.47% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-2.59%
EPS Next 3Y-3.47%
5. Dividend
5.1 Amount
PARA has a Yearly Dividend Yield of 1.57%.
PARA's Dividend Yield is a higher than the industry average which is at 4.64.
PARA's Dividend Yield is slightly below the S&P500 average, which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.57% |
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
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-2.59%
EPS Next 3Y-3.47%
12.75
-0.02 (-0.16%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners76.1%
Inst Owner Change0%
Ins Owners0.48%
Ins Owner ChangeN/A
Market Cap8.60B
Analysts50.32
Price Target11.79 (-7.53%)
Short Float %14.41%
Short Ratio11.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.57% |
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)-4.62%
PT rev (3m)-6.69%
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 | 10.54 | ||
| Fwd PE | 8.73 | ||
| P/S | 0.3 | ||
| P/FCF | 21.33 | ||
| P/OCF | 12.79 | ||
| P/B | 0.52 | ||
| P/tB | 2.36 | ||
| EV/EBITDA | 6.75 |
EPS(TTM)1.21
EY9.49%
EPS(NY)1.46
Fwd EY11.46%
FCF(TTM)0.6
FCFY4.69%
OCF(TTM)1
OCFY7.82%
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 | 1.31 |
F-Score4
WACC6.75%
ROIC/WACC0.86
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%