PARAMOUNT GLOBAL-CLASS B (PARA) Stock Fundamental Analysis
USA - NASDAQ:PARA - US92556H2067 - Common Stock
11.04 USD
-0.71 (-6.04%)
11.17 USD
+0.13 (+1.18%)
We assign a fundamental rating of 4 out of 10 to PARA. PARA was compared to 95 industry peers in the Media industry. PARA may be in some trouble as it scores bad on both profitability and health. PARA is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
PARA had positive earnings in the past year.
In the past year PARA had a positive cash flow from operations.
In multiple years PARA reported negative net income over the last 5 years.
PARA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of -12.08%, PARA is not doing good in the industry: 64.36% of the companies in the same industry are doing better.
PARA's Return On Equity of -33.16% is on the low side compared to the rest of the industry. PARA is outperformed by 60.40% of its industry peers.
With a decent Return On Invested Capital value of 5.34%, PARA is doing good in the industry, outperforming 67.33% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for PARA is below the industry average of 8.51%.
The 3 year average ROIC (4.75%) for PARA is below the current ROIC(5.34%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -12.08% | ||
| ROE | -33.16% | ||
| ROIC | 5.34% |
ROA(3y)-4.3%
ROA(5y)-0.12%
ROE(3y)-12.14%
ROE(5y)-0.12%
ROIC(3y)4.75%
ROIC(5y)5.84%
1.3 Margins
Looking at the Operating Margin, with a value of 8.49%, PARA is in the better half of the industry, outperforming 63.37% 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 of 32.58%. This is comparable to the rest of the industry: PARA outperforms 43.56% of its industry peers.
PARA's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.49% | ||
| PM (TTM) | N/A | ||
| GM | 32.58% |
OM growth 3Y-13.02%
OM growth 5Y-10.41%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-4.09%
GM growth 5Y-2.56%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so PARA is destroying value.
The number of shares outstanding for PARA has been increased compared to 1 year ago.
Compared to 5 years ago, PARA has more shares outstanding
PARA has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.27, we must say that PARA is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.27, PARA perfoms like the industry average, outperforming 56.44% of the companies in the same 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.
The Debt to FCF ratio of PARA (36.00) is comparable to the rest of the industry.
PARA has a Debt/Equity ratio of 0.86. This is a neutral value indicating 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 47.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 36 | ||
| Altman-Z | 1.27 |
ROIC/WACC0.64
WACC8.31%
2.3 Liquidity
PARA has a Current Ratio of 1.29. This is a normal value and indicates that PARA is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.29, PARA is in line with its industry, outperforming 49.51% of the companies in the same industry.
PARA has a Quick Ratio of 1.18. This is a normal value and indicates that PARA is financially healthy and should not expect problems in meeting its short term obligations.
PARA has a Quick ratio (1.18) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.29 | ||
| Quick Ratio | 1.18 |
3. Growth
3.1 Past
PARA shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -24.67%.
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 -1.48% in the past year.
The Revenue has been growing slightly by 1.59% on average over the past years.
EPS 1Y (TTM)-24.67%
EPS 3Y-24.01%
EPS 5Y-19.12%
EPS Q2Q%-14.81%
Revenue 1Y (TTM)-1.48%
Revenue growth 3Y0.73%
Revenue growth 5Y1.59%
Sales Q2Q%0.53%
3.2 Future
The Earnings Per Share is expected to grow by 9.48% on average over the next years. This is quite good.
Based on estimates for the next years, PARA will show a small growth in Revenue. The Revenue will grow by 2.30% on average per year.
EPS Next Y-17.18%
EPS Next 2Y-2.06%
EPS Next 3Y-2.97%
EPS Next 5Y9.48%
Revenue Next Year-3.2%
Revenue Next 2Y-1.33%
Revenue Next 3Y-0.76%
Revenue Next 5Y2.3%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 9.77, the valuation of PARA can be described as reasonable.
79.21% of the companies in the same industry are more expensive than PARA, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of PARA to the average of the S&P500 Index (26.35), we can say PARA is valued rather cheaply.
The Price/Forward Earnings ratio is 7.47, which indicates a rather cheap valuation of PARA.
PARA's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. PARA is cheaper than 79.21% of the companies in the same industry.
PARA's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 33.72.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.77 | ||
| Fwd PE | 7.47 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PARA indicates a somewhat cheap valuation: PARA is cheaper than 74.26% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, PARA is valued a bit cheaper than the industry average as 66.34% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.47 | ||
| EV/EBITDA | 6.84 |
4.3 Compensation for Growth
PARA's earnings are expected to decrease with -2.97% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-2.06%
EPS Next 3Y-2.97%
5. Dividend
5.1 Amount
PARA has a Yearly Dividend Yield of 1.81%.
Compared to an average industry Dividend Yield of 4.35, PARA pays a bit more dividend than its industry peers.
PARA's Dividend Yield is slightly below the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.81% |
5.2 History
The dividend of PARA decreases each year by -23.51%.
PARA has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-23.51%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
The earnings of PARA are negative and hence is the payout ratio. PARA will probably not be able to sustain this dividend level.
DP-2.83%
EPS Next 2Y-2.06%
EPS Next 3Y-2.97%
11.04
-0.71 (-6.04%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst OwnersN/A
Inst Owner Change0%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap7.44B
Revenue(TTM)29.21B
Net Income(TTM)-5.48B
Analysts49.68
Price Target11.81 (6.97%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.81% |
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)0.19%
PT rev (3m)-4.44%
EPS NQ rev (1m)-0.73%
EPS NQ rev (3m)5.36%
EPS NY rev (1m)0%
EPS NY rev (3m)1.74%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)-0.44%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)-0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.77 | ||
| Fwd PE | 7.47 | ||
| P/S | 0.26 | ||
| P/FCF | 18.47 | ||
| P/OCF | 11.08 | ||
| P/B | 0.45 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.84 |
EPS(TTM)1.13
EY10.24%
EPS(NY)1.48
Fwd EY13.38%
FCF(TTM)0.6
FCFY5.41%
OCF(TTM)1
OCFY9.03%
SpS42.6
BVpS24.53
TBVpS-15.41
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -12.08% | ||
| ROE | -33.16% | ||
| ROCE | 6.76% | ||
| ROIC | 5.34% | ||
| ROICexc | 5.76% | ||
| ROICexgc | 29.61% | ||
| OM | 8.49% | ||
| PM (TTM) | N/A | ||
| GM | 32.58% | ||
| FCFM | 1.4% |
ROA(3y)-4.3%
ROA(5y)-0.12%
ROE(3y)-12.14%
ROE(5y)-0.12%
ROIC(3y)4.75%
ROIC(5y)5.84%
ROICexc(3y)5.08%
ROICexc(5y)6.35%
ROICexgc(3y)19.34%
ROICexgc(5y)17.73%
ROCE(3y)6.01%
ROCE(5y)7.39%
ROICexgc growth 3Y30.95%
ROICexgc growth 5Y12.55%
ROICexc growth 3Y-5.24%
ROICexc growth 5Y-5.96%
OM growth 3Y-13.02%
OM growth 5Y-10.41%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-4.09%
GM growth 5Y-2.56%
F-Score4
Asset Turnover0.63
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 36 | ||
| Debt/EBITDA | 5.02 | ||
| Cap/Depr | 70.79% | ||
| Cap/Sales | 0.94% | ||
| Interest Coverage | 2.81 | ||
| Cash Conversion | 23.84% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.29 | ||
| Quick Ratio | 1.18 | ||
| Altman-Z | 1.27 |
F-Score4
WACC8.31%
ROIC/WACC0.64
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)-24.67%
EPS 3Y-24.01%
EPS 5Y-19.12%
EPS Q2Q%-14.81%
EPS Next Y-17.18%
EPS Next 2Y-2.06%
EPS Next 3Y-2.97%
EPS Next 5Y9.48%
Revenue 1Y (TTM)-1.48%
Revenue growth 3Y0.73%
Revenue growth 5Y1.59%
Sales Q2Q%0.53%
Revenue Next Year-3.2%
Revenue Next 2Y-1.33%
Revenue Next 3Y-0.76%
Revenue Next 5Y2.3%
EBIT growth 1Y42.3%
EBIT growth 3Y-12.39%
EBIT growth 5Y-8.99%
EBIT Next Year156.1%
EBIT Next 3Y36.57%
EBIT Next 5Y22.29%
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%
PARAMOUNT GLOBAL-CLASS B / PARA FAQ
Can you provide the ChartMill fundamental rating for PARAMOUNT GLOBAL-CLASS B?
ChartMill assigns a fundamental rating of 3 / 10 to PARA.
What is the valuation status for PARA stock?
ChartMill assigns a valuation rating of 6 / 10 to PARAMOUNT GLOBAL-CLASS B (PARA). This can be considered as Fairly Valued.
What is the profitability of PARA stock?
PARAMOUNT GLOBAL-CLASS B (PARA) has a profitability rating of 3 / 10.
What is the earnings growth outlook for PARAMOUNT GLOBAL-CLASS B?
The Earnings per Share (EPS) of PARAMOUNT GLOBAL-CLASS B (PARA) is expected to decline by -17.18% in the next year.
Is the dividend of PARAMOUNT GLOBAL-CLASS B sustainable?
The dividend rating of PARAMOUNT GLOBAL-CLASS B (PARA) is 3 / 10 and the dividend payout ratio is -2.83%.