PARAMOUNT GLOBAL-CLASS B (PARA)
US92556H2067 - Common Stock
We assign a fundamental rating of 3 out of 10 to PARA. PARA was compared to 97 industry peers in the Media industry. Both the profitability and financial health of PARA have multiple concerns. PARA is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
In the past year PARA was profitable.
In the past year PARA had a positive cash flow from operations.
PARA had positive earnings in 4 of the past 5 years.
In the past 5 years PARA always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of -0.19%, PARA is in line with its industry, outperforming 48.42% of the companies in the same industry.
PARA has a Return On Equity of -0.46%. This is comparable to the rest of the industry: PARA outperforms 50.53% of its industry peers.
With a Return On Invested Capital value of 1.14%, PARA is not doing good in the industry: 63.16% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.19% | ||
| ROE | -0.46% | ||
| ROIC | 1.14% |
ROA(3y)2.74%
ROA(5y)3.9%
ROE(3y)7.22%
ROE(5y)12.49%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With a Operating Margin value of 1.98%, PARA is not doing good in the industry: 65.26% of the companies in the same industry are doing better.
With a Gross Margin value of 27.16%, PARA is not doing good in the industry: 68.42% of the companies in the same industry are doing better.
PARA's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.98% | ||
| PM (TTM) | N/A | ||
| GM | 27.16% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-16%
GM growth 5Y-10.1%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PARA is destroying value.
Compared to 1 year ago, PARA has more shares outstanding
PARA has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, PARA has a worse debt to assets ratio.
2.2 Solvency
PARA has an Altman-Z score of 1.20. This is a bad value and indicates that PARA is not financially healthy and even has some risk of bankruptcy.
PARA has a Altman-Z score (1.20) which is comparable to the rest of the industry.
The Debt to FCF ratio of PARA is 18.15, which is on the high side as it means it would take PARA, 18.15 years of fcf income to pay off all of its debts.
PARA has a Debt to FCF ratio (18.15) which is comparable to the rest of the industry.
PARA has a Debt/Equity ratio of 0.67. This is a neutral value indicating PARA is somewhat dependend on debt financing.
PARA has a Debt to Equity ratio (0.67) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 18.15 | ||
| Altman-Z | 1.2 |
ROIC/WACC0.16
WACC7.3%
2.3 Liquidity
A Current Ratio of 1.29 indicates that PARA should not have too much problems paying its short term obligations.
The Current ratio of PARA (1.29) is worse than 67.37% of its industry peers.
A Quick Ratio of 1.19 indicates that PARA should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.19, PARA is not doing good in the industry: 68.42% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.29 | ||
| Quick Ratio | 1.19 |
3. Growth
3.1 Past
The earnings per share for PARA have decreased strongly by -11.67% in the last year.
PARA shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -36.66% yearly.
Looking at the last year, PARA shows a decrease in Revenue. The Revenue has decreased by -0.06% in the last year.
PARA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.33% yearly.
EPS 1Y (TTM)-11.67%
EPS 3Y-50.35%
EPS 5Y-36.66%
EPS growth Q2Q588.89%
Revenue 1Y (TTM)-0.06%
Revenue growth 3Y5.45%
Revenue growth 5Y2.33%
Revenue growth Q2Q5.78%
3.2 Future
The Earnings Per Share is expected to grow by 44.38% on average over the next years. This is a very strong growth
PARA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.34% yearly.
EPS Next Y109.15%
EPS Next 2Y60.69%
EPS Next 3Y49.08%
EPS Next 5Y44.38%
Revenue Next Year3.01%
Revenue Next 2Y1.96%
Revenue Next 3Y2.01%
Revenue Next 5Y2.34%
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
The Price/Earnings ratio is 12.16, which indicates a correct valuation of PARA.
PARA's Price/Earnings ratio is a bit cheaper when compared to the industry. PARA is cheaper than 77.89% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.28. PARA is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 9.42, which indicates a very decent valuation of PARA.
PARA's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. PARA is cheaper than 74.74% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.88, PARA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.16 | ||
| Fwd PE | 9.42 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PARA is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, PARA is valued a bit cheaper than 72.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.67 | ||
| EV/EBITDA | 20.53 |
4.3 Compensation for Growth
The 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 PARA's earnings are expected to grow with 49.08% in the coming years.
PEG (NY)0.11
PEG (5Y)N/A
EPS Next 2Y60.69%
EPS Next 3Y49.08%
5. Dividend
5.1 Amount
PARA has a Yearly Dividend Yield of 1.44%. Purely for dividend investing, there may be better candidates out there.
PARA's Dividend Yield is a higher than the industry average which is at 4.22.
With a Dividend Yield of 1.44, PARA pays less dividend than the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.44% |
5.2 History
The dividend of PARA decreases each year by -10.62%.
PARA 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
The earnings of PARA are negative and hence is the payout ratio. PARA will probably not be able to sustain this dividend level.
DP-312.87%
EPS Next 2Y60.69%
EPS Next 3Y49.08%
PARAMOUNT GLOBAL-CLASS B
NASDAQ:PARA (5/3/2024, 7:11:03 PM)
After market: 13.18 +0.29 (+2.25%)12.89
-0.97 (-7%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap8.59B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.44% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
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Revenue NY rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.16 | ||
| Fwd PE | 9.42 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.11
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.19% | ||
| ROE | -0.46% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 1.98% | ||
| PM (TTM) | N/A | ||
| GM | 27.16% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.29 | ||
| Quick Ratio | 1.19 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-11.67%
EPS 3Y-50.35%
EPS 5Y
EPS growth Q2Q
EPS Next Y109.15%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-0.06%
Revenue growth 3Y5.45%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y