PARAMOUNT GLOBAL-CLASS A (PARAA) Stock Fundamental Analysis
NASDAQ:PARAA - Nasdaq - US92556H1077 - Common Stock - Currency: USD
Taking everything into account, PARAA scores 4 out of 10 in our fundamental rating. PARAA was compared to 96 industry peers in the Media industry. There are concerns on the financial health of PARAA while its profitability can be described as average. PARAA has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
PARAA had positive earnings in the past year.
In the past year PARAA had a positive cash flow from operations.
In multiple years PARAA reported negative net income over the last 5 years.
PARAA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
PARAA's Return On Assets of -12.08% is on the low side compared to the rest of the industry. PARAA is outperformed by 69.79% of its industry peers.
PARAA has a worse Return On Equity (-33.16%) than 67.71% of its industry peers.
PARAA has a Return On Invested Capital of 5.80%. This is in the better half of the industry: PARAA outperforms 66.67% 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 6.56%.
The last Return On Invested Capital (5.80%) for PARAA is above the 3 year average (4.90%), which is a sign of increasing profitability.
| 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
PARAA's Operating Margin of 9.23% is fine compared to the rest of the industry. PARAA outperforms 65.63% of its industry peers.
PARAA's Operating Margin has declined in the last couple of years.
PARAA has a Gross Margin of 33.32%. This is comparable to the rest of the industry: PARAA outperforms 43.75% of its industry peers.
PARAA's Gross Margin has declined in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so PARAA is destroying value.
Compared to 1 year ago, PARAA has more shares outstanding
Compared to 5 years ago, PARAA has more shares outstanding
Compared to 1 year ago, PARAA has a worse debt to assets ratio.
2.2 Solvency
PARAA has an Altman-Z score of 1.45. This is a bad value and indicates that PARAA is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.45, PARAA is in line with its industry, outperforming 59.38% of the companies in the same industry.
The Debt to FCF ratio of PARAA is 36.00, which is on the high side as it means it would take PARAA, 36.00 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 36.00, PARAA is in line with its industry, outperforming 48.96% of the companies in the same industry.
PARAA has a Debt/Equity ratio of 0.86. This is a neutral value indicating PARAA is somewhat dependend on debt financing.
The Debt to Equity ratio of PARAA (0.86) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 36 | ||
| Altman-Z | 1.45 |
ROIC/WACC0.76
WACC7.58%
2.3 Liquidity
PARAA has a Current Ratio of 1.29. This is a normal value and indicates that PARAA is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of PARAA (1.29) is comparable to the rest of the industry.
PARAA has a Quick Ratio of 1.18. This is a normal value and indicates that PARAA is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of PARAA (1.18) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.29 | ||
| Quick Ratio | 1.18 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 14.15% over the past year.
PARAA shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -19.12% yearly.
The Revenue has decreased by -4.50% in the past year.
The Revenue has been growing slightly by 1.59% on average over the past years.
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
PARAA is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.37% yearly.
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
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
PARAA is valuated rather expensively with a Price/Earnings ratio of 18.69.
68.75% of the companies in the same industry are more expensive than PARAA, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.19. PARAA is valued slightly cheaper when compared to this.
PARAA is valuated correctly with a Price/Forward Earnings ratio of 15.40.
PARAA's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. PARAA is cheaper than 64.58% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.13. PARAA is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.69 | ||
| Fwd PE | 15.4 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PARAA is valued a bit cheaper than 61.46% of the companies in the same industry.
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 | 37.84 | ||
| EV/EBITDA | 8.94 |
4.3 Compensation for Growth
A cheap valuation may be justified as PARAA's earnings are expected to decrease with -2.70% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-2.35%
EPS Next 3Y-2.7%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.69%, PARAA has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 5.08, PARAA pays a bit more dividend than its industry peers.
PARAA's Dividend Yield is slightly below the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.69% |
5.2 History
The dividend of PARAA decreases each year by -23.51%.
PARAA 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
PARAA 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%
22.62
+0.09 (+0.4%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners78.78%
Inst Owner ChangeN/A
Ins Owners0.47%
Ins Owner ChangeN/A
Market Cap15.25B
Analysts53.33
Price Target24.63 (8.89%)
Short Float %0.04%
Short Ratio8.71
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.69% |
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)2.5%
PT rev (3m)-3.16%
EPS NQ rev (1m)-19.72%
EPS NQ rev (3m)-11.12%
EPS NY rev (1m)-12.36%
EPS NY rev (3m)-16.83%
Revenue NQ rev (1m)-2.92%
Revenue NQ rev (3m)-4.28%
Revenue NY rev (1m)-0.95%
Revenue NY rev (3m)-2.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.69 | ||
| Fwd PE | 15.4 | ||
| P/S | 0.53 | ||
| P/FCF | 37.84 | ||
| P/OCF | 22.69 | ||
| P/B | 0.92 | ||
| P/tB | 4.18 | ||
| EV/EBITDA | 8.94 |
EPS(TTM)1.21
EY5.35%
EPS(NY)1.47
Fwd EY6.49%
FCF(TTM)0.6
FCFY2.64%
OCF(TTM)1
OCFY4.41%
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 | 1.45 |
F-Score4
WACC7.58%
ROIC/WACC0.76
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 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%