PARAMOUNT GLOBAL-CLASS A (PARAA) Stock Fundamental Analysis
NASDAQ:PARAA - Nasdaq - US92556H1077 - Common Stock - Currency: USD
Taking everything into account, PARAA scores 3 out of 10 in our fundamental rating. PARAA was compared to 98 industry peers in the Media industry. Both the profitability and financial health of PARAA have multiple concerns. PARAA has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year PARAA was profitable.
PARAA had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: PARAA reported negative net income in multiple 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 70.41% of its industry peers.
Looking at the Return On Equity, with a value of -33.16%, PARAA is doing worse than 66.33% of the companies in the same industry.
The Return On Invested Capital of PARAA (5.34%) is better than 66.33% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PARAA is below the industry average of 7.42%.
The 3 year average ROIC (4.75%) for PARAA 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
PARAA has a better Operating Margin (8.49%) than 60.20% of its industry peers.
In the last couple of years the Operating Margin of PARAA has declined.
PARAA's Gross Margin of 32.58% is in line compared to the rest of the industry. PARAA outperforms 40.82% of its industry peers.
In the last couple of years the Gross Margin of PARAA has declined.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PARAA is destroying value.
Compared to 1 year ago, PARAA has more shares outstanding
The number of shares outstanding for PARAA has been increased compared to 5 years ago.
Compared to 1 year ago, PARAA has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.35, we must say that PARAA is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of PARAA (1.35) is comparable to the rest of the 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 51.02% of the companies in the same industry.
A Debt/Equity ratio of 0.86 indicates that PARAA is somewhat dependend on debt financing.
PARAA has a Debt to Equity ratio of 0.86. This is comparable to the rest of the industry: PARAA outperforms 45.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 36 | ||
| Altman-Z | 1.35 |
ROIC/WACC0.8
WACC6.68%
2.3 Liquidity
A Current Ratio of 1.29 indicates that PARAA should not have too much problems paying its short term obligations.
PARAA has a Current ratio of 1.29. This is comparable to the rest of the industry: PARAA outperforms 45.92% of its industry peers.
A Quick Ratio of 1.18 indicates that PARAA should not have too much problems paying its short term obligations.
PARAA 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
PARAA shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -24.67%.
The earnings per share for PARAA have been decreasing by -19.12% on average. This is quite bad
PARAA shows a decrease in Revenue. In the last year, the revenue decreased by -1.48%.
PARAA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.59% yearly.
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
PARAA is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.48% yearly.
The Revenue is expected to grow by 1.82% on average over the next years.
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 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.
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
PARAA is valuated correctly with a Price/Earnings ratio of 14.96.
Based on the Price/Earnings ratio, PARAA is valued a bit cheaper than the industry average as 70.41% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.54, PARAA is valued a bit cheaper.
The Price/Forward Earnings ratio is 11.45, which indicates a very decent valuation of PARAA.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PARAA indicates a somewhat cheap valuation: PARAA is cheaper than 70.41% of the companies listed in the same industry.
PARAA's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 35.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.96 | ||
| Fwd PE | 11.45 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PARAA is valued a bit cheaper than the industry average as 63.27% of the companies are valued more expensively.
PARAA's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.29 | ||
| EV/EBITDA | 8.24 |
4.3 Compensation for Growth
PARAA'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
With a Yearly Dividend Yield of 1.81%, PARAA has a reasonable but not impressive dividend return.
The stock price of PARAA dropped by -24.78% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 4.87, PARAA pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.40, PARAA is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.81% |
5.2 History
The dividend of PARAA decreases each year by -23.51%.
PARAA 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
PARAA has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-2.83%
EPS Next 2Y-2.06%
EPS Next 3Y-2.97%
16.91
-0.96 (-5.37%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners76.1%
Inst Owner ChangeN/A
Ins Owners0.48%
Ins Owner ChangeN/A
Market Cap11.40B
Analysts49.68
Price Target17.85 (5.56%)
Short Float %0.05%
Short Ratio9.51
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)-4.77%
PT rev (3m)-16.23%
EPS NQ rev (1m)3.81%
EPS NQ rev (3m)-17.25%
EPS NY rev (1m)0.14%
EPS NY rev (3m)-10.84%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)-2.9%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)-1.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.96 | ||
| Fwd PE | 11.45 | ||
| P/S | 0.4 | ||
| P/FCF | 28.29 | ||
| P/OCF | 16.96 | ||
| P/B | 0.69 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.24 |
EPS(TTM)1.13
EY6.68%
EPS(NY)1.48
Fwd EY8.74%
FCF(TTM)0.6
FCFY3.54%
OCF(TTM)1
OCFY5.89%
SpS42.6
BVpS24.53
TBVpS-15.41
PEG (NY)N/A
PEG (5Y)N/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%
ROICexcg growth 3Y30.95%
ROICexcg 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 | 1.35 |
F-Score4
WACC6.68%
ROIC/WACC0.8
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 5Y1.82%
EBIT growth 1Y42.3%
EBIT growth 3Y-12.39%
EBIT growth 5Y-8.99%
EBIT Next Year156.1%
EBIT Next 3Y36.57%
EBIT Next 5Y22.43%
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%