PARAMOUNT GLOBAL-CLASS A (PARAA) Stock Fundamental Analysis
NASDAQ:PARAA - Nasdaq - US92556H1077 - Common Stock - Currency: USD
PARAA gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 97 industry peers in the Media industry. Both the profitability and financial health of PARAA have multiple concerns. PARAA has a decent growth rate and is not valued too expensively.
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.
In the past 5 years PARAA always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of -12.08%, PARAA is doing worse than 71.13% of the companies in the same industry.
With a Return On Equity value of -33.16%, PARAA is not doing good in the industry: 67.01% of the companies in the same industry are doing better.
PARAA has a Return On Invested Capital of 5.80%. This is in the better half of the industry: PARAA outperforms 65.98% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PARAA is below the industry average of 7.56%.
The 3 year average ROIC (4.90%) for PARAA 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
The Operating Margin of PARAA (9.23%) is better than 60.82% of its industry peers.
PARAA's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 33.32%, PARAA is in line with its industry, outperforming 43.30% of the companies in the same industry.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PARAA is destroying value.
PARAA has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, PARAA has more shares outstanding
PARAA has a worse debt/assets ratio than last year.
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.
PARAA has a Altman-Z score (1.45) which 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.
The Debt to FCF ratio of PARAA (36.00) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.86 indicates that PARAA is somewhat dependend on debt financing.
PARAA's Debt to Equity ratio of 0.86 is in line compared to the rest of the industry. PARAA outperforms 45.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 36 | ||
| Altman-Z | 1.45 |
ROIC/WACC0.84
WACC6.87%
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.
With a Current ratio value of 1.29, PARAA perfoms like the industry average, outperforming 45.36% of the companies in the same industry.
A Quick Ratio of 1.18 indicates that PARAA should not have too much problems paying 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.
PARAA shows a decrease in Revenue. In the last year, the revenue decreased by -4.50%.
PARAA 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.
PARAA 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
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 19.03, which indicates a rather expensive current valuation of PARAA.
68.04% of the companies in the same industry are more expensive than PARAA, based on the Price/Earnings ratio.
PARAA's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.30.
A Price/Forward Earnings ratio of 15.76 indicates a correct valuation of PARAA.
Based on the Price/Forward Earnings ratio, PARAA is valued a bit cheaper than 65.98% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.76. PARAA is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.03 | ||
| Fwd PE | 15.76 |
4.2 Price Multiples
PARAA's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. PARAA is cheaper than 61.86% of the companies in the same industry.
PARAA's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.53 | ||
| EV/EBITDA | 9.03 |
4.3 Compensation for Growth
PARAA'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
With a Yearly Dividend Yield of 1.55%, PARAA has a reasonable but not impressive dividend return.
PARAA's Dividend Yield is a higher than the industry average which is at 4.62.
PARAA's Dividend Yield is slightly below the S&P500 average, which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.55% |
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-2.59%
EPS Next 3Y-3.47%
23.03
+0.02 (+0.09%)
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 Cap15.53B
Analysts50.32
Price Target22.23 (-3.47%)
Short Float %0.05%
Short Ratio10.91
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.55% |
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)-9.77%
PT rev (3m)-7.51%
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 | 19.03 | ||
| Fwd PE | 15.76 | ||
| P/S | 0.54 | ||
| P/FCF | 38.53 | ||
| P/OCF | 23.1 | ||
| P/B | 0.94 | ||
| P/tB | 4.26 | ||
| EV/EBITDA | 9.03 |
EPS(TTM)1.21
EY5.25%
EPS(NY)1.46
Fwd EY6.35%
FCF(TTM)0.6
FCFY2.6%
OCF(TTM)1
OCFY4.33%
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
WACC6.87%
ROIC/WACC0.84
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%