Lions Gate Entertainment Class B (LGF.B) AI Stock Analysis

• Market Cap: $1.79B
• Dividend Yield: N/A
• Average Volume (3M): 1.05M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.83
• Revenue Growth: -2.85%
• EPS Growth: 75.96%
• Country: US
• Employees: 1,717
• Sector: Communication Services
• Sector Strength: 73
• Industry: Entertainment
• EPS (TTM): -1.19
• Shares Outstanding: 156,905,470
• 10 Day Avg. Volume: 1,478,548
• 30 Day Avg. Volume: 1,052,315
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.57
• Price to Cash Flow (P/CF): -3.50
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $9.00
• Price Target Upside: 25.35% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

Lions Gate Entertainment's overall stock score is significantly impacted by its poor financial performance, evidenced by declining revenues, substantial losses, and negative cash flows. The technical analysis shows weak momentum, contributing to a low score. Valuation metrics also reflect negative sentiment due to a negative P/E ratio and lack of dividend yield. These factors collectively suggest high risk and financial instability, leading to a low score.

Lions Gate Entertainment Class B Business Overview & Revenue Model

Company Description

Lions Gate Entertainment Corp. engages in the film, television, subscription, and location-based entertainment businesses in the United States, Canada, and internationally. It operates through three segments: Motion Picture, Television Production, and Media Networks. The Motion Picture segment engages in the development and production of feature films; acquisition of North American and worldwide distribution rights; North American theatrical, home entertainment, and television distribution of feature films produced and acquired; and worldwide licensing of distribution rights to feature films produced and acquired. The Television Production segment is involved in the development, production, and worldwide distribution of television productions, including television series, television movies and mini-series, and non-fiction programming. It also licenses Starz original series productions to Starz Networks and STARZPLAY International; distributes Starz original productions and licensed product; and sells and licenses music from television broadcasts of its productions. In addition, this segment sells and rents television production movies or series on packaged media, as well as through digital media platforms; produces, syndicates, and distributes approximately 80 television shows on approximately 35 networks; and offers services related to talent management. The Media Networks segment is involved in the domestic distribution of STARZ branded premium subscription video services through over-the-top (OTT) platforms and video programming distributors, such as cable operators, satellite television providers, and telecommunications companies; and OTT distribution of its STARZ branded premium subscription video services internationally. The company was incorporated in 1986 and is headquartered in Santa Monica, California.

How the Company Makes Money

Lionsgate generates revenue primarily through the production and distribution of films and television series. The Motion Picture segment earns money by distributing films in theaters, selling digital and physical copies, and licensing content to television networks and streaming platforms. The Television Production segment produces and licenses television content to broadcast, cable, and streaming services, generating revenue through licensing fees and syndication sales. Additionally, the Media Networks segment, which includes premium cable network Starz, earns subscription fees from viewers and licensing fees from content distribution deals. The company's earnings are bolstered by strategic partnerships with streaming services and international distribution agreements, enhancing its global reach and revenue potential.

Lions Gate Entertainment Class B Financial Statement Overview

Summary

Lions Gate Entertainment is experiencing financial distress marked by declining revenues, persistent losses, high leverage, and negative cash flows. The company's operational inefficiencies and financial structure pose significant risks, demanding strategic adjustments for long-term sustainability.

Income Statement

Lions Gate Entertainment's income statement shows declining revenue with a TTM revenue of $3.24 billion, down from $4.02 billion the previous year. The company has consistently faced net losses, with a TTM net income of -$189.8 million. Gross profit margin is at 38.0%, indicating some efficiency in production costs. However, EBIT and EBITDA margins are negative, reflecting operational challenges.

Balance Sheet

The balance sheet reveals a negative stockholders' equity of -$171.8 million in the TTM, reflecting financial instability. The debt-to-equity ratio is not calculable due to negative equity, indicating high leverage. This financial structure raises concerns about the company's solvency and financial health.

Cash Flow

Cash flow analysis shows negative operating cash flow of -$364.4 million in the TTM, highlighting cash management issues. Free cash flow remains negative at -$398 million, indicating substantial cash outflows. The company faces challenges in converting revenues into positive cash flows.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
3.87B	4.02B	3.85B	3.60B	3.27B	3.89B
	Gross Profit
1.64B	1.83B	1.54B	1.54B	1.55B	1.66B
	EBIT
180.40M	-938.80M	9.20M	42.70M	170.60M	7.60M
	EBITDA
1.78B	912.00M	141.20M	1.84B	1.49B	1.96B
	Net Income Common Stockholders
-284.00M	-1.10B	-2.02B	-205.40M	-34.50M	-206.40M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
98.42M	314.00M	272.10M	371.20M	528.70M	318.20M
	Total Assets
1.70B	7.09B	7.43B	8.99B	8.31B	7.95B
	Total Debt
814.91M	4.42B	2.02B	4.11B	3.33B	3.18B
	Net Debt
723.49M	4.10B	1.75B	3.73B	2.81B	2.87B
	Total Liabilities
1.62B	7.28B	6.30B	5.99B	5.51B	5.29B
	Stockholders Equity
53.92M	-312.70M	784.50M	2.68B	2.79B	2.66B
Cash Flow		Free Cash Flow
-397.90M	362.10M	-163.30M	-694.00M	-35.50M	583.50M
	Operating Cash Flow
-364.30M	396.80M	-114.30M	-660.90M	-500.00K	614.60M
	Investing Cash Flow
-57.60M	-376.80M	-18.30M	-80.50M	-31.10M	-51.70M
	Financing Cash Flow
349.40M	39.60M	63.80M	599.40M	237.90M	-426.10M

Lions Gate Entertainment Class B Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 7.18
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LGF.B, the sentiment is Negative. The current price of 7.18 is below the 20-day moving average (MA) of 7.30, below the 50-day MA of 8.10, and below the 200-day MA of 7.45, indicating a bearish trend. The MACD of -0.28 indicates Negative momentum. The RSI at 42.43 is Neutral, neither overbought nor oversold. The STOCH value of 73.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LGF.B.

Lions Gate Entertainment Class B Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IQ	64 Neutral	$872.05M	14.88	6.01%	―	-9.84%	-61.26%
MCS	60 Neutral	$495.65M	―	-1.66%	1.73%	0.82%	-152.64%
Sector *	58 Neutral	$12.88B	6.77	-2.53%	3.86%	2.36%	-36.74%
IMAX	57 Neutral	$1.15B	44.87	9.10%	―	-6.04%	6.43%
PARA	51 Neutral	$7.69B	―	-31.94%	1.83%	-1.48%	-450.15%
LION	41 Neutral	$1.91B	―	19.96%	―	―	-285.78%
LGF.B	39 Underperform	$1.79B	―	259.47%	―	-2.85%	75.96%