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

• Market Cap: $1.93B
• Dividend Yield: N/A
• Average Volume (3M): 1.07M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.81
• Revenue Growth: -2.85%
• EPS Growth: 75.96%
• Country: US
• Employees: 1,717
• Sector: Communication Services
• Sector Strength: 88
• Industry: Entertainment
• EPS (TTM): N/A
• Shares Outstanding: 156,905,470
• 10 Day Avg. Volume: 487,408
• 30 Day Avg. Volume: 1,072,617
• PEG Ratio: -0.26
• Price to Book (P/B): -10.98
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -4.84
• 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: 17.04% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 42 Neutral
• Price Target: ―

Lions Gate Entertainment's overall stock score reflects significant financial challenges, including declining revenues and high leverage. While technical analysis shows some short-term positive trends, the negative MACD and high stochastic suggest caution. The valuation metrics indicate profitability issues, with a negative P/E ratio. Overall, these factors contribute to a relatively low stock score, emphasizing the need for strategic adjustments to enhance financial stability.

Lions Gate Entertainment Class B Business Overview & Revenue Model

Company Description

Lions Gate Entertainment Corporation, commonly referred to as Lionsgate, is a leading global entertainment company engaged in the production and distribution of films, television programming, and digital content. Operating through its segments of Motion Picture, Television Production, and Media Networks, the company is known for producing high-quality content across various genres and formats, from blockbuster movies to popular television series.

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 facing financial distress with declining revenues, persistent losses, and high leverage. The income statement reveals a TTM revenue drop to $3.24 billion and a net income of -$189.8 million. The balance sheet shows negative equity of -$171.8 million, indicating financial instability and high leverage. Cash flow analysis further highlights issues with negative operating cash flow of -$364.4 million, pointing to challenges in converting revenues into positive cash flows.

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
200.50M	314.00M	272.10M	371.20M	528.70M	318.20M
	Total Assets
7.17B	7.09B	7.43B	8.99B	8.31B	7.95B
	Total Debt
4.50B	4.42B	2.02B	4.11B	3.33B	3.18B
	Net Debt
4.30B	4.10B	1.75B	3.73B	2.81B	2.87B
	Total Liabilities
7.32B	7.28B	6.30B	5.99B	5.51B	5.29B
	Stockholders Equity
-168.30M	-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: Positive
• Last Price: 7.69
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• 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 Positive. The current price of 7.69 is above the 20-day moving average (MA) of 7.67, above the 50-day MA of 7.66, and above the 200-day MA of 7.41, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 52.79 is Neutral, neither overbought nor oversold. The STOCH value of 77.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
IMAX	74 Outperform	$1.48B	59.68	9.00%	―	-1.98%	-1.18%
MCS	61 Neutral	$540.38M	―	-2.83%	1.58%	4.18%	-207.46%
Sector *	61 Neutral	$14.59B	5.85	-4.31%	3.69%	2.76%	-30.36%
IQ	59 Neutral	$1.63B	40.33	2.21%	―	-10.05%	-85.30%
PARA	56 Neutral	$8.47B	―	-28.56%	1.68%	-4.50%	-898.86%
LGF.B	42 Neutral	$1.93B	―	259.47%	―	-2.85%	75.96%
LION	41 Neutral	$1.85B	―	19.96%	―	―	-285.78%