Lionsgate Studios (LION) AI Stock Analysis

• Market Cap: $1.98B
• Dividend Yield: N/A
• Average Volume (3M): 2.08M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.82
• Revenue Growth: 97.19%
• EPS Growth: -21.46%
• Country: US
• Employees: 1,717
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Entertainment
• EPS (TTM): -0.20
• Shares Outstanding: 289,729,300
• 10 Day Avg. Volume: 2,290,510
• 30 Day Avg. Volume: 2,078,906
• PEG Ratio: 1.94
• Price to Book (P/B): -2.03
• Price to Sales (P/S): 0.67
• P/FCF Ratio: -17.67
• Enterprise Value/Market Cap: 2.90
• Enterprise Value/Revenue: 2.06
• Enterprise Value/Gross Profit: 6.25
• Enterprise Value/Ebitda: 4.07
• 1Y Price Target: $8.33
• Price Target Upside: 21.96% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): -0.14
• Revenue Forecast (FY): $2.55B

• Rating: 48 Neutral
• Price Target: $7.00 ▲(2.49% Upside)

Lionsgate Studios' overall stock score is primarily impacted by its financial instability and valuation concerns. Despite some positive technical indicators, the company's negative equity and lack of profitability weigh heavily on its score. The earnings call provided some optimism with strategic growth plans, but significant financial challenges remain.

Positive Factors

Record-Breaking Library Revenue

The record-breaking library revenue underscores the strength and monetization potential of Lionsgate's intellectual property portfolio, providing a durable revenue stream.

Strong Motion Picture Slate

A strong slate of upcoming films can drive future revenue growth and enhance Lionsgate's competitive position in the entertainment industry.

Increased Use of AI for Efficiency

Leveraging AI for efficiency and cost savings can improve operational margins and enhance long-term profitability, while protecting intellectual property.

Negative Factors

Operating Losses and Cash Flow Challenges

Persistent operating losses and negative cash flow highlight financial instability, potentially affecting Lionsgate's ability to invest in growth initiatives.

Leverage and Debt Concerns

High leverage and significant debt levels can constrain financial flexibility, posing risks to Lionsgate's long-term financial health and strategic initiatives.

Declining Revenue and Profitability

Declining revenue and profitability indicate challenges in maintaining market share and operational efficiency, impacting long-term growth prospects.

Lionsgate Studios Business Overview & Revenue Model

Company Description

Lionsgate Studios (NASDAQ: LION) is one of the world’s leading standalone, pure play, publicly-traded content companies. It brings together diversified motion picture and television production and distribution businesses, a world-class portfolio of valuable brands and franchises, a talent management and production powerhouse and a more than 20,000-title film and television library, all driven by Lionsgate’s bold and entrepreneurial culture.

How the Company Makes Money

Lionsgate generates revenue through several key streams, including theatrical distribution of films, television licensing, and digital streaming. The company earns money by producing and distributing films that perform well at the box office, as well as through licensing content to television networks and streaming platforms. Additionally, Lionsgate benefits from home entertainment sales, including DVD and Blu-ray sales, as well as digital downloads and rentals. The company has established significant partnerships with various streaming services, which provide a steady revenue influx through licensing agreements. Furthermore, Lionsgate's extensive catalog of intellectual properties allows it to monetize its content through merchandising and ancillary products, contributing to its overall earnings.

Lionsgate Studios Financial Statement Overview

Summary

Lionsgate Studios faces significant financial challenges, with declining revenues and profitability issues. The balance sheet shows negative equity, raising concerns about financial stability. While there is some positive cash flow growth, overall cash flow remains negative. The company needs to address these issues to improve its financial health.

Income Statement

Lionsgate Studios has experienced a decline in revenue, with a negative revenue growth rate of -11.13% in the TTM period. The gross profit margin has decreased to 26.73%, and the net profit margin is negative at -6.97%, indicating challenges in profitability. The EBIT margin is slightly positive at 3.12%, but the EBITDA margin remains strong at 43.95%, suggesting some operational efficiency despite the losses.

Balance Sheet

The company has a negative stockholders' equity, resulting in a negative debt-to-equity ratio, which is concerning. The return on equity is positive at 17.12%, but this is due to the negative equity. The equity ratio is not calculable due to negative equity, indicating financial instability.

Cash Flow

Lionsgate Studios shows a positive free cash flow growth rate of 18.60%, but both operating and free cash flows are negative. The operating cash flow to net income ratio is negative, indicating cash flow challenges. However, the free cash flow to net income ratio is above 1, suggesting some ability to cover net losses with free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.78B	3.20B	2.99B	3.08B	2.72B	1.91B
Gross Profit	919.00M	985.50M	1.10B	875.90M	794.20M	692.90M
EBITDA	1.41B	1.77B	334.80M	1.84B	1.68B	922.30M
Net Income	-194.10M	-128.50M	-93.50M	-300.00K	11.10M	-19.60M
Balance Sheet
Total Assets	5.16B	5.12B	5.10B	4.41B	4.33B	3.69B
Cash, Cash Equivalents and Short-Term Investments	202.40M	205.70M	277.00M	210.90M	256.90M	361.30M
Total Debt	3.89B	3.66B	3.72B	3.18B	2.76B	2.35B
Total Liabilities	6.28B	6.04B	6.13B	4.85B	4.26B	3.71B
Stockholders Equity	-1.26B	-1.05B	-1.15B	-780.40M	-261.30M	-236.90M
Cash Flow
Free Cash Flow	-53.70M	-120.30M	479.00M	339.60M	-441.10M	-242.60M
Operating Cash Flow	-42.10M	-106.80M	488.90M	346.10M	-435.00M	-232.40M
Investing Cash Flow	-7.40M	-35.40M	-331.80M	31.30M	-180.70M	-300.00K
Financing Cash Flow	52.40M	84.50M	-74.90M	-394.50M	525.50M	365.00M

Lionsgate Studios Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.83
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LION, the sentiment is Positive. The current price of 6.83 is above the 20-day moving average (MA) of 6.63, above the 50-day MA of 6.59, and below the 200-day MA of 6.85, indicating a neutral trend. The MACD of 0.11 indicates Negative momentum. The RSI at 56.41 is Neutral, neither overbought nor oversold. The STOCH value of 57.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LION.

Lionsgate Studios Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FOXA	77 Outperform	$27.22B	14.62	17.33%	0.85%	14.91%	9.30%
DIS	76 Outperform	$186.87B	15.52	11.78%	0.95%	3.61%	152.34%
WBD	70 Outperform	$57.22B	123.08	1.36%	―	-4.29%	―
NFLX	69 Neutral	$466.11B	45.95	42.86%	―	15.49%	35.54%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
PSKY	50 Neutral	$16.58B	―	-1.90%	1.29%	-0.48%	97.09%
LION	48 Neutral	$1.98B	―	―	―	97.19%	-21.46%

Lionsgate Studios Corporate Events

Lionsgate Studios’ Earnings Call: Record Revenue Amid Challenges

Lionsgate Studios Corp. recently held its earnings call, presenting a mixed sentiment of optimism and caution. The company celebrated record-breaking library revenue and a robust TV and film slate, signaling a positive outlook. However, challenges such as operating losses, headcount reductions, and significant debt levels were also acknowledged, indicating areas that require strategic attention.

Lionsgate Studios Reports Q2 Fiscal 2026 Results with Record Library Revenue

Lionsgate Studios Corp. reported its financial results for the second quarter of fiscal 2026, revealing a revenue of $475 million and a net loss from continuing operations of $112 million. Despite the losses, the company highlighted a 13% increase in trailing 12-month library revenue to a record $1 billion and a 31% sequential growth in backlog to nearly $1.6 billion. CEO Jon Feltheimer expressed optimism about significant growth prospects in the upcoming quarters, driven by a strong film slate and renewed television series.

The most recent analyst rating on (LION) stock is a Hold with a $8.00 price target. To see the full list of analyst forecasts on Lionsgate Studios stock, see the LION Stock Forecast page.

Lionsgate Studios Reports Q2 Fiscal 2026 Results

Lionsgate Studios Corp., a leading content creation company, is renowned for its diverse motion picture and television production and distribution operations. The company boasts a vast library of over 20,000 titles and operates with a bold and entrepreneurial spirit.

Lionsgate Studios Expands Credit Facility to $1.25 Billion

On September 30, 2024, Lionsgate Studios Corp. subsidiaries entered into a senior secured amortizing term credit facility, initially valued at $455 million, secured by intellectual property rights from library titles. Over the following year, the facility’s maximum principal amount was increased multiple times, reaching $1.25 billion by September 26, 2025, through a series of amendments and waivers, reflecting Lionsgate’s strategic financial maneuvers to leverage its intellectual property assets.

The most recent analyst rating on (LION) stock is a Buy with a $8.00 price target. To see the full list of analyst forecasts on Lionsgate Studios stock, see the LION Stock Forecast page.

Lionsgate Studios Faces Potential Risks from Shareholder Rights Plan and BC Act Provisions

Lionsgate Studios Corp. faces potential business risks due to certain provisions under the Business Corporations Act (British Columbia) and the adoption of a shareholder rights plan. These measures may delay or prevent a change in control, potentially discouraging takeover bids that shareholders might find favorable. The BC Act allows for specific shareholder actions, such as proposing changes or requisitioning meetings, but requires significant ownership thresholds, potentially limiting shareholder influence. Additionally, the rights plan could cause dilution for unapproved acquisition attempts, further deterring changes in management or control that could benefit shareholders.