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Lionsgate Studios (LION)
NYSE:LION
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Lionsgate Studios
(NYSE:LION)
Rating:41Neutral
Price Target:―
Positive Factors
Earnings Potential
Healthy industry demand and Lionsgate's building film slate point to greater earnings potential ahead.
Growth Prospects
The return of key franchises and strong underlying demand for film content give confidence in accelerated growth in future EBITDA.
Negative Factors
Economic Challenges
Lionsgate's portfolio is more concentrated on mid-budget films, which face increasingly challenging economics in the theatrical window due to the compression of overall box office into fewer, bigger films.
Theatrical Release Challenges
The delay in the theatrical release for the upcoming film Michael and the removal of Saw XI from the slate point to a more limited growth in operating income.
Lionsgate Studios (LION) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.65B
Dividend YieldN/A
Average Volume (3M)2.61M
Price to Earnings (P/E)―
Beta (1Y)0.62
Revenue GrowthN/A
EPS Growth-285.78%
CountryUS
Employees1,717
SectorFinancial
Sector Strength79
IndustryEntertainment
Share Statistics
EPS (TTM)0.21
Shares Outstanding285,718,380
10 Day Avg. Volume2,389,142
30 Day Avg. Volume2,605,848
Financial Highlights & Ratios
PEG Ratio0.00
Price to Book (P/B)-12.00
Price to Sales (P/S)0.00
P/FCF Ratio-11.71
Enterprise Value/Market Cap2.92
Enterprise Value/Revenue0.40
Enterprise Value/Gross Profit5.98
Enterprise Value/Ebitda1.31
Forecast
1Y Price Target
$9.00Price Target Upside56.25% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
Lionsgate Studios Business Overview & Revenue Model
Company DescriptionLionsgate Studios (LION) is a leading global entertainment company known for its film, television, and digital content production and distribution. The company operates in various sectors, including motion picture production, television programming, and home entertainment. Lionsgate is recognized for a diverse portfolio that includes blockbuster films, critically acclaimed television series, and innovative digital content across multiple platforms.
How the Company Makes MoneyLionsgate Studios generates revenue through several key streams. Primarily, the company earns from the production and distribution of films and television content. This includes box office sales from theatrical releases, licensing fees from television networks and streaming platforms, and home entertainment sales, such as DVDs, Blu-rays, and digital downloads. Additionally, Lionsgate benefits from syndication and distribution deals that expand its content reach globally. The company also engages in strategic partnerships and co-productions to optimize its production costs and enhance market reach, contributing significantly to its revenue. Moreover, Lionsgate explores merchandise sales and ancillary product lines related to its popular franchises as supplementary income sources.
Lionsgate Studios Earnings Call Summary
Earnings Call Date:May 22, 2025
(Q4-2025)
| % Change Since: -14.03%|
Next Earnings Date:Aug 13, 2025
Earnings Call Sentiment Positive
The earnings call indicated a strong financial quarter with significant growth in revenue and record-breaking library performance. Despite some challenges in the television segment profit and concerns about debt levels, the overall outlook for Lionsgate appears positive, with strategic initiatives and future projects poised for success.Q4-2025 Updates
Positive Updates
Separation of Lionsgate and Starz
Lionsgate completed the separation of Lionsgate and Starz, began trading on the New York Stock Exchange under the ticker symbol LION, and collapsed two classes of stock into one.
Record Library Revenue
The library achieved a record performance with trailing twelve-month revenue of $956 million, driven by strong organic replenishment and the rollout of new proprietary FAST and AVOD channels.
Strong Motion Picture Group Performance
Motion Picture revenue was up 28% year over year to $526 million, and segment profit reached a ten-year high of $135 million, up 65% year over year.
Television Group Success
The TV group secured key series renewals including Ghosts, The Rookie, The Sherri Shepherd Show, and Yellowjackets, and launched new hit shows like The Studio on Apple TV Plus.
Financial Performance
Lionsgate Studios revenue was up 22% year over year to $1.1 billion. Adjusted OIBDA reached a ten-year high, up 49% to $138 million, and operating income was significantly up to $94 million.
Negative Updates
Decrease in TV Segment Profit
Quarterly television segment profit was down 23% year over year, facing tough comparisons from the previous year's strong fourth quarter.
Finance and Debt Concerns
Net debt at the end of the quarter was $1.5 billion, with leverage at 4.9 times. At separation, net debt was just under $1.65 billion.
Michael Jackson Biopic Delay
The release of the Michael Jackson biopic is likely to be moved out of fiscal 2026, impacting the year's financial results.
Company Guidance
During the Lionsgate Studios Fourth Quarter 2025 Earnings Conference Call, comprehensive guidance was provided, highlighting several key financial metrics and strategic developments. For the quarter, Lionsgate Studios reported a 22% year-over-year revenue increase to $1.1 billion, with an adjusted OIBDA reaching a ten-year high of $138 million, up 49%. Operating income significantly rose to $94 million, and fully diluted adjusted earnings per share were $0.21. The studio's net cash flow from operating activities stood at $256 million, with an adjusted free cash flow of $395 million for the quarter. Lionsgate's library achieved record trailing twelve-month revenue of $956 million, marking an 8% year-over-year growth. The Motion Picture Group's revenue increased by 28% to $526 million, with segment profit up 65% to $135 million. Additionally, the Television Group's quarterly revenue rose by 16% to $543 million, although its segment profit declined by 23% year over year. Key strategic developments included the completion of the separation of Lionsgate and Starz, the unveiling of a strong film slate, and the continuation of successful TV series and new content initiatives. These efforts are aimed at sustaining momentum into fiscal 2026 and positioning the company for robust growth in fiscal 2027.Lionsgate Studios Financial Statement Overview
Summary
Lionsgate Studios is facing significant financial challenges. The income statement shows profitability issues with negative margins, and the balance sheet is concerning due to a high debt-to-equity ratio and negative stockholders' equity. Cash flow metrics indicate liquidity problems, with negative free cash flow and operational inefficiencies.Income Statement
Lionsgate Studios has experienced fluctuating revenue with a slight decrease in TTM. The company shows a negative net profit margin and EBITDA margin, indicating profitability challenges. The gross profit margin has decreased significantly in the TTM, reflecting increasing cost pressures.45
Neutral
Balance Sheet
The company's high debt-to-equity ratio is concerning, with negative stockholders' equity indicating potential solvency issues. Despite this, the asset base has expanded over the years, which may provide some stability. However, the negative equity ratio highlights financial instability.30
Negative
Cash Flow
Cash flow metrics are weak, with negative free cash flow in the TTM, indicating liquidity concerns. Operating cash flow has turned negative in the TTM, reflecting operational inefficiencies. The cash flow to net income ratios indicate challenges in converting income to cash.40
Negative
| Breakdown | TTM | Mar 2024 | Mar 2023 | Mar 2021 | Dec 2018 | Dec 2017 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.01B | 2.99B | 3.08B | 1.91B | 17.87M | 135.25M |
| Gross Profit | 803.20M | 1.10B | 875.90M | 692.90M | 17.87M | 135.25M |
| EBITDA | 1.20B | 16.70M | 1.87B | 922.30M | 96.59M | 87.49M |
| Net Income | -197.50M | -93.50M | -300.00K | -19.60M | 43.82M | 39.80M |
Balance Sheet | ||||||
| Total Assets | 5.37B | 5.10B | 4.41B | 3.69B | 4.73B | 4.58B |
| Cash, Cash Equivalents and Short-Term Investments | 186.20M | 312.60M | 210.90M | 361.30M | 262.30M | 30.81M |
| Total Debt | 3.86B | 4.10B | 3.18B | 2.32B | 260.47M | 271.17M |
| Total Liabilities | 6.32B | 6.13B | 4.85B | 3.71B | 4.29B | 4.18B |
| Stockholders Equity | -1.08B | -1.15B | -780.40M | -236.90M | 446.24M | 401.63M |
Cash Flow | ||||||
| Free Cash Flow | -325.20M | 479.00M | 339.60M | -242.60M | 156.79M | 149.90M |
| Operating Cash Flow | -275.50M | 488.90M | 346.10M | -232.40M | 166.43M | 155.20M |
| Investing Cash Flow | -38.60M | -331.80M | 31.30M | -300.00K | -236.15M | -257.32M |
| Financing Cash Flow | 259.90M | -74.90M | -394.50M | 365.00M | 95.71M | 138.71M |
Lionsgate Studios Technical Analysis
Negative
5.76
Price Trends
6.68
Negative
7.25
Negative
7.18
Negative
Market Momentum
-0.28
Positive
37.16
Neutral
30.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LION, the sentiment is Negative. The current price of 5.76 is below the 20-day moving average (MA) of 6.18, below the 50-day MA of 6.68, and below the 200-day MA of 7.18, indicating a bearish trend. The MACD of -0.28 indicates Positive momentum. The RSI at 37.16 is Neutral, neither overbought nor oversold. The STOCH value of 30.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LION.
Lionsgate Studios Risk Analysis
Lionsgate Studios disclosed 80 risk factors in its most recent earnings report. Lionsgate Studios reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Lionsgate Studios Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $222.00B | 25.22 | 8.75% | 0.81% | 5.33% | 431.28% | |
64 Neutral | $6.62B | 10.86 | 6.59% | 5.05% | 24.65% | 0.99% | |
58 Neutral | $8.85B | ― | -28.56% | 1.55% | -4.50% | -898.86% | |
53 Neutral | $9.26B | ― | -28.56% | 0.87% | -4.50% | -898.86% | |
47 Neutral | $1.93B | ― | 168.75% | ― | -2.85% | 75.96% | |
42 Neutral | $1.93B | ― | 259.47% | ― | -2.85% | 75.96% | |
41 Neutral | $1.65B | ― | 19.96% | ― | ― | -285.78% |
* Financial Sector Average
Performance Comparison
LION
Lionsgate Studios
5.80
-2.76
-32.24%
PARA
Paramount Global Class B
12.84
1.58
14.03%
DIS
Walt Disney
122.98
25.67
26.38%
LGF.A
Lions Gate Entertainment Class A
8.59
-0.48
-5.29%
LGF.B
Lions Gate Entertainment Class B
7.69
-0.58
-7.01%
PARAA
Paramount Global
23.09
3.17
15.91%
Lionsgate Studios Corporate Events
Executive/Board Changes
Lionsgate Studios Extends EVP Bruce Tobey’s Contract
Neutral
Apr 10, 2025
On April 9, 2025, Lions Gate Entertainment Corp. announced an amendment to the employment agreement with Bruce Tobey, extending his term as Executive Vice President and General Counsel through March 31, 2028. The amendment includes a revised compensation package, with an annual base salary of $1,200,000 and a target bonus of 85% of his salary, alongside eligibility for annual equity awards. The agreement outlines conditions for severance payments and accelerated vesting of equity awards in the event of termination without cause or a change in control, impacting the company’s executive compensation strategy and potentially its financial commitments.
Spark’s Take on LION Stock
According to Spark, TipRanks’ AI Analyst, LION is a Underperform.
Lionsgate Studios is currently experiencing significant financial difficulty, with negative profitability indicators, high leverage, and liquidity concerns. The technical analysis signals bearish momentum, and the negative P/E ratio indicates valuation challenges. The absence of earnings call insights or corporate events further limits the prospects for immediate recovery.
To see Spark’s full report on LION stock, click here.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.