Lionsgate Studios (LION) AI Stock Analysis

• Market Cap: $1.87B
• Dividend Yield: N/A
• Average Volume (3M): 2.39M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.79
• Revenue Growth: 432.48%
• EPS Growth: -930.72%
• Country: US
• Employees: 1,717
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Entertainment
• EPS (TTM): -0.32
• Shares Outstanding: 289,518,040
• 10 Day Avg. Volume: 2,288,333
• 30 Day Avg. Volume: 2,387,726
• PEG Ratio: 1.94
• Price to Book (P/B): -1.97
• Price to Sales (P/S): 0.67
• P/FCF Ratio: -17.67
• Enterprise Value/Market Cap: 2.77
• Enterprise Value/Revenue: 1.66
• Enterprise Value/Gross Profit: 5.53
• Enterprise Value/Ebitda: 3.01
• 1Y Price Target: $8.40
• Price Target Upside: 29.23% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 44 Neutral
• Price Target: $6.00 ▼(-7.69% Downside)

Lionsgate Studios' stock is primarily impacted by its weak financial performance, characterized by revenue volatility, persistent losses, and high leverage. Technical analysis shows neutral indicators, lacking strong momentum. The negative P/E ratio and absence of a dividend yield further weigh down the stock's valuation.

Positive Factors

Diversified Revenue Streams

Lionsgate's diversified revenue streams from films, TV, and digital platforms provide resilience against market fluctuations and support long-term growth.

Partnerships in Digital Media

Collaborations with platforms like Roblox enhance Lionsgate's digital presence, engaging younger audiences and expanding market reach sustainably.

Intellectual Property Monetization

Leveraging a rich IP catalog for merchandising boosts Lionsgate's revenue potential and strengthens its competitive position in the entertainment industry.

Negative Factors

High Leverage

High leverage poses financial risks, limiting Lionsgate's ability to invest in growth opportunities and potentially impacting long-term financial stability.

Negative Cash Flow

Negative cash flow indicates challenges in covering operational costs, which could hinder Lionsgate's ability to sustain operations and invest in new projects.

Revenue Volatility

Revenue volatility and ongoing losses highlight operational challenges, affecting Lionsgate's ability to achieve consistent financial performance and growth.

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 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.

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.

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2020	Dec 2018
Income Statement
Total Revenue	3.13B	3.20B	2.99B	3.08B	1.91B	17.87M
Gross Profit	939.70M	985.50M	1.10B	875.90M	692.90M	17.87M
EBITDA	1.73B	1.77B	334.80M	1.87B	922.30M	96.59M
Net Income	-194.00M	-128.50M	-93.50M	-300.00K	-19.60M	43.82M
Balance Sheet
Total Assets	5.16B	5.12B	5.10B	4.41B	3.69B	4.73B
Cash, Cash Equivalents and Short-Term Investments	186.10M	205.70M	312.60M	210.90M	361.30M	262.30M
Total Debt	1.67B	1.67B	4.10B	3.18B	2.35B	260.47M
Total Liabilities	6.16B	6.04B	6.13B	4.85B	3.71B	4.29B
Stockholders Equity	-1.15B	-1.08B	-1.15B	-780.40M	-236.90M	446.24M
Cash Flow
Free Cash Flow	-111.30M	-120.30M	479.00M	339.60M	-242.60M	156.79M
Operating Cash Flow	-98.50M	-106.80M	488.90M	346.10M	-232.40M	166.43M
Investing Cash Flow	3.80M	-35.40M	-331.80M	31.30M	-300.00K	-236.15M
Financing Cash Flow	39.30M	84.50M	-74.90M	-394.50M	365.00M	95.71M

Lionsgate Studios Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.50
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 6.5 is above the 20-day moving average (MA) of 6.28, below the 50-day MA of 6.51, and below the 200-day MA of 6.90, indicating a neutral trend. The MACD of -0.07 indicates Negative momentum. The RSI at 54.16 is Neutral, neither overbought nor oversold. The STOCH value of 87.62 is Negative, 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
DIS	―	$200.79B	17.51	11.01%	0.89%	5.00%	144.65%
FOXA	―	$24.96B	12.10	19.96%	0.90%	16.60%	57.39%
NFLX	―	$463.86B	45.73	42.86%	―	15.49%	35.53%
WBD	―	$52.36B	70.03	2.18%	―	-3.79%	―
Sector *	―	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
PSKY	―	$17.80B	-654.74	-0.11%	1.21%	-1.75%	99.73%
LION	―	$1.87B	―	―	―	432.48%	-930.72%

Lionsgate Studios Corporate Events

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.

Lionsgate Studios Reports First Quarter Fiscal 2026 Results

Lionsgate Studios Corp., a leading content company, operates in the motion picture and television production sectors, known for its diverse portfolio of brands and franchises. In its first quarter of fiscal 2026, Lionsgate reported a studio revenue of $556 million but faced a net loss of $94 million from continuing operations. The company is navigating a transitional year post-separation from STARZ, with plans to release major film tentpoles and double its scripted television series deliveries in the coming fiscal year. Key financial highlights include a 12% increase in trailing 12-month library revenue to a record $989 million, while the television production segment saw a 20% revenue increase and a significant profit rise. Looking ahead, Lionsgate’s management remains focused on strategic growth initiatives, including expanding its film and television library and exploring new platforms, aiming for a return to solid growth by fiscal 2027.