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Paramount Global Class B (PARA)
NASDAQ:PARA

Paramount Global Class B (PARA) AI Stock Analysis

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Paramount Global Class B

(NASDAQ:PARA)

Rating:56Neutral
Price Target:
$12.50
▲(4.43%Upside)
Paramount Global's stock score reflects a challenging financial performance due to declining revenues and profitability. However, positive technical momentum and strategic corporate events provide a degree of optimism. Valuation remains a concern with negative earnings and low dividend yield. The earnings call highlighted subscriber growth but also challenges in advertising, indicating mixed prospects.
Positive Factors
Profitability
Profitability improved substantially from the prior year, as expenses were effectively flat.
Subscriber Growth
Paramount+ subscriber levels continue to grow, reaching 79 million, benefiting from the content lineup.
Negative Factors
Advertising Revenue
Total DTC ad revenues declined 9%, primarily due to comparison with the Super Bowl in the year-ago quarter.
Affiliate Fee Revenues
Affiliate fee revenues remained soft and are expected to decline further due to the impact of renewals with distributors and subscriber erosion.

Paramount Global Class B (PARA) vs. SPDR S&P 500 ETF (SPY)

Paramount Global Class B Business Overview & Revenue Model

Company DescriptionParamount Global Class B (PARA) is a leading global media and entertainment company that operates across various segments, including television, streaming, digital content, and film production. The company owns and manages a diverse portfolio of renowned brands, including CBS, MTV, Nickelodeon, and Paramount Pictures, which deliver a wide range of content to audiences worldwide. Paramount Global is committed to creating premium content and experiences for its viewers, leveraging both traditional and digital platforms to reach a global audience.
How the Company Makes MoneyParamount Global makes money primarily through advertising revenue, subscription fees, and content licensing. Advertising revenue is generated from the sale of commercial time during its television broadcasts and digital platforms. Subscription fees come from its streaming services, such as Paramount+, which offer consumers access to a vast library of content for a recurring fee. Additionally, the company earns revenue by licensing its content to third-party distributors and platforms, including international markets. Partnerships with cable and satellite providers also contribute to its earnings, as they distribute Paramount's channels and content to a broader audience. The company's film production arm, Paramount Pictures, generates revenue through box office sales, digital downloads, and home entertainment sales.

Paramount Global Class B Key Performance Indicators (KPIs)

Any
Any
Revenue by Business Type
Revenue by Business Type
Breaks down earnings by business model, offering insight into diversification and resilience against industry-specific risks.
Chart InsightsParamount Global's Direct-to-Consumer segment shows robust growth, driven by a 16% increase in Paramount+ revenue and an 11% rise in global subscribers, reflecting a strategic focus on differentiated content. However, TV Media revenue faces pressure from declining affiliate revenue and macroeconomic uncertainties impacting advertising. Filmed Entertainment experienced a boost from successful releases like Sonic the Hedgehog 3, but overall revenue remains volatile. Despite challenges, the company is enhancing cost efficiencies and focusing on key investments to navigate the dynamic environment.
Data provided by:Main Street Data

Paramount Global Class B Earnings Call Summary

Earnings Call Date:May 08, 2025
(Q1-2025)
|
% Change Since: 2.48%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong performance in subscriber growth for Paramount+, successful film releases, and improvements in D2C OIBDA. However, there were challenges in digital advertising revenue, TV media affiliate revenue declines, and potential macroeconomic impacts. The positive aspects, such as subscriber growth and film success, were significant but balanced by the challenges in advertising and affiliate revenues.
Q1-2025 Updates
Positive Updates
Paramount+ Subscriber Growth
Paramount+ ended the quarter with 79 million global subscribers, up 11% year-over-year, including 1.5 million new subscribers in the quarter. Global watch time per user increased by 17% year-over-year, and churn improved by 130 basis points.
Film Entertainment Success
Sonic the Hedgehog 3 delivered box office sales of nearly $500 million, becoming a franchise best, and Gladiator 2 became the number one movie in Paramount+ history.
Strong Performance in TV Media
CBS network audience grew 3% in the quarter compared to last year with the super bowl and was up 12% without the sports comp. CBS will win a record-setting 17 consecutive seasons as the most-watched broadcast network.
Improved D2C OIBDA
D2C OIBDA improved by $177 million to a loss of $109 million, driven by healthy subscription revenue growth and continued expense management.
Negative Updates
Digital Advertising Revenue Decline
D2C advertising revenue declined by 9%, including an 800-basis point headwind from the comparison to last year's Super Bowl. Pluto TV's monetization was softer than expected due to the influx of supply.
TV Media Affiliate Revenue Decline
Affiliate revenue declined 8.6% in the quarter, primarily due to subscriber declines and the impact of recent renewals.
Potential Impact of Macroeconomic Uncertainty
Macroeconomic uncertainty, particularly in advertising, has the potential to impact results later in the year, though the company is focusing on cost efficiencies.
Company Guidance
During Paramount Global's Q1 2025 earnings call, the company provided guidance indicating a positive start to the fiscal year with several key metrics highlighted. Total company revenue increased by 2% year-over-year, excluding the Super Bowl, and Direct-to-Consumer (D2C) OIBDA improved by approximately $180 million compared to the previous year. Paramount+ reported an 11% increase in global subscribers, totaling 79 million, with churn improving by 130 basis points year-over-year and global watch time per user increasing by 17%. Additionally, Paramount+ revenue grew by 16% year-over-year, supported by the platform's differentiated content strategy. The company also reported generating $123 million in free cash flow, despite facing challenges in digital advertising, particularly for Pluto TV. Looking ahead, Paramount Global plans to focus on key investments while streamlining non-content expenses to navigate the dynamic macro environment.

Paramount Global Class B Financial Statement Overview

Summary
Paramount Global Class B is facing financial challenges with declining revenues and profitability. The balance sheet shows moderate stability but with declining equity. Cash flow has improved but remains volatile. Overall, the company is struggling to achieve financial stability and growth.
Income Statement
45
Neutral
Paramount Global Class B has experienced a declining trend in its income statement metrics. The revenue has decreased from $30.15 billion in 2022 to $29.21 billion in 2024, indicating negative growth. Gross profit margin has also decreased, and the company has reported negative EBIT and EBITDA margins in 2024, reflecting poor operational efficiency. The net profit margin is negative due to significant net income losses over the past two years.
Balance Sheet
50
Neutral
The balance sheet shows a moderate level of stability with a debt-to-equity ratio of 0.95 in 2024, which indicates manageable leverage. However, the stockholders' equity has declined over the years, and return on equity is negative due to continuous net losses. The equity ratio has decreased, reflecting a higher reliance on debt financing over equity.
Cash Flow
55
Neutral
Cash flow analysis shows some positive aspects, with free cash flow improving from negative to positive in recent years. The operating cash flow to net income ratio is favorable, demonstrating efficient cash generation from operations. However, the free cash flow growth rate is volatile, and reliance on financing activities is evident.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
29.21B29.65B30.15B28.59B25.29B
Gross Profit
9.78B7.26B10.31B10.84B10.29B
EBIT
-5.27B-451.00M2.34B4.06B4.14B
EBITDA
-4.92B85.00M2.60B4.39B15.62B
Net Income Common Stockholders
-6.19B-608.00M1.10B4.54B2.42B
Balance SheetCash, Cash Equivalents and Short-Term Investments
2.66B2.46B2.88B6.27B2.98B
Total Assets
46.17B53.54B58.39B58.62B52.66B
Total Debt
15.55B15.86B17.27B19.31B21.32B
Net Debt
12.89B13.40B14.39B13.04B18.33B
Total Liabilities
29.39B30.49B34.79B35.65B36.61B
Stockholders Equity
16.32B22.53B23.04B22.40B15.37B
Cash FlowFree Cash Flow
489.00M147.00M-139.00M599.00M1.97B
Operating Cash Flow
752.00M475.00M219.00M953.00M2.29B
Investing Cash Flow
12.00M942.00M-526.00M2.40B56.00M
Financing Cash Flow
-507.00M-1.84B-2.98B-152.00M-90.00M

Paramount Global Class B Technical Analysis

Technical Analysis Sentiment
Positive
Last Price11.97
Price Trends
50DMA
11.52
Positive
100DMA
11.26
Positive
200DMA
10.92
Positive
Market Momentum
MACD
0.15
Negative
RSI
60.76
Neutral
STOCH
72.09
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PARA, the sentiment is Positive. The current price of 11.97 is above the 20-day moving average (MA) of 11.76, above the 50-day MA of 11.52, and above the 200-day MA of 10.92, indicating a bullish trend. The MACD of 0.15 indicates Negative momentum. The RSI at 60.76 is Neutral, neither overbought nor oversold. The STOCH value of 72.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PARA.

Paramount Global Class B Risk Analysis

Paramount Global Class B disclosed 42 risk factors in its most recent earnings report. Paramount Global Class B 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 3 New Risks
1.
Our stockholders will not be entitled to appraisal rights in connection with the Transactions. Q4, 2024
2.
Executive officers, directors and affiliates of Paramount may have interests in the Transactions that are different from, or in addition to, the rights of our stockholders. Q4, 2024
3.
The PIPE Transaction is subject to certain cutbacks in the event that stock elections exceed specified thresholds. Q4, 2024

Paramount Global Class B Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
$23.66B13.6916.89%0.98%15.70%26.73%
DIDIS
78
Outperform
$197.25B22.418.75%0.86%5.33%431.28%
75
Outperform
$504.47B56.0140.84%14.11%47.22%
WMWMG
64
Neutral
$13.67B30.4789.20%2.71%-0.91%-14.87%
61
Neutral
$14.08B5.95-4.18%3.68%2.79%-36.29%
56
Neutral
$8.51B-28.56%1.67%-4.50%-898.86%
WBWBD
56
Neutral
$22.27B-27.69%-5.58%-254.85%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
PARA
Paramount Global Class B
12.03
0.24
2.04%
DIS
Walt Disney
112.36
10.84
10.68%
NFLX
Netflix
1,211.57
562.57
86.68%
FOXA
Fox
55.80
22.68
68.48%
WMG
Warner Music Group
26.16
-2.82
-9.73%
WBD
Warner Bros
9.55
1.68
21.35%

Paramount Global Class B Corporate Events

Private Placements and FinancingBusiness Operations and Strategy
Paramount Global Amends Credit Agreement for Flexibility
Positive
May 15, 2025

On May 12, 2025, Paramount Global amended its credit agreement to increase the cap on unrestricted cash that can be netted against Consolidated Indebtedness from $1.5 billion to $3.0 billion. Additionally, the amendment allows for an expanded definition of Consolidated EBITDA, including a new add-back for cash items related to restructuring, litigation, and business optimization, capped at 15% of Consolidated EBITDA. These changes are expected to enhance Paramount’s financial flexibility and potentially improve its leverage ratio, impacting its operational and strategic positioning.

The most recent analyst rating on (PARA) stock is a Buy with a $13.00 price target. To see the full list of analyst forecasts on Paramount Global Class B stock, see the PARA Stock Forecast page.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.