Paramount Global Class B (PARA) AI Stock Analysis

• Market Cap: $9.24B
• Dividend Yield: 1.89%
• Average Volume (3M): 7.73M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.54
• Revenue Growth: -4.50%
• EPS Growth: -898.86%
• Country: US
• Employees: 18,600
• Sector: Communication Services
• Sector Strength: 83
• Industry: Entertainment
• EPS (TTM): 0.29
• Shares Outstanding: 633,455,100
• 10 Day Avg. Volume: 6,570,175
• 30 Day Avg. Volume: 7,729,001
• PEG Ratio: -0.14
• Price to Book (P/B): 0.53
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 22.80
• Enterprise Value/Market Cap: 2.38
• Enterprise Value/Revenue: 0.19
• Enterprise Value/Gross Profit: 2.35
• Enterprise Value/Ebitda: -1.23
• 1Y Price Target: $11.92
• Price Target Upside: -9.70% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 15

• Rating: 58 Neutral
• Price Target: $13.50 ▲(2.27%Upside)

Paramount Global's stock score reflects its ongoing financial challenges, with declining revenues and negative profitability being significant concerns. Despite strong technical momentum and strategic subscriber growth in its D2C segment, the negative P/E ratio and pressures in traditional media and advertising weigh heavily. Positive aspects from the earnings call, such as subscriber growth and cost management, provide some optimism, but risks remain due to macroeconomic uncertainties and advertising revenue declines.

Positive Factors

Earnings

PARA reported Q1:25 results that beat on top and bottom lines, largely driven by upside in TV Media.

Partnerships and Approvals

Optimism about PARA guidance about getting FCC approval to close its deal with Skydance.

Streaming Growth

Streaming sub growth driven by 'MobLand', which recently reached 26mm viewers making it the #2 most-watched original series ever on Paramount+, and it was recently renewed for a second season.

Negative Factors

Expense Management

Fine tuning the timing of certain PARA expenses results in lower OIBDA and EPS margins for FY25.

Revenue Decline

Total DTC ad revenues declined 9%, driven by comparison with the Super Bowl in the year-ago quarter and competitive pressures.

Subscriber Erosion

Affiliate fee revenues remained soft and are expected to decline further with renewals and subscriber erosion.

Paramount Global Class B Business Overview & Revenue Model

Company Description

Paramount Global Class B (PARA) is a leading global media and entertainment company that operates in various sectors including television, streaming, film, and digital content. The company owns and operates a diverse portfolio of entertainment brands such as CBS, MTV, Showtime, Nickelodeon, and Paramount Pictures. Paramount Global engages in producing and distributing content across different platforms, catering to a wide range of audiences worldwide.

How the Company Makes Money

Paramount Global makes money through multiple revenue streams including advertising, subscription fees, content licensing, and theatrical distribution. Advertising revenue is generated from commercials aired on its television networks and digital platforms. Subscription fees come from its streaming services like Paramount+ and Showtime. Content licensing involves selling the rights to its TV shows and films to other networks and streaming services. Theatrical distribution involves box office sales from films produced by Paramount Pictures. Additionally, the company benefits from partnerships and collaborations with other media companies, enhancing its distribution capabilities and expanding its audience reach.

Paramount Global Class B Financial Statement Overview

Summary

Paramount Global Class B is facing financial challenges with declining revenues, negative profitability, and operational inefficiencies. The balance sheet shows moderate leverage with a debt-to-equity ratio of 0.94, but the equity position is weakening. Cash flow is under pressure, with a negative trend in free cash flow indicating potential liquidity issues.

Income Statement

The company has experienced declining revenue and profitability. The TTM report shows a negative net income and EBIT, with EBITDA also negative, indicating operational struggles. The gross profit margin is 32.22%, and the net profit margin is -18.53%, reflecting significant challenges in cost management.

Balance Sheet

The company's debt-to-equity ratio is 0.94, indicating moderate leverage. Stockholders' equity has decreased over time, affecting the equity ratio, which stands at 36.44%. The return on equity is negative, highlighting concerns over profitability and return on investments.

Cash Flow

The operating cash flow is positive but has shown a downward trend, with a current value of $672 million. The free cash flow has declined to $403 million. The operating cash flow to net income ratio is negative due to negative net income, indicating potential liquidity issues.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	29.21B	29.65B	30.15B	28.59B	25.29B
Gross Profit	8.66B	7.26B	10.31B	10.84B	10.29B
EBITDA	-4.92B	85.00M	2.60B	4.39B	15.62B
Net Income	-6.19B	-608.00M	1.10B	4.54B	2.42B
Balance Sheet
Total Assets	46.17B	53.54B	58.39B	58.62B	52.66B
Cash, Cash Equivalents and Short-Term Investments	2.66B	2.46B	2.88B	6.27B	2.98B
Total Debt	15.55B	15.86B	17.27B	19.31B	21.32B
Total Liabilities	29.39B	30.49B	34.79B	35.65B	36.61B
Stockholders Equity	16.32B	22.53B	23.04B	22.40B	15.37B
Cash Flow
Free Cash Flow	489.00M	147.00M	-139.00M	599.00M	1.97B
Operating Cash Flow	752.00M	475.00M	219.00M	953.00M	2.29B
Investing Cash Flow	12.00M	942.00M	-526.00M	2.40B	56.00M
Financing Cash Flow	-507.00M	-1.84B	-2.98B	-152.00M	-90.00M

Paramount Global Class B Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 13.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 13.2 is above the 20-day moving average (MA) of 12.82, above the 50-day MA of 12.30, and above the 200-day MA of 11.27, indicating a bullish trend. The MACD of 0.24 indicates Negative momentum. The RSI at 68.37 is Neutral, neither overbought nor oversold. The STOCH value of 88.13 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PARA.

Paramount Global Class B Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FOXA	81 Outperform	$24.07B	13.90	16.89%	0.96%	15.70%	26.73%
DIS	78 Outperform	$217.64B	24.73	8.75%	0.81%	5.33%	431.28%
NFLX	75 Outperform	$505.70B	50.71	43.55%	―	14.28%	46.86%
WMG	68 Neutral	$16.39B	36.54	89.20%	2.29%	-0.91%	-14.87%
Sector *	62 Neutral	$41.97B	-1.66	-12.07%	3.33%	2.07%	-69.32%
WBD	60 Neutral	$31.79B	―	-27.69%	―	-5.58%	-254.85%
PARA	58 Neutral	$9.24B	―	-28.56%	1.89%	-4.50%	-898.86%

Paramount Global Class B Corporate Events

Paramount Global Approves Director Nominations and Plan Amendments

At the 2025 Annual Meeting of Stockholders, Paramount Global announced that all directors nominated were approved, along with amendments to the Long-Term Incentive Plan and the 2015 Equity Plan for Outside Directors. However, a stockholder proposal regarding the inclusion of ‘viewpoint’ and ‘ideology’ in the company’s equal employment opportunity policy was not approved. These decisions reflect Paramount’s strategic direction in governance and compensation, while the rejection of the proposal indicates a potential area of concern for some stakeholders.

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.

Paramount Global Announces CFO Naveen Chopra’s Resignation

On June 3, 2025, Paramount Global announced the resignation of Naveen Chopra, its Executive Vice President and Chief Financial Officer, effective June 27, 2025. His departure was not due to any disagreements with the company or its board. Andrew C. Warren, the current Strategic Advisor to the Office of the CEO, will take on the role of Interim Chief Financial Officer following Chopra’s resignation. Warren brings extensive experience from his previous roles as CFO at STX Entertainment, Discovery Communications, and other major media companies.

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.

Paramount Global Amends Credit Agreement for Flexibility

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.