Paramount Global Class B (PARA) AI Stock Analysis

• Market Cap: $8.12B
• Dividend Yield: 1.75%
• Average Volume (3M): 9.04M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.72
• Revenue Growth: -1.48%
• EPS Growth: -450.15%
• Country: US
• Employees: 18,600
• Sector: Communication Services
• Sector Strength: 81
• Industry: Entertainment
• EPS (TTM): -9.32
• Shares Outstanding: 630,007,600
• 10 Day Avg. Volume: 7,749,449
• 30 Day Avg. Volume: 9,040,439
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 2.54
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 2.11
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $12.25
• Price Target Upside: 7.17% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 15

Paramount Global Class B faces financial challenges with declining revenues and profitability, but technical indicators suggest some stability. Valuation reflects concerns due to negative earnings, yet the earnings call provides a positive outlook with strong D2C segment performance and subscriber growth. These factors contribute to a moderately cautious overall stock score.

Positive Factors

Direct-to-Consumer Growth

Paramount Global's direct-to-consumer business is expected to benefit from the company's upcoming content slate and continued average revenue per user gains.

Subscriber Growth

Total Paramount+ subscribers were 77.5 million, growing 5.6 million quarter-over-quarter, benefiting from the NFL as well as scripted programming and the mix of theatrical releases hitting their streaming window.

Negative Factors

Profitability Concerns

Concerns remain over the long-term profit potential of Paramount's streaming business despite current growth.

TV Media Challenges

The TV Media segment of Paramount Global is facing headwinds from recent affiliate agreements and general ecosystem pressures.

Paramount Global Class B Business Overview & Revenue Model

Company Description

Paramount Global operates as a media and entertainment company worldwide. The company distributes a schedule of news and public affairs broadcasts, and sports and entertainment programming; acquires or develops, and schedules programming on the CBS Television Network that includes primetime comedies and dramas, reality, specials, kids' programs, daytime dramas, game shows, and late night programs; produces or distributes talk shows, court shows, game shows, and newsmagazines; owns and operates 29 broadcast television stations; and operates CBS Sports Network, a 24-hour cable channel that provides sports and related content, as well as streaming and cable subscription services. It also operates Paramount+, a digital subscription video on-demand and live streaming services; and creates and acquires programming for distribution and viewing on various media platforms, including subscription cable networks, subscription streaming, and premium and basic cable networks. In addition, the company develops, produces, finances, acquires, and distributes films. Paramount Global was formerly known as ViacomCBS Inc. and changed its name to Paramount Global in February 2022. The company was incorporated in 1986 and is headquartered in New York, New York. Paramount Global operates as a subsidiary of National Amusements, Inc.

How the Company Makes Money

Paramount 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 Financial Statement Overview

Summary

Paramount Global Class B is experiencing financial challenges characterized by declining revenues and profitability. The balance sheet reflects moderate stability with manageable leverage, but the declining equity and negative returns pose risks. Cash flow shows some improvements but remains volatile.

Income Statement

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

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

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 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
9.78B	7.26B	10.31B	10.84B	10.29B
	EBIT
-5.27B	-451.00M	2.34B	4.06B	4.14B
	EBITDA
-4.92B	85.00M	2.60B	4.39B	15.62B
	Net Income Common Stockholders
-6.19B	-608.00M	1.10B	4.54B	2.42B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.66B	2.46B	2.88B	6.27B	2.98B
	Total Assets
46.17B	53.54B	58.39B	58.62B	52.66B
	Total Debt
15.55B	15.86B	17.27B	19.31B	21.32B
	Net Debt
12.89B	13.40B	14.39B	13.04B	18.33B
	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: 11.43
• 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 11.43 is above the 20-day moving average (MA) of 11.14, above the 50-day MA of 11.43, and above the 200-day MA of 10.86, indicating a bullish trend. The MACD of 0.08 indicates Negative momentum. The RSI at 51.78 is Neutral, neither overbought nor oversold. The STOCH value of 81.47 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	77 Outperform	$21.65B	10.59	20.09%	1.09%	4.29%	177.70%
NFLX	75 Outperform	$392.81B	46.31	40.84%	―	14.11%	47.22%
DIS	73 Outperform	$153.46B	27.56	5.54%	1.03%	3.97%	89.53%
WMG	64 Neutral	$15.75B	31.05	100.20%	2.35%	0.75%	9.36%
Sector *	59 Neutral	$13.76B	7.65	-2.18%	3.85%	2.32%	-36.56%
PARA	54 Neutral	$8.12B	―	-31.94%	1.75%	-1.48%	-450.15%
WBD	50 Neutral	$21.13B	―	-28.54%	―	-4.91%	-259.71%

Paramount Global Class B Corporate Events

Paramount Global Adopts Executive Compensation Strategy Amidst Deal

Paramount Global has approved the immediate vesting and settlement of restricted and performance share units for certain executives to mitigate the impact of potential ‘excess parachute payments’ under Section 280G of the Internal Revenue Code. This strategy aims to prevent financial penalties or implications for both the executives and the company in light of their transaction agreement with Skydance Media and New Pluto Global, Inc., enhancing their operational flexibility and securing executive interests.