Paramount Global Class B (PARA) AI Stock Analysis

• Market Cap: $8.45B
• Dividend Yield: 1.68%
• Average Volume (3M): 6.49M
• 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: 82
• Industry: Entertainment
• EPS (TTM): 0.29
• Shares Outstanding: 633,455,100
• 10 Day Avg. Volume: 6,311,088
• 30 Day Avg. Volume: 6,491,695
• PEG Ratio: -0.13
• Price to Book (P/B): 0.48
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -78.81
• Enterprise Value/Market Cap: 3.00
• Enterprise Value/Revenue: 0.22
• Enterprise Value/Gross Profit: 2.74
• Enterprise Value/Ebitda: -1.39
• 1Y Price Target: $12.08
• Price Target Upside: 0.75% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 15

• Rating: 56 Neutral
• Price Target: $12.50 ▲(4.25%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.

Streaming Revenue

The company reached a notable milestone in its progress in streaming, achieving positive growth in subscription and affiliate revenue overall.

Subscriber Growth

DTC subscriber levels continue to grow with 79 million Paramount+ subscribers, benefiting from the content lineup.

Negative Factors

Advertising Revenue

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

Affiliate Revenue

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

Operating Income

Operating Income of $550mm was reported, which is 9% below estimates.

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 is facing significant financial challenges, including declining revenues, negative profitability, and operational inefficiencies. The balance sheet indicates moderate leverage but a weakening equity position, and cash flow generation is under pressure, requiring strategic improvements.

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
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
28.72B	29.21B	29.65B	30.15B	28.59B	25.29B
	Gross Profit
9.26B	9.78B	7.26B	10.31B	10.84B	10.29B
	EBIT
1.78B	-5.27B	-451.00M	2.34B	4.06B	4.14B
	EBITDA
-4.41B	-4.92B	85.00M	2.60B	4.39B	15.62B
	Net Income Common Stockholders
-5.32B	-6.19B	-608.00M	1.10B	4.54B	2.42B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.67B	2.66B	2.46B	2.88B	6.27B	2.98B
	Total Assets
45.40B	46.17B	53.54B	58.39B	58.62B	52.66B
	Total Debt
15.53B	15.55B	15.86B	17.27B	19.31B	21.32B
	Net Debt
12.85B	12.89B	13.40B	14.39B	13.04B	18.33B
	Total Liabilities
28.47B	29.39B	30.49B	34.79B	35.65B	36.61B
	Stockholders Equity
16.54B	16.32B	22.53B	23.04B	22.40B	15.37B
Cash Flow		Free Cash Flow
403.00M	489.00M	147.00M	-139.00M	599.00M	1.97B
	Operating Cash Flow
672.00M	752.00M	475.00M	219.00M	953.00M	2.29B
	Investing Cash Flow
165.00M	12.00M	942.00M	-526.00M	2.40B	56.00M
	Financing Cash Flow
-553.00M	-507.00M	-1.84B	-2.98B	-152.00M	-90.00M

Paramount Global Class B Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 11.99
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 11.99 is above the 20-day moving average (MA) of 11.94, above the 50-day MA of 11.55, and above the 200-day MA of 10.97, indicating a bullish trend. The MACD of 0.09 indicates Positive momentum. The RSI at 54.68 is Neutral, neither overbought nor oversold. The STOCH value of 23.77 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 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FOXA	81 Outperform	$23.11B	13.35	16.89%	1.00%	15.70%	26.73%
DIS	78 Outperform	$214.79B	24.40	8.75%	0.85%	5.33%	431.28%
NFLX	76 Outperform	$515.86B	57.28	40.84%	―	14.11%	47.22%
WMG	64 Neutral	$13.92B	31.03	89.20%	2.73%	-0.91%	-14.87%
WBD	63 Neutral	$24.81B	―	-27.69%	―	-5.58%	-254.85%
Sector *	61 Neutral	$14.74B	5.90	-4.02%	6.40%	2.72%	-31.67%
PARA	56 Neutral	$8.45B	―	-28.56%	1.68%	-4.50%	-898.86%

Paramount Global Class B Corporate Events

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.