Paramount Global Class B (PARA) AI Stock Analysis

• Market Cap: $8.51B
• Dividend Yield: 1.67%
• Average Volume (3M): 7.21M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.55
• Revenue Growth: -4.50%
• EPS Growth: -898.86%
• Country: US
• Employees: 18,600
• Sector: Communication Services
• Sector Strength: 89
• Industry: Entertainment
• EPS (TTM): 0.29
• Shares Outstanding: 633,455,100
• 10 Day Avg. Volume: 6,594,266
• 30 Day Avg. Volume: 7,207,557
• PEG Ratio: 0.24
• Price to Book (P/B): 0.49
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 17.30
• Enterprise Value/Market Cap: 2.51
• Enterprise Value/Revenue: 0.18
• Enterprise Value/Gross Profit: 2.49
• Enterprise Value/Ebitda: -1.64
• 1Y Price Target: $12.20
• Price Target Upside: 1.92% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 13

• Rating: 56 Neutral
• 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 Business Overview & Revenue Model

Company Description

Paramount 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 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 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

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: 11.97
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 11.97 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 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FOXA	81 Outperform	$23.66B	13.69	16.89%	0.98%	15.70%	26.73%
DIS	78 Outperform	$197.25B	22.41	8.75%	0.86%	5.33%	431.28%
NFLX	75 Outperform	$504.47B	56.01	40.84%	―	14.11%	47.22%
WMG	64 Neutral	$13.67B	30.47	89.20%	2.71%	-0.91%	-14.87%
Sector *	61 Neutral	$14.08B	5.95	-4.18%	3.68%	2.79%	-36.29%
PARA	56 Neutral	$8.51B	―	-28.56%	1.67%	-4.50%	-898.86%
WBD	56 Neutral	$22.27B	―	-27.69%	―	-5.58%	-254.85%

Paramount Global Class B Corporate Events

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.