Paramount Global (PARAA) AI Stock Analysis

• Market Cap: $8.31B
• Dividend Yield: 0.89%
• Average Volume (3M): 24.99K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.65
• Revenue Growth: -1.48%
• EPS Growth: -450.15%
• Country: US
• Employees: 18,600
• Sector: Communication Services
• Sector Strength: 82
• Industry: Entertainment
• EPS (TTM): -9.32
• Shares Outstanding: 40,702,682
• 10 Day Avg. Volume: 25,184
• 30 Day Avg. Volume: 24,991
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.27
• Price to Cash Flow (P/CF): 11.80
• P/FCF Ratio: 11.80
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Paramount Global's stock is influenced by significant financial challenges, including declining revenues and negative profit margins, partially mitigated by improved cash flows. The earnings call provided positive insights into subscriber growth and profitability improvements, contributing to a more optimistic outlook. However, valuation remains a concern due to the negative P/E ratio, and technical indicators suggest a cautious approach.

Paramount Global 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 generates revenue through multiple streams. A significant portion comes from advertising sales across its television networks and digital platforms. The company also earns money from affiliate fees paid by cable and satellite operators for the rights to broadcast its content. Additionally, Paramount Global benefits from content licensing, where it sells the rights to its vast library of films and television shows to other broadcasters and streaming services. The company's direct-to-consumer streaming services, such as Paramount+ and Pluto TV, provide subscription-based revenue. Furthermore, box office sales from its film studio, Paramount Pictures, contribute to its earnings. Paramount Global also engages in merchandising and live events, adding to its diverse revenue model.

Paramount Global Financial Statement Overview

Summary

Paramount Global faces ongoing financial difficulties, reflected in declining revenues, negative profit margins, and high debt levels. While cash flows show improvement, the overall financial health is pressured by significant operational and debt-related challenges. The company needs to focus on reversing revenue declines and improving profitability to stabilize its financial position.

Income Statement

Paramount Global's income statement reflects significant challenges. The company experienced a revenue decline from 2022 to 2023 by approximately 1.48%, with further decline into 2024. Gross profit margin decreased over the years, with a negative net profit margin in 2024, indicating losses. EBIT and EBITDA margins were also negative in 2024, highlighting operational inefficiencies. These factors contribute to a low score, underscoring poor profitability and growth trends.

Balance Sheet

The balance sheet reveals a mixed scenario. The debt-to-equity ratio improved slightly from 2023 to 2024, but remains relatively high, indicating significant leverage. Stockholders' equity decreased substantially in 2024, impacting the equity ratio negatively. Despite asset reduction, the liabilities are high, posing financial stability concerns. These elements suggest moderate financial health but highlight potential risks from high debt levels.

Cash Flow

Paramount Global's cash flow statement shows some positive aspects. Operating cash flow improved significantly by 58% from 2023 to 2024. Free cash flow also grew substantially, indicating better cash generation capabilities. However, the free cash flow to net income ratio highlights discrepancies, as net income remains negative. The cash flow improvements provide some financial flexibility despite ongoing income challenges.

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 Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 22.49
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PARAA, the sentiment is Positive. The current price of 22.49 is below the 20-day moving average (MA) of 22.55, below the 50-day MA of 22.64, and above the 200-day MA of 22.35, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 49.95 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 PARAA.

Paramount Global Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FOXA	77 Outperform	$21.45B	10.49	20.09%	1.10%	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%	1.05%	3.97%	89.53%
ROKU	66 Neutral	$9.59B	―	-5.37%	―	18.03%	82.15%
Sector *	59 Neutral	$13.73B	6.72	-2.47%	3.83%	2.30%	-35.22%
WBD	50 Neutral	$21.03B	―	-28.54%	―	-4.91%	-259.71%
PARAA	49 Neutral	$8.31B	―	-31.94%	0.89%	-1.48%	-450.15%