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Paramount Global (PARAA)
NASDAQ:PARAA
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Paramount Global
(NASDAQ:PARAA)
52Neutral
Paramount Global (PARAA) vs. S&P 500 (SPY)
Market Cap
$8.15B
Dividend Yield0.89%
Average Volume (3M)21.30K
Price to Earnings (P/E)―
Beta (1Y)0.88
Revenue Growth-1.48%
EPS Growth-450.15%
CountryUS
Employees18,600
SectorCommunication Services
Sector Strength59
IndustryEntertainment
Share Statistics
EPS (TTM)-9.32
Shares Outstanding40,702,682
10 Day Avg. Volume27,346
30 Day Avg. Volume21,297
Financial Highlights & Ratios
PEG RatioN/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 Ratio11.80
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Paramount Global Business Overview & Revenue Model
Company DescriptionParamount Global, formerly known as ViacomCBS, is a leading global media and entertainment company. The company operates in various sectors including television, film, live events, and digital streaming. Paramount Global is known for its extensive portfolio of brands such as CBS, Nickelodeon, MTV, BET, Comedy Central, and Paramount Pictures. It provides a wide range of content across multiple platforms, catering to diverse audiences worldwide.
How the Company Makes MoneyParamount 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.35
Negative
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.45
Neutral
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.50
Neutral
| 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
Negative
22.50
Price Trends
22.64
Negative
22.57
Negative
22.03
Positive
Market Momentum
0.04
Positive
47.46
Neutral
20.17
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PARAA, the sentiment is Negative. The current price of 22.5 is below the 20-day moving average (MA) of 22.69, below the 50-day MA of 22.64, and above the 200-day MA of 22.03, indicating a neutral trend. The MACD of 0.04 indicates Positive momentum. The RSI at 47.46 is Neutral, neither overbought nor oversold. The STOCH value of 20.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PARAA.
Paramount Global Risk Analysis
Paramount Global disclosed 42 risk factors in its most recent earnings report. Paramount Global reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Paramount Global Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $22.58B | 10.25 | 20.09% | 1.13% | 4.29% | 177.70% | |
77 Outperform | $135.06B | 8.62 | 19.24% | 3.47% | 1.78% | 11.62% | |
76 Outperform | $160.60B | 28.85 | 5.54% | 1.07% | 3.97% | 89.53% | |
74 Outperform | $392.27B | 43.16 | 38.43% | ― | 15.28% | 65.72% | |
59 Neutral | $27.83B | 1.88 | -18.16% | 4.00% | 2.13% | -44.45% | |
58 Neutral | $22.49B | ― | -28.54% | ― | -4.97% | -259.71% | |
52 Neutral | $8.15B | ― | -31.94% | 0.89% | -1.48% | -450.15% |
* Communication Services Sector Average
Performance Comparison
PARAA
Paramount Global
22.50
-0.61
-2.64%
CMCSA
Comcast
33.38
-6.19
-15.64%
DIS
Walt Disney
83.53
-33.79
-28.80%
NFLX
Netflix
855.86
219.68
34.53%
FOX
Fox
45.73
17.63
62.74%
WBD
Warner Bros
8.07
-0.25
-3.00%
Paramount Global Earnings Call Summary
Earnings Call Date: Feb 26, 2025 | % Change Since: 0.49% | Next Earnings Date: Apr 30, 2025
Earnings Call Sentiment Positive
The earnings call reflects a positive sentiment with strong growth in direct-to-consumer segments, notable achievements in subscriber growth and profitability improvements, and successful film releases. However, challenges remain in the linear ecosystem and specific segment losses.Highlights
Record OIBDA Growth
Total company adjusted OIBDA returned to growth, up 30% year-over-year to $3.1 billion.
Subscriber Growth at Paramount+
Added 10 million new subscribers for the year, with 5.6 million in Q4 alone, marking the strongest quarter in two years.
D2C Profitability Improvement
D2C segment profitability improved by $1.2 billion for the year.
Film Success with Sonic Franchise
Sonic the Hedgehog series exceeded $1.2 billion at the global box office, with Sonic 3 being the highest-grossing film in the franchise.
Strong CBS Performance
NFL on CBS delivered massive broadcast audiences with streaming growth on Paramount+ nearly 60%.
Lowlights
Negative OIBDA in Filmed Entertainment
Filmed Entertainment OIBDA was a loss of $42 million, a decrease of $66 million year-over-year due to marketing costs and timing of releases.
TV Media Revenue Decline
TV Media revenue declined 4% in the quarter to $5 billion, with affiliate revenue declining 6.7%.
Challenges in Linear Ecosystem
Linear ecosystem trends continue to weigh on TV Media affiliate and advertising revenue.
Company Guidance
During Paramount Global's Q4 2024 earnings call, significant metrics highlighted the company's transformative year. Adjusted OIBDA grew by 30% year-over-year, reaching $3.1 billion, while net leverage improved by 1.3 turns. Free cash flow rose to $489 million, marking the highest in four years. Paramount+ subscriber base expanded by 10 million for the year, with 5.6 million added in Q4 alone. Global watch time per user increased by 20%, reducing churn by over 100 basis points year-over-year. Paramount+ revenues saw a 33% rise, while D2C advertising grew by 18%. The Filmed Entertainment division generated nearly $900 million at the global box office in Q4. Looking forward, Paramount aims for domestic profitability of Paramount+ in 2025, maintaining a flat total content spend compared to 2024. Despite anticipated headwinds, free cash flow is expected to grow in 2025, bolstered by strategic content investments and a robust slate of originals across platforms.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.