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Paramount Global Class A (PARAA)
:PARAA
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Paramount Global
(NASDAQ:PARAA)
Rating:54Neutral
Price Target:
$23.00
▲(1.19%Upside)
Paramount Global (PARAA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$8.55B
Dividend Yield0.88%
Average Volume (3M)23.59K
Price to Earnings (P/E)―
Beta (1Y)0.52
Revenue Growth-4.50%
EPS Growth-898.86%
CountryUS
Employees18,600
SectorCommunication Services
Sector Strength88
IndustryEntertainment
Share Statistics
EPS (TTM)0.29
Shares Outstanding40,702,682
10 Day Avg. Volume17,851
30 Day Avg. Volume23,595
Financial Highlights & Ratios
PEG Ratio0.24
Price to Book (P/B)0.49
Price to Sales (P/S)0.00
P/FCF Ratio17.30
Enterprise Value/Market Cap2.50
Enterprise Value/Revenue0.18
Enterprise Value/Gross Profit2.49
Enterprise Value/Ebitda-1.64
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 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 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 Earnings Call Summary
Earnings Call Date:May 08, 2025
(Q1-2025)
| % Change Since: 0.84%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Positive
The earnings call highlighted positive growth in revenue, subscribers, and content engagement, particularly in Paramount+ and film entertainment. However, there were challenges in digital advertising revenue and affiliate revenue declines, with expectations of subscriber decline in Q2. Despite these challenges, the company remains optimistic about future growth and profitability.Q1-2025 Updates
Positive Updates
Revenue Growth and Cash Flow
Total company revenue grew 2% year-over-year excluding the Super Bowl, and the company generated $123 million of free cash flow.
Paramount+ Subscriber Growth
Paramount+ ended the quarter with 79 million global subscribers, up 11% year-over-year, with a revenue increase of 16% year-over-year.
Pluto TV Consumption Increase
Pluto TV delivered its highest consumption ever, with global viewing time up 26% year-over-year.
Film Entertainment Success
Sonic the Hedgehog 3 delivered box office sales of nearly $500 million, a franchise best, contributing to increased home entertainment and streaming performance.
Sports Viewership
CBS network audience grew 3% compared to last year, and streaming of CBS primetime shows on Paramount+ increased by 35%.
Negative Updates
Digital Advertising Revenue Decline
D2C advertising revenue declined 9%, with Pluto TV being the most affected due to increased digital video supply.
Affiliate Revenue Decline
Affiliate revenue declined 8.6% in the quarter, driven by subscriber declines and the impact of recent renewals.
Q2 Subscriber Decline Expected
The company expects Q2 subscribers to decline due to content seasonality and the termination of an international hard bundle partnership.
Company Guidance
During Paramount Global's Q1 2025 earnings call, the company highlighted several key metrics indicating strong performance and strategic direction. Total company revenue grew 2% year-over-year, excluding the Super Bowl, with D2C OIBDA improving by nearly $180 million and free cash flow reaching $123 million. Paramount+ saw an 11% increase in global subscribers, totaling 79 million, and a 16% rise in revenue, while churn improved by 130 basis points. The platform's global watch time per user also increased by 17% year-over-year. The company plans to maintain its profitability momentum in Paramount+ domestically for the year. In the TV media segment, advertising revenue, excluding the Super Bowl, remained flat year-over-year, supported by strong sports demand, while CBS network audience grew 3% in the quarter. Paramount continues to focus on content investment, with initiatives like expanding the Yellowstone franchise and successful releases like Sonic the Hedgehog 3 and Gladiator 2. Despite challenges in the macro environment, the company is prioritizing key investments and managing non-content expenses to sustain growth and profitability.Paramount Global Financial Statement Overview
Summary
Paramount Global is experiencing financial difficulties with declining revenues, negative profit margins, and high debt levels. While cash flows have improved, overall financial health is pressured by significant operational and debt-related challenges.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
22.73
Price Trends
22.62
Negative
22.60
Negative
22.41
Positive
Market Momentum
0.01
Positive
47.39
Neutral
56.73
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 22.73 is above the 20-day moving average (MA) of 22.63, above the 50-day MA of 22.62, and above the 200-day MA of 22.41, indicating a neutral trend. The MACD of 0.01 indicates Positive momentum. The RSI at 47.39 is Neutral, neither overbought nor oversold. The STOCH value of 56.73 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 3 New Risks
1.
Our stockholders will not be entitled to appraisal rights in connection with the Transactions. Q4, 2024
2.
Executive officers, directors and affiliates of Paramount may have interests in the Transactions that are different from, or in addition to, the rights of our stockholders. Q4, 2024
3.
The PIPE Transaction is subject to certain cutbacks in the event that stock elections exceed specified thresholds. Q4, 2024
Paramount Global Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $23.99B | 13.87 | 16.89% | 0.97% | 15.70% | 26.73% | |
78 Outperform | $201.99B | 22.95 | 8.75% | 0.84% | 5.33% | 431.28% | |
75 Outperform | $504.47B | 56.01 | 40.84% | ― | 14.11% | 47.22% | |
71 Outperform | $10.56B | ― | -4.34% | ― | 17.30% | 81.72% | |
63 Neutral | $23.63B | ― | -27.69% | ― | -5.58% | -254.85% | |
61 Neutral | $14.31B | 5.82 | -4.20% | 3.66% | 2.74% | -36.46% | |
54 Neutral | $8.55B | ― | -28.56% | 0.88% | -4.50% | -898.86% |
* Communication Services Sector Average
Performance Comparison
PARAA
Paramount Global
22.53
2.98
15.24%
DIS
Walt Disney
111.52
11.55
11.55%
NFLX
Netflix
1,208.55
553.93
84.62%
ROKU
Roku
73.96
17.48
30.95%
FOXA
Fox
56.15
22.72
67.96%
WBD
Warner Bros
10.02
2.36
30.81%
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.