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Paramount Global (PARAA)
NASDAQ:PARAA
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Paramount Global
(NASDAQ:PARAA)
Rating:53Neutral
Price Target:
$23.50
▲(1.29%Upside)
Paramount Global (PARAA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$9.21B
Dividend Yield0.86%
Average Volume (3M)32.58K
Price to Earnings (P/E)―
Beta (1Y)0.47
Revenue Growth-4.50%
EPS Growth-898.86%
CountryUS
Employees18,600
SectorCommunication Services
Sector Strength73
IndustryEntertainment
Share Statistics
EPS (TTM)0.29
Shares Outstanding40,702,682
10 Day Avg. Volume38,731
30 Day Avg. Volume32,578
Financial Highlights & Ratios
PEG Ratio-0.14
Price to Book (P/B)0.53
Price to Sales (P/S)0.00
P/FCF Ratio22.79
Enterprise Value/Market Cap2.39
Enterprise Value/Revenue0.39
Enterprise Value/Gross Profit3.99
Enterprise Value/Ebitda1.94
Forecast
1Y Price Target
$23.00Price Target Upside-0.86% Downside
Rating ConsensusHold
Number of Analyst Covering0
Paramount Global Business Overview & Revenue Model
Company DescriptionParamount Global (PARAA) is a leading global media and entertainment company that operates across various sectors including television, film, direct-to-consumer streaming, and digital content. The company is known for its iconic brands such as CBS, MTV, Nickelodeon, Paramount Pictures, and Showtime, offering a diverse range of entertainment options that cater to a wide audience. Paramount Global delivers its content through multiple platforms, ensuring broad accessibility and engagement with viewers worldwide.
How the Company Makes MoneyParamount Global generates revenue through several key streams. The primary source is advertising sales, which comes from its extensive portfolio of television networks and digital platforms. The company also earns substantial income from affiliate fees, which are payments made by cable and satellite providers to carry its channels. Content licensing is another significant revenue stream, where the company licenses its vast library of films and TV shows to various platforms, including international broadcasters and streaming services. Additionally, Paramount Global has been expanding its direct-to-consumer offerings, with subscription-based streaming services contributing to its earnings. Partnerships and collaborations with other media companies and content creators further enhance its revenue potential by expanding its distribution and audience reach.
Paramount Global Earnings Call Summary
Earnings Call Date:May 08, 2025
(Q1-2025)
| % Change Since: 3.20%|
Next Earnings Date:Aug 07, 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's financial performance is challenged by declining revenue and profitability. The company has a negative net income and high leverage, with substantial debt compared to equity. While cash flow generation from operations is positive, overall cash flow trends are weakening, indicating financial instability and operational inefficiencies.Income Statement
Paramount Global's income statement shows declining revenue, with a notable decrease from $30.15 billion in 2022 to $28.72 billion in TTM. Gross profit margin decreased from 34.19% in 2022 to 32.23% in TTM, indicating pressure on profitability. The net profit margin turned negative, indicating losses, with TTM net income at -$5.32 billion. The EBIT and EBITDA margins are also negative, reflecting operational challenges.45
Neutral
Balance Sheet
The balance sheet presents high leverage, with a debt-to-equity ratio of 0.94 in TTM, indicating significant debt relative to equity. Stockholders' equity decreased over the periods, impacting stability. However, the equity ratio remains reasonable at 36.44% in TTM, suggesting moderate asset coverage by equity.50
Neutral
Cash Flow
Cash flow analysis indicates a decline in free cash flow, dropping from $489 million in 2024 to $403 million in TTM. The operating cash flow to net income ratio is positive, at 0.13, despite negative net income. This suggests operating activities generate sufficient cash, but overall cash flow trends are weakening.55
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 | 8.66B | 7.26B | 10.31B | 10.84B | 10.29B |
| EBITDA | -4.92B | 85.00M | 2.60B | 4.39B | 15.62B |
| Net Income | -6.19B | -608.00M | 1.10B | 4.54B | 2.42B |
Balance Sheet | |||||
| Total Assets | 46.17B | 53.54B | 58.39B | 58.62B | 52.66B |
| Cash, Cash Equivalents and Short-Term Investments | 2.66B | 2.46B | 2.88B | 6.27B | 2.98B |
| Total Debt | 15.55B | 15.86B | 17.27B | 19.31B | 21.32B |
| 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
Positive
23.20
Price Trends
22.78
Positive
22.68
Positive
22.50
Positive
Market Momentum
0.12
Positive
56.26
Neutral
53.65
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 23.2 is above the 20-day moving average (MA) of 23.05, above the 50-day MA of 22.78, and above the 200-day MA of 22.50, indicating a bullish trend. The MACD of 0.12 indicates Positive momentum. The RSI at 56.26 is Neutral, neither overbought nor oversold. The STOCH value of 53.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 | $24.41B | 14.09 | 16.89% | 0.95% | 15.70% | 26.73% | |
78 Outperform | $218.37B | 24.81 | 8.75% | 0.82% | 5.33% | 431.28% | |
75 Outperform | $501.62B | 50.31 | 43.55% | ― | 14.28% | 46.86% | |
73 Outperform | $13.22B | ― | -4.34% | ― | 17.30% | 81.72% | |
60 Neutral | $33.38B | ― | -27.69% | ― | -5.58% | -254.85% | |
59 Neutral | C$3.47B | 8.40 | -17.94% | 5.27% | -2.61% | -25.43% | |
53 Neutral | $9.21B | ― | -28.56% | 0.86% | -4.50% | -898.86% |
* Communication Services Sector Average
Performance Comparison
PARAA
Paramount Global
23.20
1.30
5.94%
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121.47
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90.12
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56.67
19.31
51.69%
WBD
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13.49
5.07
60.21%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.