Paramount Global (PARAA) AI Stock Analysis

• Market Cap: $8.88B
• Dividend Yield: 0.87%
• Average Volume (3M): 24.72K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.45
• Revenue Growth: -4.50%
• EPS Growth: -898.86%
• Country: US
• Employees: 18,600
• Sector: Communication Services
• Sector Strength: 84
• Industry: Entertainment
• EPS (TTM): 0.29
• Shares Outstanding: 40,702,682
• 10 Day Avg. Volume: 30,119
• 30 Day Avg. Volume: 24,717
• PEG Ratio: -0.15
• Price to Book (P/B): 0.55
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -91.56
• Enterprise Value/Market Cap: 3.05
• Enterprise Value/Revenue: 0.23
• Enterprise Value/Gross Profit: 2.93
• Enterprise Value/Ebitda: -1.48
• 1Y Price Target: $23.00
• Price Target Upside: 0.00%
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 53 Neutral
• Price Target: $23.50 ▲(2.17%Upside)

Paramount Global's overall score is primarily affected by financial performance challenges, including declining revenue and high leverage. Positive earnings call sentiment and technical analysis provide some offsets, but valuation concerns and financial instability weigh heavily on the overall score.

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 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 Financial Statement Overview

Summary

Paramount Global faces significant financial challenges, with declining revenue and profitability, negative net income, and increasing leverage. While the balance sheet shows a reasonable equity ratio, cash flow trends are weakening, indicating a need for operational improvements.

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.

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.

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	28.72B	29.21B	29.65B	30.15B	28.59B	25.29B
Gross Profit	9.26B	9.78B	7.26B	10.31B	10.84B	10.29B
EBITDA	-4.41B	-4.92B	85.00M	2.60B	4.39B	15.62B
Net Income	-5.32B	-6.19B	-608.00M	1.10B	4.54B	2.42B
Balance Sheet
Total Assets	45.40B	46.17B	53.54B	58.39B	58.62B	52.66B
Cash, Cash Equivalents and Short-Term Investments	2.67B	2.66B	2.46B	2.88B	6.27B	2.98B
Total Debt	15.53B	15.55B	15.86B	17.27B	19.31B	21.32B
Total Liabilities	28.47B	29.39B	30.49B	34.79B	35.65B	36.61B
Stockholders Equity	16.54B	16.32B	22.53B	23.04B	22.40B	15.37B
Cash Flow
Free Cash Flow	403.00M	489.00M	147.00M	-139.00M	599.00M	1.97B
Operating Cash Flow	672.00M	752.00M	475.00M	219.00M	953.00M	2.29B
Investing Cash Flow	165.00M	12.00M	942.00M	-526.00M	2.40B	56.00M
Financing Cash Flow	-553.00M	-507.00M	-1.84B	-2.98B	-152.00M	-90.00M

Paramount Global Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 23.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 is above the 20-day moving average (MA) of 22.75, above the 50-day MA of 22.63, and above the 200-day MA of 22.41, indicating a bullish trend. The MACD of 0.11 indicates Negative momentum. The RSI at 55.45 is Neutral, neither overbought nor oversold. The STOCH value of 82.61 is Negative, 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	81 Outperform	$23.61B	13.64	16.89%	0.98%	15.70%	26.73%
NFLX	79 Outperform	$548.83B	60.94	40.84%	―	14.11%	47.22%
DIS	78 Outperform	$221.41B	25.15	8.75%	0.81%	5.33%	431.28%
ROKU	75 Outperform	$12.92B	―	-4.34%	―	17.30%	81.72%
Sector *	61 Neutral	$40.70B	-0.98	-11.97%	3.93%	2.03%	-69.70%
WBD	59 Neutral	$27.26B	―	-27.69%	―	-5.58%	-254.85%
PARAA	53 Neutral	$8.88B	―	-28.56%	0.87%	-4.50%	-898.86%