Paramount Group (PGRE) AI Stock Analysis

• Market Cap: $1.57B
• Dividend Yield: N/A
• Average Volume (3M): 1.93M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.60
• Revenue Growth: -5.29%
• EPS Growth: 54.66%
• Country: US
• Employees: 316
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Office
• EPS (TTM): -0.13
• Shares Outstanding: 221,919,160
• 10 Day Avg. Volume: 3,128,970
• 30 Day Avg. Volume: 1,926,870
• PEG Ratio: 0.28
• Price to Book (P/B): 0.34
• Price to Sales (P/S): 1.42
• P/FCF Ratio: 4.05
• Enterprise Value/Market Cap: 3.55
• Enterprise Value/Revenue: 7.70
• Enterprise Value/Gross Profit: 13.45
• Enterprise Value/Ebitda: 19.17
• 1Y Price Target: $6.60
• Price Target Upside: 0.15% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 3
• EPS Forecast (FY): -0.33
• Revenue Forecast (FY): $679.58M

• Rating: 58 Neutral
• Price Target: $7.00 ▲(6.22% Upside)

The overall stock score is primarily influenced by the positive impact of the acquisition announcement, which offsets the weak financial performance and valuation concerns. Technical analysis suggests a neutral market position, while the lack of earnings call data limits further insights.

Positive Factors

Acquisition by Rithm Capital

The acquisition by Rithm Capital is a strategic move that can enhance Paramount's market position and provide growth opportunities in the commercial real estate sector.

Cash Flow Generation

Strong free cash flow growth indicates robust cash generation, providing financial flexibility for investments and debt servicing.

Sustainable Development Focus

A focus on sustainable development can attract environmentally conscious tenants and investors, enhancing long-term business resilience.

Negative Factors

Declining Revenue Growth

A decline in revenue growth suggests challenges in expanding market share or increasing tenant demand, which could impact future profitability.

Negative Profit Margin

A negative profit margin indicates ongoing losses, which may hinder the company's ability to reinvest in growth and maintain financial health.

Negative Return on Equity

Negative ROE reflects poor profitability and inefficient use of equity, which can deter investors and limit capital raising capabilities.

Paramount Group Business Overview & Revenue Model

Company Description

Paramount Group, Inc. (PGRE) is a publicly traded real estate investment trust (REIT) that primarily focuses on owning, operating, and managing high-quality office properties in key urban markets in the United States. The company is recognized for its commitment to sustainable development and tenant satisfaction, offering a portfolio mainly concentrated in New York City and San Francisco. Paramount Group's core services include property leasing, management, and development, catering to a diverse range of tenants, including Fortune 500 companies.

How the Company Makes Money

Paramount Group generates revenue primarily through leasing office space to tenants, which constitutes its main revenue stream. The company benefits from long-term leases with tenants, providing it with stable and predictable cash flow. Additionally, PGRE engages in property management services, earning fees for managing its own properties and, in some cases, third-party properties. The company also focuses on value creation through strategic property acquisitions and developments, enhancing its portfolio and increasing rental income over time. Partnerships with local businesses and organizations further contribute to its earnings by fostering community engagement and attracting tenants seeking premium office space in prime locations.

Paramount Group Financial Statement Overview

Summary

Paramount Group's financial performance is challenged by a negative net profit margin and declining revenue growth, indicating profitability issues. The balance sheet is stable but shows stress with negative returns on equity. Cash flow is strong with positive free cash flow growth, but profitability concerns remain.

Income Statement

Paramount Group's income statement reflects challenges in profitability with a negative net profit margin of -10.49% TTM, indicating losses. The gross profit margin remains healthy at 58.35% TTM, but revenue growth has declined by 1.37% TTM, highlighting potential issues in revenue generation. The EBIT and EBITDA margins have also decreased, suggesting operational inefficiencies.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio of 1.22 TTM, indicating a balanced leverage position. However, the return on equity is negative at -2.51% TTM, reflecting poor profitability. The equity ratio is stable, suggesting a solid asset base, but the negative ROE is a concern for investors.

Cash Flow

Cash flow analysis reveals a positive free cash flow growth rate of 60.9% TTM, indicating improved cash generation. The operating cash flow to net income ratio is strong at 1.18 TTM, showing good cash conversion. However, the reliance on free cash flow to cover net income is a potential risk if profitability does not improve.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	723.29M	757.45M	742.79M	740.38M	726.79M	714.24M
Gross Profit	413.93M	454.17M	198.18M	462.95M	461.35M	446.65M
EBITDA	290.50M	359.91M	27.54M	345.29M	371.08M	356.85M
Net Income	-97.40M	-46.29M	-259.74M	-36.40M	-20.35M	-14.12M
Balance Sheet
Total Assets	7.97B	7.87B	8.01B	8.45B	8.49B	8.55B
Cash, Cash Equivalents and Short-Term Investments	330.21M	375.06M	428.21M	408.90M	524.90M	434.53M
Total Debt	3.71B	3.68B	3.80B	3.84B	3.84B	3.80B
Total Liabilities	3.90B	3.86B	3.99B	4.04B	4.04B	4.04B
Stockholders Equity	3.02B	3.14B	3.20B	3.59B	3.59B	3.65B
Cash Flow
Free Cash Flow	165.44M	264.93M	177.33M	120.83M	132.31M	237.27M
Operating Cash Flow	165.44M	264.93M	277.86M	246.64M	244.31M	237.27M
Investing Cash Flow	-102.10M	-109.11M	-113.09M	-152.58M	-103.48M	40.03M
Financing Cash Flow	104.00M	-109.97M	-104.99M	-173.90M	-76.48M	-143.47M

Paramount Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.59
• 50DMA: Positive
• 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 PGRE, the sentiment is Positive. The current price of 6.59 is above the 20-day moving average (MA) of 6.58, above the 50-day MA of 6.56, and above the 200-day MA of 5.94, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 54.11 is Neutral, neither overbought nor oversold. The STOCH value of 37.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PGRE.

Paramount Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
PGRE	58 Neutral	$1.57B	-14.80	-3.14%	―	-5.29%	54.66%
DEA	58 Neutral	$1.03B	73.37	1.00%	9.09%	11.02%	-30.91%
PDM	55 Neutral	$1.09B	-15.03	-4.45%	5.88%	-1.23%	9.10%
BDN	54 Neutral	$536.58M	-2.84	-19.17%	17.55%	-5.52%	40.27%
HPP	46 Neutral	$682.70M	-0.65	-14.02%	―	-7.89%	-15.88%
JBGS	46 Neutral	$1.26B	-8.43	-10.10%	4.01%	-11.04%	-58.49%

Paramount Group Corporate Events

Paramount Group Reaffirms Merger with Rithm Capital

On September 17, 2025, Paramount Group entered into a Merger Agreement with Rithm Capital Corp. and its subsidiaries, which involves merging the Operating Partnership and the Company with Rithm’s subsidiaries. This merger will result in the Operating Partnership and the Surviving Entity being indirectly controlled by Rithm. On December 8, 2025, Sponsor A submitted a non-binding proposal to acquire all shares of Paramount Group at $6.95 per share, which was deemed less favorable compared to the existing Merger Agreement. The Board of Paramount Group, after reviewing the proposal, reaffirmed its recommendation to proceed with the Merger Agreement with Rithm, citing deficiencies in Sponsor A’s proposal, including lack of committed financing and clarity on terms.

Paramount Group to be Acquired by Rithm Capital

On September 17, 2025, Paramount Group, Inc. announced a definitive agreement to be acquired by Rithm Capital Corp. for approximately $1.6 billion. This acquisition will provide Rithm with a Class A office portfolio in premier markets, expanding its commercial real estate footprint and asset management capabilities. The transaction, approved by the boards of both companies, will see Rithm acquire all outstanding shares of Paramount common stock for $6.60 per share. The merger is expected to close in late Q4 2025, subject to customary conditions including stockholder approval. This strategic move is anticipated to enhance Rithm’s position in the commercial real estate market and provide new opportunities for investors.