Paramount Skydance (PSKY) AI Stock Analysis

• Market Cap: $15.02B
• Dividend Yield: 1.47%
• Average Volume (3M): 11.10M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.20
• Revenue Growth: -0.48%
• EPS Growth: 97.09%
• Country: US
• Employees: 18,600
• Sector: Communication Services
• Sector Strength: 97
• Industry: Entertainment
• EPS (TTM): -0.02
• Shares Outstanding: 1,071,667,000
• 10 Day Avg. Volume: 15,667,160
• 30 Day Avg. Volume: 11,102,202
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.42
• Price to Sales (P/S): 0.23
• P/FCF Ratio: 13.88
• Enterprise Value/Market Cap: 2.15
• Enterprise Value/Revenue: 1.12
• Enterprise Value/Gross Profit: 3.65
• Enterprise Value/Ebitda: 19.70
• 1Y Price Target: $14.08
• Price Target Upside: 4.07% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 16
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 49 Neutral
• Price Target: $13.50 ▼(-0.22% Downside)

Paramount Skydance's overall stock score reflects significant challenges in financial performance and valuation, with bearish technical indicators. While the earnings call provides some positive outlook with subscriber growth and strategic investments, these are balanced by profitability issues and market challenges.

Positive Factors

Subscriber Growth

Strong subscriber growth in Paramount+ indicates increasing consumer demand and strengthens its position in the competitive streaming market, supporting long-term revenue growth.

Strategic Partnerships

Partnerships with major sports entities like UFC enhance content offerings, attracting diverse audiences and bolstering Paramount's competitive edge in the streaming industry.

Efficiency Improvements

Raising efficiency targets reflects a commitment to operational improvements, which can enhance profitability and free cash flow generation over the long term.

Negative Factors

Stagnant Revenue Growth

Stagnant revenue growth suggests challenges in expanding market share and increasing sales, potentially impacting long-term financial performance and competitiveness.

Negative Profit Margins

Negative profit margins indicate difficulty in achieving profitability, which can hinder reinvestment in growth initiatives and affect financial stability.

Content Write-downs

Content write-downs reflect challenges in content valuation and financial planning, potentially leading to reduced investor confidence and financial strain.

Paramount Skydance Business Overview & Revenue Model

Company Description

Paramount Skydance (PSKY) is a dynamic entertainment company that operates at the intersection of film production, television, and digital content creation. It focuses on producing high-quality, engaging narratives across various genres, leveraging advanced technologies to enhance storytelling. PSKY is known for its strategic collaborations with leading talent and studios, fostering a creative environment that attracts top-tier filmmakers and artists. The company is committed to delivering compelling content that resonates with global audiences while exploring innovative distribution methods in a rapidly evolving entertainment landscape.

How the Company Makes Money

Paramount Skydance generates revenue through multiple streams, primarily from the production and distribution of films and television shows. The company earns money by licensing its content to streaming platforms, television networks, and international distributors. Additionally, PSKY engages in merchandising and branding opportunities related to its popular franchises and characters. Revenue is further bolstered by partnerships with major studios, investors, and co-production deals that allow for shared financial risk and expanded market reach. The firm also explores digital content monetization, including advertising revenue from online platforms, enhancing its earnings potential in the digital space.

Paramount Skydance Financial Statement Overview

Summary

Paramount Skydance's financial statements reflect a company facing profitability and growth challenges. While there are signs of operational improvements, such as better EBIT and EBITDA margins, the negative net profit margin and stagnant revenue growth are concerning. The balance sheet shows moderate leverage and stable asset management, but the negative return on equity highlights profitability issues. Cash flow management is adequate, but the company needs to enhance cash generation to support growth and profitability.

Income Statement

Paramount Skydance's income statement shows a mixed performance. The TTM data reveals a stagnant revenue growth rate, indicating challenges in expanding sales. The gross profit margin has decreased over the years, reflecting increased cost pressures. The net profit margin is negative, highlighting ongoing profitability issues. However, there is a slight improvement in EBIT and EBITDA margins in the TTM period compared to the previous year, suggesting some operational efficiency gains.

Balance Sheet

The balance sheet presents a moderate financial position. The debt-to-equity ratio has improved slightly in the TTM period, indicating better leverage management. However, the return on equity remains negative, pointing to challenges in generating returns for shareholders. The equity ratio is stable, suggesting a balanced asset structure. Overall, the company shows some stability but faces profitability challenges.

Cash Flow

Cash flow analysis indicates a stable but not strong cash position. The free cash flow growth rate is stagnant in the TTM period, and the operating cash flow to net income ratio is low, reflecting limited cash generation relative to net income. The free cash flow to net income ratio is relatively healthy, suggesting some efficiency in converting profits into cash. Overall, cash flow management appears adequate but not robust.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	28.73B	29.21B	29.65B	30.15B	28.59B	25.29B
Gross Profit	8.84B	8.27B	7.26B	9.90B	10.45B	9.90B
EBITDA	1.64B	-4.92B	85.00M	2.60B	19.93B	15.62B
Net Income	-272.00M	-6.19B	-1.04B	1.10B	4.54B	2.42B
Balance Sheet
Total Assets	43.18B	46.17B	53.54B	58.39B	58.62B	52.66B
Cash, Cash Equivalents and Short-Term Investments	3.26B	2.66B	2.46B	2.88B	6.27B	2.98B
Total Debt	14.73B	15.83B	16.12B	17.57B	19.63B	21.62B
Total Liabilities	29.91B	29.39B	30.49B	34.79B	35.65B	36.41B
Stockholders Equity	12.01B	16.32B	22.53B	23.04B	22.40B	15.37B
Cash Flow
Free Cash Flow	308.00M	489.00M	147.00M	-139.00M	599.00M	1.97B
Operating Cash Flow	600.00M	752.00M	475.00M	219.00M	953.00M	2.29B
Investing Cash Flow	-61.00M	-115.00M	849.00M	-744.00M	2.16B	56.00M
Financing Cash Flow	-1.12B	-380.00M	-1.75B	-2.76B	83.00M	-90.00M

Paramount Skydance Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 13.53
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PSKY, the sentiment is Negative. The current price of 13.53 is below the 20-day moving average (MA) of 14.34, below the 50-day MA of 15.28, and below the 200-day MA of 13.74, indicating a bearish trend. The MACD of -0.62 indicates Positive momentum. The RSI at 41.00 is Neutral, neither overbought nor oversold. The STOCH value of 22.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PSKY.

Paramount Skydance Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FOXA	77 Outperform	$30.55B	16.59	17.33%	0.75%	14.91%	9.30%
DIS	75 Outperform	$200.63B	16.53	11.78%	1.10%	3.61%	152.34%
NFLX	73 Outperform	$426.01B	39.06	42.86%	―	15.49%	35.54%
WBD	68 Neutral	$71.25B	155.38	1.36%	―	-4.29%	―
WMG	64 Neutral	$15.64B	43.18	61.97%	2.47%	4.37%	-16.22%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
PSKY	49 Neutral	$15.02B	-51.86	-1.90%	1.47%	-0.48%	97.09%

Paramount Skydance Corporate Events

Paramount Skydance extends enhanced cash offer for WBD

On December 22, 2025, Paramount Skydance Corporation amended and extended its previously announced $30-per-share all-cash tender offer to acquire all outstanding shares of Warner Bros. Discovery, Inc., directly challenging WBD’s agreement to pursue a separate transaction with Netflix. To address concerns raised by WBD over financing and deal certainty, Paramount added an irrevocable personal guarantee from Larry Ellison for $40.4 billion of equity financing and potential damages, committed not to revoke or strip assets from the long-standing Ellison family trust, disclosed the trust’s ownership of roughly 1.16 billion Oracle shares, enhanced operational flexibility for WBD in a proposed merger agreement, increased its regulatory reverse termination fee to $5.8 billion and maintained conditions including WBD’s continued ownership of its Global Networks business. Paramount criticized WBD’s disclosures around the Netflix deal as incomplete, argued its fully financed cash bid remains superior for WBD shareholders and stakeholders, and extended the tender offer’s expiration to January 21, 2026, with 397,252 shares reported as validly tendered as of December 19, 2025.

Paramount Skydance Announces Tender Offer for Warner Bros.

On December 8, 2025, Paramount Skydance Corporation announced an all-cash tender offer to acquire all outstanding shares of Warner Bros. Discovery, Inc. for $30 per share. This proposal is positioned as a superior alternative to a competing offer from Netflix, which Paramount argues provides inferior value and involves a complex regulatory process. Paramount’s offer is supported by significant financial backing and aims to create a combined entity that enhances competition, supports creative talent, and strengthens the theatrical and direct-to-consumer markets.