Paramount Skydance (PSKY) AI Stock Analysis

• Market Cap: $15.80B
• Dividend Yield: 1.32%
• Average Volume (3M): 5.60M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.53
• Revenue Growth: -1.75%
• EPS Growth: 99.73%
• Country: US
• Employees: 18,600
• Sector: Communication Services
• Sector Strength: 97
• Industry: Entertainment
• EPS (TTM): 0.46
• Shares Outstanding: 1,064,653,400
• 10 Day Avg. Volume: 4,919,434
• 30 Day Avg. Volume: 5,601,650
• 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: 1.39
• Enterprise Value/Revenue: 0.76
• Enterprise Value/Gross Profit: 2.40
• Enterprise Value/Ebitda: 12.63
• 1Y Price Target: $13.33
• Price Target Upside: -11.72% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 15
• EPS Forecast (FY): 1.27
• Revenue Forecast (FY): $28.69B

• Rating: 61 Neutral
• Price Target: $17.50 ▲(15.89% Upside)

Paramount Global Class B's overall stock score reflects a mixed financial performance with strong cash flow management but challenges in revenue growth and profitability. The earnings call provided positive insights into streaming success and operational efficiency, though technical indicators suggest bearish momentum. Valuation metrics indicate potential financial distress, impacting the overall score.

Positive Factors

Strategic Partnerships

The partnership with Taboola enhances PSKY's advertising reach and effectiveness, leveraging TV's power to boost digital performance, which can lead to sustained revenue growth and competitive advantage.

Streaming Growth

Significant growth in Paramount+ subscribers and revenue indicates strong market position in streaming, a key growth area, supporting long-term revenue expansion and content leadership.

Operational Efficiency

The substantial cost savings initiative enhances profitability and operational agility, positioning PSKY to better navigate industry challenges and invest in strategic growth opportunities.

Negative Factors

Revenue Growth Challenges

Inconsistent revenue growth reflects potential difficulties in maintaining market share and adapting to industry shifts, which could hinder long-term financial performance and strategic goals.

Subscriber Decline

The decline in subscribers due to the expiration of an international distribution agreement highlights vulnerabilities in subscriber retention and the need for strategic adjustments to sustain growth.

Debt Levels

While the debt-to-equity ratio is balanced, the substantial total debt level poses risks during financial strain, potentially limiting financial flexibility and impacting long-term stability.

Paramount Skydance Business Overview & Revenue Model

Company Description

Paramount Skydance (PSKY) is a prominent entertainment company engaged in the production and distribution of high-quality films, television shows, and digital content. A strategic partnership between Paramount Pictures and Skydance Media, PSKY operates predominantly in the film and television sectors, known for its blockbuster franchises, innovative storytelling, and cutting-edge production techniques. The company’s core products include feature films, streaming content, and television series that appeal to a global audience, leveraging both theatrical releases and digital platforms to maximize reach and impact.

How the Company Makes Money

Paramount Skydance generates revenue through multiple streams, primarily from box office sales, licensing agreements, and distribution of its film and television content. The company earns significant income from theatrical releases, where ticket sales contribute to its bottom line. Additionally, PSKY capitalizes on home entertainment sales, including DVD and Blu-ray sales, as well as digital downloads and rentals. Another key revenue stream comes from licensing its content to streaming platforms, television networks, and international distributors. Strategic partnerships with platforms like Netflix, Amazon Prime, and others enhance its distribution capabilities, further diversifying revenue. Merchandise sales tied to popular franchises also provide additional income, while promotional partnerships and sponsorships can add to the overall revenue stream.

Paramount Skydance Financial Statement Overview

Summary

Paramount Global Class B demonstrates a mixed financial performance. Improvements in operating efficiency and cash flow management are evident, but challenges persist in revenue growth and profitability. The debt level is a concern, though balanced by a reasonable equity ratio.

Income Statement

Paramount Global Class B has shown a mixed performance in its income statement. The TTM (Trailing-Twelve-Months) gross profit margin is approximately 31.77%, which is moderately strong, indicating effective cost management. However, the net profit margin is quite low at 0.55%, reflecting challenges in converting revenue into net income, which might be due to high operating expenses or other non-operational costs. Revenue growth has been inconsistent, with a slight decline from 2022 to 2023 and a further drop in 2024, indicating potential revenue challenges. The EBIT margin has improved to 4.92% in the TTM from negative figures in the previous year, showing signs of operational improvement.

Balance Sheet

The company exhibits a moderate financial structure with a debt-to-equity ratio of 0.91, suggesting a balanced use of debt and equity financing. The return on equity in the TTM is low at 0.94%, indicating limited returns for shareholders. The equity ratio stands at 37.19%, which is reasonable and suggests a decent level of asset backing by equity. However, the overall stability is hindered by a substantial total debt level, which could pose risks in periods of financial strain.

Cash Flow

Paramount Global Class B shows strong cash flow management with a positive free cash flow trend. The free cash flow to net income ratio is robust at 3.23 in the TTM, indicating effective conversion of income into cash. The operating cash flow to net income ratio is 4.92, further highlighting strong cash generation capabilities. Free cash flow has grown slightly, demonstrating resilience in cash management despite fluctuating net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	28.76B	29.21B	29.65B	30.15B	28.59B	25.29B
Gross Profit	9.14B	8.66B	7.26B	10.31B	10.84B	10.45B
EBITDA	1.74B	-4.92B	85.00M	2.60B	6.58B	15.62B
Net Income	-14.00M	-6.19B	-608.00M	1.10B	4.54B	2.42B
Balance Sheet
Total Assets	44.93B	46.17B	53.54B	58.39B	58.62B	52.66B
Cash, Cash Equivalents and Short-Term Investments	2.74B	2.66B	2.46B	2.88B	6.27B	2.98B
Total Debt	15.51B	15.83B	15.86B	17.27B	19.31B	21.32B
Total Liabilities	27.82B	29.39B	30.49B	34.79B	35.65B	36.61B
Stockholders Equity	16.70B	16.32B	22.53B	23.04B	22.40B	15.37B
Cash Flow
Free Cash Flow	507.00M	489.00M	147.00M	-139.00M	599.00M	1.97B
Operating Cash Flow	772.00M	752.00M	475.00M	219.00M	953.00M	2.29B
Investing Cash Flow	122.00M	12.00M	942.00M	-526.00M	2.40B	56.00M
Financing Cash Flow	-528.00M	-507.00M	-1.84B	-2.98B	-152.00M	-90.00M

Paramount Skydance Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 15.10
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PSKY, the sentiment is Neutral. The current price of 15.1 is below the 20-day moving average (MA) of 16.18, below the 50-day MA of 17.02, and above the 200-day MA of 13.21, indicating a neutral trend. The MACD of -0.64 indicates Positive momentum. The RSI at 35.58 is Neutral, neither overbought nor oversold. The STOCH value of 13.59 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PSKY.

Paramount Skydance Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DIS	77 Outperform	$200.22B	17.46	11.01%	0.90%	5.00%	144.65%
FOXA	77 Outperform	$27.25B	14.58	17.33%	0.84%	14.91%	9.30%
WBD	70 Outperform	$56.35B	74.24	1.36%	―	-4.29%	―
NFLX	69 Neutral	$465.45B	45.83	42.86%	―	15.49%	35.53%
WMG	63 Neutral	$15.54B	52.76	54.66%	2.41%	1.36%	-45.79%
PSKY	61 Neutral	$15.80B	―	-0.11%	1.32%	-1.75%	99.73%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%

Paramount Skydance Corporate Events

Paramount Skydance Appoints Dennis Cinelli to Board

On September 12, 2025, Paramount Skydance Corporation announced the appointment of Dennis Cinelli to its Board of Directors and the Audit Committee, replacing Sherry Lansing in the latter role. This strategic decision aligns with the company’s governance structure, as Cinelli was nominated by Ellison and is eligible for the Non-Employee Director Compensation Program, which includes stock units and potential future awards.

The most recent analyst rating on (PSKY) stock is a Buy with a $16.00 price target. To see the full list of analyst forecasts on Paramount Skydance stock, see the PSKY Stock Forecast page.