Starz Entertainment Corp (STRZ) AI Stock Analysis

• Market Cap: $222.40M
• Dividend Yield: N/A
• Average Volume (3M): 159.65K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.62
• Revenue Growth: -2.85%
• EPS Growth: 75.96%
• Country: US
• Employees: 1,717
• Sector: Communication Services
• Sector Strength: 92
• Industry: Entertainment
• EPS (TTM): -2.54
• Shares Outstanding: 16,721,810
• 10 Day Avg. Volume: 251,189
• 30 Day Avg. Volume: 159,645
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 4.12
• Enterprise Value/Revenue: 1.07
• Enterprise Value/Gross Profit: 1.47
• Enterprise Value/Ebitda: 1.98
• 1Y Price Target: $21.21
• Price Target Upside: 59.35% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 44 Neutral
• Price Target: $12.50 ▼(-6.09% Downside)

Starz Entertainment Corp's overall stock score is primarily impacted by its poor financial performance, characterized by declining revenue, profitability, and cash flow issues. Technical analysis further supports a bearish outlook with negative momentum indicators. The valuation is unattractive due to negative earnings and lack of dividend yield. These factors collectively contribute to a low overall stock score.

Positive Factors

Content Strategy

Positives underpinning management expectations for mild 3Q and 4Q revenue growth are strong metrics for Outlander prequel Blood of My Blood, providing a new anchor for the female romance signature IP and a new P-Valley entry appealing to urban demographics.

Cost Management

A stronger second-half slate and expense controls leave '25 adjusted OIBDA guide unchanged.

Subscriber Growth

Management expects OTT sub growth over the next two quarters, with sub trends improving primarily due to the successful premiere of Outlander: Blood of My Blood.

Negative Factors

Market Competition

In a highly competitive streaming market, Starz's lack of scale limits growth potential.

Revenue Challenges

Starz's 2Q25 results underscored revenue challenges facing sub-scale players in the competitive US TV and streaming industry.

Subscriber Decline

North American subscribers declined, with a shortfall in expectations primarily due to streaming subscriber losses.

Starz Entertainment Corp Business Overview & Revenue Model

Company Description

Starz Entertainment Corp. provides subscription video programming to consumers in the United States and Canada. Its business consists of the distribution of STARZ-branded premium subscription video services through over-the-top platforms and distributors on a direct to-consumer basis through the STARZ-branded app and through multichannel video programming distributors. The company is based in Vancouver, Canada.

How the Company Makes Money

Starz Entertainment Corp primarily generates revenue through subscription fees from its streaming service. The company offers a subscription-based model where users pay a monthly fee to access its vast library of content. This model includes direct-to-consumer subscriptions through the STARZ app and indirect subscriptions via partnerships with cable and satellite providers who offer STARZ as part of their channel packages. Additionally, Starz benefits from international licensing agreements, where it licenses its original content to other broadcasters and streaming platforms outside the United States. These multiple revenue streams, combined with strategic partnerships and a focus on high-quality, original content, contribute significantly to the company's earnings.

Starz Entertainment Corp Financial Statement Overview

Summary

Starz Entertainment Corp faces significant financial challenges with a 65.9% decline in revenue, negative net income, and high leverage. Despite a strong EBITDA margin, the company struggles with negative cash flows and a strained balance sheet.

Income Statement

Starz Entertainment Corp has seen a significant decline in revenue from $4.02 billion to $1.37 billion, a drop of about 65.9%. The gross profit margin stands at 48.7%, which is decent but overshadowed by negative net income. The net profit margin is negative due to substantial losses, with a current net income of -$211 million. EBIT and EBITDA margins are mixed, with a negative EBIT margin indicating operational challenges, while the EBITDA margin remains a healthy 46.6%, suggesting strong cash-generating capability despite operating losses.

Balance Sheet

The balance sheet shows a strained financial position, with a high debt-to-equity ratio of approximately 0.99, indicating significant leverage. The return on equity is negative, reflecting the company's ongoing losses. However, the equity ratio is 35.3%, suggesting that a reasonable portion of the company's assets is financed by equity, but the overall stability is questionable due to high liabilities relative to equity.

Cash Flow

Starz Entertainment Corp's cash flow statement reveals a challenging situation, with negative operating cash flow of -$46 million and free cash flow of -$63.6 million. The free cash flow to net income ratio is negative, indicating insufficient cash generation to cover losses. The operating cash flow to net income ratio is also unfavorable, demonstrating difficulties in converting income into cash flow.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	854.60M	1.37B	4.02B	3.85B	3.60B	3.27B
Gross Profit	625.30M	667.60M	1.63B	1.35B	1.31B	1.40B
EBITDA	463.70M	638.20M	884.50M	141.20M	1.73B	1.49B
Net Income	-194.30M	-211.20M	-1.10B	-2.01B	-188.20M	-18.90M
Balance Sheet
Total Assets	2.09B	2.17B	7.09B	7.43B	8.99B	8.31B
Cash, Cash Equivalents and Short-Term Investments	51.60M	17.80M	357.70M	300.00M	384.60M	528.70M
Total Debt	675.60M	755.40M	3.46B	4.25B	4.31B	3.50B
Total Liabilities	1.38B	1.41B	7.28B	6.30B	5.99B	5.29B
Stockholders Equity	712.30M	766.40M	-312.70M	784.50M	2.68B	2.79B
Cash Flow
Free Cash Flow	169.40M	-63.60M	362.10M	-163.30M	-920.30M	29.40M
Operating Cash Flow	184.90M	-46.00M	396.80M	-114.30M	-725.80M	64.40M
Investing Cash Flow	-272.00M	-99.20M	-571.40M	-54.80M	-80.50M	-31.10M
Financing Cash Flow	237.30M	126.00M	234.20M	100.30M	664.30M	173.00M

Starz Entertainment Corp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IDT	79 Outperform	$1.58B	16.54	38.36%	0.35%	1.91%	169.96%
ZD	74 Outperform	$1.55B	26.01	3.56%	―	5.94%	-8.89%
SPHR	62 Neutral	$1.57B	―	-2.03%	―	25.25%	-106.76%
Sector *	60 Neutral	$44.05B	4.50	-12.81%	4.08%	1.86%	-43.08%
AMC	51 Neutral	$1.47B	―	20.03%	―	9.42%	39.83%
ATUS	45 Neutral	$1.12B	―	21.93%	―	-3.82%	-363.28%
STRZ	44 Neutral	$222.40M	―		―	-2.85%	75.96%