Starz Entertainment Corp (STRZ) AI Stock Analysis

• Market Cap: $184.59M
• Dividend Yield: N/A
• Average Volume (3M): 111.15K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.08
• Revenue Growth: -2.85%
• EPS Growth: 75.96%
• Country: US
• Employees: 1,717
• Sector: Communication Services
• Sector Strength: 97
• Industry: Entertainment
• EPS (TTM): -1.24
• Shares Outstanding: 16,731,047
• 10 Day Avg. Volume: 86,112
• 30 Day Avg. Volume: 111,146
• PEG Ratio: 0.01
• Price to Book (P/B): 0.24
• Price to Sales (P/S): 0.14
• P/FCF Ratio: -2.94
• Enterprise Value/Market Cap: 4.13
• Enterprise Value/Revenue: 0.39
• Enterprise Value/Gross Profit: 0.96
• Enterprise Value/Ebitda: 0.82
• 1Y Price Target: $27.00
• Price Target Upside: 145.45% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): -3.68
• Revenue Forecast (FY): $1.30B

• Rating: 44 Neutral
• Price Target: $10.50 ▼(-4.55% Downside)
• Action: Reiterated Date: 02/28/26
• Date: Action: Reiterated 02/28/26

The score is primarily held back by weak financial performance—sharp revenue contraction, ongoing net losses, and continued negative operating and free cash flow—despite an improved balance sheet versus prior years. Technicals are mixed with only short-term strength against a weaker longer-term trend, and valuation is difficult to support due to negative earnings and no dividend yield data.

Positive Factors

Improved Balance Sheet

A materially stronger balance sheet and roughly 0.95 debt/equity ratio provide durable financial flexibility. This reduces refinancing risk, supports continued content investment and licensing, and gives the company time to stabilize operations without immediate solvent distress.

Improving Margins and Positive EBIT

A higher gross margin (~41%) and modest positive EBIT indicate core content and distribution economics are improving. If top-line pressure eases, these margin gains can scale into sustainable operating profitability without proportional increases in content spend.

Established Premium Streaming Brand

A recognized premium brand and existing streaming distribution create durable customer relationships and licensing leverage. Brand equity and an owned content pipeline support subscriber retention, third-party licensing, and monetization across evolving OTT market structures.

Negative Factors

Sharp Revenue Contraction

A 25% TTM revenue decline is a structural headwind: it erodes scale economics and bargaining power for content/licensing, constrains marketing and product investment, and makes it harder to achieve operating leverage needed to reach sustainable profitability.

Persistent Negative Cash Flow

Ongoing negative operating and free cash flow drain resources and limit the company’s ability to fund original programming or platform improvements internally. Continued cash burn increases reliance on external financing or asset sales, pressuring long-term investment plans.

Negative Return on Equity

A roughly -28% ROE signals that the company’s capital base is not earning returns and shareholder capital is being depleted. This structural profitability shortfall requires sustained revenue recovery and margin expansion to restore long-term investor returns.

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 generates revenue primarily through its subscription-based model, where customers pay for access to its streaming service and cable channel offerings. The company has multiple key revenue streams including direct-to-consumer subscriptions, licensing agreements with other platforms and networks, and advertising sales from its cable channels. Significant partnerships with major distributors, such as cable operators and streaming platforms like Amazon Prime Video, also contribute to its earnings by expanding its audience reach and providing bundled subscription options. Additionally, Starz monetizes its content through international distribution and syndication deals, which further enhances its revenue potential.

Starz Entertainment Corp Financial Statement Overview

Summary

Financials are pressured: TTM revenue declined sharply (-25.1%), the company remains unprofitable (net margin ~-7.1%), and cash burn is significant with negative operating cash flow (~-$46M) and free cash flow (~-$66M). The balance sheet is improved versus prior stressed periods (positive equity and more manageable leverage), but weak returns (negative ROE) and negative cash generation keep the score low.

Income Statement

TTM (Trailing-Twelve-Months) revenue fell sharply (-25.1%), signaling meaningful top-line pressure. Profitability is mixed: gross margin improved to ~41%, but the company remains unprofitable with a negative net margin (~-7.1%) and only modestly positive EBIT (~$12M). While losses are far smaller than in prior years (notably 2023–2024), the current trajectory is still challenged by declining revenue and continued net losses.

Balance Sheet

Leverage looks more manageable in TTM (Trailing-Twelve-Months) with debt roughly in line with equity (debt-to-equity ~0.95) and positive equity (~$646M), a clear improvement versus earlier periods that showed very high leverage and even negative equity (2024). That said, returns remain weak with negative return on equity (about -28%), indicating the capital base is not currently earning a profit and the balance sheet improvement has not yet translated into shareholder returns.

Cash Flow

Cash generation is a key weakness: TTM (Trailing-Twelve-Months) operating cash flow is negative (~-$46M) and free cash flow is also negative (~-$66M), with free cash flow declining further (about -58% growth). The company’s losses are not being offset by strong cash conversion, and the pattern over multiple years shows frequent negative operating and free cash flow (with 2021 being a notable exception).

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	1.93B	1.37B	1.39B	3.85B	3.60B	3.27B
Gross Profit	793.40M	496.20M	537.90M	1.35B	1.31B	1.40B
EBITDA	924.40M	630.80M	-98.00M	141.20M	1.73B	1.49B
Net Income	-138.00M	-211.20M	-915.20M	-2.01B	-188.20M	-18.90M
Balance Sheet
Total Assets	1.91B	2.17B	7.09B	7.43B	8.99B	8.31B
Cash, Cash Equivalents and Short-Term Investments	35.70M	17.80M	357.70M	300.00M	384.60M	528.70M
Total Debt	613.30M	1.09B	3.46B	4.25B	4.31B	3.50B
Total Liabilities	1.27B	1.41B	7.28B	6.30B	5.99B	5.29B
Stockholders Equity	646.00M	766.40M	-312.70M	784.50M	2.68B	2.79B
Cash Flow
Free Cash Flow	-66.10M	-63.60M	-152.20M	-472.60M	-920.30M	29.40M
Operating Cash Flow	-45.60M	-46.00M	-131.80M	-438.30M	-725.80M	64.40M
Investing Cash Flow	114.70M	-99.20M	-24.80M	-42.50M	-80.50M	-31.10M
Financing Cash Flow	-48.20M	126.00M	132.00M	428.10M	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	70 Outperform	$1.28B	15.84	27.94%	0.47%	2.52%	10.02%
SPHR	61 Neutral	$4.23B	-398.96	1.44%	―	24.54%	-119.75%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
ZD	60 Neutral	$1.02B	24.47	2.66%	―	5.70%	97.88%
STRZ	44 Neutral	$184.59M	-9.21	―	―	-2.85%	75.96%
AMC	44 Neutral	$614.27M	-0.89	―	―	9.74%	12.29%