Starz Entertainment Corp (STRZ) AI Stock Analysis

• Market Cap: $202.78M
• Dividend Yield: N/A
• Average Volume (3M): 98.06K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.02
• Revenue Growth: -2.85%
• EPS Growth: 75.96%
• Country: US
• Employees: 1,717
• Sector: Communication Services
• Sector Strength: 97
• Industry: Entertainment
• EPS (TTM): -2.54
• Shares Outstanding: 16,731,047
• 10 Day Avg. Volume: 75,986
• 30 Day Avg. Volume: 98,058
• 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: 4.05
• Enterprise Value/Revenue: 0.32
• Enterprise Value/Gross Profit: 0.86
• Enterprise Value/Ebitda: 0.58
• 1Y Price Target: $20.00
• Price Target Upside: 65.02% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 45 Neutral
• Price Target: $11.50 ▼(-5.12% Downside)

Starz Entertainment Corp's overall stock score is primarily impacted by its weak financial performance, characterized by declining revenues and high leverage. The technical analysis provides mixed signals, with a lack of upward momentum. The valuation is concerning due to a negative P/E ratio and no dividend yield, further weighing down the score.

Positive Factors

Strong Gross Profit Margin

A strong gross profit margin indicates operational efficiency, allowing Starz to maintain profitability potential despite revenue challenges.

Subscription-Based Revenue Model

The subscription-based model provides a stable and recurring revenue stream, enhancing financial predictability and customer retention.

International Distribution Deals

International distribution expands market reach and diversifies revenue sources, reducing dependency on domestic markets.

Negative Factors

High Leverage

Significant leverage can increase financial risk and limit strategic flexibility, impacting long-term financial health.

Declining Revenue

Declining revenue growth indicates potential market challenges and could pressure profitability and cash flows over time.

Negative Cash Flow

Negative cash flow limits the ability to invest in growth opportunities and may necessitate additional financing, increasing financial risk.

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

Starz Entertainment Corp is facing financial challenges with declining revenues, negative profitability, and high leverage. While there are some operational efficiencies, the overall financial health is concerning, with significant risks related to cash flow and debt management.

Income Statement

Starz Entertainment Corp has experienced significant revenue decline, with a TTM revenue growth rate of -24.43%. The company is facing profitability challenges, as indicated by negative net profit and EBIT margins. However, the gross profit margin remains relatively strong at 61.8%, suggesting some operational efficiency.

Balance Sheet

The company's balance sheet shows a high debt-to-equity ratio of 0.92 in the TTM period, indicating significant leverage. The return on equity is negative, reflecting ongoing losses. However, the equity ratio is stable, suggesting a balanced asset structure.

Cash Flow

Cash flow analysis reveals negative operating and free cash flows, with a declining free cash flow growth rate of -27.72% in the TTM period. The operating cash flow to net income ratio is low, indicating challenges in converting earnings into cash.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.58B	1.37B	1.39B	3.85B	3.60B	3.27B
Gross Profit	952.70M	496.20M	537.90M	1.35B	1.31B	1.40B
EBITDA	1.42B	630.80M	-98.00M	141.20M	1.73B	1.49B
Net Income	-139.50M	-211.20M	-915.20M	-2.01B	-188.20M	-18.90M
Balance Sheet
Total Assets	1.97B	2.17B	7.09B	7.43B	8.99B	8.31B
Cash, Cash Equivalents and Short-Term Investments	37.00M	17.80M	357.70M	300.00M	384.60M	528.70M
Total Debt	612.50M	1.09B	3.46B	4.25B	4.31B	3.50B
Total Liabilities	1.31B	1.41B	7.28B	6.30B	5.99B	5.29B
Stockholders Equity	663.20M	766.40M	-312.70M	784.50M	2.68B	2.79B
Cash Flow
Free Cash Flow	-157.42M	-63.60M	-152.20M	-472.60M	-920.30M	29.40M
Operating Cash Flow	-136.42M	-46.00M	-131.80M	-438.30M	-725.80M	64.40M
Investing Cash Flow	110.63M	-99.20M	-24.80M	-42.50M	-80.50M	-31.10M
Financing Cash Flow	21.50M	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	$1.31B	16.20	27.94%	0.46%	2.52%	10.02%
ZD	69 Neutral	$1.42B	14.58	6.26%	―	5.70%	97.88%
SPHR	66 Neutral	$3.17B	-30.03	-4.46%	―	24.54%	-119.75%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
AMC	47 Neutral	$1.09B	-1.50	―	―	9.74%	12.29%
STRZ	45 Neutral	$202.78M	-10.14	―	―	-2.85%	75.96%
ATUS	40 Underperform	―	―	―	―	-4.19%	-982.67%

Starz Entertainment Corp Corporate Events

Starz Entertainment Corp. Reports Strong Subscriber Growth Amid Q3 Financial Results

Starz Entertainment Corp. announced its financial results for the third quarter of 2025, reporting a consolidated revenue of $320.9 million and an operating loss of $34.8 million. Despite the loss, the company saw a significant increase in U.S. OTT subscribers, with a year-to-date growth of 520,000 and a year-over-year growth of 670,000. Engagement on the STARZ app reached a 12-month high, and management remains optimistic about the company’s outlook for 2025, driven by a strong slate of original content and strategic initiatives post-separation as a standalone public company.

The most recent analyst rating on (STRZ) stock is a Buy with a $39.00 price target. To see the full list of analyst forecasts on Starz Entertainment Corp stock, see the STRZ Stock Forecast page.