Starz Entertainment Corp (STRZ) AI Stock Analysis

• Market Cap: $238.79M
• Dividend Yield: N/A
• Average Volume (3M): 152.96K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.36
• 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: 16,721,810
• 10 Day Avg. Volume: 107,907
• 30 Day Avg. Volume: 152,964
• 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: 3.84
• Enterprise Value/Revenue: 1.07
• Enterprise Value/Gross Profit: 1.47
• Enterprise Value/Ebitda: 1.98
• 1Y Price Target: $17.79
• Price Target Upside: 25.55% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 7

• Rating: 44 Neutral
• Price Target: $12.50 ▼(-11.79% 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

Subscription Model

The subscription-based model provides a steady revenue stream, reducing reliance on advertising and offering potential for consistent cash flow.

Content Library

A strong content library enhances customer retention and attracts new subscribers, supporting long-term growth in a competitive market.

International Licensing

International licensing diversifies revenue streams and expands global reach, providing resilience against domestic market fluctuations.

Negative Factors

Declining Revenue

Declining revenue indicates challenges in maintaining subscriber growth and market share, impacting long-term financial stability.

Profitability Challenges

Negative profitability metrics suggest operational inefficiencies and may hinder investment in content and technology, affecting competitiveness.

Cash Flow Issues

Severe cash flow issues limit the company's ability to invest in growth opportunities and meet financial obligations, threatening long-term viability.

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 is facing significant financial challenges across all verticals. The income statement shows declining revenue and profitability, while the balance sheet reflects moderate leverage but poor returns on equity. Cash flow issues are evident, with negative growth and inefficiencies in cash generation. The company needs to address these challenges to improve its financial health and stability.

Income Statement

Starz Entertainment Corp has experienced significant revenue decline in the TTM, with a negative revenue growth rate of -37.6%. The company is facing profitability challenges, as indicated by negative net profit and EBIT margins. Despite a positive EBITDA margin, the overall income statement reflects financial instability and declining performance.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio of 0.91 in the TTM, indicating manageable leverage. However, the negative return on equity suggests the company is not generating sufficient returns on shareholders' investments. The equity ratio is not provided, but the overall balance sheet indicates a need for improved financial health and stability.

Cash Flow

Cash flow analysis reveals a concerning free cash flow growth rate of -397.2% in the TTM, highlighting cash flow challenges. The operating cash flow to net income ratio is negative, indicating inefficiencies in converting income into cash. Despite a positive free cash flow to net income ratio, the cash flow statement suggests liquidity issues.

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	1.68B	17.53	0.00%	0.33%	1.91%	169.96%
ZD	73 Outperform	1.50B	25.23	3.59%	―	5.94%	-8.89%
SPHR	65 Neutral	2.17B	-39.46	-6.97%	―	25.25%	-106.76%
AMC	51 Neutral	1.49B	-3.26	21.04%	―	9.42%	39.83%
ATUS	46 Neutral	1.13B	-4.18	21.93%	―	-3.82%	-363.28%
STRZ	44 Neutral	$238.79M	―		―	-2.85%	75.96%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%