Starz Entertainment Corp (STRZ) AI Stock Analysis

• Market Cap: $155.26M
• Dividend Yield: N/A
• Average Volume (3M): 107.53K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.25
• Revenue Growth: -2.85%
• EPS Growth: 75.96%
• Country: US
• Employees: 1,717
• Sector: Communication Services
• Sector Strength: 97
• Industry: Entertainment
• EPS (TTM): -3.15
• Shares Outstanding: 16,731,047
• 10 Day Avg. Volume: 75,895
• 30 Day Avg. Volume: 107,525
• 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: 4.71
• Enterprise Value/Revenue: 0.28
• Enterprise Value/Gross Profit: 0.63
• Enterprise Value/Ebitda: 0.52
• 1Y Price Target: $39.00
• Price Target Upside: 325.30% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 42 Neutral
• Price Target: $8.50 ▼(-7.31% Downside)
• Action: Reiterated Date: 02/06/26
• Date: Action: Reiterated 02/06/26

The score is driven primarily by weak financial performance (declining revenue, ongoing losses, high leverage, and negative cash flows). Technicals add further pressure with a clear downtrend and bearish momentum, while valuation is hard to support due to losses (negative P/E) and no dividend data.

Positive Factors

Strong gross margin

A 61.8% gross margin indicates durable content or distribution economics versus peers. High gross margin provides structural buffer to cover fixed costs and supports margin recovery if revenue stabilizes, improving long-term path to profitability.

Recognizable brand & content focus

A well-known premium brand and focus on original and licensed programming creates lasting competitive advantages in subscriber retention, licensing, and distribution partnerships, supporting steady long-term revenue channels beyond ad-driven volatility.

Stable equity ratio

A stable equity ratio signals a balanced asset mix and less volatile capital structure versus peers. That stability supports refinancing capacity and strategic flexibility during restructuring or content investment cycles over medium term.

Negative Factors

Declining revenue

A steep TTM revenue decline (-24.43%) erodes scale economics in content and distribution. Shrinking top-line reduces leverage to spread fixed content costs, pressures subscriber economics, and makes sustainable margin recovery and reinvestment harder over months.

Negative operating & free cash flow

Persistent negative operating and free cash flows, with FCF shrinking -27.72%, indicate structural cash burn. This constrains content spend, necessitates external funding, and limits ability to self-finance growth or withstand prolonged subscriber weakness.

High leverage and negative ROE

A debt-to-equity near 0.92 combined with negative ROE raises refinancing and interest-service risk while the company remains unprofitable. Elevated leverage reduces operational flexibility and heightens vulnerability to funding stress over the medium term.

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

Weak fundamentals: sharp revenue decline (TTM growth -24.43%), negative profitability (net profit and EBIT margins), high leverage (debt-to-equity 0.92), and negative operating/free cash flow with falling FCF growth (-27.72%). A strong gross margin (61.8%) is a partial offset but not enough to outweigh cash flow and loss concerns.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	2.58B	1.37B	1.39B	3.85B	3.60B	3.27B
Gross Profit	1.16B	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	-157.48M	-63.60M	-152.20M	-472.60M	-920.30M	29.40M
Operating Cash Flow	-136.51M	-46.00M	-131.80M	-438.30M	-725.80M	64.40M
Investing Cash Flow	110.46M	-99.20M	-24.80M	-42.50M	-80.50M	-31.10M
Financing Cash Flow	21.71M	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	$1.23B	15.27	27.94%	0.47%	2.52%	10.02%
ZD	61 Neutral	$1.05B	23.95	6.26%	―	5.70%	97.88%
SPHR	61 Neutral	$4.02B	-379.52	1.44%	―	24.54%	-119.75%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
AMC	46 Neutral	$619.57M	-0.89	―	―	9.74%	12.29%
STRZ	42 Neutral	$155.26M	-7.77	―	―	-2.85%	75.96%