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Paramount Global Class B PARA

Morningstar Rating
$10.81 +0.38 (3.64%)
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Company Report

Paramount Is Turning a Corner Toward Streaming Success and Should See Much Better Overall Results

Like peers, Paramount has been in a period of transition and facing significant uncertainty about how and whether the traditional linear television business will co-exist or evolve in a media environment dominated by streaming services. Based on its current state, we think the company has the right strategy for streaming and advantages related to distribution and content ownership that will enable it to successfully manage the industry’s evolution.

Price vs Fair Value

PARA is trading at a 48% discount.
Price
$10.43
Fair Value
$31.00
Uncertainty
Very High
1-Star Price
$76.00
5-Star Price
$32.00
Economic Moat
Qdczn
Capital Allocation
Qclq

Bulls Say, Bears Say

Bulls

CBS is overlooked. NFL rights, television franchises, and continual leadership in prime-time broadcast television will bring value even if pay-TV subscribership continues declining.

Bears

Linear television will continue to decline. Even if successful, newer revenue sources like direct-to-consumer streaming will never equal the profitability Paramount once enjoyed.

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News

Trading Information

Previous Close Price
$10.43
Day Range
$10.4910.90
52-Week Range
$10.1224.00
Bid/Ask
$10.74 / $10.80
Market Cap
$7.05 Bil
Volume/Avg
11.5 Mil / 19.6 Mil

Key Statistics

Price/Earnings (Normalized)
19.68
Price/Sales
0.23
Dividend Yield (Trailing)
1.85%
Dividend Yield (Forward)
1.85%
Total Yield
1.92%

Company Profile

Paramount Global operates in three global business segments: TV media, filmed entertainment, and direct to consumer. The TV media business includes television production studios and various broadcast and cable networks, including CBS, 15 owned CBS affiliates, Paramount, Nickelodeon, MTV, BET, and VH1. Filmed entertainment consists multiple film studios, most importantly Paramount Pictures. The film studios produce and distribute movies that they license to movie theaters and other media outlets. Direct to consumer includes multiple streaming platforms, including Paramount+, which now includes Showtime, Pluto TV, and BET+. Much of the content on Paramount’s streaming platforms is created by the production studios housed within the firm’s other two business segments.
Sector
Communication Services
Industry
Entertainment
Stock Style Box
Small Value
Total Number of Employees
21,900

Competitors

Valuation

Metric
PARA
FOXA
WBD
Price/Earnings (Normalized)
19.689.35
Price/Book Value
0.301.410.44
Price/Sales
0.231.050.48
Price/Cash Flow
0.428.671.02
Price/Earnings
PARA
FOXA
WBD

Financial Strength

Metric
PARA
FOXA
WBD
Quick Ratio
0.991.920.72
Current Ratio
1.322.290.93
Interest Coverage
−0.513.52−0.82
Quick Ratio
PARA
FOXA
WBD

Profitability

Metric
PARA
FOXA
WBD
Return on Assets (Normalized)
0.72%7.51%−1.76%
Return on Equity (Normalized)
1.80%15.91%−4.92%
Return on Invested Capital (Normalized)
2.42%9.49%−0.66%
Return on Assets
PARA
FOXA
WBD
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Entertainment Industry Comparables

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Name
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
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DIS
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LYV
Live Nation Entertainment IncXvvgfmqmRyqnfyn$21.2 Bil
WBD
Warner Bros. Discovery Inc Ordinary Shares - Class AStcflddmHdg$19.9 Bil
WMG
Warner Music Group Corp Ordinary Shares - Class ALwzwnxhnzGlngyg$17.2 Bil
FOX
Fox Corp Class BTssvxfqsZwry$13.9 Bil
NWS
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NWSA
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FOXA
Fox Corp Class AYdpzcbwkbVyy$13.9 Bil
SIRI
Sirius XM Holdings IncLvlmwykmzKccbm$11.9 Bil

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