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PARA

Paramount Global NasdaqGS:PARA Stock Report

Last Price

US$25.21

Market Cap

US$16.5b

7D

-3.0%

1Y

-42.9%

Updated

04 Jul, 2022

Data

Company Financials +
PARA fundamental analysis
Snowflake Score
Valuation5/6
Future Growth0/6
Past Performance4/6
Financial Health3/6
Dividends4/6

PARA Stock Overview

Paramount Global operates as a media and entertainment company worldwide.

Paramount Global Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Paramount Global
Historical stock prices
Current Share PriceUS$25.21
52 Week HighUS$44.23
52 Week LowUS$23.69
Beta1.57
1 Month Change-18.15%
3 Month Change-31.57%
1 Year Change-42.91%
3 Year Change-51.89%
5 Year Change-60.42%
Change since IPO-0.71%

Recent News & Updates

Jun 29

Mediacom, Paramount renew channel carriage deal

Mediacom Communications, the nation's No. 5 cable operator, has renewed its carriage deal with Paramount Global (NASDAQ:PARA) (NASDAQ:PARAA). Financial terms weren't disclosed. The deal means Mediacom will continue to carry the Paramount portfolio, including BET, CBS Sports Network, CMT, Comedy Central, MTV, Nickelodeon, Paramount Network, Pop TV, and Smithsonian Channel as well as rights to streaming offering Showtime OTT. Also included are retransmission consent rights to the CBS stations owned and operated by Paramount.

Jun 27
When Should You Buy Paramount Global (NASDAQ:PARA)?

When Should You Buy Paramount Global (NASDAQ:PARA)?

Let's talk about the popular Paramount Global ( NASDAQ:PARA ). The company's shares saw significant share price...

Jun 16

Paramount Global: Hard To Justify A Buy Now

This is a dedicated price action analysis on PARA stock. We discuss the critical levels investors should watch to help them with their decision-making. We discuss why Paramount Global's weak free cash flow profitability has not convinced us that it's undervalued at its current levels. Our price action analysis indicates a long-term bearish bias, filled with a series of bull traps. Furthermore, no bear trap price action has formed. Therefore, we think it's appropriate to rate PARA as a Hold now. We expect a near-term bottom but don't see a bear trap trigger.

Shareholder Returns

PARAUS MediaUS Market
7D-3.0%0.9%-2.2%
1Y-42.9%-33.2%-21.2%

Return vs Industry: PARA underperformed the US Media industry which returned -33.2% over the past year.

Return vs Market: PARA underperformed the US Market which returned -21.2% over the past year.

Price Volatility

Is PARA's price volatile compared to industry and market?
PARA volatility
PARA Average Weekly Movement7.9%
Media Industry Average Movement8.1%
Market Average Movement8.1%
10% most volatile stocks in US Market16.9%
10% least volatile stocks in US Market3.3%

Stable Share Price: PARA is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: PARA's weekly volatility (8%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
198622,965Bob Bakishhttps://www.paramount.com

Paramount Global operates as a media and entertainment company worldwide. The company distributes a schedule of news and public affairs broadcasts, and sports and entertainment programming; acquires or develops, and schedules programming on the CBS Television Network that includes primetime comedies and dramas, reality, specials, kids’ programs, daytime dramas, game shows, and late night programs; produces or distributes talk shows, court shows, game shows, and newsmagazines; owns and operates 29 broadcast television stations; and operates CBS Sports Network, a 24-hour cable channel that provides sports and related content, as well as streaming and cable subscription services. It also operates Paramount+, a digital subscription video on-demand and live streaming services; and creates and acquires programming for distribution and viewing on various media platforms, including subscription cable networks, subscription streaming, and premium and basic cable networks.

Paramount Global Fundamentals Summary

How do Paramount Global's earnings and revenue compare to its market cap?
PARA fundamental statistics
Market CapUS$16.47b
Earnings (TTM)US$3.82b
Revenue (TTM)US$28.50b

4.3x

P/E Ratio

0.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
PARA income statement (TTM)
RevenueUS$28.50b
Cost of RevenueUS$18.18b
Gross ProfitUS$10.33b
Other ExpensesUS$6.51b
EarningsUS$3.82b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Aug 04, 2022

Earnings per share (EPS)5.88
Gross Margin36.23%
Net Profit Margin13.39%
Debt/Equity Ratio72.2%

How did PARA perform over the long term?

See historical performance and comparison

Dividends

3.8%

Current Dividend Yield

16%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is PARA undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for PARA?

Other financial metrics that can be useful for relative valuation.

PARA key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.1x
Enterprise Value/EBITDA8.2x
PEG Ratio-2.8x

Price to Earnings Ratio vs Peers

How does PARA's PE Ratio compare to its peers?

PARA PE Ratio vs Peers
The above table shows the PE ratio for PARA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average17x
FOXA Fox
16x11.0%US$17.8b
NXST Nexstar Media Group
7.7x6.0%US$6.8b
TGNA TEGNA
9.4x8.0%US$4.7b
IHRT iHeartMedia
35.1x30.7%US$1.4b
PARA Paramount Global
4.3x-1.5%US$16.5b

Price-To-Earnings vs Peers: PARA is good value based on its Price-To-Earnings Ratio (4.3x) compared to the peer average (17x).


Price to Earnings Ratio vs Industry

How does PARA's PE Ratio compare vs other companies in the US Media Industry?

Price-To-Earnings vs Industry: PARA is good value based on its Price-To-Earnings Ratio (4.3x) compared to the US Media industry average (13.5x)


Price to Earnings Ratio vs Fair Ratio

What is PARA's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

PARA PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio4.3x
Fair PE Ratio19.5x

Price-To-Earnings vs Fair Ratio: PARA is good value based on its Price-To-Earnings Ratio (4.3x) compared to the estimated Fair Price-To-Earnings Ratio (19.5x).


Share Price vs Fair Value

What is the Fair Price of PARA when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: PARA ($25.21) is trading below our estimate of fair value ($101.93)

Significantly Below Fair Value: PARA is trading below fair value by more than 20%.


Price to Earnings Growth Ratio

PEG Ratio: PARA's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


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Future Growth

How is Paramount Global forecast to perform in the next 1 to 3 years based on estimates from 25 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


-1.5%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PARA's earnings are forecast to decline over the next 3 years (-1.5% per year).

Earnings vs Market: PARA's earnings are forecast to decline over the next 3 years (-1.5% per year).

High Growth Earnings: PARA's earnings are forecast to decline over the next 3 years.

Revenue vs Market: PARA's revenue (4.9% per year) is forecast to grow slower than the US market (8.2% per year).

High Growth Revenue: PARA's revenue (4.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PARA's Return on Equity is forecast to be low in 3 years time (7.2%).


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Past Performance

How has Paramount Global performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


10.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: PARA has a large one-off gain of $2.2B impacting its March 31 2022 financial results.

Growing Profit Margin: PARA's current net profit margins (13.4%) are higher than last year (10.3%).


Past Earnings Growth Analysis

Earnings Trend: PARA's earnings have grown by 10.6% per year over the past 5 years.

Accelerating Growth: PARA's earnings growth over the past year (41.1%) exceeds its 5-year average (10.6% per year).

Earnings vs Industry: PARA earnings growth over the past year (41.1%) exceeded the Media industry 18.8%.


Return on Equity

High ROE: PARA's Return on Equity (17%) is considered low.


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Financial Health

How is Paramount Global's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: PARA's short term assets ($15.4B) exceed its short term liabilities ($9.7B).

Long Term Liabilities: PARA's short term assets ($15.4B) do not cover its long term liabilities ($25.1B).


Debt to Equity History and Analysis

Debt Level: PARA's net debt to equity ratio (49.4%) is considered high.

Reducing Debt: PARA's debt to equity ratio has reduced from 308.2% to 72.2% over the past 5 years.

Debt Coverage: PARA's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: PARA's interest payments on its debt are well covered by EBIT (3.6x coverage).


Balance Sheet


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Dividend

What is Paramount Global current dividend yield, its reliability and sustainability?

Dividend Score

5/6

Dividend Score 5/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


3.81%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: PARA's dividend (3.81%) is higher than the bottom 25% of dividend payers in the US market (1.6%).

High Dividend: PARA's dividend (3.81%) is low compared to the top 25% of dividend payers in the US market (4.25%).


Stability and Growth of Payments

Stable Dividend: PARA's dividends per share have been stable in the past 10 years.

Growing Dividend: PARA's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (16.3%), PARA's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: PARA is paying a dividend but the company has no free cash flows.


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Management

How experienced are the management team and are they aligned to shareholders interests?

2.6yrs

Average management tenure


CEO

Bob Bakish (58 yo)

2.58yrs

Tenure

US$20,035,212

Compensation

Mr. Robrt Marc Bakish, also known as Bob, has been President, Chief Executive Officer and Director of Paramount Global (formerly known as ViacomCBS Inc.) since December 4, 2019. Mr. Bakish served as the Ch...


CEO Compensation Analysis

Compensation vs Market: Bob's total compensation ($USD20.04M) is above average for companies of similar size in the US market ($USD13.34M).

Compensation vs Earnings: Bob's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: PARA's management team is considered experienced (2.6 years average tenure).


Board Members

Experienced Board: PARA's board of directors are considered experienced (3.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Paramount Global's employee growth, exchange listings and data sources


Key Information

  • Name: Paramount Global
  • Ticker: PARA
  • Exchange: NasdaqGS
  • Founded: 1986
  • Industry: Broadcasting
  • Sector: Media
  • Implied Market Cap: US$16.471b
  • Shares outstanding: 649.10m
  • Website: https://www.paramount.com

Number of Employees


Location

  • Paramount Global
  • 1515 Broadway
  • New York
  • New York
  • 10036
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/07/04 00:00
End of Day Share Price2022/07/01 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.