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PARA

Paramount Global NasdaqGS:PARA Stock Report

Last Price

US$19.57

Market Cap

US$12.8b

7D

-1.3%

1Y

-50.0%

Updated

05 Oct, 2022

Data

Company Financials +

Paramount Global Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Paramount Global
Historical stock prices
Current Share PriceUS$19.57
52 Week HighUS$41.08
52 Week LowUS$18.80
Beta1.54
1 Month Change-15.36%
3 Month Change-24.44%
1 Year Change-50.04%
3 Year Change-47.97%
5 Year Change-65.73%
Change since IPO-22.92%

Recent News & Updates

Oct 03

Paramount Global: Attractive Valuation, Compelling Dividend, Going Long Via Written Puts Assignment

Summary With another option expiration passing, we see ourselves taking assignment of shares of Paramount. This stock has been hammered by the market as a recession could see a slowdown in their business. At the same time, they are spending billions in content to provide more streaming to grow their subscribers to Paramount+. Written by Nick Ackerman. This article was originally published to members of Cash Builder Opportunities on October 1st, 2022. Another option expiration is going by in what is becoming an even gloomier year. While we've had a string of trades expiring worthless, we are taking assignment of shares of Paramount Global (NASDAQ:PARA). This was after a couple of trades previously had all expired worthless. As I was looking to add this position to our Satellite Income Builder Portfolio, I'd say it worked out perfectly. Of course, with hindsight, we now know that the shares slid quite materially further than the $21 strike price assigned. We also got to collect some option premiums along the way to lower our cost basis. Interestingly, I ended up being put these shares early, the day prior to the expiration. Overall, the market has been punishing most investors in most areas of the market. There were no positive sectors in the last month, with this last September being particularly brutal for stocks and bonds. More of the same, basically, for what has been a challenging year. We've made new lows in the broader markets in both the Dow Jones Industrial Average and the S&P 500. Energy remains the only sector positive for the year. With essentially no place to hide, taking the assignment of shares when selling puts is going to happen. Though other readers had mentioned, they had rolled their position. Which seemed like a completely logical move as well. It hasn't been too long since we last touched on PARA. In fact, our last post was less than a month ago. Then before that, it was only around a month earlier that we looked at the company more in-depth. As mentioned, this has now been a series of put selling trades we've completed now. With the bear market pushing the price lower and lower, it felt appropriate to keep the put selling train running. At this point, there hasn't been anything particularly noteworthy to add for PARA. Earnings estimates remain the same. Wall Street analysts still have the same $29.10 price target as well. They've also carried on with their dividend, announcing the $0.24 right on schedule for an early January pay date. With that, the only thing that has happened is the forward P/E has fallen simply due to price declines. The new forward P/E at this time is ~8x, from the ~10x it was previously. That doesn't look set to change unless they announce something during their earnings on November 2nd, 2022, or give any sort of early warning. Ycharts The Trade(s) First Trade The original PARA trade was initiated on June 28th, 2022. Those expired worthless on their July 29th, 2022 expiration date. We pocketed $0.39 per contract with a strike price of $22. Over the course of 31 days, that worked out to a PAR (potential annualized return) of 20.87%. Second Trade The second trade was entered on August 1st, 2022. Once again, we went with the $22 strike price, with the expiration date set for September 2nd, 2022. We collected $0.80 over the course of 32 days, which propelled the PAR to an elevated 41.48%. Those too expired worthless. Third And Most Recent With this latest trade where shares were now put to us, we jumped the gun and entered the trade on September 1st, 2022. That was a day before the expiration date of the previous trade. The reason for that was because that second trade looked like it was set to expire worthless (which it did), and the stock was hitting a new 52-week low. We collected $0.58 and went with a $21 strike price. Over 29 days that worked out to a fairly attractive 34.76% PAR. Reduced from the previous trade that we had expired worthless, but still quite heightened thanks to the volatility the shares and the market have been experiencing. After initiating the trade, PARA and the overall market actually began to rise. It was really in the last couple weeks of September when things dropped substantially. Unsurprisingly, the turn lower came due to the inflation report coming in hotter than expected. The stock then shredded through the $21 strike and stayed there throughout the last run of the trade. Ycharts All said, if one had sold an equal number of contracts in each trade (I did), one would have collected a total of $1.77. That was over the course of 94 days, working out roughly equal to a quarter of a year. That's 7.375x the $0.24 quarterly dividend, basically collected the equivalent of a year and three-quarters worth of dividends. Which brings me back to one of the reasons why selling puts to enter a position can be so appealing. I now own a stock I wanted to own, but I have also collected $1.77 in the time before taking assignment. Had I not taken assignment, I would have continued to sell more puts, collecting even more option premiums. Of course, it isn't always roses, but this trade worked out quite well at this point. In another way, now that we collected $1.77 total, the breakeven of this trade could be seen as being at $19.23. That puts it right around the same price it closed on Friday ($19.04) or even lower than where the stock finished up after-hours ($19.28.) What's Next? One of my main options strategies is the options wheel strategy. In this case, I plan to continue holding on to these initial PARA shares. However, if the stock moved substantially higher over the coming weeks, I would reconsider. If we get up to something like $26 or higher, then I could potentially consider selling covered calls. Instead, what I'm looking at doing more is selling even more puts. This would average down my position if assignment occurred. It would also give more flexibility in being tempted to write covered calls on a batch of shares. Since PARA is a position I've wanted to enter, my fingers are getting sticky on this initial batch.

Sep 25
Paramount Global (NASDAQ:PARA) Is Paying Out A Dividend Of $0.24

Paramount Global (NASDAQ:PARA) Is Paying Out A Dividend Of $0.24

Paramount Global ( NASDAQ:PARA ) will pay a dividend of $0.24 on the 3rd of January. Based on this payment, the...

Sep 21

Paramount Global declares $0.24 dividend

Paramount Global (NASDAQ:PARA) declares $0.24/share quarterly dividend, in line with previous. Forward yield 4.49% Payable Jan. 3; for shareholders of record Dec. 15; ex-div Dec. 14. See PARA Dividend Scorecard, Yield Chart, & Dividend Growth.

Shareholder Returns

PARAUS MediaUS Market
7D-1.3%0.4%1.9%
1Y-50.0%-43.7%-18.8%

Return vs Industry: PARA underperformed the US Media industry which returned -43.2% over the past year.

Return vs Market: PARA underperformed the US Market which returned -18.2% over the past year.

Price Volatility

Is PARA's price volatile compared to industry and market?
PARA volatility
PARA Average Weekly Movement6.5%
Media Industry Average Movement7.7%
Market Average Movement7.0%
10% most volatile stocks in US Market15.5%
10% least volatile stocks in US Market2.9%

Stable Share Price: PARA is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: PARA's weekly volatility (6%) 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 operates through TV Media, Direct-to-Consumer, and Filmed Entertainment segments. The TV Media segment operates domestic and international broadcast networks, including CBS Television Network, Network 10, Channel 5, Telefe, and Chilevisión; and cable networks comprising Showtime, BET, Nickelodeon, MTV, Comedy Central, Paramount Network, Smithsonian Channel, and CBS Sports Network.

Paramount Global Fundamentals Summary

How do Paramount Global's earnings and revenue compare to its market cap?
PARA fundamental statistics
Market CapUS$12.81b
Earnings (TTM)US$3.18b
Revenue (TTM)US$29.72b

4.0x

P/E Ratio

0.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
PARA income statement (TTM)
RevenueUS$29.72b
Cost of RevenueUS$19.42b
Gross ProfitUS$10.30b
Other ExpensesUS$7.12b
EarningsUS$3.18b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

Nov 02, 2022

Earnings per share (EPS)4.90
Gross Margin34.66%
Net Profit Margin10.69%
Debt/Equity Ratio67.5%

How did PARA perform over the long term?

See historical performance and comparison

Dividends

4.9%

Current Dividend Yield

20%

Payout Ratio

Does PARA pay a reliable dividends?

See PARA dividend history and benchmarks
When do you need to buy PARA by to receive an upcoming dividend?
Paramount Global dividend dates
Ex Dividend DateDec 14 2022
Dividend Pay DateJan 03 2023
Days until Ex dividend68 days
Days until Dividend pay date88 days

Does PARA pay a reliable dividends?

See PARA dividend history and benchmarks
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

  • Analyst Forecast

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/Revenue0.9x
Enterprise Value/EBITDA7.9x
PEG Ratio-16.2x

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 Average11.5x
14.3x11.5%US$16.7b
NXST Nexstar Media Group
7.6x5.0%US$6.9b
TGNA TEGNA
9x7.3%US$4.7b
IHRT iHeartMedia
14.9x39.1%US$1.2b
PARA Paramount Global
4x-0.2%US$12.8b

Price-To-Earnings vs Peers: PARA is good value based on its Price-To-Earnings Ratio (4x) compared to the peer average (11.5x).


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 (4x) compared to the US Media industry average (11.1x)


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 Ratio4x
Fair PE Ratio19.6x

Price-To-Earnings vs Fair Ratio: PARA is good value based on its Price-To-Earnings Ratio (4x) compared to the estimated Fair Price-To-Earnings Ratio (19.6x).


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 ($19.57) is trading below our estimate of fair value ($58.82)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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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


-0.2%

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 (-0.2% per year).

Earnings vs Market: PARA's earnings are forecast to decline over the next 3 years (-0.2% per year).

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

Revenue vs Market: PARA's revenue (4.4% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: PARA's revenue (4.4% 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 (6.7%).


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Past Performance

How has Paramount Global performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


8.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: PARA has a large one-off gain of $1.9B impacting its June 30 2022 financial results.

Growing Profit Margin: PARA's current net profit margins (10.7%) are lower than last year (12.1%).


Past Earnings Growth Analysis

Earnings Trend: PARA's earnings have grown by 8.6% per year over the past 5 years.

Accelerating Growth: PARA's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: PARA had negative earnings growth (-1.6%) over the past year, making it difficult to compare to the Media industry average (7.8%).


Return on Equity

High ROE: PARA's Return on Equity (14.2%) is considered low.


Discover strong past performing companies

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 ($14.2B) exceed its short term liabilities ($9.6B).

Long Term Liabilities: PARA's short term assets ($14.2B) do not cover its long term liabilities ($23.9B).


Debt to Equity History and Analysis

Debt Level: PARA's net debt to equity ratio (50.3%) is considered high.

Reducing Debt: PARA's debt to equity ratio has reduced from 346.7% to 67.5% 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 (3.4x 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

  • Cash Flow Coverage


4.91%

Current Dividend Yield

Upcoming Dividend Payment

TodayOct 06 2022Ex Dividend DateDec 14 2022Dividend Pay DateJan 03 202320 days from Ex DividendBuy in the next 68 days to receive the upcoming dividend

Dividend Yield vs Market

Paramount Global Dividend Yield vs Market
How does Paramount Global dividend yield compare to the market?
SegmentDividend Yield
Company (Paramount Global)4.9%
Market Bottom 25% (US)1.6%
Market Top 25% (US)4.5%
Industry Average (Media)3.3%
Analyst forecast in 3 Years (Paramount Global)5.0%

Notable Dividend: PARA's dividend (4.91%) is higher than the bottom 25% of dividend payers in the US market (1.6%).

High Dividend: PARA's dividend (4.91%) is in the top 25% of dividend payers in the US market (4.53%)


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 (19.6%), 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.


Discover strong dividend paying companies

Management

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

2.8yrs

Average management tenure


CEO

Bob Bakish (58 yo)

2.83yrs

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

Bob Bakish's Compensation vs Paramount Global Earnings
How has Bob Bakish's remuneration changed compared to Paramount Global's earnings?
DateTotal Comp.SalaryCompany Earnings
Jun 30 2022n/an/a

US$3b

Mar 31 2022n/an/a

US$4b

Dec 31 2021US$20mUS$3m

US$4b

Sep 30 2021n/an/a

US$3b

Jun 30 2021n/an/a

US$3b

Mar 31 2021n/an/a

US$3b

Dec 31 2020US$39mUS$3m

US$2b

Sep 30 2020n/an/a

US$1b

Jun 30 2020n/an/a

US$1b

Mar 31 2020n/an/a

US$2b

Dec 31 2019US$11mUS$231k

US$3b

Compensation vs Market: Bob's total compensation ($USD20.04M) is above average for companies of similar size in the US market ($USD13.00M).

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 (2.8 years average tenure).


Board Members

Experienced Board: PARA's board of directors are considered experienced (4 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

NasdaqGS:PARA Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
17 May 22BuyUS$20,935,233National Amusements, Inc.Company646,764US$32.37
18 Feb 22BuyUS$2,994,132Shari RedstoneIndividual104,650US$29.09
08 Nov 21BuyUS$502,872Robert BakishIndividual14,000US$35.92
05 Nov 21BuyUS$999,064Shari RedstoneIndividual27,525US$36.30

Ownership Breakdown

What is the ownership structure of PARA?
Owner TypeNumber of SharesOwnership Percentage
State or Government415,2880.06%
Individual Insiders1,258,9010.2%
Private Companies63,512,2779.8%
Public Companies78,421,64512.1%
General Public96,730,30814.9%
Institutions408,788,48263.0%

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


Top Shareholders

Top 25 shareholders own 65.24% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
12.08%
Berkshire Hathaway Inc.
78,421,645$1.5b13.74%no data
9.82%
The Vanguard Group, Inc.
63,743,224$1.2b-4.97%0.03%
9.78%
National Amusements, Inc.
63,512,277$1.2b1.03%no data
6.97%
BlackRock, Inc.
45,261,702$885.8m-0.59%0.02%
4.87%
State Street Global Advisors, Inc.
31,588,697$618.2m-6.07%0.03%
1.96%
Geode Capital Management, LLC
12,750,465$249.5m1.71%0.03%
1.77%
Goldman Sachs Group, Investment Banking and Securities Investments
11,464,677$224.4m66.6%0.15%
1.71%
Susquehanna International Group, LLP, Asset Management Arm
11,123,778$217.7m-19.99%0.5%
1.66%
Charles Schwab Investment Management, Inc.
10,802,557$211.4m6.92%0.06%
1.63%
Morgan Stanley, Investment Banking and Brokerage Investments
10,579,102$207.0m-9.77%0.04%
1.47%
T. Rowe Price Group, Inc.
9,520,959$186.3m-1.51%0.02%
1.38%
Franklin Resources, Inc.
8,947,979$175.1m5.84%0.08%
0.96%
Northern Trust Global Investments
6,210,771$121.5m-3.65%0.02%
0.95%
Invesco Capital Management LLC
6,169,299$120.7m-2.86%0.09%
0.95%
Ariel Investments, LLC
6,135,768$120.1m8.79%1.16%
0.93%
Dimensional Fund Advisors LP
6,030,509$118.0m2.27%0.03%
0.86%
UBS Asset Management
5,578,852$109.2m25.58%0.02%
0.81%
BNY Mellon Asset Management
5,271,586$103.2m3.04%0.02%
0.78%
GAMCO Investors, Inc.
5,071,033$99.2m2.31%0.47%
0.75%
Eaton Vance Management
4,852,291$95.0m-7.28%0.04%
0.74%
Norges Bank Investment Management
4,781,354$93.6m0%0.01%
0.66%
Legal & General Investment Management Limited
4,305,306$84.3m-2.93%0.03%
0.65%
LSV Asset Management
4,228,166$82.7m-26.36%0.17%
0.58%
Contrarius Investment Management Limited
3,752,162$73.4m15.49%4.76%
0.52%
Hotchkis and Wiley Capital Management, LLC
3,374,390$66.0m-5.41%0.26%

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$12.808b
  • Shares outstanding: 649.13m
  • Website: https://www.paramount.com

Number of Employees


Location

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


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PARANasdaqGS (Nasdaq Global Select)YesClass B Common StockUSUSDDec 2005
PARA.ANasdaqGS (Nasdaq Global Select)Class A Common StockUSUSDDec 2005
0VVBDB (Deutsche Boerse AG)YesClass B Common StockDEEURDec 2005
0VVDB (Deutsche Boerse AG)Class A Common StockDEEURDec 2005
PARA *BMV (Bolsa Mexicana de Valores)YesClass B Common StockMXMXNDec 2005
PARAWBAG (Wiener Boerse AG)YesClass B Common StockATEURDec 2005
PARABVL (Bolsa de Valores de Lima)YesClass B Common StockPEUSDDec 2005
C1BS34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 1 COM USD0.0BRBRLDec 2019
VCXDB (Deutsche Boerse AG)5.75% SR A MDR CON PRE 01/04/2024 USD100DEEURMar 2021
PARA.PNasdaqGS (Nasdaq Global Select)5.75% SR A MDR CON PRE 01/04/2024 USD100USUSDMar 2021

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/10/05 00:00
End of Day Share Price2022/10/05 00:00
Earnings2022/06/30
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.