NYSE:LGF.A

Stock Analysis Report

Lions Gate Entertainment

Executive Summary

Lions Gate Entertainment Corp. engages in motion picture production and distribution, television programming and syndication, home entertainment, interactive ventures and games, and location-based entertainment in Canada, the United States, and internationally.


Snowflake Analysis

Fair value with moderate growth potential.


Similar Companies

Share Price & News

How has Lions Gate Entertainment's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: LGF.A's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

16.5%

LGF.A

3.9%

US Entertainment

9.4%

US Market


1 Year Return

-62.1%

LGF.A

-3.8%

US Entertainment

-6.8%

US Market

Return vs Industry: LGF.A underperformed the US Entertainment industry which returned -2.1% over the past year.

Return vs Market: LGF.A underperformed the US Market which returned -8.1% over the past year.


Shareholder returns

LGF.AIndustryMarket
7 Day16.5%3.9%9.4%
30 Day11.7%-1.5%-3.9%
90 Day-41.3%-11.1%-16.5%
1 Year-62.1%-62.1%-3.2%-3.8%-4.8%-6.8%
3 Year-74.9%-75.2%33.5%29.2%23.4%15.2%
5 Yearn/a64.4%54.5%41.3%25.7%

Price Volatility Vs. Market

How volatile is Lions Gate Entertainment's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Lions Gate Entertainment undervalued compared to its fair value and its price relative to the market?

30.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: LGF.A ($6.29) is trading below our estimate of fair value ($8.99)

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


Price To Earnings Ratio

PE vs Industry: LGF.A is unprofitable, so we can't compare its PE Ratio to the Entertainment industry average.

PE vs Market: LGF.A is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate LGF.A's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: LGF.A is good value based on its PB Ratio (0.5x) compared to the US Entertainment industry average (2x).


Next Steps

Future Growth

How is Lions Gate Entertainment forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

49.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LGF.A is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

Earnings vs Market: LGF.A is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: LGF.A's is expected to become profitable in the next 3 years.

Revenue vs Market: LGF.A's revenue (4.3% per year) is forecast to grow slower than the US market (6.9% per year).

High Growth Revenue: LGF.A's revenue (4.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Lions Gate Entertainment performed over the past 5 years?

-34.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LGF.A is currently unprofitable.

Growing Profit Margin: LGF.A is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: LGF.A is unprofitable, and losses have increased over the past 5 years at a rate of -34.2% per year.

Accelerating Growth: Unable to compare LGF.A's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: LGF.A is unprofitable, making it difficult to compare its past year earnings growth to the Entertainment industry (10.3%).


Return on Equity

High ROE: LGF.A has a negative Return on Equity (-10.74%), as it is currently unprofitable.


Next Steps

Financial Health

How is Lions Gate Entertainment's financial position?


Financial Position Analysis

Short Term Liabilities: LGF.A's short term assets ($1.2B) do not cover its short term liabilities ($1.4B).

Long Term Liabilities: LGF.A's short term assets ($1.2B) do not cover its long term liabilities ($3.6B).


Debt to Equity History and Analysis

Debt Level: LGF.A's debt to equity ratio (100.1%) is considered high.

Reducing Debt: LGF.A's debt to equity ratio has reduced from 210.7% to 100.1% over the past 5 years.

Debt Coverage: LGF.A's debt is well covered by operating cash flow (20.5%).

Interest Coverage: LGF.A is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

What is Lions Gate Entertainment's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate LGF.A's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate LGF.A's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if LGF.A's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if LGF.A's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: LGF.A is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of LGF.A's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

5.3yrs

Average management tenure


CEO

Jon Feltheimer (68yo)

20.08s

Tenure

US$6,615,219

Compensation

Mr. Jon Feltheimer is the Chief Executive Officer at Lions Gate Entertainment Corp. (d/b/a Lionsgate) since March 2000 and Lions Gate Entertainment, Inc. Mr. Feltheimer serves as the Chief Executive Office ...


CEO Compensation Analysis

Compensation vs Market: Jon's total compensation ($USD6.62M) is above average for companies of similar size in the US market ($USD4.69M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Jon Feltheimer
CEO & Director20.08yrsUS$6.62m0.61% $8.1m
Michael Burns
Executive Vice Chairman20.08yrsUS$5.18m0.97% $12.7m
James Barge
Chief Financial Officer6.5yrsUS$2.78m0.063% $832.1k
Brian Goldsmith
Chief Operating Officer2.33yrsUS$4.12m0.10% $1.3m
Corii Berg
Executive VP & General Counsel1.83yrsUS$1.09m0.00087% $11.5k
Rick Prell
Chief Accounting Officerno datano datano data
James Marsh
Senior VP & Head of Investor Relationsno datano datano data
Tim Palen
President of Worldwide Marketing and Chief Brand Officer4.83yrsno datano data
Miles Delaney
Senior Vice President of Corporate Development & Strategyno datano datano data
Ross Pollack
Chief Human Resources Officer & Executive VP5.75yrsno datano data

5.3yrs

Average Tenure

60yo

Average Age

Experienced Management: LGF.A's management team is seasoned and experienced (5.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jon Feltheimer
CEO & Director20.08yrsUS$6.62m0.61% $8.1m
Michael Burns
Executive Vice Chairman20.08yrsUS$5.18m0.97% $12.7m
Michael Fries
Independent Director4.42yrsUS$90.33kno data
Mark Rachesky
Independent Non-Executive Chairman8.58yrsUS$164.62k0.046% $604.8k
David Zaslav
Independent Director4.42yrsUS$84.73kno data
Arthur Evrensel
Independent Director18.58yrsUS$117.10k0.024% $315.1k
Hardwick Simmons
Independent Director14.83yrsUS$118.46k0.046% $603.5k
Daryl Simm
Independent Director15.58yrsUS$118.50k0.037% $485.3k
Gordon Crawford
Independent Director7.17yrsUS$105.62k0.28% $3.7m
Kevin Beggs
Chairman of Lionsgate Television Group no datano datano data

14.8yrs

Average Tenure

60yo

Average Age

Experienced Board: LGF.A's board of directors are seasoned and experienced ( 14.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: LGF.A 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

Lions Gate Entertainment Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Lions Gate Entertainment Corp.
  • Ticker: LGF.A
  • Exchange: NYSE
  • Founded: 1986
  • Industry: Movies and Entertainment
  • Sector: Media
  • Market Cap: US$1.316b
  • Shares outstanding: 219.46m
  • Website: https://www.lionsgate.com

Number of Employees


Location

  • Lions Gate Entertainment Corp.
  • 2700 Colorado Avenue
  • Santa Monica
  • California
  • 90404
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LGF.BNYSE (New York Stock Exchange)Class B Non-Voting SharesUSUSDDec 2016
LGF.ANYSE (New York Stock Exchange)YesClass A Voting SharesUSUSDDec 2016
LGNADB (Deutsche Boerse AG)YesClass A Voting SharesDEEURDec 2016
LGNBDB (Deutsche Boerse AG)Class B Non-Voting SharesDEEURDec 2016

Biography

Lions Gate Entertainment Corp. engages in motion picture production and distribution, television programming and syndication, home entertainment, interactive ventures and games, and location-based entertainment in Canada, the United States, and internationally. It operates through three segments: Motion Picture, Television Production, and Media Networks. The Motion Picture segment engages in the development and production of feature films; acquisition of North American and worldwide distribution rights; North American theatrical, home entertainment, and television distribution of feature films produced and acquired; and worldwide licensing of distribution rights to feature films produced and acquired. The Television Production segment is involved in the development, production, and worldwide distribution of television productions, including television series, television movies and mini-series, and non-fiction programming. It also licenses Starz original series productions to Starz Networks and STARZPLAY International; distributes Starz original productions and licensed product; and sells and licenses music from television broadcasts of its productions. In addition, this segment also sells and rents television production movies or series on packaged media and through digital media platforms; produces, syndicates, and distributes nearly 70 television shows on approximately 25 networks; and offers services related to talent management.. The Media Networks segment distributes STARZ branded premium subscription video services; and streaming services on subscription video-on-demand platforms. The company was founded in 1986 and is headquartered in Santa Monica, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/10 01:14
End of Day Share Price2020/04/09 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


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.