Lions Gate Entertainment (NYSE:LGF.A) - Share price, News & Analysis

LGF.A fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	4/6
Past Performance	0/6
Financial Health	1/6
Dividends	0/6

LGF.A Overview

Lions Gate Entertainment Corp. engages in film, television, subscription, and location-based entertainment businesses in Canada, the United States, and internationally.

Rewards

Trading at 46.1% below our estimate of its fair value

Earnings are forecast to grow 62.72% per year

Risk Analysis

Interest payments are not well covered by earnings

Lions Gate Entertainment Competitors

Spotify Technology

NYSE:SPOT

US$48.4b

Live Nation Entertainment

NYSE:LYV

US$22.1b

MGM Holdings

OTCPK:MGMB

US$5.7b

Cinemark Holdings

NYSE:CNK

US$2.4b

Price History & Performance

Summary of all time highs, changes and price drops for Lions Gate Entertainment
Historical stock prices
Current Share Price	US$14.66
52 Week High	US$6.56
52 Week Low	US$21.42
Beta	1.69
1 Month Change	10.64%
3 Month Change	-4.81%
1 Year Change	95.47%
3 Year Change	-23.09%
5 Year Change	n/a
Change since IPO	-46.30%

Recent News & Updates

Sep 08

Here's Why It's Unlikely That Lions Gate Entertainment Corp.'s (NYSE:LGF.A) CEO Will See A Pay Rise This Year

Lions Gate Entertainment Corp. ( NYSE:LGF.A ) has not performed well recently and CEO Jon Feltheimer will probably need...

Aug 11

Is Lions Gate Entertainment (NYSE:LGF.A) A Risky Investment?

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...

Aug 10

Lions Gate: On Starz Subscriber Count And (Yes) Consolidation

Lions Gate is still running at an attractive valuation. However, there are many strategic issues to consider for the overall thesis. Starz's subscriber count is challenged, so perhaps some bold moves (e.g., ad-supported video-on-demand) need to be evaluated. Lions Gate continues to be a speculative buy for those with an appetite for risk and who are bullish on the consolidation thesis.

Shareholder Returns

	LGF.A	US Entertainment	US Market
7D	-1.7%	2.1%	1.7%
1Y	95.5%	30.4%	30.3%

Return vs Industry: LGF.A exceeded the US Entertainment industry which returned 31.8% over the past year.

Return vs Market: LGF.A exceeded the US Market which returned 31.1% over the past year.

Price Volatility

Is LGF.A's price volatile compared to industry and market?
LGF.A volatility
LGF.A Beta	1.69
Industry Beta	1.04
Market Beta	1

Stable Share Price: LGF.A is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: LGF.A's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1986	1,466	Jon Feltheimer	https://www.lionsgate.com

Lions Gate Entertainment Corp. engages in film, television, subscription, and location-based entertainment businesses 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.

Lions Gate Entertainment Fundamentals Summary

How do Lions Gate Entertainment's earnings and revenue compare to its market cap?
LGF.A fundamental statistics
Market Cap	US$3.07b
Earnings (TTM)	-US$115.40m
Revenue (TTM)	US$3.36b

1.0x

P/S Ratio

-28.5x

P/E Ratio

Is LGF.A overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
LGF.A income statement (TTM)
Revenue	US$3.36b
Cost of Revenue	US$1.75b
Gross Profit	US$1.61b
Expenses	US$1.73b
Earnings	-US$115.40m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Nov 04, 2021

Earnings per share (EPS)	-0.51
Gross Margin	47.94%
Net Profit Margin	-3.44%
Debt/Equity Ratio	110.2%

How did LGF.A perform over the long term?

See historical performance and comparison

Valuation

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

46.1%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: LGF.A ($14.66) is trading below our estimate of fair value ($27.2)

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 US 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 (1.2x) compared to the US Entertainment industry average (4x).

Future Growth

How is Lions Gate Entertainment forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

62.7%

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 (2%).

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 (9.9% per year) is forecast to grow faster than the US market (9.9% per year).

High Growth Revenue: LGF.A's revenue (9.9% 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 (9.8%).

Past Performance

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

-39.6%

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 39.6% 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 (10.8%).

Return on Equity

High ROE: LGF.A has a negative Return on Equity (-4.46%), as it is currently unprofitable.

Financial Health

How is Lions Gate Entertainment's financial position?

Financial Position Analysis

Short Term Liabilities: LGF.A's short term assets ($853.3M) do not cover its short term liabilities ($1.6B).

Long Term Liabilities: LGF.A's short term assets ($853.3M) do not cover its long term liabilities ($3.7B).

Debt to Equity History and Analysis

Debt Level: LGF.A's debt to equity ratio (110.2%) is considered high.

Reducing Debt: LGF.A's debt to equity ratio has reduced from 152.1% to 110.2% over the past 5 years.

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

Interest Coverage: LGF.A's interest payments on its debt are not well covered by EBIT (0.8x coverage).

Balance Sheet

Dividend

What is Lions Gate Entertainment 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 recent 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 recent 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

Explore strong dividend paying companies in the Media industry.

Management

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

7.3yrs

Average management tenure

CEO

Jon Feltheimer (70 yo)

21.58yrs

Tenure

US$19,176,875

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 ($USD19.18M) is above average for companies of similar size in the US market ($USD5.16M).

Compensation vs Earnings: Jon's compensation has increased whilst the company is unprofitable.

Leadership Team

Experienced Management: LGF.A's management team is seasoned and experienced (7.3 years average tenure).

Board Members

Experienced Board: LGF.A's board of directors are considered experienced (8.7 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.

Ownership Breakdown

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

Data	Last Updated (UTC time)
Company Analysis	2021/10/22 22:53
End of Day Share Price	2021/10/22 00:00
Earnings	2021/06/30
Annual Earnings	2021/03/31

Market Cap

7D

1Y

Updated

Data