10Y annualized return is
negative
at -14.4% per year
PARA has met or exceeded earnings expectations in
all
recent quarters (2/2)
Low Price to Sales Ratio
Attractive Price to Book Ratio
Decent Gross Profit Margin
Adequate Current Ratio
Acceptable Quick Ratio
📈 Strong Financial Performance
🎬 Robust Content Strategy
📊 Competitive Market Position
🚀 Path to Profitability
🌐 Expansion Opportunities
Negative PE Ratio
Negative EV to EBITDA
Low Operating Profit Margin
Negative Net Profit Margin
High Debt Levels
Interest Coverage Below 1
📉 Declining Linear Revenue
⚠️ Advertising Revenue Pressure
Overall, Paramount Global demonstrates a strong business model supported by a robust content strategy and financial performance, though it faces challenges from declining linear revenue and a competitive advertising landscape. Future prospects appear promising with a focus on achieving profitability and exploring new opportunities.
Analysis Date: February 26, 2025
Last Updated: March 12, 2025
Past performance does not guarantee future results. The data presented is indicative and may not be updated in real-time.
Paramount Global is a company that creates and shares entertainment and news content. They have a TV network called CBS, where you can watch shows like comedies, dramas, and sports. They also own a streaming service called Paramount+, where people can watch movies and TV shows online. In simple terms, Paramount Global is all about making and delivering fun and informative content for viewers to enjoy on TV and online.
Streams of revenue
Geographic Distribution
Estimations for reference only
Core Products
Business Type
Business to Consumer
Competitive Advantages
Key Business Risks
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Benjamin Graham's value investing approach focuses on finding stocks with a significant margin of safety between their intrinsic value and market price.
Intrinsic Value
Estimated fair value based on Graham's formula
PARA: No Graham value data available
Margin of Safety
Gap between intrinsic value and market price
PARA: No margin of safety data available
Graham Criteria Checklist
Benjamin Graham's value investing checklist for PARA
Positive earnings (5+ years)
Dividend history (5+ years)
P/E ratio ≤ 20 (-1.22)
P/B ratio ≤ 1.5 (0.45)
Current ratio ≥ 2.0 (1.30x)
Long-term debt < Net current assets (5.34x)
Margin of safety
PARA does not meet all Graham criteria
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Profitability metrics measure a company's ability to generate earnings relative to its revenue, operating costs, and other relevant metrics. Higher values generally indicate better performance.
Return on Equity (ROE)
Measures how efficiently a company uses its equity to generate profits
-33.79%
Higher values indicate better returns for shareholders
TTM (as of 2025-04-30)
Gross Profit Margin
Percentage of revenue retained after accounting for cost of goods sold
29.29%
Higher values indicate better efficiency in production
TTM (as of 2025-04-30)
Net Profit Margin
Percentage of revenue retained after accounting for all expenses
-20.63%
Higher values indicate better overall profitability
TTM (as of 2025-04-30)
The gross profit margin of 29.29% indicates that the company retains a reasonable amount of profit after accounting for the cost of goods sold.
With an operating profit margin of only 2.79%, the company struggles to convert sales into operating profit, indicating operational inefficiencies.
The net profit margin at -20.63% raises concerns as the company is not profitable after all expenses, including taxes and interest.
Financial health metrics assess a company's ability to meet its financial obligations and its overall financial stability.
Debt to Equity Ratio
Total debt divided by total equity
0.93x
Lower values indicate less financial leverage and risk
Less than 1.0 is conservative, 1.0-2.0 is moderate, >2.0 indicates high risk
Q4 2024
Current Ratio
Current assets divided by current liabilities
1.30x
Higher values indicate better short-term liquidity
Less than 1.0 is concerning, 1.0-2.0 is adequate, greater than 2.0 is good
Q4 2024
The current ratio of 1.30 suggests that the company has enough current assets to cover its current liabilities, indicating decent liquidity.
A quick ratio of 1.15 indicates that even without inventory, the company can meet its short-term obligations, which is a positive sign.
With a debt to equity ratio of 0.95, the company is significantly leveraged, which can pose risks in downturns.
An interest coverage ratio of 0.95 indicates that the company is not generating enough earnings to cover its interest expenses, raising red flags about its ability to service debt.
Meeting Expectations
Higher values indicate better execution and credibility
Recent Results
EPS
Paramount reported a 30% year-over-year growth in adjusted OIBDA, reaching $3.1 billion, and generated $489 million in free cash flow, the highest in four years. This indicates a solid financial foundation and effective cost management.
The company's strong content slate, including popular franchises like 'Sonic the Hedgehog' and 'Yellowstone', has driven significant subscriber growth and engagement. Paramount+ added 10 million subscribers in 2024, with record engagement metrics.
Paramount+ ranked as the number two domestic SVOD for hours watched across all original series, showcasing its strong market position and competitive advantages in content delivery.
TV Media revenue declined 4% due to ongoing challenges in the linear ecosystem, with affiliate revenue down 6.7%. This poses a risk to overall financial stability as the company transitions to digital.
Paramount+ is on track to achieve domestic profitability by 2025, driven by significant improvements in DTC profitability and a robust content pipeline.
The company is exploring partnerships and new content strategies to enhance its streaming services, potentially increasing its market share against larger competitors.
The transition from linear to digital advertising is ongoing, with advertising revenue expected to face headwinds. There are concerns about maintaining growth in a competitive ad market.
