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Executive Summary

Latest Data: Dec 2024
Communication ServicesEntertainment
$11.9BLarge Cap

A large-scale business, currently unprofitable with revenues declining

Key Investment Themes
Declining revenues (-1%)
Currently unprofitable (-$6.2B net loss)

Business Narrative

Paramount Skydance Corporation operates as a media, streaming, and entertainment company worldwide. It operates through TV Media, Direct-to-Consumer, and Filmed Entertainment segments. The TV Media segment operates CBS Television Network, a domestic broadcast television network; CBS Stations, a television station; and international free-to-air networks comprising Network 10, Channel 5, Telefe, and Chilevisión; and domestic premium and basic cable networks, such as Nickelodeon, MTV, CMT, Comedy Central, BET, Paramount+ with SHOWTIME, Paramount Network, The Smithsonian Channel, BET Media Group, CBS Sports Network, and international extensions of these brands.

Communication ServicesEntertainment
High Growth
Revenue Mix
Single segment business
Bear Case
  • -Declining revenues signal potential market share erosion
  • -Unprofitable operations require a clear path to breakeven

Company at a Glance

Revenue Growth
-1%
Profit Margin
-21%
Free Cash Flow
$489M
P/E Ratio
-27.6x
No historical data

Business Performance

Business Scale
Revenue$29.2B
Net Income-$6.2B
Profitability Quality
Gross Margin28%
Operating Margin6%
Net Margin-21%
Growth Trajectory
Revenue Growth
-1%
EPS Growth
-492%
FCF Growth
233%

Key Highlights

Positive Signals

  • Free cash flow growing strongly, indicating quality earnings

Watch Areas

  • Company currently operating at a loss

Financial Health

Liquidity
Watch
Current Ratio1.30
1.0-2.0 = Adequate
Cash & Equivalents$2.7B
Leverage
Concern
Debt / Equity0.97
<1.0 = Low leverage
Interest Coverage1.87x
<2x = Tight
Efficiency
Concern
Return on Equity-37.9%
<8% = Weak
Return on Capital4.2%
<8% = Weak

Valuation Assessment

Market Cap
$11.9B
Large Cap
P/E (TTM)
-27.6x
N/A
P/S (TTM)
0.4x
Discounted
vs 5Y avg: 0.3x (+47%)
EV/EBITDA
13.6x
In-line
vs 5Y avg: 276.9x
(-95%)
P/S Historical Range (5Y)
Min: 0.2xAvg: 0.3xNow: 0.4xMax: 0.3x
EV/EBITDA Historical Range (5Y)
Min: 276.9xAvg: 276.9xNow: 13.6xMax: 276.9x

Valuation Corridor

FAIR
FCF Yield
2.6%
vs Cost of Capital ~8.0% = Moderate
P/S Corridor (5Y)0.4x
0.2xFair: 0.2x-0.3x0.3x

Detailed Financials

Comprehensive financial statement data for deep analysis

MetricDec 23Dec 24
Return on Equity
-
-
Return on Invested Capital
-
-
Gross Margin
24.5%
28.3%15.5%
Operating Margin
-1.5%
5.5%461.9%
Net Margin
-3.5%
-21.2%501.2%
Earnings Yield
-
-