Paramount Global (PARA, Financial) has experienced a notable fluctuation in its stock price over recent periods. With a current market capitalization of $9.45 billion and a stock price of $14.16, the company has seen a 2.85% gain over the past week. However, looking at a broader timeframe, Paramount Global's stock has suffered a 20.29% loss over the past three months. This volatility is reflected in the company's GF Value, which currently stands at $30.47, down from a past GF Value of $33.06. The current and past GF Valuations both suggest a "Possible Value Trap, Think Twice" scenario, indicating that investors should be cautious and perform thorough due diligence before considering an investment in Paramount Global.
Introduction to Paramount Global
Paramount Global operates within the diversified media industry, having emerged from the recombination of CBS and Viacom. The company boasts a vast array of assets, including the CBS television network, Showtime, Nickelodeon, MTV, BET, and Paramount Pictures, among others. Paramount Global also runs several streaming services, with Paramount+ and Pluto TV being the most prominent. The company's extensive portfolio positions it as a significant player in the global media landscape.
Assessing Paramount Global's Profitability
Paramount Global's Profitability Rank is a solid 7/10, indicating a relatively strong position within the industry. The company's Operating Margin stands at -1.49%, which is better than 36.6% of 1,030 companies in the same realm. Its ROE is at -4.96%, surpassing 30.6% of 977 companies, while the ROA is -1.95%, outperforming 37.06% of 1,055 companies. The ROIC is -0.66%, which is better than 39.01% of 1,051 companies. Paramount Global has maintained profitability for the past 10 years, a feat better than 99.9% of 968 companies in the industry.
Growth Prospects of Paramount Global
The company's Growth Rank is 4/10, reflecting moderate growth potential. Paramount Global's 3-Year Revenue Growth Rate per Share is 2.00%, which is better than 54.55% of 955 companies. The 5-Year Revenue Growth Rate per Share is 1.80%, surpassing 60.48% of 835 companies. The Total Revenue Growth Rate (Future 3Y To 5Y Est) is projected at 2.64%, which is better than 37.12% of 132 companies. However, the 3-Year EPS without NRI Growth Rate is -30.10%, and the 5-Year EPS without NRI Growth Rate is -17.90%, indicating challenges in earnings growth. Nonetheless, the EPS Growth Rate (Future 3Y To 5Y Est) is expected to be 12.65%, which is better than 64.71% of 34 companies.
Influential Shareholders in Paramount Global
Paramount Global's shareholder base includes some notable names. Warren Buffett (Trades, Portfolio) is the leading holder with 93,730,975 shares, representing 14.39% of the company. John Rogers (Trades, Portfolio) holds 11,330,850 shares, accounting for 1.74%, and HOTCHKIS & WILEY owns 6,903,352 shares, making up 1.06%. The presence of these significant shareholders could potentially influence the company's strategic direction and investor sentiment.
Competitive Landscape
When compared to its competitors, Paramount Global holds a competitive market position. Endeavor Group Holdings Inc (EDR, Financial) has a market cap of $7.6 billion, while TKO Group Holdings Inc (TKO, Financial) is valued at $7.24 billion. Roku Inc (ROKU, Financial), another competitor, has a market cap of $12.62 billion. Paramount Global's market cap of $9.45 billion places it well within the range of its peers, suggesting a balanced competitive stance within the industry.
Conclusion
In summary, Paramount Global's stock performance has been mixed, with recent gains overshadowed by losses over the past three months. The company's valuation, as indicated by the GF Value, suggests caution is warranted. Paramount Global's profitability metrics are relatively strong, although its growth rates present a mixed picture with some areas of concern. The influence of major shareholders like Warren Buffett (Trades, Portfolio) could play a role in the company's future. Finally, compared to its competitors, Paramount Global maintains a competitive market position, which could be leveraged for future growth and stability.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
