Paramount Global (PARA, Financial) has experienced a notable fluctuation in its stock price over recent periods. With a current market capitalization of $10.62 billion and a stock price of $16.06, the company has seen a 4.59% gain over the past week. However, the past three months have painted a different picture, with a 15.87% loss in stock value. This contrast in short-term gains versus quarterly losses is a point of interest for investors and analysts alike.
When assessing the stock's value, the GF Value stands at $30.57, a decrease from the past GF Value of $32.98. The current and past GF Valuations both suggest that Paramount Global may be a Possible Value Trap, advising investors to Think Twice before making any decisions. This valuation indicates that the stock might not be as undervalued as it appears, and potential investors should proceed with caution.
Introduction to Paramount Global
Paramount Global operates within the diversified media industry, having emerged from the recombination of CBS and Viacom. The conglomerate boasts an impressive portfolio of media assets, including the CBS television network, Showtime, Nickelodeon, MTV, 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 content library and global reach make it a significant player in the media landscape.
Profitability Insights
Paramount Global's Profitability Rank is a solid 7 out of 10, indicating a relatively strong position within the industry. The company's Operating Margin, at -1.49%, is better than 36.58% of 1,036 companies in the same sector. Its Return on Equity (ROE) is -4.96%, surpassing 30.79% of its peers, while the Return on Assets (ROA) at -1.95% is better than 37.22% of 1,064 companies. The Return on Invested Capital (ROIC) stands at -0.66%, which is more favorable than 39.28% of 1,059 companies. Paramount Global has maintained profitability for the past 10 years, a feat better than 99.9% of 977 companies in the industry.
Growth Trajectory
The company's Growth Rank is currently at 4 out of 10. Paramount Global has seen a 3-Year Revenue Growth Rate per Share of 2.00%, which is better than 55.28% of 957 companies. Its 5-Year Revenue Growth Rate per Share is 1.80%, surpassing 60.67% of 834 companies. The estimated Total Revenue Growth Rate for the next 3 to 5 years is 1.96%, which is more favorable than 33.33% of 135 companies. However, the 3-Year EPS without NRI Growth Rate is at -30.10%, and the 5-Year EPS without NRI Growth Rate is at -17.90%. The future EPS Growth Rate (3Y to 5Y Est) is projected at 12.65%, better than 60% of 35 companies.
Notable Shareholders
Paramount Global has attracted the attention of several prominent investors. Warren Buffett (Trades, Portfolio) is the leading holder with 93,730,975 shares, accounting for 14.39% of the company's shares. John Rogers (Trades, Portfolio) holds 11,330,850 shares, representing 1.74%, and HOTCHKIS & WILEY owns 6,903,352 shares, making up 1.06% of the shares.
Competitive Landscape
In comparison to its competitors, Paramount Global holds its ground with a market cap of $10.62 billion. Endeavor Group Holdings Inc (EDR, Financial) has a market cap of $7.41 billion, while TKO Group Holdings Inc (TKO, Financial) is valued at $5.98 billion. News Corp (NWSA, Financial) stands slightly higher with a market cap of $12.73 billion, indicating a competitive field within the media industry.
Investment Outlook
In conclusion, Paramount Global's stock performance has been a mixed bag, with recent gains overshadowed by quarterly losses. The company's profitability metrics are relatively strong, and it has maintained a consistent track record over the past decade. Growth rates, particularly in revenue per share, are modest but stable. The presence of high-profile investors like Warren Buffett (Trades, Portfolio) may offer some confidence to potential investors. However, the current GF Valuation suggests caution, labeling the stock as a possible value trap. Investors should weigh these factors carefully when considering Paramount Global as part of their investment portfolio.
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.
