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RISK CONCERN
Investment Strategy, Risk Analysis, and Insights by Chartered Professionals
Paramount Global (XNAS:PARA) In-Depth Stock/Fundamental/Options Analysis Today
Primary Facts
VIAC
Name:
PARAMOUNT GLOBAL (XNAS:PARA)
Sector:
599.00M
Industry:
Entertainment
CEO:
Mr. Robert Bakish
Total Employees:
22,965
Our Technological Advancement Rating
Our Rating:
A+
Technological advancement compared to industry is 584.61% higher
ANALYSIS OF ALL CRITICAL FACTORS & RISKS RELATED TO THE STOCK & FUNDAMENTAL/LONG-TERM ANALYSIS OF PARAMOUNT GLOBAL(PARA) AS PER DATA ANALYSIS OF LAST 3 YEARS AND COMPARISON WITH COMPETITORS/PEERS, AND ENTERTAINMENT INDUSTRY. DATE: 07/09/2022
Primary Targets/Price Insights
Previous Close ($) :
23.12
One Month Price Target:
$23.32
Six Month Price Target :
$24.32
Likely Price in One Year's Time:
Ticker:
$25.52
Likely Trading Range Today Under (Normal Volatility)
$22.97
Price Upper limit ($) :
$23.28
Price Lower limit ($) :
Crash Risk Prep/Key Price Levels (High Volatility/Risk)
Price, as per data analysis, isn't likely to fall below:
Today:
$21.25
This week:
$18.94
This month :
$14.77
Other Primary facts
Market Cap:
15.12B
Market Cap Classification:
Mid Cap
Number of Shares
IPO Date:
649.13M
Best/Worst Daily Performance (Last 3+ Years)
Highest Daily Appreciation:
30.76%
-27.31%
Worst Daily Decline:
Our Options Trading Entry Points
Iron Condor entry points for options expiring in 1 week's time
Low risk (<2%) entry points
Buy Call:
Sell Call:
Buy Put:
Sell Put:
$31.79
$27.85
$14.45
$18.39
Medium risk (<10%) entry points
Buy Call
Sell Call
$26.56
Buy Put:
Sell Put:
$25.72
$19.67
$20.52
These entry points can be used for other strategies, such as butterflies, straddles, etc.
Risk-Adjusted returns (Sharpe Ratio) of
VIAC
Sharpe Ratio:
0.01%
Comparison:
VIAC, is amongst the top 40% stocks with lowest risk-adjusted returns
Sharpe ratio is -95.89% lower than the industry
& is -99.42% lower than the market/S&P 500 average
Average Returns/Yield of
VIAC
Daily returns:
0.01%
Weekly returns:
0.05%
Monthly returns:
0.19%
Yearly returns:
6.78%
Comparison of returns:
Average annual returns/yield (last 3 years) is -66.86% below industry average
Classification:
VIAC, is amongst the top 40% lowest yielding stocks in terms of daily returns
Results of T-Test of Returns:
0.98
Statistical test of Returns:
VIAC has yielded returns statistically similar to the market
Volatility (measured by Standard Deviation)
Daily Volatility:
3.94%
Weekly Volatility:
8.81%
Monthly Volatility:
17.61%
Yearly Volatility:
61.01%
Volitlilty of last five days (Measured by Standard Deviation)
Average Volatility of this Week:
1.27%
Volatility in last five trading days has been -67.87% below long-term volatility
Value at Risk Analysis (VaR)
Daily VaR:
-8.08%
Weekly VaR:
-18.07%
Monthly VaR:
-36.13%
How Much Can the price of
VIAC
Decline in a Recession?
Likely price decline in a recession:
Base case (decline):
-32%
Worst case (decline):
>85%
This translates to price declining to:
$15.76
This translates to price declining to:
$3.47
Severe Crash Probability
Risk of crash in next 6/12 months: Low (<25%)
What is Value at Risk (VaR)?
Risk Fundamentals
VIAC is a 155.01% riskier investment compared to the market/S&P 500 & is 118.46% riskier than Nasdaq (IXIC)
Risk (measured by volatility) is 15.29% above industry average
Overall, it is amongst the top 50% most risky stocks
Beta Examination of
VIAC
Beta in relation to market/S&P 500--1.54
Expected beta in 1 year's time:
0.879
Expected beta in 3 year's time:
1.243
Unlevered (debt free) Beta:
0.88
Beta in relation to Nasdaq (XNAS):
0.845
Beta in relation to all global stocks::
0.964
Beta Comparison & Analysis
Beta of competitors/peers::
1.277
Beta is 20.99% higher than peers
Average Industry Beta:
1.34
Beta is 15.27% above industry average
Sustainable Growth Rate Analysis
Sustainable growth rate for this stock/firm:
15.67%
Sustainable growth rate is -56.00% below industry average
Alpha provided | Alpha Analysis
Alpha provided:
-0.115
Alpha is 106.98% above industry average alpha yield
Alpha is -731% below the market average
Analysis of Cost of Capital of
VIAC
Equity cost of capital:
0.137
Equity cost of capital is 11.37% above industry mean WACC
Unlevered (without debt) cost of capital:
7.83%
Before-tax cost of debt:
5.11%
After-tax cost of debt:
4.03%
Overall debt rating:
Lower BB medium grade (Fifth highest grade)
Weighted average cost of capital (WACC):
4.03%
WACC is 21.54% above industry mean WACC
Key Per-Share Metrics & Analysis
Revenue per share:
$44.04
Revenue growth rate per share of (3Y):
0.65
Annual revenue growth rate is -19.11% below industry average
EPS:
-
Expected Annual growth rate of EPS (3Y):
0.00%
-
Free cash flow (FCF) per share:
-
Balance sheet equity growth per share: 43.47%
Equity growth rate per share is 36000.68% higher than the industry
Debt per share
$29.73
EBITDA per share
$10.11
Valuation Analysis Today of
VIAC
P/E Ratio:
5.08
P/E Ratio of Competitors/Peers:
82.4
P/E ratio is -93.84% lower than main peers & is -81.21% lower than the industry
-
-
Share value as per dividend discount (DDM) model: $13.02
Present value of the expected future dividends only: $6.99
P/S (Price to Sales ratio):
0.53
Price to sales ratio is -80.17% below the industry mean
P/B (Price to book value ratio):
0.65
-
Price to free cash flow ratio is 67.05% higher than the industry
Net income growth rate (3Y):
41.86%
Net income growth rate is -120.31% lower than the industry average net income growth rate
Dividend Analysis
Dividend payout rate: 14.24%
Dividend yeild: 4.15%
Previous Dividend: $0.24
Previous adjusted dividend: $0.24
Previous Dividend: $0.96
-
-
Average dividend payment (long-term): $0.24
Average dividend increase/decrease (growth rate) % per period: 0.00%
-
-
-
-
-
-
Dividend History:
2022-03-14--$0.24
2021-09-14--$0.24
2021-03-12--$0.24
2021-12-14--$0.24
2021-06-14--$0.24
2020-12-14--$0.24
-
In-depth Debt & Leverage Analysis
Debt to equity ratio:
86.14%
Net debt to equity ratio:
58.21%
Debt to assets ratio:
32.92%
Net debt to assets ratio:
22.24%
Debt-to-asset ratio is -53.76% below industry average
Ability to repay debt:
Interest coverage ratio:
6.66
Interest coverage ratio is -91.05% less than industry average
Looking forward:
Debt growth rate:
-2.16%
Annual debt growth is -101% lower than industry average debt growth rate
Debt repayment rate in previous year: 10.36%
Analysis of Key Statistics
Correlation of price movement with the market:
0.449
Statistical significance of correlation:
VIAC has a statistically significant correlation with the market
Average Correlation of the industry with the market:
0.508
Stock price is -11.71% less correlated with the market compared to the industry average correlation
R Squared (percentage of price movement explained by movement of the market):
0.508
Correlation of price movement with Nasdaq (^IXIC):
-0.004
Covariance of price movement with the market:
-0.008
Kurtosis
12.683
Returns have severe fat-tails (leptokurtic), i.e., returns considerably higher or lower than the mean returns are considerably more likely, compared to assets with normally distributed returns
Skewness of returns:
-0.272
Returns are, approximately, symmetrical
Fundamental Analysis & Dupont Analysis of
VIAC
Gross Profit Margin Ratio:
153%
Operating Profit Margin Ratio:
22.03%
Operating profit margin is 233.79% higher than the industry
Net Profit Margin Ratio:
153%
Effective Tax Rate:
12.41%
Effective tax rate is -20.01% lower than the industry
Dupont Method
Net Profit Margin
Return on Equity Ratio (ROE):
×
ROA
=
×
20.28%
Return on equity (ROE) is -60.73% lower than the industry
Financial Leverage
Asset Turnover Ratio (ROA):
7.75%
Return on assets (ROA) is 79.01% higher than the industry
Financial Leverage:
1.5x
Current Ratio:
1.76
Current ratio is 7.48% above industry average
Cash Conversion Cycle (days):
76.4
Cash conversion cycle is 58.04% above industry average
The remaining useful life of property plant & equipment is: 3.5 years
Stock based compensation to net income ratio:
4.23%
In-depth Efficiency Analysis
Revenue generated per employee:
1.2M
Each employee generates 29% more revenue than industry average revenue per employee
EBITDA generated per employee:
285.9K
Each employee generates -18% less EBITDA than industry average revenue per employee
Profit generated per employee:
197.8K
Each employee generates 73% more net income/profit than industry average revenue per employee
Free cash flow (FCF) generated per employee:
26.1K
Each employee generates -74530% less free cash flow than industry average revenue per employee
Assets/Capital per employee
1.8M
Each employee generates -74530% less free cash flow than industry average revenue per employee
Research & Development (R&D) Analysis
-
-
Competitors/Peer firms of
VIAC
PARAMOUNT GLOBAL (XNAS:PARAA)
SIRIUS XM HOLDINGS INC. (XNAS:SIRI)
DISH NETWORK CORPORATION (XNAS:DISH)
FOX CORPORATION (XNAS:FOX)
FOX CORPORATION (XNAS:FOXA)
IAC INC. (XNAS:IAC)
ZILLOW GROUP, INC. (XNAS:ZG)
ZILLOW GROUP, INC. (XNAS:Z)
TAKE-TWO INTERACTIVE SOFTWARE, INC. (XNAS:TTWO)
Current Analyst Ratings
Strong buy�0%
Buy�0%
Hold�0%
Sell�0%
Strong sell�0%
Overall analyst sentiment is: -
Income Statement
Period:
TTM
Date:
12/31/21
Revenue:
28.59B
Cost of Revenue:
Gross Profit:
R&D Expense
General & Admin Expenses:
Selling, General & Admin Expenses
Sales and Marketing Expenses
Other Expenses :
Operating Expenses :
Cost & Expenses :
Interest Income:
Interest Expenses:
Depreciation & Amortization:
EBITDA:
Operating Income:
Other Income Expenses:
Income Before Tax:
Income Tax Expense:
Net Income:
Balance Sheet
Date:
Calendar Year:
Period:
Cash & Cash Equivalents:
Short Term Investments:
Cash & Short Term Investments:
Net Receivables:
Inventory:
Other Current Assets:
Total Current Assets:
PP&E:
Goodwill:
Intangible Assets:
Long Term Investments:
Tax Assets:
Other Non-Current Assets:
Total Non-Current Assets:
Other Assets:
Total Assets:
Accounts Payable:
Short Term Debt:
Tax Payables:
Deferred Revenue:
Other Current Liabilities:
Total Current Liabilities:
Long Term Debt:
Other Non-Current Liabilities:
Total Non Current Liabilities:
Other Liabilities:
Total Liabilities:
Common Stock:
Retained Earnings:
Accumulated Other Comprehensive Loss:
Other Total Stockholders' Equity:
Total Stockholders' Equity:
Total Liabilities and Stockholders' Equity:
Total Investments:
Total Debt:
Net Debt:
17.74B
10.84B
-
6.44B
6.44B
-
390.00M
6.83B
53.00M
986.00M
390.00M
6.57B
6.30B
4.54B
5.21B
646.00M
4.54B
Statement of Cash Flow
Date:
Period:
390.00M
Differed Income Tax :
90.00M
Stock Based Compensation :
192.00M
Change in Working Capital :
- 15492000.00K
Accounts Receivables:
-
Other Working Capital:
- 16431000.00K
Other Non-Cash Items:
11.23B
Net Cash Provided by Operating Activities:
953.00M
Investments in PP&E:
-
Net Acquisitions:
2.97B
Purchases of Investments:
-
Sales/Maturities of Investments:
Other Investing Activities:
Net Cash Used for Investing Activities:
Debt Repayment:
Common Stock Issued:
Common Stock Repurchased:
Dividend Paid:
Other Financing Activities:
Net Cash Used Provided by Financing Activities:
Effect of FOREX on Changes in Cash:
Net Changes in Cash:
Cash at End of Period:
Cash at Beginning of Period:
Operating Cash Flow:
Capital Expenditure:
Free Cash Flow (FCF):
12/31/21
2021
FY
6.27B
-
6.27B
6.98B
1.50B
1.92B
16.68B
3.37B
16.58B
2.77B
-
1.21B
18.02B
41.94B
-
58.62B
800.00M
11.00M
-
1.09B
7.58B
9.48B
19.30B
5.81B
26.17B
-
35.65B
1.00M
14.34B
- 1902000.0K
9.96B
December 31, 2021 at 12:00:00 AM
24.58B
22.40B
58.05B
-
19.31B
13.0B
-
- 579000.00K
2.40B
- 2230000.00K
1.67B
-
- 647000.00K
1.05B
- 152000.00K
- 48000.00K
3.15B
6.27B
3.12B
953.00M
- 354000.00K
599.00M
Our Proprietary Portfolio Rating
Our Rating:
A+
Price Forecast/Expected Price in Next 5 Years of
VIAC
2023
2024
2025
2026
2027
$19.14
$21.13
$23.32
$25.74
$28.41