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Paramount Skydance (PSKY)
NASDAQ:PSKY
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Paramount Skydance
(NASDAQ:PSKY)
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Select Model
Rating:68Neutral
Price Target:
$14.50
▼(-14.20% Downside)
Paramount Global Class B's overall score is driven by strong streaming performance and technical indicators suggesting positive momentum. However, financial challenges and valuation concerns weigh on the score. Continued focus on streaming growth and operational efficiency is crucial for future improvement.
Positive Factors
Streaming Growth
The significant growth in Paramount+ subscribers highlights the company's successful shift towards streaming, ensuring long-term revenue potential and market relevance in the digital content space.
Operational Efficiency
The substantial cost savings initiative enhances profitability and operational agility, allowing the company to reinvest in growth areas and maintain competitive advantage.
Content Leadership
Dominance in broadcast TV underscores strong content creation capabilities, reinforcing brand strength and audience loyalty, critical for sustained advertising and affiliate revenue.
Negative Factors
Subscriber Decline
The decline in subscribers highlights potential volatility in the streaming segment, which could affect long-term revenue stability if not addressed with strategic content and distribution improvements.
Linear TV Decline
Ongoing declines in linear TV viewership challenge traditional revenue streams, necessitating accelerated digital transformation to offset potential losses in advertising and affiliate income.
Filmed Entertainment Losses
Losses in the Filmed Entertainment segment indicate challenges in monetizing content, which could impact profitability unless offset by successful new releases or improved licensing deals.
Paramount Skydance (PSKY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$17.99B
Dividend Yield1.18%
Average Volume (3M)10.59M
Price to Earnings (P/E)―
Beta (1Y)0.60
Revenue Growth-1.75%
EPS Growth99.73%
CountryUS
Employees18,600
SectorCommunication Services
Sector Strength97
IndustryEntertainment
Share Statistics
EPS (TTM)0.46
Shares Outstanding1,064,653,400
10 Day Avg. Volume6,369,819
30 Day Avg. Volume10,594,045
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)0.42
Price to Sales (P/S)0.23
P/FCF Ratio13.88
Enterprise Value/Market Cap1.22
Enterprise Value/Revenue0.76
Enterprise Value/Gross Profit2.40
Enterprise Value/Ebitda12.63
Forecast
1Y Price Target
$12.82Price Target Upside-24.14% Downside
Rating ConsensusHold
Number of Analyst Covering19
Paramount Skydance Business Overview & Revenue Model
Company DescriptionParamount Skydance (PSKY) is a prominent entertainment company engaged in the production and distribution of high-quality films, television shows, and digital content. A strategic partnership between Paramount Pictures and Skydance Media, PSKY operates predominantly in the film and television sectors, known for its blockbuster franchises, innovative storytelling, and cutting-edge production techniques. The company’s core products include feature films, streaming content, and television series that appeal to a global audience, leveraging both theatrical releases and digital platforms to maximize reach and impact.
How the Company Makes MoneyParamount Skydance generates revenue through multiple streams, primarily from box office sales, licensing agreements, and distribution of its film and television content. The company earns significant income from theatrical releases, where ticket sales contribute to its bottom line. Additionally, PSKY capitalizes on home entertainment sales, including DVD and Blu-ray sales, as well as digital downloads and rentals. Another key revenue stream comes from licensing its content to streaming platforms, television networks, and international distributors. Strategic partnerships with platforms like Netflix, Amazon Prime, and others enhance its distribution capabilities, further diversifying revenue. Merchandise sales tied to popular franchises also provide additional income, while promotional partnerships and sponsorships can add to the overall revenue stream.
Paramount Skydance Earnings Call Summary
Earnings Call Date:Jul 31, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 30, 2025
Earnings Call Sentiment Neutral
The earnings call revealed strong performance in streaming and content leadership, with significant growth in Paramount+ and operational improvements. However, challenges remain with subscriber decline, linear TV declines, and losses in the Filmed Entertainment segment.Q2-2025 Updates
Positive Updates
Streaming Success
Paramount+ is now a top four global SVOD service, achieving profitability in the U.S. faster than many peers. Revenue from Paramount+ grew 23% year-over-year, with a 22% increase in subscription revenue.
Record-Breaking Franchise Performance
The Mission Impossible franchise achieved the biggest global opening in its history. This has led to a 60% lift in daily active subscriber households for the franchise library on Paramount+.
Financial Growth
Total company revenue grew 1% year-over-year to $6.8 billion. D2C generated an adjusted OIBDA of $157 million, improving 6x compared to the previous year.
Content Leadership
CBS maintained its position as the #1 broadcast network for the 17th consecutive season, with 8 of the top 10 series and 14 of the top 20 series.
Operational Efficiency
Implemented over $800 million in annual run rate non-content expense savings, making the organization leaner and more nimble.
Negative Updates
Subscriber Decline
Paramount+ subscriber count decreased by 1.3 million compared to the previous quarter, primarily due to the expiration of an international distribution agreement.
Linear TV Decline
Linear TV trends continued to pressure advertising and affiliate revenue, with TV media advertising revenue down 4% year-over-year.
DTC Advertising Challenges
DTC advertising revenue declined by 4% due to increased supply in the digital ad marketplace.
Filmed Entertainment Losses
Filmed Entertainment segment reported an adjusted OIBDA loss of $84 million, primarily due to lower profit from licensing.
Company Guidance
During Paramount Global's second quarter 2025 earnings call, guidance was provided on several key financial metrics, reflecting the company's strategic transformation into a streaming-first entity. D2C revenue growth outpaced linear declines, with Paramount+ leading the charge. Total company revenue reached $6.8 billion, marking a 1% year-over-year increase, while adjusted OIBDA improved to $824 million. Paramount+ added 10 million new subscribers, solidifying its position as a top 4 global SVOD service, with revenue surging 33% year-over-year. The service saw watch time per subscriber increase by 14% and churn improve by 100 basis points. In the TV media segment, CBS maintained its dominance as the #1 broadcast network for 17 consecutive seasons, contributing to the 5% growth in total company affiliate and subscription revenue. Filmed Entertainment recorded a 2% revenue increase, driven by blockbuster franchises like Mission Impossible. The company also achieved $800 million in annual run-rate non-content expense savings, underscoring its commitment to improving efficiency and profitability. With the Skydance Transaction set to close on August 7, 2025, this call marked the last for Paramount in its current configuration, as it transitions into its next chapter under new ownership.Paramount Skydance Financial Statement Overview
Summary
Paramount Global Class B demonstrates a mixed financial performance. Improvements in operating efficiency and cash flow management are evident, but challenges persist in revenue growth and profitability. The debt level is a concern, though balanced by a reasonable equity ratio.Income Statement
Paramount Global Class B has shown a mixed performance in its income statement. The TTM (Trailing-Twelve-Months) gross profit margin is approximately 31.77%, which is moderately strong, indicating effective cost management. However, the net profit margin is quite low at 0.55%, reflecting challenges in converting revenue into net income, which might be due to high operating expenses or other non-operational costs. Revenue growth has been inconsistent, with a slight decline from 2022 to 2023 and a further drop in 2024, indicating potential revenue challenges. The EBIT margin has improved to 4.92% in the TTM from negative figures in the previous year, showing signs of operational improvement.65
Positive
Balance Sheet
The company exhibits a moderate financial structure with a debt-to-equity ratio of 0.91, suggesting a balanced use of debt and equity financing. The return on equity in the TTM is low at 0.94%, indicating limited returns for shareholders. The equity ratio stands at 37.19%, which is reasonable and suggests a decent level of asset backing by equity. However, the overall stability is hindered by a substantial total debt level, which could pose risks in periods of financial strain.60
Neutral
Cash Flow
Paramount Global Class B shows strong cash flow management with a positive free cash flow trend. The free cash flow to net income ratio is robust at 3.23 in the TTM, indicating effective conversion of income into cash. The operating cash flow to net income ratio is 4.92, further highlighting strong cash generation capabilities. Free cash flow has grown slightly, demonstrating resilience in cash management despite fluctuating net income.70
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 28.76B | 29.21B | 29.65B | 30.15B | 28.59B | 25.29B |
| Gross Profit | 9.14B | 8.66B | 7.26B | 10.31B | 10.84B | 10.45B |
| EBITDA | 1.74B | -4.92B | 85.00M | 2.60B | 6.58B | 15.62B |
| Net Income | -14.00M | -6.19B | -608.00M | 1.10B | 4.54B | 2.42B |
Balance Sheet | ||||||
| Total Assets | 44.93B | 46.17B | 53.54B | 58.39B | 58.62B | 52.66B |
| Cash, Cash Equivalents and Short-Term Investments | 2.74B | 2.66B | 2.46B | 2.88B | 6.27B | 2.98B |
| Total Debt | 15.51B | 15.83B | 15.86B | 17.27B | 19.31B | 21.32B |
| Total Liabilities | 27.82B | 29.39B | 30.49B | 34.79B | 35.65B | 36.61B |
| Stockholders Equity | 16.70B | 16.32B | 22.53B | 23.04B | 22.40B | 15.37B |
Cash Flow | ||||||
| Free Cash Flow | 507.00M | 489.00M | 147.00M | -139.00M | 599.00M | 1.97B |
| Operating Cash Flow | 772.00M | 752.00M | 475.00M | 219.00M | 953.00M | 2.29B |
| Investing Cash Flow | 122.00M | 12.00M | 942.00M | -526.00M | 2.40B | 56.00M |
| Financing Cash Flow | -528.00M | -507.00M | -1.84B | -2.98B | -152.00M | -90.00M |
Paramount Skydance Technical Analysis
Neutral
16.90
Price Trends
16.33
Positive
14.38
Positive
12.77
Positive
Market Momentum
0.15
Positive
43.87
Neutral
20.73
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PSKY, the sentiment is Neutral. The current price of 16.9 is below the 20-day moving average (MA) of 18.45, above the 50-day MA of 16.33, and above the 200-day MA of 12.77, indicating a neutral trend. The MACD of 0.15 indicates Positive momentum. The RSI at 43.87 is Neutral, neither overbought nor oversold. The STOCH value of 20.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PSKY.
Paramount Skydance Risk Analysis
Paramount Skydance disclosed 42 risk factors in its most recent earnings report. Paramount Skydance reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Paramount Skydance Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $197.56B | 17.23 | 11.01% | 0.91% | 5.00% | 144.65% | |
76 Outperform | $24.08B | 11.61 | 19.96% | 0.95% | 16.60% | 57.39% | |
73 Outperform | $502.94B | 50.44 | 43.55% | ― | 14.28% | 46.86% | |
71 Outperform | $16.93B | 57.47 | 54.66% | 2.25% | 1.36% | -45.79% | |
68 Neutral | $45.68B | 61.09 | 2.18% | ― | -3.79% | ― | |
68 Neutral | $17.99B | ― | -0.11% | 1.18% | -1.75% | 99.73% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% |
* Communication Services Sector Average
PSKY
Paramount Skydance
16.90
6.61
64.24%
DIS
Walt Disney
109.88
13.44
13.94%
NFLX
Netflix
1,183.59
419.70
54.94%
FOXA
Fox
57.00
14.93
35.49%
WMG
Warner Music Group
32.48
0.82
2.59%
WBD
Warner Bros
18.19
10.37
132.61%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.