$10.46
arrow_drop_down0.94%Is PARA a Buy or Sell based on AI Analysis?
Fundamental Analysis
Paramount Global's fundamental analysis highlights several key indicators that potential investors should consider before making investment decisions. Firstly, the company's price-to-earnings ratio (P/E ratio) is not provided, indicating that investors may need to conduct further research to assess the company's valuation compared to its earnings. Additionally, the company's gross profit margin of 24.61% suggests that a significant portion of the company's revenue is retained after accounting for the cost of goods sold, which could indicate strong operational efficiency. Moreover, Paramount Global's high debt-to-equity ratio of 0.7 may raise concerns about the company's financial leverage and ability to meet its debt obligations. Furthermore, Paramount Global's return on equity (ROE) of -5.37% indicates that the company is not effectively leveraging its equity to generate profits for shareholders. Additionally, the company's dividend yield of 1.83% suggests that investors may receive a modest return on their investment through dividend payments. However, the company's negative net income of -$1.1B raises questions about its profitability and financial health. Overall, investors should carefully assess these fundamental indicators in conjunction with other financial metrics and market trends before making investment decisions related to Paramount Global.
Positive Development
Paramount Global's Q4 2023 earnings are anticipated to show improved financials, potentially indicating a positive performance. The company's stock has outperformed competitors on several occasions, indicating strong investor sentiment. The company has a strong cash ratio and current ratio, suggesting good liquidity and short-term financial health.
Negative Development
The company has underperformed in recent weeks, suggesting a potential decline in investor confidence. The company's inventory turnover ratio is low, indicating that it may be holding onto inventory for too long. The company's debt-to-equity ratio is high, which may indicate financial instability. The company's long-term debt-to-total asset ratio is also high, indicating a potentially risky financial structure.
Technical Analysis
Paramount Global (PARA) has a neutral technical rating, with indicators showing a mix of buy and hold signals. The company's technical buy indicators for the month include the Commodity Channel Index (CCI), Average True Range (ATR), and Williams %R (WILLR). On the other hand, the technical hold indicators for the month consist of the Relative Strength Index (RSI), Moving Average Convergence Divergence (MACD), Average Directional Index (ADX), Rate of Change (ROC), and Stochastic Relative Strength Index (STOCHRSI). This suggests a level of uncertainty in the market sentiment towards PARA, as investors are advised to closely monitor the technical indicators for potential changes in the stock's performance. Furthermore, Paramount Global has a beta of 1.78, indicating a higher volatility compared to the market benchmark. The stock's technical analysis also reveals a one-year stock sector change of 28.55% and a stock market change of 24.11%. Additionally, PARA has a cumulative multiple of 1 and a shares outstanding of 610.7 million. The company's technical analysis suggests that investors should pay attention to factors such as market volatility, sector performance, and the overall market trend when considering investment decisions in PARA.
Conclusion and recommendation
Based on the data provided, Paramount Global (PARA) appears to be a stock that investors should approach with caution. The company's stock price has shown a downward trend, with a significant decrease in the past year and a negative earnings growth year over year. Additionally, the company's net income and operating income are in the negative, indicating potential financial instability. While Paramount Global does pay dividends and has a relatively low debt-to-equity ratio, the overall financial health of the company raises concerns. In conclusion, investors should closely monitor Paramount Global's performance and financial metrics before considering investing in the company. While the stock may have potential for growth based on analyst forecasts, the current financial indicators suggest a level of risk that may not be suitable for all investors. It is important to conduct thorough research and analysis, considering factors such as the company's market value score, industry score, and sector score, before making any investment decisions in Paramount Global.