Paramount Skydance Corp (NASDAQ: PSKY)

Sector: Communication Services Industry: Entertainment CIK: 0002041610
Market Cap 18.94 Bn
P/B 1.58
P/E -1,353.00
P/S 0.66
ROIC (Qtr) 0.00
Div Yield % 1.85
Rev 1y % (Qtr) 0.00
Total Debt (Qtr) 14.73 Bn
Debt/Equity (Qtr) 1.23

About

Price action

Investment thesis

Bull case

  • Healthy cash reserves of 3.26B provide 9.40x coverage of short-term debt 347M, demonstrating strong liquidity position and minimal refinancing risk.
  • Tangible assets of 35.63B provide exceptional 22.06x coverage of deferred revenue 1.61B, showing strong service capability backing.
  • Robust tangible asset base of 35.63B provides 10.74x coverage of working capital 3.32B, indicating strong operational backing.
  • Tangible assets of 35.63B provide robust 4.03x coverage of other current liabilities 8.85B, indicating strong asset backing.
  • Cash reserves of 3.26B provide solid 0.81x coverage of other non-current liabilities 4.03B, indicating strong liquidity.

Bear case

  • With cash reserves of 3.26B against inventory of 17.23B, the 0.19 cash-to-inventory ratio suggests potential liquidity risks if inventory turnover slows, particularly concerning given current supply chain volatilities.
  • Operating cash flow of 0 provides insufficient coverage of deferred revenue obligations of 1.61B, which is 0x, raising concerns about future service delivery capabilities.
  • Retained earnings of (1.18B) provide limited buffer against comprehensive income items of 25M, which is -47.20x, indicating elevated exposure to market risks.
  • Other current assets of (13.59B) provide weak coverage of payables of 689M, which is -19.72x, suggesting potential working capital stress in near term.
  • Inventory of 17.23B consumes 5.19x of working capital 3.32B, suggesting inefficient inventory management and potential liquidity constraints.

Peer comparison

Companies in the Entertainment
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 NFLX Netflix Inc 398.09 Bn 38.16 9.18 14.46 Bn
2 DIS Walt Disney Co 204.13 Bn 16.46 2.16 42.03 Bn
3 WBD Warner Bros. Discovery, Inc. 70.69 Bn 145.75 1.87 33.52 Bn
4 FWONA Liberty Media Corp 53.12 Bn -399.43 13.15 7.04 Bn
5 LYV Live Nation Entertainment, Inc. 33.40 Bn 103.67 1.36 9.39 Bn
6 FOXA Fox Corp 33.26 Bn 16.34 2.02 6.60 Bn
7 PSKY Paramount Skydance Corp 18.94 Bn -1,353.00 0.66 14.73 Bn
8 TKO TKO Group Holdings, Inc. 17.56 Bn 76.76 4.05 4.04 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.74 1.53
EV to Cash from Ops. EV/CFO 41.19 25.10
EV to Debt EV to Debt 2.16 5.03
EV to EBIT EV/EBIT 29.63 165.24
EV to EBITDA EV/EBITDA 19.75 -156.71
EV to Free Cash Flow [EV/FCF] EV/FCF 62.71 72.07
EV to Market Cap EV to Market Cap 1.68 2.12
EV to Revenue EV/Rev 1.11 6.42
Price to Book Value [P/B] P/B 1.58 2.40
Price to Earnings [P/E] P/E -1,353.00 -114.33
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.00 1.03
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 -17.28
Dividend per Basic Share Div per Share (Qtr) 0.20 0.14
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 7.73
Interest Coverage Int. cover (Qtr) 0.00 -38.17
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 0.00 -33.75
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 33.57 248.04
Dividend Growth (1y) % Div 1y % (Qtr) 0.00 0.52
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 0.00 -100.15
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 0.00 -28.24
EBIT Growth (1y) % EBIT 1y % (Qtr) 0.00 -85.91
EBT Growth (1y) % EBT 1y % (Qtr) 0.00 24.10
EPS Growth (1y) % EPS 1y % (Qtr) 0.00 18.31
FCF Growth (1y) % FCF 1y % (Qtr) 0.00 118.70
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 0.00 30.85
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.00 0.60
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.04
Cash Ratio Cash Ratio (Qtr) 0.33 0.45
Current Ratio Curr Ratio (Qtr) 1.34 1.09
Debt to Equity Ratio Debt/Equity (Qtr) 1.23 1.01
Interest Cover Ratio Int Coverage (Qtr) 0.00 -38.17
Times Interest Earned Times Interest Earned (Qtr) 0.00 -38.17
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 0.00 -65.26
EBIT Margin % EBIT Margin % (Qtr) 0.00 -79.53
EBT Margin % EBT Margin % (Qtr) 0.00 -82.47
Gross Margin % Gross Margin % (Qtr) 0.00 35.56
Net Profit Margin % Net Margin % (Qtr) 0.00 -83.18