Lions Gate Entertainment Corp.
Lions Gate Entertainment Corp. Fundamental Analysis
Lions Gate Entertainment Corp. (LGF-A) shows moderate financial fundamentals with a PE ratio of -1.56, profit margin of 19.58%, and ROE of -11.82%. The company generates $-5.6B in annual revenue with moderate year-over-year growth of 4.21%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 33.8/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze LGF-A's fundamental strength across five key dimensions:
Efficiency Score
WeakLGF-A struggles to generate sufficient returns from assets.
Valuation Score
ExcellentLGF-A trades at attractive valuation levels.
Growth Score
ModerateLGF-A shows steady but slowing expansion.
Financial Health Score
ModerateLGF-A shows balanced financial health with some risks.
Profitability Score
ModerateLGF-A maintains healthy but balanced margins.
Key Financial Metrics
Is LGF-A Expensive or Cheap?
P/E Ratio
LGF-A trades at -1.56 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, LGF-A's PEG of 0.08 indicates potential undervaluation.
Price to Book
The market values Lions Gate Entertainment Corp. at 0.20 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -0.99 times EBITDA. This is generally considered low.
How Well Does LGF-A Make Money?
Net Profit Margin
For every $100 in sales, Lions Gate Entertainment Corp. keeps $19.58 as profit after all expenses.
Operating Margin
Core operations generate 1.26 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-11.82 in profit for every $100 of shareholder equity.
ROA
Lions Gate Entertainment Corp. generates $-4.31 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Lions Gate Entertainment Corp. generates limited operating cash flow of $3.00B, signaling weaker underlying cash strength.
Free Cash Flow
Lions Gate Entertainment Corp. generates weak or negative free cash flow of $2.77B, restricting financial flexibility.
FCF Per Share
Each share generates $12.34 in free cash annually.
FCF Yield
LGF-A converts 10.70% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-1.56
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.08
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.20
vs 25 benchmark
P/S Ratio
Price to sales ratio
-4.58
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.95
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.25
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.12
vs 25 benchmark
ROA
Return on assets percentage
-0.04
vs 25 benchmark
ROCE
Return on capital employed
-0.39
vs 25 benchmark
How LGF-A Stacks Against Its Sector Peers
| Metric | LGF-A Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -1.56 | 23.32 | Better (Cheaper) |
| ROE | -11.82% | 1104.00% | Weak |
| Net Margin | 19.58% | -55937.00% (disorted) | Strong |
| Debt/Equity | 0.95 | 1.38 | Strong (Low Leverage) |
| Current Ratio | 0.25 | 1.56 | Weak Liquidity |
| ROA | -4.31% | -45352.00% (disorted) | Weak |
LGF-A outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Lions Gate Entertainment Corp.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-0.16%
Industry Style: Growth, Technology, Streaming
DecliningEPS CAGR
-254.99%
Industry Style: Growth, Technology, Streaming
DecliningFCF CAGR
-15.09%
Industry Style: Growth, Technology, Streaming
Declining