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 -1.54, profit margin of -36.84%, and ROE of -16.94%. The company generates $3.0B 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 -19.0/100 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
WeakLGF-A struggles to sustain strong margins.
Key Financial Metrics
Is LGF-A Expensive or Cheap?
P/E Ratio
LGF-A trades at -1.54 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, LGF-A's PEG of 0.02 indicates potential undervaluation.
Price to Book
The market values Lions Gate Entertainment Corp. at 0.19 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -1.49 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 $-36.84 as profit after all expenses.
Operating Margin
Core operations generate -2.09 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-16.94 in profit for every $100 of shareholder equity.
ROA
Lions Gate Entertainment Corp. generates $-4.24 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 strong operating cash flow of $1.69B, reflecting robust business health.
Free Cash Flow
Lions Gate Entertainment Corp. generates strong free cash flow of $1.45B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $6.46 in free cash annually.
FCF Yield
LGF-A converts 5.60% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-1.54
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.02
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.19
vs 25 benchmark
P/S Ratio
Price to sales ratio
8.49
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.92
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.19
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.17
vs 25 benchmark
ROA
Return on assets percentage
-0.04
vs 25 benchmark
ROCE
Return on capital employed
-0.35
vs 25 benchmark
How LGF-A Stacks Against Its Sector Peers
| Metric | LGF-A Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -1.54 | 21.28 | Better (Cheaper) |
| ROE | -16.94% | 1116.00% | Weak |
| Net Margin | -36.84% | -55491.00% (disorted) | Weak |
| Debt/Equity | 0.92 | 1.38 | Strong (Low Leverage) |
| Current Ratio | 0.19 | 1.61 | Weak Liquidity |
| ROA | -4.24% | -204827.00% (disorted) | Weak |
LGF-A outperforms its industry in 2 out of 6 key metrics, 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