Lions Gate Entertainment Corp.
Lions Gate Entertainment Corp. Fundamental Analysis
Lions Gate Entertainment Corp. (LGF-B) shows moderate financial fundamentals with a PE ratio of -0.46, profit margin of -22.32%, and ROE of -44.91%. The company generates $18.7B 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 -53.3/100 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-B's fundamental strength across five key dimensions:
Efficiency Score
WeakLGF-B struggles to generate sufficient returns from assets.
Valuation Score
ExcellentLGF-B trades at attractive valuation levels.
Growth Score
ModerateLGF-B shows steady but slowing expansion.
Financial Health Score
WeakLGF-B carries high financial risk with limited liquidity.
Profitability Score
WeakLGF-B struggles to sustain strong margins.
Key Financial Metrics
Is LGF-B Expensive or Cheap?
P/E Ratio
LGF-B trades at -0.46 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, LGF-B's PEG of 0.01 indicates potential undervaluation.
Price to Book
The market values Lions Gate Entertainment Corp. at 0.27 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -25.60 times EBITDA. This is generally considered low.
How Well Does LGF-B Make Money?
Net Profit Margin
For every $100 in sales, Lions Gate Entertainment Corp. keeps $-22.32 as profit after all expenses.
Operating Margin
Core operations generate -21.30 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-44.91 in profit for every $100 of shareholder equity.
ROA
Lions Gate Entertainment Corp. generates $-15.69 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 $-350.25M, signaling weaker underlying cash strength.
Free Cash Flow
Lions Gate Entertainment Corp. generates weak or negative free cash flow of $-767.57M, restricting financial flexibility.
FCF Per Share
Each share generates $-3.07 in free cash annually.
FCF Yield
LGF-B converts -2.67% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-0.46
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.008
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.27
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.53
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.28
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.31
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.45
vs 25 benchmark
ROA
Return on assets percentage
-0.16
vs 25 benchmark
ROCE
Return on capital employed
-0.23
vs 25 benchmark
How LGF-B Stacks Against Its Sector Peers
| Metric | LGF-B Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -0.46 | 23.90 | Better (Cheaper) |
| ROE | -44.91% | 1020.00% | Weak |
| Net Margin | -22.32% | -59468.00% (disorted) | Weak |
| Debt/Equity | 1.28 | 0.77 | Weak (High Leverage) |
| Current Ratio | 0.31 | 1.69 | Weak Liquidity |
| ROA | -15.69% | -6587.00% (disorted) | Weak |
LGF-B outperforms its industry in 1 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