# Paramount Skydance Class B Common Stock (PSKY.US)

Canonical: https://gigainvestors.com/s/PSKY

Analysis as of: 2026-10-16T07:31:21.626Z. Financial observations: FY1996–FY2025.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: $7.26 per share; close as of 2026-10-15.

## Checklist

### understandable: fail

- 4 revenue declines in the last 10 years (informational)

- more than 2 net loss years

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 4

- Years with a net loss: 3

- Operating margin variation: 1.12×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.20×

- FY2017: 0.21×

- FY2018: 0.21×

- FY2019: 0.16×

- FY2020: 0.18×

- FY2021: 0.14×

- FY2022: 0.10×

- FY2023: -0.02×

- FY2024: 0.06×

- FY2025: -0.18×

### moat: fail

- ROIC worst years below threshold (more than 1 bad year allowed)

- Recent gross margin fell 8.3pp below the typical margin (limit 4pp)

- ROIC, median of available years: 19.3%

- ROIC, second-lowest year: -1.8%

- Typical minus recent gross margin: 8.3 pp

- Typical gross margin (annual median): 36.6%

- Recent gross margin (lower of latest and 3-year median): 28.3%

- Years with nonpositive capital: 0

- Capital spending / revenue: 1.3%

- ROIC including acquisitions, ten-year median: 1.4%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 24.8%

- FY2017: 28.1%

- FY2018: 38.7%

- FY2019: 25.7%

- FY2020: 20.8%

- FY2021: 17.9%

- FY2022: 10.4%

- FY2023: -1.8%

- FY2024: 6.7%

- FY2025: -19.2%

### economics: fail

- owner earnings cash conversion below threshold

- incremental invested capital return below threshold

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: -$12B

- Net income, five-year total: -$7.8B

- Return on incremental invested capital: 0.0%

- Working capital / revenue, annual change: -1.1 pp

- Working capital / revenue, change between three-year averages: -7.4 pp

- Working capital / revenue, final three-year average: 25.0%

Chart: Owner earnings · five years; fiscal year observations.

- FY2021: $407M

- FY2022: -$311M

- FY2023: -$30M

- FY2024: -$6.1B

- FY2025: -$6.0B

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- potential debt-funded buybacks (informational)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 28.1% vs -1.8%

- Per-share earnings: 2.94 to -5.59 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- five-year and ten-year diluted share growth both above threshold

- acquired goodwill and intangibles (proxy) exceeds half of ten-year net income with low and deteriorating ROIC

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 8.9%

- Ordinary dilution, 5-year annual growth: 12.3%

- Market cap gain: -$12B

- Cumulative retained earnings: $18B

- Diluted shares, 10-year annual growth: 8.9%

- Diluted shares, 5-year annual growth: 12.3%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value change: -$8.53

- Per-share value, starting three-year median: $2.94

- Per-share value, ending three-year median: -$5.59

- Buybacks concentrated in cheaper years (correlation): -0.37

- Average buyback yield: 2.1%

- Buyback history: 10 years

- Debt-funded buybacks: Yes

- Acquisition spending: $12B

- Cumulative net income, 10 years: $3.0B

- ROIC, first three-year median: 28.1%

- ROIC, last three-year median: -1.8%

Chart: Earnings per share; fiscal year observations.

- FY2016: $2.94

- FY2017: $0.90

- FY2018: $5.59

- FY2019: $5.38

- FY2020: $3.91

- FY2021: $6.94

- FY2022: $1.70

- FY2023: -$1.60

- FY2024: -$9.32

- FY2025: -$5.59

### accounting: pass

- stock compensation exceeds 15% of operating cash flow

- Sloan accruals: -15.4%

- Receivables to sales index (DSRI): 0.96×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 33.0%

- Earnings backed by cash: Yes

- Accounting red flags: 1

- Goodwill and intangibles / equity: 0.67×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -1.7%

- FY2017: -2.5%

- FY2018: -0.0%

- FY2019: 4.2%

- FY2020: 0.2%

- FY2021: 6.1%

- FY2022: 1.5%

- FY2023: -2.8%

- FY2024: -15.0%

- FY2025: -15.4%

## Holders

- [David Einhorn](https://gigainvestors.com/GLRE): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Christopher Bloomstran](https://gigainvestors.com/SA): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 81% since Mar 2022 · "PSKY Misses Q4 Earnings Estimates, Provides Weak Q1 Guidance" (finance.yahoo.com, Feb 2026) · sales +0%

Story as of 2026-10-16T09:59:27.024Z; price observation 2026-10-15.

- 2025-08-13: Paramount Skydance (PSKY) Gets 11% Boost from $7.7-Billion Exclusive UFC Deal ([finance.yahoo.com](https://finance.yahoo.com/news/paramount-skydance-psky-gets-11-165509379.html))

- 2025-11-11: Paramount Skydance outlines $30B 2026 revenue target as company accelerates D2C and content investment ([seekingalpha.com](https://seekingalpha.com/news/4519764-paramount-skydance-outlines-30b-2026-revenue-target-as-company-accelerates-d2c-and-content?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

- 2026-05-04: Paramount Q1 2026 earnings beat estimates, streaming profits rise ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/paramount-q1-2026-earnings-beat-203123396.html))

- 2026-08-05: Paramount Skydance Q2 2026 earnings: profit outlook raised ([finance.yahoo.com](https://finance.yahoo.com/media-advertising/articles/paramount-skydance-q2-2026-earnings-115258334.html))

### Sales · FY2024–2025

sales +0%; source https://www.sec.gov/Archives/edgar/data/2041610/000204161026000011/psky-20251231.htm; observed 2026-02-25.

- FY2016: $13B 

- FY2017: $14B 

- FY2018: $27B 

- FY2019: $27B 

- FY2020: $25B 

- FY2021: $29B 

- FY2022: $30B 

- FY2023: $30B 

- FY2024: $29B 

- FY2025: $29B 

### Gross margin · FY2025

gross margin 33.5%; source https://www.sec.gov/Archives/edgar/data/2041610/000204161026000011/psky-20251231.htm; observed 2026-02-25.

- FY2016: 37.9% 

- FY2017: 36.7% 

- FY2018: 40.0% 

- FY2019: 36.5% 

- FY2020: 39.2% 

- FY2021: 36.6% 

- FY2022: 32.8% 

- FY2023: 24.5% 

- FY2024: 28.3% 

- FY2025: 33.5% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in entertainment; annual sales are USD 29.2 billion.

- Source: https://eodhd.com/api/fundamentals/PSKY.US.json#2025-12-31 (filed 2026-02-25); FY2025: revenue 29213000000; grossProfit 9776000000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); PSKY.US: Paramount Skydance Corporation operates as a media and entertainment company worldwide. It operates in three segments: Studios, Direct-to-Consumer, and TV Media. The company operates CBS Television Network, a domestic broadcast television network; CBS Stations, a television station; international free-to-air networks comprising Network 10, Channel 5, Telefe, and Chilevisión; and domestic premium and basic cable networks, such as Nickelodeon, MTV, CMT, Comedy Central, BET, Paramount+ with SHOWTIME, Paramount Network, The Smithsonian Channel, BET Media Group, CBS Sports Network, and international extensions of these brands. It also provides domestic and international television studio operations, including CBS Studios, Paramount Television Studios, and Showtime; CBS Media Ventures, which produces and distributes first-run syndicated programming; and digital properties consist of CBS News and CBS Sports HQ. In addition, the company offers a portfolio of domestic and international pay and free streaming services, including Paramount+, Pluto TV, and BET+. Further, it produces and acquires films, series, and short-form content for release and licensing worldwide, including in theaters, on streaming services, on television, through home entertainment, and DVDs, Blu-ray; and operates a portfolio consisting of Paramount Pictures, Paramount Players, Paramount Animation, Nickelodeon Studio, and Miramax. It provides production, distribution, and advertising solutions. The company was founded in 1914 and is headquartered in New York, New York.

### Why customers stay

Margins ranged from 24.5% to 33.5% during 2023–25; it earns 19.3% on its capital.

- Source: https://eodhd.com/api/fundamentals/PSKY.US.json#2023-12-31 (filed 2026-02-25); FY2023: grossProfit / revenue = 24.5%.

- Source: https://eodhd.com/api/fundamentals/PSKY.US.json#2024-12-31 (filed 2026-02-25); FY2024: grossProfit / revenue = 28.3%.

- Source: https://eodhd.com/api/fundamentals/PSKY.US.json#2025-12-31 (filed 2026-02-25); FY2025: grossProfit / revenue = 33.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); 10-year return on capital observations [[2016,0.2481722579041247],[2017,0.2811757066354493],[2018,0.38741990278102983],[2019,0.256806604602143],[2020,0.2075822331433933],[2021,0.17933265242196927],[2022,0.1036043009213593],[2023,-0.01811705481541747],[2024,0.06691529709228825],[2025,-0.19246821103250566]]; median 0.1934574427826813. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back USD 92 million of shares.

- Source: https://eodhd.com/api/fundamentals/PSKY.US.json#2016-12-31 (filed 2026-02-25); FY2016: growth capex 0; upkeep 196000000; owner earnings 1290000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/PSKY.US.json#2017-12-31 (filed 2026-02-25); FY2017: growth capex 0; upkeep 185000000; owner earnings 395000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/PSKY.US.json#2018-12-31 (filed 2026-02-25); FY2018: growth capex 0; upkeep 352000000; owner earnings 2966000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/PSKY.US.json#2019-12-31 (filed 2026-02-25); FY2019: growth capex 0; upkeep 345000000; owner earnings 594000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/PSKY.US.json#2020-12-31 (filed 2026-02-25); FY2020: growth capex 0; upkeep 324000000; owner earnings 1696000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/PSKY.US.json#2021-12-31 (filed 2026-02-25); FY2021: growth capex 0; upkeep 354000000; cash acquisitions 0; owner earnings 407000000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); Dividend observations: [[2016,288000000],[2017,296000000],[2018,599000000],[2019,595000000],[2020,600000000],[2021,647000000],[2022,689000000],[2023,447000000],[2024,168000000],[2025,90000000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/api/fundamentals/PSKY.US.json#2025-12-31 (filed 2026-02-25); FY2025: cash repurchases 92000000 USD.

### Are managers owners

Insiders own 50.7% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); PSKY.US SharesStats.PercentInsiders = 50.678 percentage points; cache date 2026-10-16.

### What could break it

Our I-12 competitors may also consolidate or enter into business combinations or alliances that strengthen their competitive position.

- Source: https://www.sec.gov/Archives/edgar/data/2041610/000204161026000011/psky-20251231.htm (filed 2026-02-25); In addition, faster or more effective deployment of evolving technologies by our competitors, including generative artificial intelligence and other machine‑learning tools (“AI Technologies”), could put us at a competitive disadvantage. Our I-12 competitors may also consolidate or enter into business combinations or alliances that strengthen their competitive position. We also rely on third-party platforms with which we compete to make our content available to users, and if these third parties are unwilling to continue to distribute our content or do so on terms favorable to us, our business, financial condition or results of operations could be adversely affected.

### What the price says

The price is 0.3 times annual sales; cash earnings are negative.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); Closing price 7.260000228881836 USD; reporting-to-trading FX 1; FY2025 annual sales per share 26.365523465703973; price multiple 0.2753596088591063. FY2025 cash earnings/share -5.379061371841155. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $56.62 per share

- 2016-11: $60.72 per share

- 2016-12: $63.62 per share

- 2017-01: $64.49 per share

- 2017-02: $65.92 per share

- 2017-03: $69.36 per share

- 2017-04: $66.56 per share

- 2017-05: $61.11 per share

- 2017-06: $63.78 per share

- 2017-07: $65.83 per share

- 2017-08: $64.06 per share

- 2017-09: $58.00 per share

- 2017-10: $56.12 per share

- 2017-11: $56.06 per share

- 2017-12: $59.00 per share

- 2018-01: $57.61 per share

- 2018-02: $52.97 per share

- 2018-03: $51.39 per share

- 2018-04: $49.20 per share

- 2018-05: $50.37 per share

- 2018-06: $56.22 per share

- 2018-07: $52.67 per share

- 2018-08: $53.02 per share

- 2018-09: $57.45 per share

- 2018-10: $57.35 per share

- 2018-11: $54.18 per share

- 2018-12: $43.72 per share

- 2019-01: $49.46 per share

- 2019-02: $50.21 per share

- 2019-03: $47.53 per share

- 2019-04: $51.27 per share

- 2019-05: $48.28 per share

- 2019-06: $49.90 per share

- 2019-07: $51.51 per share

- 2019-08: $42.06 per share

- 2019-09: $40.37 per share

- 2019-10: $36.04 per share

- 2019-11: $40.38 per share

- 2019-12: $41.97 per share

- 2020-01: $34.13 per share

- 2020-02: $24.61 per share

- 2020-03: $14.01 per share

- 2020-04: $17.26 per share

- 2020-05: $20.74 per share

- 2020-06: $23.32 per share

- 2020-07: $26.07 per share

- 2020-08: $27.85 per share

- 2020-09: $28.01 per share

- 2020-10: $28.57 per share

- 2020-11: $35.28 per share

- 2020-12: $37.26 per share

- 2021-01: $48.50 per share

- 2021-02: $64.49 per share

- 2021-03: $45.10 per share

- 2021-04: $41.02 per share

- 2021-05: $42.42 per share

- 2021-06: $45.20 per share

- 2021-07: $40.93 per share

- 2021-08: $41.45 per share

- 2021-09: $39.51 per share

- 2021-10: $36.22 per share

- 2021-11: $30.95 per share

- 2021-12: $30.18 per share

- 2022-01: $33.45 per share

- 2022-02: $30.61 per share

- 2022-03: $37.81 per share

- 2022-04: $29.12 per share

- 2022-05: $34.33 per share

- 2022-06: $24.68 per share

- 2022-07: $23.65 per share

- 2022-08: $23.39 per share

- 2022-09: $19.04 per share

- 2022-10: $18.32 per share

- 2022-11: $20.08 per share

- 2022-12: $16.88 per share

- 2023-01: $23.16 per share

- 2023-02: $21.42 per share

- 2023-03: $22.31 per share

- 2023-04: $23.33 per share

- 2023-05: $15.21 per share

- 2023-06: $15.91 per share

- 2023-07: $16.03 per share

- 2023-08: $15.09 per share

- 2023-09: $12.90 per share

- 2023-10: $10.88 per share

- 2023-11: $14.37 per share

- 2023-12: $14.79 per share

- 2024-01: $14.59 per share

- 2024-02: $11.04 per share

- 2024-03: $11.77 per share

- 2024-04: $11.39 per share

- 2024-05: $11.91 per share

- 2024-06: $10.39 per share

- 2024-07: $11.42 per share

- 2024-08: $10.47 per share

- 2024-09: $10.62 per share

- 2024-10: $10.94 per share

- 2024-11: $10.85 per share

- 2024-12: $10.46 per share

- 2025-01: $10.88 per share

- 2025-02: $11.36 per share

- 2025-03: $11.96 per share

- 2025-04: $11.74 per share

- 2025-05: $12.10 per share

- 2025-06: $12.90 per share

- 2025-07: $12.57 per share

- 2025-08: $14.70 per share

- 2025-09: $18.92 per share

- 2025-10: $15.39 per share

- 2025-11: $16.02 per share

- 2025-12: $13.40 per share

- 2026-01: $11.21 per share

- 2026-02: $13.51 per share

- 2026-03: $9.02 per share

- 2026-04: $10.24 per share

- 2026-05: $10.61 per share

- 2026-06: $9.86 per share

- 2026-07: $7.96 per share

- 2026-08: $10.91 per share

- 2026-09: $10.33 per share

- 2026-10: $9.78 per share

## Annual estimated value (USD per share)

- FY2016: low $39.88 per share, central $45.27 per share, high $52.45 per share

- FY2017: low $40.56 per share, central $46.15 per share, high $53.59 per share

- FY2018: low $52.06 per share, central $59.17 per share, high $68.64 per share

- FY2019: low $56.08 per share, central $63.79 per share, high $74.06 per share

- FY2020: low $33.90 per share, central $38.02 per share, high $43.51 per share

- FY2021: low $22.46 per share, central $24.35 per share, high $26.88 per share

- FY2022: low $14.67 per share, central $16.21 per share, high $18.25 per share

- FY2023: low $9.94 per share, central $10.92 per share, high $12.22 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/2041610/000204161026000011/psky-20251231.htm); period 2025-12-31, filed 2026-02-25.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.