(STRZ) Starz Entertainment - Overview
Sector: Communication Services | Industry: Entertainment | Exchange: NASDAQ (USA) | Market Cap: 374m USD | Total Return: 55.4% in 12m
Avg Turnover: 2.54M
Qual. Beats: 0
Rev. Trend: -90.9%
Warnings
Interest Coverage Ratio -1.3 is critical
Altman Z'' -1.96 < 1.0 - financial distress zone
Tailwinds
Supp Ema20, Rs Leader, Idiosyncratic Leader, Tailwind
Starz Entertainment Corp. is a premium subscription video provider operating across the United States and Canada. The company utilizes a hybrid distribution model, reaching consumers through direct-to-consumer (DTC) streaming via the Starz App and wholesale partnerships with cable, satellite, and telecommunications providers. Incorporated in 1997 and headquartered in Vancouver, the firm functions as a content programmer within the competitive streaming landscape.
The company operates in the Communication Services sector, where business models increasingly shift from traditional linear television to over-the-top (OTT) delivery to capture cord-cutting audiences. Success in this sub-industry typically depends on high-quality original content libraries and the ability to maintain low subscriber churn rates amidst rising customer acquisition costs. Investors may find ValueRays data tools useful for deeper fundamental analysis. As a small-cap entity, Starz Entertainment faces the challenge of scaling its digital infrastructure while competing against larger integrated media conglomerates.
- Direct-to-consumer subscriber growth and retention drive streaming revenue
- Wholesale distribution renewals with cable and satellite partners impact margins
- Content production costs and licensing fees influence free cash flow
- Competitive pressure from larger streaming platforms affects market share acquisition
| Net Income: -280.7m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.04 > 0.02 and ΔFCF/TA 18.39 > 1.0 |
| NWC/Revenue: -34.14% < 20% (prev -17.15%; Δ -16.99% < -1%) |
| CFO/TA 0.05 > 3% & CFO 90.9m > Net Income -280.7m |
| Net Debt (569.2m) to EBITDA (731.2m): 0.78 < 3 |
| Current Ratio: 0.31 > 1.5 & < 3 |
| Outstanding Shares: last quarter (16.8m) vs 12m ago 0.57% < -2% |
| Gross Margin: 36.87% > 18% (prev 0.38%; Δ 3.65k% > 0.5%) |
| Asset Turnover: 64.13% > 50% (prev 121.3%; Δ -57.15% > 0%) |
| Interest Coverage Ratio: -1.31 > 6 (EBITDA TTM 731.2m / Interest Expense TTM 57.1m) |
| A: -0.24 (Total Current Assets 194.6m - Total Current Liabilities 628.3m) / Total Assets 1.79b |
| B: -0.15 (Retained Earnings -273.4m / Total Assets 1.79b) |
| C: -0.04 (EBIT TTM -74.8m / Avg Total Assets 1.98b) |
| D: 0.37 (Book Value of Equity 478.7m / Total Liabilities 1.31b) |
| Altman-Z'' = -1.96 = D |
| DSRI: 1.26 (Receivables 81.7m/134.3m, Revenue 1.27b/2.64b) |
| GMI: 1.04 (GM 36.87% / 38.31%) |
| AQI: 0.96 (AQ_t 0.86 / AQ_t-1 0.90) |
| SGI: 0.48 (Revenue 1.27b / 2.64b) |
| TATA: -0.21 (NI -280.7m - CFO 90.9m) / TA 1.79b) |
| Beneish M = -3.38 (Cap -4..+1) = AA |
As of May 29, 2026, the stock is trading at USD 24.33 with a total of 107,151 shares traded.
Over the past week, the price has changed by +15.53%,
over one month by +33.39%,
over three months by +121.18% and
over the past year by +55.36%.
Starz Entertainment has received a consensus analysts rating of 3.75. Therefore, it is recommended to hold STRZ.
- StrongBuy: 1
- Buy: 1
- Hold: 2
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 22.4 | -8% |
P/E Forward = 3.5907
P/S = 0.2965
P/B = 0.7811
Revenue TTM = 1.27b USD
EBIT TTM = -74.8m USD
EBITDA TTM = 731.2m USD
Long Term Debt = 603.0m USD (from longTermDebt, last quarter)
Short Term Debt = 11.3m USD (from shortTermDebt, last quarter)
Debt = 671.3m USD (from shortLongTermDebtTotal, last quarter) + Leases 57.0m
Net Debt = 569.2m USD (calculated: Debt 671.3m - CCE 102.1m)
Enterprise Value = 943.1m USD (373.9m + Debt 671.3m - CCE 102.1m)
Interest Coverage Ratio = -1.31 (Ebit TTM -74.8m / Interest Expense TTM 57.1m)
EV/FCF = 13.49x (Enterprise Value 943.1m / FCF TTM 69.9m)
FCF Yield = 7.41% (FCF TTM 69.9m / Enterprise Value 943.1m)
FCF Margin = 5.50% (FCF TTM 69.9m / Revenue TTM 1.27b)
Net Margin = -22.10% (Net Income TTM -280.7m / Revenue TTM 1.27b)
Gross Margin = 36.87% ((Revenue TTM 1.27b - Cost of Revenue TTM 802.0m) / Revenue TTM)
Gross Margin QoQ = 32.62% (prev 44.45%)
Tobins Q-Ratio = 0.53 (Enterprise Value 943.1m / Total Assets 1.79b)
Interest Expense / Debt = 8.51% (Interest Expense 57.1m / Debt 671.3m)
Taxrate = 21.0% (US default 21%)
NOPAT = -59.1m (EBIT -74.8m * (1 - 21.00%)) [loss with tax shield]
Current Ratio = 0.31 (Total Current Assets 194.6m / Total Current Liabilities 628.3m)
Debt / Equity = 1.40 (Debt 671.3m / totalStockholderEquity, last quarter 478.7m)
Debt / EBITDA = 0.78 (Net Debt 569.2m / EBITDA 731.2m)
Debt / FCF = 8.14 (Net Debt 569.2m / FCF TTM 69.9m)
Total Stockholder Equity = 625.0m (last 4 quarters mean from totalStockholderEquity)
RoA = -14.17% (Net Income -280.7m / Total Assets 1.79b)
RoE = -31.24% (Net Income TTM -280.7m / Total Stockholder Equity 898.5m)
RoCE = -4.98% (EBIT -74.8m / Capital Employed (Equity 898.5m + L.T.Debt 603.0m))
RoIC = -5.17% (negative operating profit) (NOPAT -59.1m / Invested Capital 1.14b)
WACC = 8.19% (E(373.9m)/V(1.05b) * Re(10.82%) + D(671.3m)/V(1.05b) * Rd(8.51%) * (1-Tc(0.21)))
Discount Rate = 10.82% (= CAPM, Blume Beta Adj.)
[DCF] Terminal Value 75.44% ; FCFF base≈69.9m ; Y1≈70.2m ; Y5≈74.4m
[DCF] Fair Price = 34.99 (EV 1.16b - Net Debt 569.2m = Equity 587.5m / Shares 16.8m; r=8.35% [WACC [floored]]; 5y FCF grow 0.0% → 2.50% )
EPS Correlation: N/A | EPS CAGR: N/A | SUE: -0.29 | # QB: 0
Revenue Correlation: -90.86 | Revenue CAGR: -29.34% | SUE: N/A | # QB: 0
EPS current Quarter (2026-06-30): EPS=-1.15 | Chg30d=-85.35% | Revisions=N/A | Analysts=3
EPS next Quarter (2026-09-30): EPS=-1.53 | Chg30d=-94.91% | Revisions=-20% | Analysts=3
EPS current Year (2026-12-31): EPS=-4.25 | Chg30d=-102.96% | Revisions=-20% | GrowthEPS=+0.0% | GrowthRev=-2.8%
EPS next Year (2027-12-31): EPS=-2.28 | Chg30d=-169.32% | Revisions=+20% | GrowthEPS=+46.3% | GrowthRev=+0.6%
[Analyst] Revisions Ratio: -20%