Don't Buy Lions Gate Entertainment Before Checking Its Fundamentals!

By Blake Campbell • Wednesday, September 21 16:47 • Permanent Link

We're taking a closer look at Lions Gate Entertainment today, as the chatter surrounding the stock has increased notably in the last few weeks. Today, its shares moved -7.5% compared to -1.7% for the S&P 500. Increased investor interest and volatility surrounding the stock are not reason enough to buy in -- you should first perform your own due diligence. Here are some facts and figures that can get you started:

Lions Gate Entertainment Corp. engages in the film, television, subscription, and location-based entertainment businesses in the United States, Canada, and internationally. It operates through three segments: Motion Picture, Television Production, and Media Networks.
Lions Gate Entertainment has moved -17.6% over the last year compared to -12.3% for the S&P 500 -- a difference of -5.3%
LGF-B has an average analyst rating of buy and is -27.76% away from its mean target price of $12.75 per share
Its trailing 12 month price to earnings (Eps) is $-0.84 per share
Lions Gate Entertainment has a trailing 12 month Price to Earnings (P/E) ratio of -11.0 while the S&P 500 average is 15.97. A negative P/E ratio means the company is not currently profitable
Its forward 12 month price to earnings (Eps) is $-0.84 per share and its forward P/E ratio is -65.8
The company has a Price to Book (P/B) ratio of 0.8 in contrast to the S&P 500's average ratio of 2.95. A P/B ratio of less than 1 implies the market is undervaluing the company's tangible assets.
Lions Gate Entertainment is part of the Communication Services sector, which has an average P/E ratio of 18.65 and an average P/B of 2.62
The company has a free cash flow of $2,451,924,992, which refers to the total sum of all its inflows and outflows of cash over the last quarter
Lions Gate Entertainment has an analyst consensus of strong upside potential, a buy rating, a very low short interest and, a significant number of institutional investors.

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The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.