Lions Gate Current Valuation vs. Return On Asset

LGF-B Stock  USD 7.50  0.29  4.02%   
Based on the measurements of profitability obtained from Lions Gate's financial statements, Lions Gate's profitability may be sliding down. It has an above-average probability of reporting lower numbers next quarter. Profitability indicators assess Lions Gate's ability to earn profits and add value for shareholders. At present, Lions Gate's Days Sales Outstanding is projected to decrease significantly based on the last few years of reporting. The current year's Sales General And Administrative To Revenue is expected to grow to 0.13, whereas Price To Sales Ratio is forecasted to decline to 0.51. At present, Lions Gate's Accumulated Other Comprehensive Income is projected to increase significantly based on the last few years of reporting. The current year's Non Operating Income Net Other is expected to grow to about 35.3 M, whereas Operating Income is projected to grow to (891.9 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.560.455
Fairly Up
Slightly volatile
For Lions Gate profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Lions Gate to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Lions Gate Entertainment utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Lions Gate's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Lions Gate Entertainment over time as well as its relative position and ranking within its peers.
  
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Please note, there is a significant difference between Lions Gate's value and its price as these two are different measures arrived at by different means. Investors typically determine if Lions Gate is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Lions Gate's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Lions Gate Entertainment Return On Asset vs. Current Valuation Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Lions Gate's current stock value. Our valuation model uses many indicators to compare Lions Gate value to that of its competitors to determine the firm's financial worth.
Lions Gate Entertainment is rated below average in current valuation category among its peers. It also is rated below average in return on asset category among its peers . The ratio of Current Valuation to Return On Asset for Lions Gate Entertainment is about  402,426,673,851 . The current year's Return On Assets is expected to grow to -0.15. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Lions Gate's earnings, one of the primary drivers of an investment's value.

Lions Current Valuation vs. Competition

Lions Gate Entertainment is rated below average in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Communication Services industry is now estimated at about 215.93 Billion. Lions Gate holds roughly 5.96 Billion in current valuation claiming about 2.76% of stocks in Communication Services industry.

Lions Return On Asset vs. Current Valuation

Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.

Lions Gate

Enterprise Value

 = 

Market Cap + Debt

-

Cash

 = 
5.96 B
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.

Lions Gate

Return On Asset

 = 

Net Income

Total Assets

 = 
0.0148
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.

Lions Return On Asset Comparison

Lions Gate is currently under evaluation in return on asset category among its peers.

Lions Gate Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Lions Gate, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Lions Gate will eventually generate negative long term returns. The profitability progress is the general direction of Lions Gate's change in net profit over the period of time. It can combine multiple indicators of Lions Gate, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income116 M121.8 M
Operating Income-938.8 M-891.9 M
Income Before Tax-1.2 B-1.1 B
Total Other Income Expense Net-242.5 M-230.4 M
Net Loss-1.1 B-1.1 B
Income Tax Expense-65 M-61.8 M
Net Loss-1.1 B-1.1 B
Non Operating Income Net Other33.7 M35.3 M
Net Loss-1.8 B-1.7 B
Net Interest Income-247.7 M-260.1 M
Interest Income22.1 M14.1 M
Change To Netincome2.2 B2.3 B
Net Loss(4.72)(4.49)
Income Quality(0.36)(0.34)
Net Income Per E B T 0.93  0.82 

Lions Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Lions Gate. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Lions Gate position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Lions Gate's important profitability drivers and their relationship over time.

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Healthcare Theme
Companies that provide healthcare goods and services including hospitals, health maintenance organizations, HMOs, or medical aid manufacturers. The Healthcare theme has 20 constituents at this time.
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Other Information on Investing in Lions Stock

To fully project Lions Gate's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Lions Gate Entertainment at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Lions Gate's income statement, its balance sheet, and the statement of cash flows.
Potential Lions Gate investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Lions Gate investors may work on each financial statement separately, they are all related. The changes in Lions Gate's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Lions Gate's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.