📊 STRZ Key Takeaways
Is Starz Entertainment Corp. /Cn/ (STRZ) a Good Investment?
Starz faces severe financial distress with operating losses of $152.8M on $306.9M revenue (-49.8% margin) and critical liquidity crisis indicated by 0.31x current ratio. High debt burden of $614.3M cannot be serviced from operations (negative -0.7x interest coverage), and negative ROE/ROA indicate shareholder value destruction. While positive FCF provides temporary relief, the fundamental unprofitability signals existential restructuring risks.
Starz Entertainment Corp. /Cn/ Key Strengths (STRZ)
- Positive operating cash flow of $73.2M and free cash flow of $68.7M provide near-term liquidity buffer
- Substantial $306.9M revenue base from established media content business
- $1.8B asset base provides restructuring value and debt recovery potential
STRZ Stock Risks: Starz Entertainment Corp. /Cn/ Investment Risks
- Critical liquidity crisis with 0.31x current ratio indicating imminent working capital stress and potential covenant violations
- Massive operating losses of -$152.8M and negative interest coverage of -0.7x signal inability to service $614.3M debt from operations
- Negative ROE of -34.4% and ROA of -9.2% demonstrate persistent shareholder value destruction
- High leverage at 1.28x Debt/Equity with unsustainable debt structure relative to unprofitable operations
- Positive FCF masking operational deterioration - non-cash charges and working capital management may not be sustainable
Key Metrics to Watch
- Quarterly operating income trend and path to EBITDA break-even
- Cash position and working capital changes - any further liquidity deterioration is critical
- Debt refinancing capability and covenant compliance given negative interest coverage
Starz Entertainment Corp. /Cn/ (STRZ) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 22.4% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. The current ratio below 1.0x warrants monitoring of short-term liquidity.
STRZ Profit Margin, ROE & Profitability Analysis
STRZ vs Services Sector: How Starz Entertainment Corp. /Cn/ Compares
How Starz Entertainment Corp. /Cn/ compares to Services sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Starz Entertainment Corp. /Cn/ Stock Overvalued? STRZ Valuation Analysis 2026
Based on fundamental analysis, Starz Entertainment Corp. /Cn/ shows some fundamental concerns relative to the Services sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Starz Entertainment Corp. /Cn/ Balance Sheet: STRZ Debt, Cash & Liquidity
STRZ Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Starz Entertainment Corp. /Cn/'s revenue has declined by 63% over the 5-year period, indicating business contraction. The most recent EPS of $-0.84 indicates the company is currently unprofitable.
STRZ Revenue Growth, EPS Growth & YoY Performance
STRZ Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q2 2026 | $320.9M | $4.2M | $-1.57 |
| Q1 2026 | $306.9M | $4.2M | $0.26 |
| Q3 2025 | $970.5M | -$21.9M | $-0.09 |
| Q2 2025 | $948.6M | -$163.3M | $-0.68 |
| Q1 2025 | $834.7M | -$59.4M | $-0.25 |
| Q3 2024 | $975.1M | $16.6M | $0.07 |
| Q2 2024 | $875.2M | -$886.2M | $-3.79 |
| Q1 2024 | $893.9M | -$70.7M | $-0.31 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Starz Entertainment Corp. /Cn/ Dividends, Buybacks & Capital Allocation
STRZ SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Starz Entertainment Corp. /Cn/ (CIK: 0000929351)
📋 Recent SEC Filings
❓ Frequently Asked Questions about STRZ
What is the AI rating for STRZ?
Starz Entertainment Corp. /Cn/ (STRZ) has an AI grade of D with 95% confidence, based on fundamental analysis of SEC EDGAR filings.
What are STRZ's key strengths?
Claude: Positive operating cash flow of $73.2M and free cash flow of $68.7M provide near-term liquidity buffer. Substantial $306.9M revenue base from established media content business.
What are the risks of investing in STRZ?
Claude: Critical liquidity crisis with 0.31x current ratio indicating imminent working capital stress and potential covenant violations. Massive operating losses of -$152.8M and negative interest coverage of -0.7x signal inability to service $614.3M debt from operations.
What is STRZ's revenue and growth?
Starz Entertainment Corp. /Cn/ reported revenue of $306.9M.
Does STRZ pay dividends?
Starz Entertainment Corp. /Cn/ does not currently pay dividends.
Where can I find STRZ SEC filings?
Official SEC filings for Starz Entertainment Corp. /Cn/ (CIK: 0000929351) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is STRZ's EPS?
Starz Entertainment Corp. /Cn/ has a diluted EPS of $-9.83.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is STRZ's fundamental grade?
Based on our AI fundamental analysis in May 2026, Starz Entertainment Corp. /Cn/ has a D grade with 95% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is STRZ stock overvalued or undervalued?
Valuation metrics for STRZ: ROE of -34.4% (sector avg: 16%), net margin of -53.7% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
What is STRZ's AI grade for 2026?
Our dual AI analysis gives Starz Entertainment Corp. /Cn/ a combined D grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is STRZ's free cash flow?
Starz Entertainment Corp. /Cn/'s operating cash flow is $73.2M, with capital expenditures of $4.5M. FCF margin is 22.4%.
How does STRZ compare to other Services stocks?
Vs Services sector averages: Net margin -53.7% (avg: 10%), ROE -34.4% (avg: 16%), current ratio 0.31 (avg: 1.5).