Starz Entertainment LLC (STRZ) AI Stock Analysis
STRZ AI stock analysis summary
AI ResearchStarz Entertainment LLC (STRZ) provides subscription video programming services across the United States and Canada. The company generated $1.25B in trailing twelve-month revenue with a profit margin of -25.1%, while carrying net debt of $610.0M. Over the past year, STRZ stock gained 102.2%, outperforming the S&P 500 return of 16.8%.
- Market cap
- $398.8M
- Revenue (TTM)
- $1.25B
- P/E
- — fwd 3.6x
- 1Y return
- 102.2% S&P 500 16.8%
- Avg. target
- $35.20 51.1% vs last close
Bull case
- Analysts maintain a mean price target of $35.20, pointing to 51.1% potential upside from the October 16, 2026 closing price of $23.29.
- The stock trades at a forward P/E of 3.6x and an EV to EBITDA of 1.4x, well below the US-listed Communication Services peer medians of 14.1x and 10.0x, respectively.
- Free cash flow improved to $1.3M in FY2026 from -$63.6M in FY2025 as operating cash flow reached $17.9M.
Bear case
- Revenue contracted at a 5-year CAGR of -37.7%, with FY2026 revenue dropping 77.6% to $306.9M.
- The balance sheet carries $669.6M in total debt against $59.6M in cash, contributing to a low current ratio of 0.25.
- The company reported 0 EPS beats over the past 4 quarters and an EPS of -$16.76 for the trailing twelve months.
What Starz Entertainment does
Starz Entertainment Corp. provides subscription video programming services to consumers in the United States and Canada. Incorporated in 1997 and based in Vancouver, Canada, the company operates with 517 employees. It distributes STARZ-branded premium subscription video services via over-the-top streaming platforms and on a direct-to-consumer basis through the Starz App. Additionally, Starz distributes programming through wholesale OTT channels and multichannel video programming distributors, which include cable operators, satellite television providers, and telecommunications companies.
Growth and profitability
Starz Entertainment recorded a 5-year revenue CAGR of -37.7% from FY2021 to FY2026. Annual revenue declined from $3.85B in FY2023 to $1.39B in FY2024, followed by $1.37B in FY2025 and $306.9M in FY2026, where revenue fell 77.6%. Operating margin stood at -49.8% in FY2026, compared to 1.0% in FY2025. The company posted net losses across all reported periods, including net income of -$164.9M in FY2026 and -$211.2M in FY2025. Over the trailing twelve months, revenue reached $1.25B with a profit margin of -25.1%. In the latest quarter ended June 30, 2026, quarterly revenue fell 3.7% year-over-year.
Balance sheet and cash flow
As of June 30, 2026, Starz held $59.6M in cash and short-term investments alongside total debt of $669.6M, resulting in net debt of $610.0M. The company reported a debt-to-equity ratio of 2.26 and a current ratio of 0.25. Total assets stood at $1.67B against shareholders' equity of $295.9M. In FY2026, operating cash flow turned positive at $17.9M, generating free cash flow of $1.3M after capital expenditures of $16.6M. Its share count increased 49.3% over 5 years.
Valuation and performance
Trading at $23.29 as of October 16, 2026, Starz Entertainment has a market cap of $398.8M and an enterprise value of $1.02B. The stock trades at a forward P/E of 3.6x, below the 14.1x median of its US-listed Communication Services peers. Its EV to EBITDA stands at 1.4x versus the peer median of 10.0x, and its price to sales is 0.3x compared to the peer median of 0.8x. Over the past year, STRZ rose 102.2%, outperforming the S&P 500 return of 16.8%.
What analysts expect
Wall Street coverage includes 4 Strong Buy, 2 Buy, and 4 Hold ratings, with no Sell or Strong Sell ratings. The mean price target of $35.20 represents upside of 51.1% over the last close of $23.29. For the current fiscal year ending December 31, 2026, analysts estimate an EPS of -$19.22 on revenue of $1.26B. Starz recorded 0 EPS beats over the last 4 quarters. The next earnings date is scheduled for October 29, 2026.
Key risks and what to watch
- A current ratio of 0.25 and net debt of $610.0M highlight short-term liquidity and debt service pressure.
- Persistent unprofitability is reflected in trailing twelve-month net margins of -25.1% and a return on equity of -34.6%.
- Quarterly revenue fell 3.7% year-over-year in the quarter ended June 30, 2026, indicating ongoing top-line pressure.
- Share count expanded 49.3% over 5 years, presenting a risk of ongoing shareholder dilution.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this STRZ AI stock analysis
This page is an AI-written research summary of Starz Entertainment LLC (STRZ). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: STRZ income statement, STRZ balance sheet, STRZ key metrics, STRZ analyst forecast, STRZ chart. See the STRZ stock overview for the latest quote and news.
STRZ AI stock analysis FAQ
Does Starz Entertainment pay a dividend?
No, Starz Entertainment does not pay a dividend.
When does Starz Entertainment report its next earnings?
The company is scheduled to report its next earnings on October 29, 2026.
What is Starz Entertainment's debt position?
As of June 30, 2026, Starz had total debt of $669.6M and cash of $59.6M, resulting in net debt of $610.0M and a debt-to-equity ratio of 2.26.
What is the analyst price target for STRZ stock?
Analysts have set a mean price target of $35.20 for STRZ, which is 51.1% above its last close of $23.29.