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Lionsgate Studios

LION
22
Media & Entertainment · Technology
Price
$13.88
+0.26 (+1.91%)
Market Cap
$4.03B
Winston Score
22
Winston is worried
Weak fundamentals across most pillars.

Share count rising — dilution

+1709.7% over 3y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 16.0M (2022) → 290.0M (2025)

Lionsgate Studios is an entertainment company that makes movies and TV shows. It owns well-known franchises like the Hunger Games and John Wick series, and it runs Starz, a paid cable and streaming network. The company sells its content to movie theaters, streaming platforms like Netflix and Amazon, and directly to consumers through Starz subscriptions.

Lionsgate earns money through box office ticket sales, licensing its films and shows to other platforms, and monthly subscription fees from Starz customers. It operates mainly in North America but licenses content globally, generating roughly $4 billion in market value. Its library of owned content is its main competitive advantage, since popular franchises can be reused across sequels, spin-offs, and licensing deals. The biggest risk the company faces is the high cost of producing content combined with intense competition from much larger studios and streaming services like Netflix and Disney.

Winston Score History

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0 Congressional buys and 9 sells on LION in the last 12 months.

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Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+1.5% YoY

YoY Growth Rate

Slow revenue growth

EPS Growth

-820.7% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$0/ year

0.0% of revenue

Below sector average (15%)

Research and development spending

Insider Activity

88.1%ownership

Flat

Insiders holding steady — not selling despite ability to

Cash Runway

~3 months

$182M cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Short runway — potential dilution ahead through share issuance

Cash watch

Lionsgate Studios has less than a year of cash at its current burn rate. Growth investors should watch for potential share dilution from future fundraising — that directly reduces your ownership.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Gross Margin
41.0%
Healthy — 41.0% gross margin
Operating Margin
5.0%
Thin — 5.0% operating margin
ROCE
1.3%
Weak — 1.3% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY
-12.5%
Shrinking sales (-12.5% YoY)
EPS YoY
N/A
Data not available
EPS Consistency
2/8 quarters
Earnings rarely grow — volatile business

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Cash Flow

Cash Conversion
N/A
Data not available
FCF Margin
-2.8%
Burning cash (-2.8%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

Debt / Equity
N/A
Data not available
Interest Cover
0.32x
Dangerous — barely covers interest (0.3x)

Interest coverage below 1. Their profits don't cover the interest bill.

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Valuation

P/E Ratio (TTM)
N/M
Negative earnings — P/E not meaningful
P/E vs Forward
N/A
not available
Data not available

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Dividends

Not applicable for this business.
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