This is a step-by-step stock review to answer the question, is Viacom (VIA) stock a good buy?
This article will teach you how to use the 4Ms of investing. This will be a detailed walkthrough to show you how the 4Ms work and why they are important. If you are interested, you can log into Tykr to use the 4M Confidence Booster (Powered by OpenAI) which will allow you to complete a 4M Analysis in less than 60 seconds.
What are the 4Ms?
- MOS (Margin of Safety) – The MOS is the math part of investing which includes the Summary, Score, and MOS (Margin of Safety).
- Meaning – The meaning is the business model and how scalable the revenue streams are.
- Moat – The moat is how the business compares to other companies in the same Sector and Industry.
- Management – The management is the track record of the CEO.
What 4M score are we going for?
- 80-100 = High confidence – Yay! You should have high confidence buying this stock. It passes all 4M!
- 60-79 = Moderate confidence – Alert! There may be better stocks in the market. Only buy this stock if you truly believe the company will improve!
- 0-59 = Low confidence – Warning! There are better stocks in the market. Due to the low score, you should consider looking at other stocks.
Table of Contents
The following links will direct you to key topics to help answer the question, is Viacom (VIA) stock a good buy?
1. Viacom Company History
- Founded: Viacom was originally established in 1952 as CBS Films, a division of CBS Corporation.
- Early Years: Renamed Viacom in 1971, the company started as a cable TV operator and syndicator of television programs.
- Expansion: In the 1980s and 1990s, Viacom grew through acquisitions, including MTV Networks (1985) and Paramount Pictures (1994), becoming a major media conglomerate.
- Merger with CBS: In 1999, Viacom merged with its former parent company, CBS Corporation, reuniting the two under one entity.
- Split and Re-merger: In 2006, Viacom split into two companies: CBS Corporation and the new Viacom. The two companies re-merged in 2019, forming ViacomCBS, later rebranded as Paramount Global in 2022.
- Media Influence: Viacom has been a leader in global media, owning and operating iconic brands like Nickelodeon, MTV, BET, and Comedy Central.
- Digital Transition: The company has shifted focus toward streaming with platforms like Paramount+ and Pluto TV, adapting to the evolving media landscape.
- Headquarters: Viacom is based in New York City, continuing to be a powerhouse in entertainment and media distribution worldwide
2. MOS (Margin Of Safety)
When investing in a company, the first step is to look at the financials. Fortunately, Tykr does this for us automatically. The higher the score, the stronger the financials and the safer the investment. The higher the MOS, the higher the potential returns you can make.
- Summary: On Sale
- Score: 61
- MOS:80%
To see the most up-to-date Summary, Score, and MOS, please log into Tykr.
3. Meaning
When investing in a company, it’s important to know how a company makes money. A mature business model has multiple streams of revenue which allow the company to weather downturns in the economy.
Here is how Viacom makes money:
- Advertising: Viacom earns money by selling advertising slots on its TV networks like MTV, Nickelodeon, and Comedy Central.
- Subscription Fees: Cable and satellite providers pay Viacom fees to carry its channels, which contributes to a significant portion of its revenue.
- Content Licensing: Viacom licenses its TV shows, movies, and other content to streaming services, international broadcasters, and other media platforms.
- Streaming Services: Viacom generates revenue from its own streaming platforms, like Paramount+, through subscription fees and advertising.
- Merchandising: The company makes money by selling merchandise and products related to its popular brands and characters, such as toys, clothing, and games.
- Film Production: Viacom earns from producing and distributing movies through its Paramount Pictures division, including box office sales, streaming rights, and home entertainment.
- Live Events and Experiences: Viacom profits from live events, theme parks, and experiences based on its popular TV shows and movies.
- Digital Content: Revenue is also generated from digital advertising on Viacom’s websites and apps, as well as through partnerships with social media platforms.
Here are a few of the other companies that Viacom has acquired over the years. This is important because a company will use a “Buy before build” philosophy to go to market faster and add additional streams of revenue. A company with more revenue streams has a more stable business model. Keep in mind, that most companies don’t build new software because it takes too long to go to market and generate revenue.
- Paramount Pictures
- MTV Networks
- BET Networks
- CMT (Country Music Television)
- Simon & Schuster
- Pluto TV
4. Moat
When investing in a company, it’s important to understand how a company ranks against other companies in the same sector and industry. Based on the Score, here is how Viacom stacks up against other companies.
- Via Renewables, Inc.(VIASP) – 61
- Xcel Energy Inc.(XEL) – 61
- Exelon Corporation.(EXC) – 56
- American Electric Power Company, Inc.(AEP) – 39
- Evergy, Inc.(EVRG) – 39
- Alliant Energy Corporation(LNT) – 39
To see the most up-to-date Summary, Score, and MOS and each stock, please log into Tykr.
5. Management
When investing in a company, it’s important to understand who the CEO is, what they have accomplished in the past, and how they have helped this company grow. Good leaders typically have stronger cultures, less turnover, and better returns in the stock market.
- ViacomCBS Merger: Bob BakishSuccessfully led the merger of Viacom and CBS in 2019, creating ViacomCBS and expanding the company’s media and entertainment portfolio.
- Paramount+: Launched Paramount+, a streaming service combining content from ViacomCBS’s brands, boosting the company’s presence in digital streaming.
- Pluto TV Acquisition: Oversaw the acquisition of Pluto TV, a free ad-supported streaming service, enhancing ViacomCBS’s digital and streaming capabilities.
- Content Expansion: Expanded and diversified content offerings across ViacomCBS’s networks, including new original programming and acquisitions of popular franchises.
- International Growth: Strengthened ViacomCBS’s international presence by expanding distribution and partnerships in global markets.
- Financial Performance: Improved financial performance and revenue growth through strategic investments and operational efficiencies.
6. 4M Score
All of our homework on this company leads up to the 4M Score. A lot of investors only look at the numbers. Yes, it’s important to look at the first M (MOS) which is the math part of investing but it’s also important to look past the numbers and also look at the Meaning, Moat, and Management. If all 4Ms pass, we should have high confidence in buying this stock.
What 4M score are we going for?
- 80-100 = High confidence – Yay! You should have high confidence buying this stock. It passes all 4M!
- 60-79 = Moderate confidence – Alert! There may be better stocks in the market. Only buy this stock if you truly believe the company will improve!
- 0-59 = Low confidence – Warning! There are better stocks in the market. Due to the low score, you should consider looking at other stocks.
👉 The 4M Score of Viacom (VIA) is 61/100.
To see the most up-to-date 4M Score, please log into Tykr.
7. Is Viacom (VIA) stock a good buy?
Some of the top questions investors can have is Viacom (VIA) stock a good buy or should I buy Viacom (VIA) stock?
Viacom, now known as Paramount Global, can be an appealing investment due to its diverse content portfolio. With popular brands and networks such as MTV, Nickelodeon, and Paramount Pictures, the company generates significant revenue from advertising and licensing. Its strategic move into the streaming market with Paramount+ and the acquisition of Pluto TV positions it well in the growing digital space, broadening its revenue streams and digital footprint.
Moreover, Viacom’s past strategic acquisitions have strengthened its market position and diversified its offerings. The company’s extensive content library and media assets provide a strong foundation for long-term growth.
However, potential investors should be aware of the competitive nature of the media and entertainment industry. Viacom faces significant competition from other streaming services and content providers. Additionally, it’s important to assess the company’s debt levels and overall financial health before making an investment decision.
—
To truly know if Viacom is a good stock to buy or sell, we recommend you log into Tykr. Within seconds you can see the Summary, Score, MOS, and 4M Score.
If you found this stock review interesting, you may also like this review on AMD
The Summary, Score, and MOS of this stock may have changed since the posting of this review. Please login to Tykr to see up-to-date information.