Starz Entertainment Corp. (STRZ) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

Starz Entertainment Corp. (STRZ) Media & Communications Profile

Starz Entertainment Corp. delivers subscription video programming in the US and Canada, focusing on STARZ-branded premium content. Distribution spans over-the-top platforms, distributors, and direct-to-consumer via the STARZ app, positioning it within the competitive streaming entertainment landscape.

What Is the Investment Thesis for STRZ?

Starz Entertainment Corp. presents a focused play on the premium subscription video market in the US and Canada. The company's multi-channel distribution strategy, encompassing OTT platforms, traditional distributors, and a direct-to-consumer app, provides broad market access. However, the company's negative profit margin of -22.3% necessitates careful evaluation. Growth catalysts include expanding original programming and strategic partnerships to enhance subscriber acquisition. Key risks involve intense competition from larger streaming players and the potential for cord-cutting to impact traditional distribution channels. Investors should monitor subscriber growth, content costs, and overall profitability trends to assess the long-term viability of Starz's business model.

Based on FMP financials and quantitative analysis

STRZ Key Highlights

Market capitalization of $433M reflects its position as a smaller player in the competitive streaming market.

• Negative profit margin of -22.3% indicates potential challenges in achieving profitability.
• Gross margin of 45.6% suggests a reasonable ability to manage content and distribution costs.
• Beta of -2.53 indicates a low correlation with the overall market, potentially offering diversification benefits.
• No dividend yield reflects a focus on reinvesting earnings for growth.

Who Are STRZ's Competitors?

STRZ is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance This table mixes two scoring engines — compare a number only with others carrying the same tag.

What Are STRZ's Key Strengths?

Established brand in the premium subscription video market.

• Multi-channel distribution strategy.
• Original programming and exclusive content offerings.

What Are STRZ's Weaknesses?

Negative profit margin.

• Smaller market capitalization compared to major competitors.
• Reliance on subscription revenue in a competitive market.

What Could Drive STRZ Stock Higher?

Launch of new original series to drive subscriber growth.

• Expansion of partnerships with distributors to increase market reach.
• Investment in content acquisition to enhance the value proposition.

What Are the Key Risks for STRZ?

Financial-distress signal — its Altman Z-Score of -0.49 sits in the distress zone (elevated bankruptcy risk).

• Negative return on equity (-82.1%) — the business is not currently generating profit on shareholder capital.
• Inconsistent delivery — missed Wall Street EPS estimates in 7 of the last 7 reported quarters.
• Increased competition from larger streaming services.
• Cord-cutting trends impacting traditional distribution channels.
• Rising content costs affecting profitability.
• Failure to attract and retain subscribers in a competitive market.

What Are the Growth Opportunities for STRZ?

• Expansion of Original Programming: Starz can drive subscriber growth by investing in high-quality original programming that appeals to specific audience segments. The market for original content is expanding rapidly, with consumers increasingly seeking exclusive and compelling shows and movies. By developing and acquiring original content, Starz can differentiate itself from competitors and attract new subscribers. The success of original series can significantly boost brand awareness and drive long-term subscriber retention. This strategy requires careful content selection and effective marketing to maximize return on investment.
• Strategic Partnerships and Bundling: Starz can leverage strategic partnerships with other companies to expand its reach and offer bundled subscription packages. Partnering with telecommunications companies, internet service providers, or other streaming services can provide access to new customer bases and create attractive value propositions for consumers. Bundling Starz with other services can increase subscriber acquisition and reduce churn rates. These partnerships can also provide cross-promotional opportunities and enhance brand visibility. Careful negotiation and alignment of incentives are crucial for successful partnerships.
• International Expansion: While currently focused on the US and Canada, Starz has the potential to expand its services to international markets. The global streaming market is experiencing significant growth, with increasing demand for localized content and affordable subscription options. Expanding to new markets can provide Starz with access to a larger customer base and diversify its revenue streams. This strategy requires careful market research, adaptation of content offerings to local preferences, and establishment of distribution partnerships. International expansion can be a significant growth driver, but also involves increased risks and investment.
• Enhanced User Experience and Personalization: Improving the user experience and offering personalized content recommendations can enhance subscriber satisfaction and reduce churn rates. By leveraging data analytics and artificial intelligence, Starz can gain insights into subscriber preferences and tailor content offerings to individual tastes. Personalized recommendations can increase engagement and encourage subscribers to explore a wider range of content. A seamless and intuitive user interface can also improve the overall viewing experience and enhance customer loyalty. Continuous investment in technology and data analytics is essential for effective personalization.
• Content Licensing and Distribution: Starz can generate additional revenue by licensing its original content to other platforms and distributors. Licensing agreements can provide a steady stream of income and expand the reach of Starz's content to new audiences. By carefully selecting licensing partners and negotiating favorable terms, Starz can maximize the value of its content library. Content licensing can also enhance brand awareness and create opportunities for future collaborations. This strategy requires a flexible approach to content ownership and distribution rights.

What Are STRZ's Competitive Advantages?

• Brand recognition associated with the STARZ brand.
• Exclusive original programming that differentiates its content library.
• Multi-channel distribution strategy providing broad market access.

What Does STRZ Do?

Starz Entertainment Corp. is a subscription video programming provider operating in the United States and Canada. The company focuses on distributing STARZ-branded premium subscription video services through various channels. These include over-the-top (OTT) platforms, traditional distributors, and a direct-to-consumer (DTC) offering through the STARZ-branded app. This multi-faceted distribution strategy allows Starz to reach a wide audience and cater to different consumption preferences. Starz's core business revolves around curating and delivering high-quality video content to its subscribers. The company invests in original programming, acquires popular movies and TV shows, and packages them into a premium subscription service. By offering a diverse range of content, Starz aims to attract and retain subscribers in the competitive streaming market. Based in Vancouver, Canada, Starz Entertainment Corp. continues to evolve its content offerings and distribution strategies to meet the changing demands of the entertainment industry. The company's focus on premium content and multi-channel distribution positions it as a key player in the subscription video market.

What Products and Services Does STRZ Offer?

• Provides subscription video programming to consumers.
• Distributes STARZ-branded premium subscription video services.
• Offers services through over-the-top platforms.
• Partners with distributors to reach a wider audience.
• Provides direct-to-consumer access through the STARZ-branded app.
• Curates and delivers high-quality video content.
• Invests in original programming and acquires popular movies and TV shows.

How Does STRZ Make Money?

• Generates revenue through subscription fees from consumers.
• Distributes content through various platforms, including OTT and traditional distributors.
• Invests in original programming and acquires content to attract and retain subscribers.

What Industry Does STRZ Operate In?

Starz Entertainment Corp. operates within the dynamic and competitive entertainment industry, specifically the subscription video on demand (SVOD) market. This market is characterized by rapid growth, driven by increasing consumer adoption of streaming services and a shift away from traditional cable television. Key trends include the proliferation of original content, the rise of bundled streaming packages, and the increasing importance of data analytics for personalization and content recommendations. Starz competes with major players like Netflix, Disney+, and Amazon Prime Video, as well as other niche streaming services. The company's success depends on its ability to differentiate its content offerings, effectively market its services, and manage costs in a highly competitive landscape.

Who Are STRZ's Key Customers?

• Individual consumers seeking premium video entertainment.
• Subscribers who access content through the STARZ app.
• Viewers who subscribe through multichannel video programming distributors.

Starz Entertainment Corp. Financial Trajectory

Starz Entertainment Corp. (STRZ) reported $307.9M in revenue for Q1 FY2027, reflecting 0.3% growth compared to the prior quarter. The company recorded a net loss of $189.4M, with diluted EPS of $-11.27. Quarter-over-quarter revenue has been mixed, typical for a small-cap company operating in Communication Services. Across the four most recent quarters, STRZ averaged $-6.37 in diluted EPS.

Company Profile

Starz Entertainment Corp. operates in the Entertainment industry within the Communication Services sector. It is headquartered in Santa Monica, US. The company is led by CEO Jeffrey A. Hirsch. STRZ has traded publicly since 2025.

How Starz Entertainment Corp. Is Valued

Starz Entertainment Corp. carries a market capitalization of $433M, placing it in the small-cap category. Analyst price targets span from $29.00 to $30.00, with a consensus of $29.75. At the current price of $25.77, that implies approximately 15% upside potential. Relative to its peer group, STRZ's quantitative score of 16/100 is below the peer average of 57/100.

Return on equity for Starz Entertainment Corp. stands at -82.1%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is -25.6%, showing how much profit it generates from its asset base. Its free cash flow yield is -5.2%, a gauge of the cash the business throws off relative to its market value. A current ratio of 0.25 means current liabilities exceed short-term assets, a liquidity point worth watching. Its earnings yield is -100.6%, the inverse of the P/E and a quick read on earnings relative to price.

Starz Entertainment Corp.'s Piotroski F-Score is 3/9, a 9-point checklist of profitability, leverage and efficiency — flagging fundamental weakness worth scrutiny. Its Altman Z-Score of -0.49 places it in the distress zone, a signal of elevated financial risk.

Starz Entertainment Corp. has missed Wall Street's EPS estimate in 7 of its last 7 reported quarters — a recurring pattern of falling short of estimates. Reported results have landed about 365.2% below estimates on average.

Over the past six months, Starz Entertainment Corp. insiders filed 30 SEC Form 4 transactions — 16 sales and 14 purchases. On net that is roughly 78K shares acquired (about $2.8M) — insiders putting money in tends to read as conviction.

STRZ Financials

STRZ Latest News

STRZ Analyst Consensus

STRZ MoonshotScore

What Investors Ask About Starz Entertainment Corp. (STRZ) — Communication Services

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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