F

Starz Entertainment Corp. — Earnings Quality Grade F

STRZ · Communication Services

Major red flags

Revenue
$1.4B
2025
Net Income
-$211M
2025
Gross Margin
48.7%
Free Cash Flow
-$64M
01

Screening Summary

10
Passed
4
Watch
2
Failed
-2.87
M-Score

Management Signals

No recent CEO, CFO, board, or accounting leadership signals found in SEC 8-K filings.
02

Financial Trends

Revenue & Net Income ($B)

Margins (%)

03

18-Point Screening

01

Revenue Quality

A1DSO Change

DSO 14 days, change +0 days YoY

A2AR vs Revenue Growth

AR growth -0.4% vs revenue growth -1.6%

A3Revenue vs CFFO

Revenue -1.6%, CFFO 65.1%. Cash follows revenue

02

Expense Quality

B1Inventory vs COGS

No material inventory

B2CapEx vs Revenue

CapEx growth -13.7% vs revenue -1.6%. Normal

B3SG&A Ratio

SG&A/Gross Profit = 58.7%. Normal

B4Gross Margin

Gross margin 48.7%, change -1.5pp. Stable

03

Cash Flow Quality

!
C1CFFO vs Net Income

CFFO/NI = 0.22. Below 1.0

!
C2Free Cash Flow

FCF is negative ($-0.1B)

C3Accruals Ratio

Accruals ratio = -7.6%. Low accruals

C4Cash vs Debt

Cash $0.0B covers only 3% of debt $0.7B

04

Balance Sheet Health

D1Goodwill + Intangibles

Goodwill+Intangibles $1.9B = 250% of equity. Over 50%

!
D2Leverage

Interest coverage = 0.3x (<2x). Financial stress

D3Soft Asset Growth

Insufficient data

D4Asset Impairment

No write-off data

05

Acquisition Risk

!
E1Serial Acquirer FCF

FCF after acquisitions negative for 2/3 years

E2Goodwill Surge

Goodwill+Intangibles change 0% YoY. Normal

06

Manipulation Score

F1Beneish M-Score

M-Score = -2.87 (< -2.22). Unlikely manipulator

Portfolio monitoring

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04

Beneish M-Score

Manipulation Probability-2.87
-4.0 Clean-2.22 Grey-1.78 Danger0
1.013
DSRI
AR growing faster than revenue?
1.031
GMI
Gross margin declining?
0.984
AQI
Asset quality deteriorating?
0.984
SGI
Revenue growth rate
0.987
DEPI
Depreciation slowing?
0.881
SGAI
SG&A ratio changing?
-0.076
TATA
Accruals level
1.178
LVGI
Leverage increasing?
05

Altman Z-Score

-1.34
Distress Zone
0 Distress1.102.605.0+ Safe
-0.208
Liquidity
0
Cumulative profit
-0.082
Operating efficiency
0.5448
Leverage

Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25