NYSE:GCI

Stock Analysis Report

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Executive Summary

Gannett Co., Inc. operates as a media and marketing solutions company in the United States.


Snowflake Analysis

Fair value with concerning outlook.


Similar Companies

Share Price & News

How has Gannett's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: GCI's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

114.5%

GCI

5.5%

US Media

3.8%

US Market


1 Year Return

-70.6%

GCI

3.3%

US Media

9.7%

US Market

Return vs Industry: GCI underperformed the US Media industry which returned 1.8% over the past year.

Return vs Market: GCI underperformed the US Market which returned 8.9% over the past year.


Shareholder returns

GCIIndustryMarket
7 Day114.5%5.5%3.8%
30 Day188.0%16.1%11.4%
90 Day-31.0%5.1%6.8%
1 Year-67.9%-70.6%4.8%3.3%12.1%9.7%
3 Year-71.0%-78.6%7.1%2.8%36.2%27.2%
5 Year-74.9%-84.4%33.4%23.6%63.7%45.4%

Price Volatility Vs. Market

How volatile is Gannett's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Gannett undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GCI ($1.39) is trading below our estimate of fair value ($15.13)

Significantly Below Fair Value: GCI is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: GCI is unprofitable, so we can't compare its PE Ratio to the Media industry average.

PE vs Market: GCI is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate GCI's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: GCI is good value based on its PB Ratio (0.2x) compared to the US Media industry average (1.5x).


Next Steps

Future Growth

How is Gannett forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

68.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GCI is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: GCI is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: GCI is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: GCI's revenue (19.4% per year) is forecast to grow faster than the US market (8.8% per year).

High Growth Revenue: GCI's revenue (19.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if GCI's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Gannett performed over the past 5 years?

-61.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GCI is currently unprofitable.

Growing Profit Margin: GCI is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: GCI is unprofitable, and losses have increased over the past 5 years at a rate of -61.7% per year.

Accelerating Growth: Unable to compare GCI's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: GCI is unprofitable, making it difficult to compare its past year earnings growth to the Media industry (6.8%).


Return on Equity

High ROE: GCI has a negative Return on Equity (-21.6%), as it is currently unprofitable.


Next Steps

Financial Health

How is Gannett's financial position?


Financial Position Analysis

Short Term Liabilities: GCI's short term assets ($762.9M) exceed its short term liabilities ($724.3M).

Long Term Liabilities: GCI's short term assets ($762.9M) do not cover its long term liabilities ($2.3B).


Debt to Equity History and Analysis

Debt Level: GCI's debt to equity ratio (183.7%) is considered high.

Reducing Debt: GCI's debt to equity ratio has increased from 59.1% to 183.7% over the past 5 years.

Debt Coverage: GCI's debt is not well covered by operating cash flow (3.3%).

Interest Coverage: GCI is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

What is Gannett's current dividend yield, its reliability and sustainability?

9.01%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate GCI's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate GCI's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if GCI's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if GCI's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: GCI is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of GCI's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

0.5yrs

Average management tenure


CEO

Mike Reed (53yo)

6.58yrs

Tenure

Mr. Michael E. Reed, also known as Mike, has been Chief Executive Officer and President at Gannett Co., Inc. (NYSE: GCI) (formerly New Media Investment Group Inc.) since November 26, 2013 and serves as its ...


CEO Compensation Analysis

Compensation vs Market: Mike's total compensation ($USD0.00) is below average for companies of similar size in the US market ($USD1.33M).

Compensation vs Earnings: Insufficient data to compare Mike's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Michael Reed
Chairman6.58yrsno data0.77% $2.8m
Paul Bascobert
Chief Executive Officer of Gannett Media Corp.0.58yrUS$811.44k0.18% $648.4k
Douglas Horne
CFO & Chief Accounting Officer0.17yrno data0.37% $1.4m
Stacy Cunningham
Vice President of Financial Planning & Investor Relationsno datano datano data
Polly Sack
Chief Legal Counsel0.42yrUS$330.00k0.031% $115.8k
Jay Fogarty
Senior Vice President of Corporate Development0.42yrno datano data
Samantha Howland
Chief People Officer0.42yrno datano data
Kristopher Barton
Chief Product Officer2.58yrsno datano data
Kevin Gentzel
Chief Revenue Officer5.42yrsno datano data
Bernie Szachara
President of U.S. Publishing Operationsno datano datano data

0.5yrs

Average Tenure

52.5yo

Average Age

Experienced Management: GCI's management team is not considered experienced ( 0.5 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Michael Reed
Chairman6.58yrsno data0.77% $2.8m
Theodore Janulis
Independent Director6.42yrsUS$360.00k0.018% $64.8k
Kevin Sheehan
Lead Independent Director1.08yrsUS$360.00k0.075% $275.6k
Barbara Wall
Director0.58yrUS$17.50k0.10% $372.7k
Maria Miller
Independent Director0.67yrUS$37.50k0.026% $94.5k
John Louis
Independent Director0.58yrUS$17.50k0.19% $698.7k
Laurence Tarica
Independent Director6.42yrsUS$360.00k0.29% $1.1m
Debra Sandler
Independent Director0.58yrUS$18.67k0.027% $97.7k
Mayur Gupta
Independent Director0.67yrUS$37.50k0.0059% $21.6k

0.7yrs

Average Tenure

60yo

Average Age

Experienced Board: GCI's board of directors are not considered experienced ( 0.7 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: GCI insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 116.6%.


Top Shareholders

Company Information

Gannett Co., Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Gannett Co., Inc.
  • Ticker: GCI
  • Exchange: NYSE
  • Founded: 1997
  • Industry: Publishing
  • Sector: Media
  • Market Cap: US$368.418m
  • Shares outstanding: 131.11m
  • Website: https://www.gannett.com

Number of Employees


Location

  • Gannett Co., Inc.
  • 7950 Jones Branch Drive
  • McLean
  • Virginia
  • 22107-0910
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GCINYSE (New York Stock Exchange)YesNew Common StockUSUSDFeb 2014
2N2ADB (Deutsche Boerse AG)YesNew Common StockDEEURFeb 2014

Biography

Gannett Co., Inc. operates as a media and marketing solutions company in the United States. It operates in Publishing and Marketing Solutions segments. The company’s principal products include 261 daily newspapers with total paid circulation of approximately 2.5 million and Sunday circulation of 3.3 million; 302 weekly newspapers with total circulation of approximately 1.7 million; and 383 locally-focused Websites. Its principal products also comprise 74 business publications with circulation of approximately 323,000; 143 daily and weekly newspapers and 32 magazines, and related digital platforms; USATODAY.com and mobile applications, sports network, and Reviewed.com, an affiliate marketing service; and GateHouse Live, a community events platform. The company also offers digital marketing solutions, such as online advertising, guided marketing solutions, cloud-based products, cloud-based software-as-a-service solutions, search and display advertising, search optimization, social media, website development, web presence products, and e-mail marketing solutions. In addition, the company produces niche publications that address specific local market interests, such as recreation, sports, healthcare, and real estate. Further, it offers print and online products that offer local market news and information, as well as commercial printing services for publishers; and prints commercial materials, including flyers, business cards, and invitations. Additionally, the company produces approximately 479 events with a collective attendance approximately 2.2 million, such as themed expo, signature event, endurance event, and white label event services; and provides digital and print advertising services. The company was formerly known as New Media Investment Group Inc. and changed its name to Gannett Co., Inc. in November 2019. Gannett Co., Inc. was founded in 1997 and is headquartered in McLean, Virginia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/06 05:34
End of Day Share Price2020/06/05 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.