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GCI

Gannett NYSE:GCI Stock Report

Last Price

US$3.12

Market Cap

US$441.2m

7D

1.0%

1Y

-46.6%

Updated

26 Jun, 2022

Data

Company Financials +
GCI fundamental analysis
Snowflake Score
Valuation2/6
Future Growth3/6
Past Performance2/6
Financial Health0/6
Dividends0/6

GCI Stock Overview

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

Gannett Competitors

 

 

 

 

 

 

 

 

 

 

 

 

Price History & Performance

Summary of all time highs, changes and price drops for Gannett
Historical stock prices
Current Share PriceUS$3.12
52 Week HighUS$7.05
52 Week LowUS$2.93
Beta2.39
1 Month Change-19.38%
3 Month Change-32.32%
1 Year Change-46.58%
3 Year Change-66.95%
5 Year Change-76.85%
Change since IPO-70.29%

Recent News & Updates

Jun 02

Please Unlock Gannett's Value

Steady improvement from an operational standpoint over the past two years has not translated into stock price performance. I think the blame falls on the shoulders of a management team that has failed to communicate effectively with Wall Street and investors. The shares remain extremely inexpensive, and it is time for management to take the steps necessary to unlock Gannett's value.

Shareholder Returns

GCIUS MediaUS Market
7D1.0%3.1%6.6%
1Y-46.6%-33.0%-18.4%

Return vs Industry: GCI underperformed the US Media industry which returned -33% over the past year.

Return vs Market: GCI underperformed the US Market which returned -18.5% over the past year.

Price Volatility

Is GCI's price volatile compared to industry and market?
GCI volatility
GCI Average Weekly Movement6.4%
Media Industry Average Movement9.0%
Market Average Movement8.1%
10% most volatile stocks in US Market16.6%
10% least volatile stocks in US Market3.2%

Stable Share Price: GCI is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: GCI's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
201316,300Mike Reedhttps://www.gannett.com

Gannett Co., Inc. operates as a media and marketing solutions company in the United States. It operates through two segments, Publishing and Digital Marketing Solutions. The company’s principal products include 230 daily print media with total paid circulation of approximately 1.9 million and Sunday circulation of 2.2 million; 249 weekly print media with total circulation of approximately 1.4 million; and 292 locally-focused websites.

Gannett Fundamentals Summary

How do Gannett's earnings and revenue compare to its market cap?
GCI fundamental statistics
Market CapUS$441.20m
Earnings (TTM)US$4.39m
Revenue (TTM)US$3.18b

100.6x

P/E Ratio

0.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
GCI income statement (TTM)
RevenueUS$3.18b
Cost of RevenueUS$1.89b
Gross ProfitUS$1.29b
Other ExpensesUS$1.28b
EarningsUS$4.39m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.031
Gross Margin40.43%
Net Profit Margin0.14%
Debt/Equity Ratio241.3%

How did GCI perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is GCI undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for GCI?

Other financial metrics that can be useful for relative valuation.

GCI key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.6x
Enterprise Value/EBITDA4.1x
PEG Ratio1.9x

Price to Earnings Ratio vs Peers

How does GCI's PE Ratio compare to its peers?

GCI PE Ratio vs Peers
The above table shows the PE ratio for GCI vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average19.5x

Price-To-Earnings vs Peers: GCI is expensive based on its Price-To-Earnings Ratio (100.6x) compared to the peer average (19.5x).


Price to Earnings Ratio vs Industry

How does GCI's PE Ratio compare vs other companies in the U.S. Media Industry?

Price-To-Earnings vs Industry: GCI is expensive based on its Price-To-Earnings Ratio (100.6x) compared to the US Media industry average (13.1x)


Price to Earnings Ratio vs Fair Ratio

What is GCI's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

GCI PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio100.6x
Fair PE Ratio32.8x

Price-To-Earnings vs Fair Ratio: GCI is expensive based on its Price-To-Earnings Ratio (100.6x) compared to the estimated Fair Price-To-Earnings Ratio (32.8x).


Share Price vs Fair Value

What is the Fair Price of GCI when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: GCI ($3.12) is trading below our estimate of fair value ($22.29)

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


Price to Earnings Growth Ratio

PEG Ratio: GCI is poor value based on its PEG Ratio (1.9x)


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Future Growth

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

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


53.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GCI's forecast earnings growth (53.8% per year) is above the savings rate (1.9%).

Earnings vs Market: GCI's earnings (53.8% per year) are forecast to grow faster than the US market (14% per year).

High Growth Earnings: GCI's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: GCI's revenue is expected to decline over the next 3 years (-0.8% per year).

High Growth Revenue: GCI's revenue is forecast to decline over the next 3 years (-0.8% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GCI's Return on Equity is forecast to be low in 3 years time (10.3%).


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Past Performance

How has Gannett performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-52.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: GCI has a large one-off loss of $103.8M impacting its March 31 2022 financial results.

Growing Profit Margin: GCI became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: GCI has become profitable over the past 5 years, growing earnings by -52.1% per year.

Accelerating Growth: GCI has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: GCI has become profitable in the last year, making it difficult to compare its past year earnings growth to the Media industry (18.8%).


Return on Equity

High ROE: GCI's Return on Equity (0.7%) is considered low.


Discover strong past performing companies

Financial Health

How is Gannett's financial position?

Financial Health Score

0/6

Financial Health Score 0/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: GCI's short term assets ($562.3M) do not cover its short term liabilities ($641.8M).

Long Term Liabilities: GCI's short term assets ($562.3M) do not cover its long term liabilities ($1.6B).


Debt to Equity History and Analysis

Debt Level: GCI's net debt to equity ratio (211.8%) is considered high.

Reducing Debt: GCI's debt to equity ratio has increased from 47% to 241.3% over the past 5 years.

Debt Coverage: GCI's debt is not well covered by operating cash flow (7.9%).

Interest Coverage: GCI's interest payments on its debt are not well covered by EBIT (2.1x coverage).


Balance Sheet


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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage

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.


Earnings Payout to Shareholders

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


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as GCI has not reported any payouts.


Discover strong dividend paying companies

Management

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

2.4yrs

Average management tenure


CEO

Mike Reed (55 yo)

8.58yrs

Tenure

US$7,741,052

Compensation

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


CEO Compensation Analysis

Compensation vs Market: Mike's total compensation ($USD7.74M) is above average for companies of similar size in the US market ($USD2.84M).

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


Leadership Team

Experienced Management: GCI's management team is considered experienced (2.4 years average tenure).


Board Members

Experienced Board: GCI's board of directors are considered experienced (5.5 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: GCI insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3%.


Top Shareholders

Company Information

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


Key Information

  • Name: Gannett Co., Inc.
  • Ticker: GCI
  • Exchange: NYSE
  • Founded: 2013
  • Industry: Publishing
  • Sector: Media
  • Implied Market Cap: US$441.200m
  • Shares outstanding: 141.41m
  • Website: https://www.gannett.com

Number of Employees


Location

  • Gannett Co., Inc.
  • 7950 Jones Branch Drive
  • McLean
  • Virginia
  • 22107-0150
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/26 00:00
End of Day Share Price2022/06/24 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.