NYSE:GCI

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Market Cap

US$792.4m

Last Updated

2021/08/01 22:08 UTC

Data Sources

Company Financials +

Executive Summary

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


Snowflake Analysis

Imperfect balance sheet and overvalued.


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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: GCI's weekly volatility has decreased from 13% to 8% over the past year.


Market Performance


7 Day Return

11.6%

GCI

0.7%

US Media

-0.4%

US Market


1 Year Return

289.9%

GCI

37.9%

US Media

35.9%

US Market

Return vs Industry: GCI exceeded the US Media industry which returned 38.2% over the past year.

Return vs Market: GCI exceeded the US Market which returned 35.9% over the past year.


Shareholder returns

GCIIndustryMarket
7 Day11.6%0.7%-0.4%
30 Day11.4%-0.9%-0.3%
90 Day24.9%2.7%3.1%
1 Year289.9%289.9%39.5%37.9%38.0%35.9%
3 Year-56.8%-64.9%68.9%61.8%62.9%52.7%
5 Year-50.9%-66.9%82.5%69.4%121.3%96.9%

Long-Term 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?

1.46x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: GCI ($5.77) is trading above our estimate of fair value ($0.49)

Significantly Below Fair Value: GCI is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: GCI is unprofitable, so we can't compare its PE Ratio to the US 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 (1.5x) compared to the US Media industry average (2x).


Future Growth

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

84.8%

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 is expected to decline over the next 3 years (-5.6% per year).

High Growth Revenue: GCI's revenue is forecast to decline over the next 3 years (-5.6% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GCI is forecast to be unprofitable in 3 years.


Past Performance

How has Gannett performed over the past 5 years?

-86.4%

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 86.4% 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 (56.9%).


Return on Equity

High ROE: GCI has a negative Return on Equity (-136.02%), as it is currently unprofitable.


Financial Health

How is Gannett's financial position?


Financial Position Analysis

Short Term Liabilities: GCI's short term assets ($590.0M) do not cover its short term liabilities ($697.5M).

Long Term Liabilities: GCI's short term assets ($590.0M) do not cover its long term liabilities ($1.8B).


Debt to Equity History and Analysis

Debt Level: GCI's debt to equity ratio (252.5%) is considered high.

Reducing Debt: GCI's debt to equity ratio has increased from 55.5% to 252.5% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable GCI has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: GCI is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by 19.7% per year.


Dividend

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


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?

1.5yrs

Average management tenure


CEO

Mike Reed (55 yo)

7.67yrs

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...


Leadership Team

Experienced Management: GCI's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Members

Experienced Board: GCI's board of directors are not considered experienced ( 1.8 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 diluted in the past year, with total shares outstanding growing by 4.7%.


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: 1906
  • Industry: Publishing
  • Sector: Media
  • Market Cap: US$792.370m
  • Shares outstanding: 137.33m
  • Website: https://www.gannett.com

Number of Employees


Location

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

Listings


Biography

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 in...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/08/01 22:08
End of Day Share Price2021/07/30 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.