NYSE:NEWM

Stock Analysis Report

New Media Investment Group

Executive Summary

New Media Investment Group Inc. invests in, owns, and operates local media assets in the United States.

Snowflake

Fundamentals

Fair value with moderate growth potential.

Risks

  • New Media Investment Group is not covered by any analysts.

Similar Companies

Share Price & News

How has New Media Investment Group's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

4.7%

NEWM

-1.7%

US Media

-0.6%

US Market


1 Year Return

-40.2%

NEWM

13.3%

US Media

0.7%

US Market

NEWM underperformed the Media industry which returned 12.4% over the past year.

NEWM underperformed the Market in United States of America which returned 0.7% over the past year.


Share holder returns

NEWMIndustryMarket
7 Day4.7%-1.7%-0.6%
30 Day12.1%6.9%4.9%
90 Day1.1%2.3%1.7%
1 Year-31.0%-40.2%14.8%13.3%3.0%0.7%
3 Year-17.6%-40.9%26.3%21.2%44.8%35.4%
5 Year-12.8%-45.7%41.0%29.9%62.0%44.3%

Price Volatility Vs. Market

How volatile is New Media Investment Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

1 month ago | Simply Wall St

Should You Be Concerned About New Media Investment Group Inc.'s (NYSE:NEWM) ROE?

Valuation

Is New Media Investment Group undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

New Media Investment Group's share price is below the future cash flow value, and at a moderate discount (> 20%).

New Media Investment Group's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

New Media Investment Group is overvalued based on earnings compared to the US Media industry average.

New Media Investment Group is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Unable to calculate PEG ratio for New Media Investment Group, we can't assess if its growth is good value.


Price Based on Value of Assets

New Media Investment Group is good value based on assets compared to the US Media industry average.


Next Steps

Future Growth

How is New Media Investment Group expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

16.4%

Forecasted Media industry annual growth in earnings


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Unable to determine if New Media Investment Group is high growth as no revenue estimate data is available.

New Media Investment Group's earnings are expected to grow significantly at over 20% yearly.

Unable to compare New Media Investment Group's revenue growth to the United States of America market average as no estimate data is available.

New Media Investment Group's earnings growth is expected to exceed the United States of America market average.

New Media Investment Group's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if New Media Investment Group will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has New Media Investment Group performed over the past 5 years?

-80.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

New Media Investment Group's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.

New Media Investment Group's 1-year earnings growth is negative, it can't be compared to the 5-year average.

New Media Investment Group's 1-year earnings growth is negative, it can't be compared to the US Media industry average.


Return on Equity

New Media Investment Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

New Media Investment Group used its assets less efficiently than the US Media industry average last year based on Return on Assets.


Return on Capital Employed

New Media Investment Group's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is New Media Investment Group's financial position?


Financial Position Analysis

New Media Investment Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

New Media Investment Group's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

New Media Investment Group's level of debt (65.6%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (51.2% vs 65.6% today).

Debt is well covered by operating cash flow (25%, greater than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 1.7x annual interest expense, ideally 3x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.6x debt.


Next Steps

Dividend

What is New Media Investment Group's current dividend yield, its reliability and sustainability?

16.24%

Expected Dividend Yield


Dividend Yield and Payments Analysis

New Media Investment Group's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).

New Media Investment Group's dividend is above the markets top 25% of dividend payers in United States of America (3.71%).

Whilst dividend payments have been stable, New Media Investment Group has been paying a dividend for less than 10 years.

Dividend payments have increased, but New Media Investment Group only paid a dividend in the past 5 years.


Current Payout to Shareholders

Dividends paid are not well covered by earnings (0x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of New Media Investment Group's salary, the management and board of directors tenure and is there insider trading?

5.7yrs

Average management tenure


CEO

Mike Reed (53yo)

5.8yrs

Tenure

0

Mr. Michael E. Reed, also known as Mike, has been Chief Executive Officer and President of New Media Investment Group Inc. since November 26, 2013 and serves as its Chairman since May 3, 2019. Mr. Reed ser ...


CEO Compensation Analysis

Insufficient data for Mike to establish whether their remuneration is reasonable compared to companies of similar size in United States of America.

Insufficient data for Mike to compare compensation growth.


Management Age and Tenure

5.7yrs

Average Tenure

53yo

Average Age

The average tenure for the New Media Investment Group management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

3.0yrs

Average Tenure

62.5yo

Average Age

The tenure for the New Media Investment Group board of directors is about average.


Insider Trading

More shares have been bought than sold by New Media Investment Group individual insiders in the past 3 months.


Recent Insider Transactions

BuyUS$2,195,00003 Sep 19
Michael Reed
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares250,000
Max PriceUS$8.78
BuyUS$262,20003 Sep 19
Laurence Tarica
EntityIndividual
Role
Member of the Board of Directors
Director
Shares30,000
Max PriceUS$8.74
BuyUS$131,40003 Sep 19
Kevin Sheehan
EntityIndividual
Role
Lead Director
Lead Director
Shares15,000
Max PriceUS$8.76
BuyUS$45,076,74009 Aug 19
Alden Global Capital LLC
EntityCompany
Shares5,700,000
Max PriceUS$7.91
BuyUS$1,279,55008 Aug 19
Leon Cooperman
EntityIndividual
Shares171,072
Max PriceUS$7.48
BuyUS$8,027,59406 Aug 19
Omega Advisors, Inc.
EntityCompany
Shares813,910
Max PriceUS$9.86
BuyUS$9,959,61502 Aug 19
Leon Cooperman
EntityIndividual
Shares956,090
Max PriceUS$10.75
BuyUS$7,679,85824 Jul 19
Leon Cooperman
EntityIndividual
Shares792,871
Max PriceUS$10.19
BuyUS$217,20009 Nov 18
Laurence Tarica
EntityIndividual
Role
Member of the Board of Directors
Director
Shares15,000
Max PriceUS$14.48
BuyUS$95,85008 Nov 18
Kirk Davis
EntityIndividual
Role
Chief Operating Officer
Chief Operating Officer
Shares6,750
Max PriceUS$14.20
SellUS$1,210,25008 Nov 18
Gregory Freiberg
EntityIndividual
Shares85,000
Max PriceUS$14.33
BuyUS$1,066,16006 Nov 18
Michael Reed
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares75,000
Max PriceUS$14.24

Ownership Breakdown


Management Team

  • Kirk Davis (57yo)

    Chief Operating Officer

    • Tenure: 5.6yrs
    • Compensation: US$1.70m
  • Pete Cannone (53yo)

    Chief Executive Officer of Propel Marketing

    • Tenure: 3.8yrs
  • Mike Reed (53yo)

    Chairman

    • Tenure: 5.8yrs
  • Polly Sack (59yo)

    Senior VP

    • Tenure: 13.3yrs
    • Compensation: US$330.00k
  • Cameron MacDougall (43yo)

    Secretary

    • Tenure: 0yrs
  • Ashley Higgins

    Investor Relations

    • Tenure: 0yrs

Board Members

  • Ted Janulis (60yo)

    Director

    • Tenure: 5.7yrs
    • Compensation: US$160.01k
  • Kevin Sheehan (65yo)

    Lead Director

    • Tenure: 0.3yrs
    • Compensation: US$160.01k
  • Laurence Tarica (69yo)

    Director

    • Tenure: 5.7yrs
    • Compensation: US$160.01k
  • Mike Reed (53yo)

    Chairman

    • Tenure: 5.8yrs

Company Information

New Media Investment Group Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: New Media Investment Group Inc.
  • Ticker: NEWM
  • Exchange: NYSE
  • Founded: 1997
  • Industry: Publishing
  • Sector: Media
  • Market Cap: US$561.893m
  • Shares outstanding: 60.03m
  • Website: https://www.newmediainv.com

Number of Employees


Location

  • New Media Investment Group Inc.
  • 1345 Avenue of the Americas
  • 45th Floor
  • New York
  • New York
  • 10105
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NEWMNYSE (New York Stock Exchange)YesNew Common StockUSUSDFeb 2014
2N2DB (Deutsche Boerse AG)YesNew Common StockDEEURFeb 2014

Biography

New Media Investment Group Inc. invests in, owns, and operates local media assets in the United States. The company’s principal products include 146 daily newspapers with total paid circulation of approxim ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/23 00:08
End of Day Share Price2019/09/20 00:00
Earnings2019/06/30
Annual Earnings2018/12/30


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.