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 imperfect balance sheet.


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

5.2%

NEWM

2.7%

US Media

3.4%

US Market


1 Year Return

-47.2%

NEWM

16.3%

US Media

5.4%

US Market

Return vs Industry: NEWM underperformed the US Media industry which returned 16.3% over the past year.

Return vs Market: NEWM underperformed the US Market which returned 5.4% over the past year.


Shareholder returns

NEWMIndustryMarket
7 Day5.2%2.7%3.4%
30 Day-4.9%-2.2%-1.0%
90 Day-6.3%-1.5%-0.4%
1 Year-39.2%-47.2%17.8%16.3%7.7%5.4%
3 Year-19.3%-42.1%29.2%24.0%46.2%36.8%
5 Year-15.3%-47.2%44.4%32.8%65.6%47.5%

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

Valuation

Is New Media Investment Group undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: NEWM ($8.5) is trading below our estimate of fair value ($19.16)

Significantly Undervalued: NEWM is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: NEWM is poor value based on its PE Ratio (589.9x) compared to the Media industry average (12.9x).

PE vs Market: NEWM is poor value based on its PE Ratio (589.9x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: NEWM is good value based on its PB Ratio (0.8x) compared to the US Media industry average (1.3x).


Next Steps

Future Growth

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

17.8%

Forecasted Media industry annual growth in earnings


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if NEWM's forecast earnings growth is above the savings rate (2.7%).

Earnings vs Market: Insufficient data to determine if NEWM's earnings are forecast to grow faster than the US market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: Insufficient data to determine if NEWM's revenue is forecast to grow faster than the US market.

High Growth Revenue: Insufficient data to determine if NEWM's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


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

Earnings Trend: NEWM's earnings have declined by -80.8% per year over the past 5 years.

Accelerating Growth: NEWM's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: NEWM had negative earnings growth (-97.5%) over the past year, making it difficult to compare to the Media industry average (-35.1%).


Return on Equity

High ROE: NEWM's Return on Equity (0.05%) is considered low.


Return on Assets

ROA vs Industry: NEWM's Return on Assets is below or equal to the Media industry average last year.


Return on Capital Employed

ROCE Improving: NEWM's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is New Media Investment Group's financial position?


Financial Position Analysis

Short Term Liabilities: NEWM's short term assets ($244.7M) exceeds its short term liabilities ($242.4M)

Long Term Liabilities: NEWM's short term assets (244.7M) do not cover its long term liabilities (578.2M)


Debt to Equity History and Analysis

Debt Level: NEWM's debt to equity ratio (65.6%) is considered high

Reducing Debt: NEWM's debt to equity ratio has increased from 51.2% to 65.6% over the past 5 years.

Debt Coverage: NEWM's debt is well covered by operating cash flow (25%).

Interest Coverage: NEWM's interest payments on its debt are not well covered by EBIT (1.7x coverage).


Balance Sheet

Inventory Level: NEWM has a high level of physical assets or inventory.

Debt Coverage by Assets: NEWM's 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?

17.88%

Current Dividend Yield


Dividend Yield vs Market

company17.9%marketbottom25%1.5%markettop25%3.8%industryaverage2.0%forecastin3Years17.9%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: NEWM's dividend (17.88%) is higher than the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: NEWM's dividend (17.88%) is in the top 25% of dividend payers in the US market (3.77%)

Stable Dividend: Whilst dividend payments have been stable, NEWM has been paying a dividend for less than 10 years.

Growing Dividend: NEWM's dividend payments have increased, but the company has only paid a dividend for 5 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (10549%), NEWM's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


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?

5.8yrs

Average management tenure


CEO

Mike Reed (53yo)

5.9yrs

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

Compensation vs. Market: Mike's total compensation ($USD0.00) is too low to compare against companies of similar size in the US market ($USD1.81M).

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


Management Age and Tenure

5.8yrs

Average Tenure

53yo

Average Age

Experienced Management: NEWM's management team is seasoned and experienced (5.8 years average tenure).


Board Age and Tenure

3.1yrs

Average Tenure

62.5yo

Average Age

Experienced Board: NEWM's board of directors are considered experienced (3.1 years average tenure).


Insider Trading

Insider Buying: NEWM insiders have bought more shares than they have sold 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
Independent 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
Independent 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: 5.7yrs
    • Compensation: US$1.70m
  • Pete Cannone (53yo)

    Chief Executive Officer of Propel Marketing

    • Tenure: 3.9yrs
  • Mike Reed (53yo)

    Chairman

    • Tenure: 5.9yrs
  • Polly Sack (59yo)

    Senior VP

    • Tenure: 13.4yrs
    • Compensation: US$330.00k
  • Cameron MacDougall (43yo)

    Secretary

    • Tenure: 0yrs
  • Ashley Higgins

    Investor Relations

    • Tenure: 0yrs

Board Members

  • Ted Janulis (60yo)

    Independent Director

    • Tenure: 5.8yrs
    • Compensation: US$160.01k
  • Kevin Sheehan (65yo)

    Lead Director

    • Tenure: 0.4yrs
    • Compensation: US$160.01k
  • Laurence Tarica (69yo)

    Independent Director

    • Tenure: 5.8yrs
    • Compensation: US$160.01k
  • Mike Reed (53yo)

    Chairman

    • Tenure: 5.9yrs

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$510.266m
  • 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 Analysis2019/10/16 00:19
End of Day Share Price2019/10/15 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.