AMEX:MNI

Stock Analysis Report

Executive Summary

The McClatchy Company publishes newspapers and news Websites in the United States.


Snowflake Analysis

Imperfect balance sheet with weak fundamentals.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-26.0%

MNI

-3.7%

US Media

-1.3%

US Market


1 Year Return

-87.6%

MNI

25.3%

US Media

22.0%

US Market

Return vs Industry: MNI underperformed the US Media industry which returned 29.5% over the past year.

Return vs Market: MNI underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

MNIIndustryMarket
7 Day-26.0%-3.7%-1.3%
30 Day120.3%-0.2%1.8%
90 Day-68.8%3.4%9.3%
1 Year-87.6%-87.6%27.1%25.3%24.6%22.0%
3 Year-92.2%-92.2%15.3%10.5%49.2%39.6%
5 Year-96.5%-96.5%46.9%35.2%77.9%58.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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


Share Price vs. Fair Value

Below Fair Value: MNI ($0.42) is trading above our estimate of fair value ($0.32)

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


Price To Earnings Ratio

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

PE vs Market: MNI 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 MNI's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: MNI has negative assets, so we can't compare its PB Ratio to the US Media industry average.


Next Steps

Future Growth

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

120.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: MNI's revenue is expected to decline over the next 3 years (-9.6% per year).

High Growth Revenue: MNI's revenue is forecast to decline over the next 3 years (-9.6% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has McClatchy performed over the past 5 years?

-42.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MNI is currently unprofitable.

Growing Profit Margin: MNI is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: MNI is unprofitable, and losses have increased over the past 5 years at a rate of -42.5% per year.

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

Earnings vs Industry: MNI is unprofitable, making it difficult to compare its past year earnings growth to the Media industry (-30.3%).


Return on Equity

High ROE: MNI's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is McClatchy's financial position?


Financial Position Analysis

Short Term Liabilities: MNI has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: MNI has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: MNI has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: MNI's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet

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

Debt Coverage by Assets: MNI has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


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 MNI has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: MNI is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -92.3% per year.


Next Steps

Dividend

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


Dividend Yield vs Market

company0%marketbottom25%1.4%markettop25%3.7%industryaverage2.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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


Stability and Growth of Payments

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

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


Next Steps

Management

What is the CEO of McClatchy's salary, the management and board of directors tenure and is there insider trading?

3.6yrs

Average management tenure


CEO

Craig Forman (57yo)

3yrs

Tenure

US$2,877,450

Compensation

Mr. Craig I. Forman has been the Chief Executive Officer and President at The McClatchy Company since January 25, 2017. Mr. Forman serves as the Founding General Partner at NextNews. He served as the Chief ...


CEO Compensation Analysis

Compensation vs Market: Craig's total compensation ($USD2.88M) is above average for companies of similar size in the US market ($USD519.76K).

Compensation vs Earnings: Craig's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

3.6yrs

Average Tenure

53.5yo

Average Age

Experienced Management: MNI's management team is considered experienced (3.6 years average tenure).


Board Age and Tenure

11.5yrs

Average Tenure

63yo

Average Age

Experienced Board: MNI's board of directors are seasoned and experienced ( 11.5 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$1,33508 Apr 19
Chatham Asset Management
EntityCompany
Shares300
Max PriceUS$4.45
BuyUS$48,44004 Apr 19
Chatham Asset Management
EntityCompany
Shares10,583
Max PriceUS$4.60
BuyUS$337,06902 Apr 19
Chatham Asset Management
EntityCompany
Shares67,677
Max PriceUS$5.01
BuyUS$269,30629 Mar 19
Chatham Asset Management
EntityCompany
Shares50,647
Max PriceUS$5.37
BuyUS$207,66927 Mar 19
Chatham Asset Management
EntityCompany
Shares41,203
Max PriceUS$5.23
BuyUS$174,52625 Mar 19
Chatham Asset Management
EntityCompany
Shares35,270
Max PriceUS$5.01
BuyUS$19,40218 Mar 19
Chatham Asset Management
EntityCompany
Shares3,902
Max PriceUS$5.00
BuyUS$12,74714 Mar 19
Chatham Asset Management
EntityCompany
Shares2,500
Max PriceUS$5.10

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Craig Forman (57yo)

    President

    • Tenure: 3yrs
    • Compensation: US$2.88m
  • R. Lintecum (63yo)

    VP of Finance & CFO

    • Tenure: 7.7yrs
    • Compensation: US$1.34m
  • Cheryl Carpenter (62yo)

    Washington Bureau Chief

    • Tenure: 4.2yrs
  • Rodney Mahone (52yo)

    President of Ledger-Enquirer & Publisher of Ledger-Enquirer

    • Tony Berg (41yo)

      Publisher & President of Midwest Region

      • Tenure: 2.8yrs
    • Don Burk (48yo)

      Corporate Director of Sales

      • Tenure: 4.6yrs
    • Billie McConkey (48yo)

      Vice President of Legal & People and Corporate Secretary

      • Tenure: 4.7yrs
      • Compensation: US$698.49k
    • Stephanie Zarate

      Compliance and Investor Relations Manager

      • Peter R. Farr (55yo)

        Chief Accounting Officer & Corporate Controller

        • Tenure: 1.8yrs
      • Nick Johnson

        Head of Advertising

        • Tenure: 1.5yrs

      Board Members

      • Clyde Ostler (72yo)

        Independent Director

        • Tenure: 6.7yrs
        • Compensation: US$169.17k
      • Elizabeth Ballantine (71yo)

        Independent Director

        • Tenure: 21.8yrs
        • Compensation: US$123.17k
      • Leroy Barnes (68yo)

        Independent Director

        • Tenure: 19.3yrs
        • Compensation: US$172.67k
      • Molly Evangelisti (66yo)

        Independent Director

        • Tenure: 24.5yrs
        • Compensation: US$114.17k
      • Kevin McClatchy (56yo)

        Non-Executive Chairman of the Board

        • Tenure: 7.7yrs
        • Compensation: US$291.67k
      • Craig Forman (57yo)

        President

        • Tenure: 3yrs
        • Compensation: US$2.88m
      • Ted Mitchell (63yo)

        Independent Director

        • Tenure: 2.7yrs
        • Compensation: US$123.67k
      • Brown Maloney (63yo)

        Independent Director

        • Tenure: 15.3yrs
        • Compensation: US$113.67k
      • Will McClatchy (57yo)

        Independent Director

        • Tenure: 15.3yrs
        • Compensation: US$106.67k
      • Maria Thomas (55yo)

        Independent Director

        • Tenure: 3.4yrs
        • Compensation: US$148.67k

      Company Information

      The McClatchy Company's company bio, employee growth, exchange listings and data sources


      Key Information

      • Name: The McClatchy Company
      • Ticker: MNI
      • Exchange: AMEX
      • Founded: 1857
      • Industry: Publishing
      • Sector: Media
      • Market Cap: US$7.622m
      • Shares outstanding: 7.93m
      • Website: https://www.mcclatchy.com

      Number of Employees


      Location

      • The McClatchy Company
      • 2100 Q Street
      • Sacramento
      • California
      • 95816
      • United States

      Listings

      TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
      MNIAMEX (NYSE MKT LLC)YesClass A Common SharesUSUSDFeb 1988
      MCABDB (Deutsche Boerse AG)YesClass A Common SharesDEEURFeb 1988

      Biography

      The McClatchy Company publishes newspapers and news Websites in the United States. Its publications include the Miami Herald, The Kansas City Star, The Sacramento Bee, The Charlotte Observer, The (Raleigh) News and Observer, and The (Fort Worth) Star-Telegram. It also provides niche publications and community newspapers, as well as other print and digital direct marketing services. The company distributes content, including video products, through its owned and operated Websites and mobile applications, third-party search and ad exchanges, social media platforms, and electronic editions of its daily newspapers, as well as its printed daily newspapers. The McClatchy Company was founded in 1857 and is headquartered in Sacramento, California. 


      Company Analysis and Financial Data Status

      All financial data provided by Standard & Poor's Capital IQ.
      DataLast Updated (UTC time)
      Company Analysis2020/01/24 23:54
      End of Day Share Price2020/01/24 00:00
      Earnings2019/09/29
      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.