OTCPK:PCDA.F

Stock Analysis Report

Postmedia Network Canada

Executive Summary

Postmedia Network Canada Corp., through its subsidiary, Postmedia Network Inc., publishes daily and non-daily newspapers in Canada.

Snowflake

Fundamentals

Imperfect balance sheet with poor track record.

Share Price & News

How has Postmedia Network Canada's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: PCDA.F has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

PCDA.F

-1.2%

US Media

0.7%

US Market


1 Year Return

52.7%

PCDA.F

16.2%

US Media

13.7%

US Market

Return vs Industry: PCDA.F exceeded the US Media industry which returned 16.2% over the past year.

Return vs Market: PCDA.F exceeded the US Market which returned 13.7% over the past year.


Shareholder returns

PCDA.FIndustryMarket
7 Day0%-1.2%0.7%
30 Dayn/a2.1%4.7%
90 Dayn/a5.8%6.1%
1 Year52.7%52.7%17.8%16.2%16.2%13.7%
3 Year-12.8%-12.8%27.0%21.7%48.8%39.2%
5 Yearn/a41.1%30.3%62.5%44.5%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Postmedia Network Canada undervalued compared to its fair value and its price relative to the market?


Share Price vs. Fair Value

Below Fair Value: PCDA.F ($1.37) is trading above our estimate of fair value ($0)

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


Price To Earnings Ratio

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

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


Price to Book Ratio

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


Next Steps

Future Growth

How is Postmedia Network Canada forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

19.0%

Forecasted Media industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Postmedia Network Canada has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

  • Take a look at our analysis of PCDA.F’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  • While we do not consider unaudited financials to be a reliable enough to include in our analysis, you can access them on the OTC Markets Website. If you are looking for more of a qualitative research into the company, you can access Postmedia Network Canada's filings and announcements here.
  • Explore growth companies in the Media industry.

Past Performance

How has Postmedia Network Canada performed over the past 5 years?

36.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PCDA.F has large one-off items impacting its financial results.

Growing Profit Margin: PCDA.F's current net profit margins (-1.1%) are higher than last year (-5%).


Past Earnings Growth Analysis

Earnings Trend: PCDA.F is unprofitable, but has reduced losses over the past 5 years at a rate of 36.6% per year.

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

Earnings vs Industry: PCDA.F is unprofitable, making it difficult to compare its past year earnings growth to the Media industry (-32.7%).


Return on Equity

High ROE: PCDA.F'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 Postmedia Network Canada's financial position?


Financial Position Analysis

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

Long Term Liabilities: PCDA.F 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: PCDA.F has negative shareholder equity, which is a more serious situation than a high debt level.

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


Balance Sheet

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

Debt Coverage by Assets: PCDA.F 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 PCDA.F has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: PCDA.F is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 100.9% per year.


Next Steps

Dividend

What is Postmedia Network Canada's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.6%industryaverage2.0%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate PCDA.F'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 PCDA.F's dividends per share have been stable in the past.

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


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of PCDA.F'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 Postmedia Network Canada's salary, the management and board of directors tenure and is there insider trading?

1.3yrs

Average management tenure


CEO

Andrew MacLeod 0

0.8yrs

Tenure

CA$2,201,634

Compensation

Mr. Andrew MacLeod has been President and Chief Executive Officer at Postmedia Network Canada Corp. since October 19, 2017 and January 2019 respectively. He serves as the President and Chief Operating Offi ...


CEO Compensation Analysis

Compensation vs Market: Andrew's total compensation ($USD1.66M) is above average for companies of similar size in the US market ($USD509.90K).

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


Management Age and Tenure

1.3yrs

Average Tenure

Experienced Management: PCDA.F's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Age and Tenure

2.5yrs

Average Tenure

72yo

Average Age

Experienced Board: PCDA.F's board of directors are not considered experienced ( 2.5 years average tenure), which suggests a new board.


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

BuyCA$1,70823 Aug 19
Chatham Asset Management
EntityCompany
Shares800
Max PriceCA$2.14
BuyCA$17,74120 Aug 19
Chatham Asset Management
EntityCompany
Shares8,700
Max PriceCA$2.14
SellCA$4,85305 Mar 19
Leon & Toby Cooperman Foundation, Endowment Arm
EntityCompany
Shares2,400
Max PriceCA$2.02
BuyCA$3,18801 Mar 19
Chatham Asset Management
EntityCompany
Shares2,400
Max PriceCA$1.71
BuyCA$49619 Feb 19
Chatham Asset Management
EntityCompany
Shares600
Max PriceCA$0.83
BuyCA$10,20111 Feb 19
Leon Cooperman
EntityIndividual
Shares13,500
Max PriceCA$0.76

Ownership Breakdown

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


Management Team

  • Paul Godfrey (80yo)

    Executive Chairman

    • Tenure: 2yrs
    • Compensation: CA$5.04m
  • Brian Bidulka

    Executive VP & CFO

    • Tenure: 2.3yrs
    • Compensation: CA$1.12m
  • Phyllise Gelfand

    Vice President of Communications

    • Tenure: 0yrs
  • Gillian Akai

    Executive VP

    • Tenure: 1.8yrs
    • Compensation: CA$895.93k
  • Andrew MacLeod

    President

    • Tenure: 0.8yrs
    • Compensation: CA$2.20m
  • Lorna McLeod

    Senior Vice President of Shared Services

    • Tenure: 0yrs
  • Josh Merchant

    Senior Vice President of Product & Development

    • Tenure: 0yrs
    • Compensation: CA$646.94k
  • Mary Lavallee

    Executive VP & COO

    • Tenure: 0.6yrs

Board Members

  • Mary Junck (72yo)

    Independent Director

    • Tenure: 3.1yrs
    • Compensation: CA$113.14k
  • Graham Savage (71yo)

    Independent Director

    • Tenure: 9.3yrs
    • Compensation: CA$150.30k
  • Paul Godfrey (80yo)

    Executive Chairman

    • Tenure: 2yrs
    • Compensation: CA$5.04m
  • Jen Ecker (65yo)

    Independent Director

    • Tenure: 2.5yrs
    • Compensation: CA$116.60k
  • John Bode

    Director

    • Tenure: 1.1yrs
  • Daniel Rotstein

    Non-Independent Director

    • Tenure: 3.1yrs
    • Compensation: CA$108.30k
  • Peter Sharpe (72yo)

    Lead Director

    • Tenure: 2yrs
    • Compensation: CA$133.30k
  • Wendy Henkelman

    Independent Director

    • Tenure: 3.8yrs
    • Compensation: CA$150.30k
  • Andrew MacLeod

    President

    • Tenure: 0.8yrs
    • Compensation: CA$2.20m

Company Information

Postmedia Network Canada Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Postmedia Network Canada Corp.
  • Ticker: PCDA.F
  • Exchange: OTCPK
  • Founded: 2005
  • Industry: Publishing
  • Sector: Media
  • Market Cap: CA$170.593m
  • Listing Market Cap: CA$128.969m
  • Shares outstanding: 93.74m
  • Website: https://www.postmedia.com

Number of Employees


Location

  • Postmedia Network Canada Corp.
  • 365 Bloor Street East
  • 12th Floor
  • Toronto
  • Ontario
  • M4W 3L4
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PNC.ATSX (The Toronto Stock Exchange)Class C Voting SharesCACADJun 2011
PNC.BTSX (The Toronto Stock Exchange)YesClass NC Variable Voting SharesCACADJun 2011
PCDA.FOTCPK (Pink Sheets LLC)YesClass NC Variable Voting SharesUSUSDJun 2011
P2MCBST (Boerse-Stuttgart)Class C Voting SharesDEEURJun 2011

Biography

Postmedia Network Canada Corp., through its subsidiary, Postmedia Network Inc., publishes daily and non-daily newspapers in Canada. The company is involved in news and information gathering and disseminati ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/17 00:25
End of Day Share Price2019/10/24 00:00
Earnings2019/08/31
Annual Earnings2019/08/31


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.