NEW YORK TIMES CO-A (NYSE:NYT) – A Quality Stock with Strong Fundamentals

NEW YORK TIMES CO-A (NYSE:NYT) was identified by our Caviar Cruise screen as a potential candidate for quality investors. The company demonstrates strong profitability, financial health, and disciplined growth—key traits that align with long-term quality investing principles. Below, we examine why NYT stands out.

Key Strengths of NYT

• High Return on Invested Capital (ROIC): NYT’s ROIC (excluding cash and goodwill) stands at 30.06%, well above the 15% threshold for quality stocks. This indicates efficient use of capital to generate profits.
• Strong Profit Growth: The company has delivered a 5-year EBIT growth rate of 15.46%, outpacing its revenue growth of 6.00%, signaling improving operational efficiency.
• Exceptional Profit Quality: NYT converts 142% of net income into free cash flow (5-year average), far exceeding the 75% benchmark, reflecting strong cash generation.
• Zero Debt Burden: With no outstanding debt, NYT maintains a pristine balance sheet, eliminating financial risk and providing flexibility for future investments.
• Consistent Dividend Growth: The company has raised its dividend at an annualized rate of 21.48% over the past decade, supported by sustainable payout ratios.

Fundamental Analysis Summary

NYT earns a fundamental rating of 7/10, with standout scores in profitability (8/10) and financial health (9/10). Key highlights:

• Profitability: High margins (11.53% net, 14.78% operating) and industry-leading ROIC.
• Valuation: P/E of 26.72 is slightly below industry peers, though premium-priced relative to historical earnings.
• Growth: While past revenue growth has been modest (7.37% CAGR), analysts expect steady future growth (~6% annually).

Why Quality Investors Should Consider NYT

The company benefits from a strong brand, recurring subscription revenue, and disciplined capital allocation. Its ability to generate high returns on capital while maintaining financial stability makes it a compelling candidate for long-term investors.

For more quality stock ideas, explore our Caviar Cruise screener.
Review the full NYT fundamental report for deeper insights.

Disclaimer

This is not investment advice. Always conduct your own research before making investment decisions.