GANNETT CO INC (GCI) Stock Fundamental Analysis
NYSE:GCI - US36472T1097 - Common Stock
4.03 USD
-0.22 (-5.18%)
4.03 USD
0 (0%)
We assign a fundamental rating of 3 out of 10 to GCI. GCI was compared to 100 industry peers in the Media industry. There are concerns on the financial health of GCI while its profitability can be described as average. GCI has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year GCI was profitable.
GCI had a positive operating cash flow in the past year.
GCI had negative earnings in each of the past 5 years.
Each year in the past 5 years GCI had a positive operating cash flow.
1.2 Ratios
GCI's Return On Assets of 5.76% is amongst the best of the industry. GCI outperforms 81.00% of its industry peers.
GCI has a Return On Equity of 48.81%. This is amongst the best in the industry. GCI outperforms 99.00% of its industry peers.
GCI has a Return On Invested Capital of 2.63%. This is comparable to the rest of the industry: GCI outperforms 52.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for GCI is below the industry average of 7.52%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.76% | ||
| ROE | 48.81% | ||
| ROIC | 2.63% |
ROA(3y)-1.94%
ROA(5y)-6.43%
ROE(3y)-17.44%
ROE(5y)-52.37%
ROIC(3y)3.12%
ROIC(5y)3.83%
1.3 Margins
GCI has a better Profit Margin (4.84%) than 69.00% of its industry peers.
The Operating Margin of GCI (2.05%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of GCI has grown nicely.
The Gross Margin of GCI (38.59%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of GCI has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.05% | ||
| PM (TTM) | 4.84% | ||
| GM | 38.59% |
OM growth 3Y-20.34%
OM growth 5Y42.81%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.94%
GM growth 5Y-1.87%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), GCI is destroying value.
Compared to 1 year ago, GCI has less shares outstanding
GCI has more shares outstanding than it did 5 years ago.
The debt/assets ratio for GCI is higher compared to a year ago.
2.2 Solvency
GCI has an Altman-Z score of 0.70. This is a bad value and indicates that GCI is not financially healthy and even has some risk of bankruptcy.
GCI has a Altman-Z score (0.70) which is comparable to the rest of the industry.
GCI has a debt to FCF ratio of 22.90. This is a negative value and a sign of low solvency as GCI would need 22.90 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 22.90, GCI is in line with its industry, outperforming 52.00% of the companies in the same industry.
GCI has a Debt/Equity ratio of 3.88. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 3.88, GCI is not doing good in the industry: 78.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.88 | ||
| Debt/FCF | 22.9 | ||
| Altman-Z | 0.7 |
ROIC/WACC0.33
WACC8.04%
2.3 Liquidity
A Current Ratio of 0.73 indicates that GCI may have some problems paying its short term obligations.
GCI has a worse Current ratio (0.73) than 72.00% of its industry peers.
A Quick Ratio of 0.70 indicates that GCI may have some problems paying its short term obligations.
GCI has a worse Quick ratio (0.70) than 72.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.7 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 149.28% over the past year.
The Revenue has decreased by -8.00% in the past year.
The Revenue has been growing slightly by 6.08% on average over the past years.
EPS 1Y (TTM)149.28%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%366.67%
Revenue 1Y (TTM)-8%
Revenue growth 3Y-7.86%
Revenue growth 5Y6.08%
Sales Q2Q%-8.59%
3.2 Future
The Earnings Per Share is expected to grow by 34.89% on average over the next years. This is a very strong growth
The Revenue is expected to decrease by -4.38% on average over the next years.
EPS Next Y111.85%
EPS Next 2Y46.49%
EPS Next 3Y34.89%
EPS Next 5YN/A
Revenue Next Year-7.15%
Revenue Next 2Y-4.99%
Revenue Next 3Y-4.38%
Revenue Next 5YN/A
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 11.85, the valuation of GCI can be described as reasonable.
GCI's Price/Earnings ratio is a bit cheaper when compared to the industry. GCI is cheaper than 75.00% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.03, GCI is valued rather cheaply.
With a Price/Forward Earnings ratio of 51.16, GCI can be considered very expensive at the moment.
The rest of the industry has a similar Price/Forward Earnings ratio as GCI.
GCI's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.63.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.85 | ||
| Fwd PE | 51.16 |
4.2 Price Multiples
74.00% of the companies in the same industry are more expensive than GCI, based on the Enterprise Value to EBITDA ratio.
GCI's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. GCI is cheaper than 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.68 | ||
| EV/EBITDA | 6.97 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as GCI's earnings are expected to grow with 34.89% in the coming years.
PEG (NY)0.11
PEG (5Y)N/A
EPS Next 2Y46.49%
EPS Next 3Y34.89%
5. Dividend
5.1 Amount
GCI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
4.03
-0.22 (-5.18%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners78.9%
Inst Owner Change5.48%
Ins Owners4.5%
Ins Owner Change2.23%
Market Cap590.88M
Analysts75.56
Price Target5.88 (45.91%)
Short Float %11.81%
Short Ratio9.53
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)367.73%
Min EPS beat(2)-85.62%
Max EPS beat(2)821.07%
EPS beat(4)2
Avg EPS beat(4)304.35%
Min EPS beat(4)-86.48%
Max EPS beat(4)821.07%
EPS beat(8)3
Avg EPS beat(8)111.83%
EPS beat(12)5
Avg EPS beat(12)72.89%
EPS beat(16)6
Avg EPS beat(16)-172.69%
Revenue beat(2)0
Avg Revenue beat(2)-3.48%
Min Revenue beat(2)-4.58%
Max Revenue beat(2)-2.37%
Revenue beat(4)0
Avg Revenue beat(4)-3.66%
Min Revenue beat(4)-4.58%
Max Revenue beat(4)-2.37%
Revenue beat(8)1
Avg Revenue beat(8)-2.42%
Revenue beat(12)1
Avg Revenue beat(12)-2.73%
Revenue beat(16)1
Avg Revenue beat(16)-2.94%
PT rev (1m)4.35%
PT rev (3m)2.49%
EPS NQ rev (1m)70%
EPS NQ rev (3m)70.51%
EPS NY rev (1m)179.66%
EPS NY rev (3m)288.48%
Revenue NQ rev (1m)-1.36%
Revenue NQ rev (3m)-3.38%
Revenue NY rev (1m)-0.76%
Revenue NY rev (3m)-1.79%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.85 | ||
| Fwd PE | 51.16 | ||
| P/S | 0.25 | ||
| P/FCF | 13.68 | ||
| P/OCF | 5.99 | ||
| P/B | 2.49 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.97 |
EPS(TTM)0.34
EY8.44%
EPS(NY)0.08
Fwd EY1.95%
FCF(TTM)0.29
FCFY7.31%
OCF(TTM)0.67
OCFY16.69%
SpS16.3
BVpS1.62
TBVpS-4.5
PEG (NY)0.11
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.76% | ||
| ROE | 48.81% | ||
| ROCE | 3.33% | ||
| ROIC | 2.63% | ||
| ROICexc | 2.8% | ||
| ROICexgc | 7.99% | ||
| OM | 2.05% | ||
| PM (TTM) | 4.84% | ||
| GM | 38.59% | ||
| FCFM | 1.81% |
ROA(3y)-1.94%
ROA(5y)-6.43%
ROE(3y)-17.44%
ROE(5y)-52.37%
ROIC(3y)3.12%
ROIC(5y)3.83%
ROICexc(3y)3.33%
ROICexc(5y)4.09%
ROICexgc(3y)10.63%
ROICexgc(5y)11.8%
ROCE(3y)3.95%
ROCE(5y)4.85%
ROICexcg growth 3Y-10.06%
ROICexcg growth 5Y86.75%
ROICexc growth 3Y-16.63%
ROICexc growth 5Y78.41%
OM growth 3Y-20.34%
OM growth 5Y42.81%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.94%
GM growth 5Y-1.87%
F-Score6
Asset Turnover1.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.88 | ||
| Debt/FCF | 22.9 | ||
| Debt/EBITDA | 4.3 | ||
| Cap/Depr | 33.58% | ||
| Cap/Sales | 2.32% | ||
| Interest Coverage | 0.58 | ||
| Cash Conversion | 46.07% | ||
| Profit Quality | 37.32% | ||
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.7 | ||
| Altman-Z | 0.7 |
F-Score6
WACC8.04%
ROIC/WACC0.33
Cap/Depr(3y)26.69%
Cap/Depr(5y)22.7%
Cap/Sales(3y)1.65%
Cap/Sales(5y)1.45%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)149.28%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%366.67%
EPS Next Y111.85%
EPS Next 2Y46.49%
EPS Next 3Y34.89%
EPS Next 5YN/A
Revenue 1Y (TTM)-8%
Revenue growth 3Y-7.86%
Revenue growth 5Y6.08%
Sales Q2Q%-8.59%
Revenue Next Year-7.15%
Revenue Next 2Y-4.99%
Revenue Next 3Y-4.38%
Revenue Next 5YN/A
EBIT growth 1Y-36.42%
EBIT growth 3Y-26.6%
EBIT growth 5Y51.49%
EBIT Next Year1055.52%
EBIT Next 3Y127.59%
EBIT Next 5YN/A
FCF growth 1Y-19.13%
FCF growth 3Y-16.72%
FCF growth 5Y34.58%
OCF growth 1Y7.29%
OCF growth 3Y-7.68%
OCF growth 5Y31.51%