We assign a fundamental rating of 3 out of 10 to GCI. GCI was compared to 92 industry peers in the Media industry. While GCI is still in line with the averages on profitability rating, there are concerns on its financial health. GCI has a valuation in line with the averages, but it does not seem to be growing.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year GCI was profitable.
GCI had a positive operating cash flow in the past year.
In the past 5 years GCI always reported negative net income.
GCI had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

Looking at the Return On Assets, with a value of 5.00%, GCI belongs to the top of the industry, outperforming 80.61% of the companies in the same industry.
Looking at the Return On Equity, with a value of 49.55%, GCI belongs to the top of the industry, outperforming 97.96% of the companies in the same industry.
GCI's Return On Invested Capital of 2.74% is in line compared to the rest of the industry. GCI outperforms 51.02% of its industry peers.
GCI had an Average Return On Invested Capital over the past 3 years of 3.12%. This is below the industry average of 7.07%.

		Industry Rank	Sector Rank
ROA	5%
ROE	49.55%
ROIC	2.74%

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

The Profit Margin of GCI (4.11%) is better than 69.39% of its industry peers.
GCI's Operating Margin of 2.07% is in line compared to the rest of the industry. GCI outperforms 46.94% of its industry peers.
GCI's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 38.24%, GCI perfoms like the industry average, outperforming 48.98% of the companies in the same industry.
In the last couple of years the Gross Margin of GCI has declined.

		Industry Rank	Sector Rank
OM	2.07%
PM (TTM)	4.11%
GM	38.24%

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%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), GCI is destroying value.
The number of shares outstanding for GCI has been reduced compared to 1 year ago.
GCI has more shares outstanding than it did 5 years ago.
GCI has a worse debt/assets ratio than last year.

2.2 Solvency

Based on the Altman-Z score of 0.68, we must say that GCI is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of GCI (0.68) is comparable to the rest of the industry.
The Debt to FCF ratio of GCI is 34.36, which is on the high side as it means it would take GCI, 34.36 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of GCI (34.36) is comparable to the rest of the industry.
A Debt/Equity ratio of 4.65 is on the high side and indicates that GCI has dependencies on debt financing.
GCI has a worse Debt to Equity ratio (4.65) than 75.51% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	4.65
Debt/FCF	34.36
Altman-Z	0.68

ROIC/WACC0.34

WACC7.95%

2.3 Liquidity

GCI has a Current Ratio of 0.69. This is a bad value and indicates that GCI is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.69, GCI is not doing good in the industry: 71.43% of the companies in the same industry are doing better.
A Quick Ratio of 0.67 indicates that GCI may have some problems paying its short term obligations.
GCI has a worse Quick ratio (0.67) than 71.43% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	0.69
Quick Ratio	0.67

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

GCI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 125.93%, which is quite impressive.
The Revenue has decreased by -8.56% in the past year.
The Revenue has been growing slightly by 6.08% on average over the past years.

EPS 1Y (TTM)125.93%

EPS 3YN/A

EPS 5YN/A

EPS Q2Q%-92.86%

Revenue 1Y (TTM)-8.56%

Revenue growth 3Y-7.86%

Revenue growth 5Y6.08%

Sales Q2Q%-8.43%

3.2 Future

Based on estimates for the next years, GCI will show a very strong growth in Earnings Per Share. The EPS will grow by 35.64% on average per year.
Based on estimates for the next years, GCI will show a decrease in Revenue. The Revenue will decrease by -4.62% on average per year.

EPS Next Y82.54%

EPS Next 2Y48.88%

EPS Next 3Y35.64%

EPS Next 5YN/A

Revenue Next Year-7.85%

Revenue Next 2Y-4.89%

Revenue Next 3Y-4.62%

Revenue Next 5YN/A

3.3 Evolution

The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 21.67, GCI is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of GCI indicates a somewhat cheap valuation: GCI is cheaper than 69.39% of the companies listed in the same industry.
GCI's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.25.
With a Price/Forward Earnings ratio of 38.92, GCI can be considered very expensive at the moment.
GCI's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, GCI is valued a bit more expensive.

		Industry Rank	Sector Rank
PE	21.67
Fwd PE	38.92

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GCI indicates a somewhat cheap valuation: GCI is cheaper than 70.41% of the companies listed in the same industry.
GCI's Price/Free Cash Flow ratio is in line with the industry average.

		Industry Rank	Sector Rank
P/FCF	23.58
EV/EBITDA	7.23

4.3 Compensation for Growth

GCI's 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 35.64% in the coming years.