GANNETT CO INC (GCI) Stock Fundamental Analysis
NYSE:GCI - New York Stock Exchange, Inc. - US36472T1097 - Common Stock - Currency: USD
GCI gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 96 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 does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
GCI had positive earnings in the past year.
In the past year GCI had a positive cash flow from operations.
In the past 5 years GCI always reported negative net income.
Each year in the past 5 years GCI had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 2.62%, GCI is doing good in the industry, outperforming 77.08% of the companies in the same industry.
GCI has a Return On Equity of 34.02%. This is amongst the best in the industry. GCI outperforms 96.88% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.20%, GCI is in line with its industry, outperforming 57.29% of the companies in the same industry.
GCI had an Average Return On Invested Capital over the past 3 years of 3.12%. This is below the industry average of 6.73%.
The last Return On Invested Capital (3.20%) for GCI is above the 3 year average (3.12%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.62% | ||
| ROE | 34.02% | ||
| ROIC | 3.2% |
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 (2.09%) is better than 63.54% of its industry peers.
GCI's Operating Margin of 2.34% is in line compared to the rest of the industry. GCI outperforms 44.79% of its industry peers.
GCI's Operating Margin has improved in the last couple of years.
GCI's Gross Margin of 38.66% is in line compared to the rest of the industry. GCI outperforms 53.13% of its industry peers.
In the last couple of years the Gross Margin of GCI has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.34% | ||
| PM (TTM) | 2.09% | ||
| GM | 38.66% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so GCI is destroying value.
Compared to 1 year ago, GCI has less shares outstanding
The number of shares outstanding for GCI has been increased compared to 5 years ago.
GCI has a worse debt/assets ratio than last year.
2.2 Solvency
GCI has an Altman-Z score of 0.66. This is a bad value and indicates that GCI is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.66, GCI is in line with its industry, outperforming 41.67% of the companies in the same industry.
GCI has a debt to FCF ratio of 19.74. This is a negative value and a sign of low solvency as GCI would need 19.74 years to pay back of all of its debts.
GCI has a Debt to FCF ratio (19.74) which is comparable to the rest of the industry.
A Debt/Equity ratio of 6.26 is on the high side and indicates that GCI has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 6.26, GCI is doing worse than 79.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.26 | ||
| Debt/FCF | 19.74 | ||
| Altman-Z | 0.66 |
ROIC/WACC0.37
WACC8.72%
2.3 Liquidity
GCI has a Current Ratio of 0.72. 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 0.72, GCI is not doing good in the industry: 76.04% of the companies in the same industry are doing better.
GCI has a Quick Ratio of 0.72. 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 Quick ratio value of 0.69, GCI is not doing good in the industry: 76.04% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.72 | ||
| Quick Ratio | 0.69 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 101.15% over the past year.
The Revenue has decreased by -7.05% in the past year.
The Revenue has been growing slightly by 6.08% on average over the past years.
EPS 1Y (TTM)101.15%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%91.67%
Revenue 1Y (TTM)-7.05%
Revenue growth 3Y-7.86%
Revenue growth 5Y6.08%
Sales Q2Q%-10.1%
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 34.34% on average per year.
GCI is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -3.69% yearly.
EPS Next Y93.72%
EPS Next 2Y47.52%
EPS Next 3Y34.34%
EPS Next 5YN/A
Revenue Next Year-5.46%
Revenue Next 2Y-3.72%
Revenue Next 3Y-3.69%
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 342.00, the valuation of GCI can be described as expensive.
GCI's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 25.82. GCI is valued rather expensively when compared to this.
GCI is valuated quite expensively with a Price/Forward Earnings ratio of 35.93.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GCI is on the same level as its industry peers.
GCI is valuated expensively when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 342 | ||
| Fwd PE | 35.93 |
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 73.96% of the companies listed in the same industry.
GCI's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. GCI is cheaper than 77.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.8 | ||
| EV/EBITDA | 6.52 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as GCI's earnings are expected to grow with 34.34% in the coming years.
PEG (NY)3.65
PEG (5Y)N/A
EPS Next 2Y47.52%
EPS Next 3Y34.34%
5. Dividend
5.1 Amount
No dividends for GCI!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
3.42
+0.01 (+0.29%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners78.46%
Inst Owner Change2.83%
Ins Owners4.8%
Ins Owner Change-1.71%
Market Cap500.82M
Analysts75
Price Target5.73 (67.54%)
Short Float %8.91%
Short Ratio6.57
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)241.41%
Min EPS beat(2)-85.62%
Max EPS beat(2)568.43%
EPS beat(4)2
Avg EPS beat(4)161.21%
Min EPS beat(4)-86.48%
Max EPS beat(4)568.43%
EPS beat(8)2
Avg EPS beat(8)1.26%
EPS beat(12)4
Avg EPS beat(12)-111.12%
EPS beat(16)6
Avg EPS beat(16)-216.02%
Revenue beat(2)0
Avg Revenue beat(2)-3.86%
Min Revenue beat(2)-4.58%
Max Revenue beat(2)-3.14%
Revenue beat(4)0
Avg Revenue beat(4)-3.51%
Min Revenue beat(4)-4.58%
Max Revenue beat(4)-1.79%
Revenue beat(8)1
Avg Revenue beat(8)-2.51%
Revenue beat(12)1
Avg Revenue beat(12)-3.02%
Revenue beat(16)2
Avg Revenue beat(16)-2.75%
PT rev (1m)1.72%
PT rev (3m)-4.75%
EPS NQ rev (1m)-145.42%
EPS NQ rev (3m)79.06%
EPS NY rev (1m)-184%
EPS NY rev (3m)63.4%
Revenue NQ rev (1m)-0.57%
Revenue NQ rev (3m)-4.51%
Revenue NY rev (1m)-1.11%
Revenue NY rev (3m)-4.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 342 | ||
| Fwd PE | 35.93 | ||
| P/S | 0.2 | ||
| P/FCF | 9.8 | ||
| P/OCF | 4.95 | ||
| P/B | 3.34 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.52 |
EPS(TTM)0.01
EY0.29%
EPS(NY)0.1
Fwd EY2.78%
FCF(TTM)0.35
FCFY10.2%
OCF(TTM)0.69
OCFY20.2%
SpS16.7
BVpS1.03
TBVpS-5.22
PEG (NY)3.65
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.62% | ||
| ROE | 34.02% | ||
| ROCE | 4.05% | ||
| ROIC | 3.2% | ||
| ROICexc | 3.4% | ||
| ROICexgc | 10.88% | ||
| OM | 2.34% | ||
| PM (TTM) | 2.09% | ||
| GM | 38.66% | ||
| FCFM | 2.09% |
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 Turnover1.25
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.26 | ||
| Debt/FCF | 19.74 | ||
| Debt/EBITDA | 4.31 | ||
| Cap/Depr | 31.18% | ||
| Cap/Sales | 2.05% | ||
| Interest Coverage | 0.68 | ||
| Cash Conversion | 46.43% | ||
| Profit Quality | 100.01% | ||
| Current Ratio | 0.72 | ||
| Quick Ratio | 0.69 | ||
| Altman-Z | 0.66 |
F-Score6
WACC8.72%
ROIC/WACC0.37
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)101.15%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%91.67%
EPS Next Y93.72%
EPS Next 2Y47.52%
EPS Next 3Y34.34%
EPS Next 5YN/A
Revenue 1Y (TTM)-7.05%
Revenue growth 3Y-7.86%
Revenue growth 5Y6.08%
Sales Q2Q%-10.1%
Revenue Next Year-5.46%
Revenue Next 2Y-3.72%
Revenue Next 3Y-3.69%
Revenue Next 5YN/A
EBIT growth 1Y-20.62%
EBIT growth 3Y-26.6%
EBIT growth 5Y51.49%
EBIT Next Year1059%
EBIT Next 3Y127.79%
EBIT Next 5YN/A
FCF growth 1Y280.52%
FCF growth 3Y-16.72%
FCF growth 5Y34.58%
OCF growth 1Y569.98%
OCF growth 3Y-7.68%
OCF growth 5Y31.51%