GANNETT CO INC (GCI) Stock Fundamental Analysis
NYSE:GCI - New York Stock Exchange, Inc. - US36472T1097 - Common Stock - Currency: USD
Taking everything into account, GCI scores 2 out of 10 in our fundamental rating. GCI was compared to 97 industry peers in the Media industry. Both the profitability and financial health of GCI have multiple concerns. GCI has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
GCI had negative earnings in the past year.
GCI had a positive operating cash flow in the past year.
In the past 5 years GCI always reported negative net income.
In the past 5 years GCI always reported a positive cash flow from operatings.
1.2 Ratios
GCI's Return On Assets of -1.29% is in line compared to the rest of the industry. GCI outperforms 48.45% of its industry peers.
GCI has a Return On Equity (-17.21%) which is comparable to the rest of the industry.
GCI has a Return On Invested Capital (3.75%) which is comparable to the rest of the industry.
GCI had an Average Return On Invested Capital over the past 3 years of 3.12%. This is below the industry average of 6.94%.
The last Return On Invested Capital (3.75%) for GCI is above the 3 year average (3.12%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.29% | ||
| ROE | -17.21% | ||
| ROIC | 3.75% |
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 Operating Margin (2.83%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of GCI has grown nicely.
GCI has a Gross Margin (38.41%) which is comparable to the rest of the industry.
GCI's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.83% | ||
| PM (TTM) | N/A | ||
| GM | 38.41% |
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%
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
GCI has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, GCI has a worse debt to assets ratio.
2.2 Solvency
GCI has an Altman-Z score of 0.72. 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 (0.72) which is in line with its industry peers.
GCI has a debt to FCF ratio of 21.27. This is a negative value and a sign of low solvency as GCI would need 21.27 years to pay back of all of its debts.
With a Debt to FCF ratio value of 21.27, GCI perfoms like the industry average, outperforming 51.55% of the companies in the same industry.
A Debt/Equity ratio of 6.57 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 6.57, GCI is doing worse than 79.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.57 | ||
| Debt/FCF | 21.27 | ||
| Altman-Z | 0.72 |
ROIC/WACC0.4
WACC9.45%
2.3 Liquidity
A Current Ratio of 0.78 indicates that GCI may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.78, GCI is doing worse than 76.29% of the companies in the same industry.
GCI has a Quick Ratio of 0.78. This is a bad value and indicates that GCI is not financially healthy enough and could expect problems in meeting its short term obligations.
GCI's Quick ratio of 0.74 is on the low side compared to the rest of the industry. GCI is outperformed by 77.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.78 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
The earnings per share for GCI have decreased strongly by -170.00% in the last year.
The Revenue has decreased by -5.79% in the past year.
GCI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.08% yearly.
EPS 1Y (TTM)-170%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%168.75%
Revenue 1Y (TTM)-5.79%
Revenue growth 3Y-7.86%
Revenue growth 5Y6.08%
Sales Q2Q%-7.19%
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 39.96% on average per year.
Based on estimates for the next years, GCI will show a decrease in Revenue. The Revenue will decrease by -2.73% on average per year.
EPS Next Y106.55%
EPS Next 2Y50.89%
EPS Next 3Y39.96%
EPS Next 5YN/A
Revenue Next Year-4.4%
Revenue Next 2Y-3.88%
Revenue Next 3Y-2.73%
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
GCI reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Based on the Price/Forward Earnings ratio of 100.14, the valuation of GCI can be described as expensive.
GCI's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of GCI to the average of the S&P500 Index (21.08), we can say GCI is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 100.14 |
4.2 Price Multiples
GCI's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. GCI is cheaper than 69.07% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of GCI indicates a somewhat cheap valuation: GCI is cheaper than 74.23% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.27 | ||
| EV/EBITDA | 6.58 |
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.
GCI's earnings are expected to grow with 39.96% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y50.89%
EPS Next 3Y39.96%
5. Dividend
5.1 Amount
GCI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
3.54
+0.58 (+19.59%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners78.46%
Inst Owner Change0%
Ins Owners4.8%
Ins Owner Change-2.05%
Market Cap521.69M
Analysts75
Price Target5.64 (59.32%)
Short Float %8.77%
Short Ratio10.09
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)240.98%
Min EPS beat(2)-86.48%
Max EPS beat(2)568.43%
EPS beat(4)2
Avg EPS beat(4)165.94%
Min EPS beat(4)-86.48%
Max EPS beat(4)568.43%
EPS beat(8)3
Avg EPS beat(8)38.9%
EPS beat(12)5
Avg EPS beat(12)-98.01%
EPS beat(16)7
Avg EPS beat(16)-198.97%
Revenue beat(2)0
Avg Revenue beat(2)-3.84%
Min Revenue beat(2)-4.54%
Max Revenue beat(2)-3.14%
Revenue beat(4)1
Avg Revenue beat(4)-2.2%
Min Revenue beat(4)-4.54%
Max Revenue beat(4)0.67%
Revenue beat(8)1
Avg Revenue beat(8)-2.29%
Revenue beat(12)1
Avg Revenue beat(12)-2.8%
Revenue beat(16)2
Avg Revenue beat(16)-2.64%
PT rev (1m)-6.36%
PT rev (3m)-6.36%
EPS NQ rev (1m)2100%
EPS NQ rev (3m)144.44%
EPS NY rev (1m)138.13%
EPS NY rev (3m)141.77%
Revenue NQ rev (1m)-0.78%
Revenue NQ rev (3m)-7.27%
Revenue NY rev (1m)-0.9%
Revenue NY rev (3m)-3.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 100.14 | ||
| P/S | 0.21 | ||
| P/FCF | 10.27 | ||
| P/OCF | 5.2 | ||
| P/B | 3.41 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.58 |
EPS(TTM)-0.54
EYN/A
EPS(NY)0.04
Fwd EY1%
FCF(TTM)0.34
FCFY9.73%
OCF(TTM)0.68
OCFY19.23%
SpS17.03
BVpS1.04
TBVpS-5.48
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.29% | ||
| ROE | -17.21% | ||
| ROCE | 4.75% | ||
| ROIC | 3.75% | ||
| ROICexc | 4.04% | ||
| ROICexgc | 13.1% | ||
| OM | 2.83% | ||
| PM (TTM) | N/A | ||
| GM | 38.41% | ||
| FCFM | 2.02% |
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-Score5
Asset Turnover1.23
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.57 | ||
| Debt/FCF | 21.27 | ||
| Debt/EBITDA | 4.42 | ||
| Cap/Depr | 31.69% | ||
| Cap/Sales | 1.97% | ||
| Interest Coverage | 0.82 | ||
| Cash Conversion | 44.13% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.78 | ||
| Quick Ratio | 0.74 | ||
| Altman-Z | 0.72 |
F-Score5
WACC9.45%
ROIC/WACC0.4
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)-170%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%168.75%
EPS Next Y106.55%
EPS Next 2Y50.89%
EPS Next 3Y39.96%
EPS Next 5YN/A
Revenue 1Y (TTM)-5.79%
Revenue growth 3Y-7.86%
Revenue growth 5Y6.08%
Sales Q2Q%-7.19%
Revenue Next Year-4.4%
Revenue Next 2Y-3.88%
Revenue Next 3Y-2.73%
Revenue Next 5YN/A
EBIT growth 1Y-1.56%
EBIT growth 3Y-26.6%
EBIT growth 5Y51.49%
EBIT Next Year1059%
EBIT Next 3Y127.79%
EBIT Next 5YN/A
FCF growth 1Y-10.06%
FCF growth 3Y-16.72%
FCF growth 5Y34.58%
OCF growth 1Y6.07%
OCF growth 3Y-7.68%
OCF growth 5Y31.51%