Gannett Co., Inc.

GCI

Newspapers: Publishing or Publishing & Printing

Mkt Cap

$530.7M

PE

-4.32

Debt

$1.098B

Cash

$103.4M

EV

$1.526B

FCF

$67.99M

Market Cap

$530.7M

P/E Ratio

-4.32

Debt

$1.098B

Cash

$103.4M

EV

$1.526B

FCF

$67.99M

Charts data: {"Earnings":[{"time":"2014-12-27","value":-3205000},{"time":"2015-12-26","value":67614000},{"time":"2016-12-24","value":31641000},{"time":"2017-12-30","value":-915000},{"time":"2018-12-29","value":18107000},{"time":"2019-12-30","value":-121190000},{"time":"2020-12-30","value":-672397000},{"time":"2021-12-30","value":-136171000},{"time":"2022-12-30","value":-78255000},{"time":"2023-12-30","value":-27894000}],"Sales":[{"time":"2014-12-27","value":652323000},{"time":"2015-12-26","value":1195815000},{"time":"2016-12-24","value":1255356000},{"time":"2017-12-30","value":1342004000},{"time":"2018-12-29","value":1526024000},{"time":"2019-12-30","value":1867909000},{"time":"2020-12-30","value":3405670000},{"time":"2021-12-30","value":3208083000},{"time":"2022-12-30","value":2945303000},{"time":"2023-12-30","value":2663550000}],"Net Margins":[{"time":"2014-12-27","value":-0.004913210173487674},{"time":"2015-12-26","value":0.056542190890731425},{"time":"2016-12-24","value":0.02520480246240907},{"time":"2017-12-30","value":-0.0006818161495792859},{"time":"2018-12-29","value":0.011865475248095706},{"time":"2019-12-30","value":-0.06488003430573973},{"time":"2020-12-30","value":-0.19743457234552966},{"time":"2021-12-30","value":-0.042446220998646235},{"time":"2022-12-30","value":-0.026569422568747596},{"time":"2023-12-30","value":-0.010472489722363011}],"Assets":[{"time":"2014-12-27","value":825095000},{"time":"2015-12-26","value":1200263000},{"time":"2016-12-24","value":1336030000},{"time":"2017-12-30","value":1283546000},{"time":"2018-12-29","value":1443864000},{"time":"2019-12-30","value":4020102000},{"time":"2020-12-30","value":3108914000},{"time":"2021-12-30","value":2828069000},{"time":"2022-12-30","value":2393555000},{"time":"2023-12-30","value":2181247000}],"Stockholders Equity":[{"time":"2014-12-27","value":484127000},{"time":"2015-12-26","value":647073000},{"time":"2016-12-24","value":754973000},{"time":"2017-12-30","value":674393000},{"time":"2018-12-29","value":717223000},{"time":"2019-12-30","value":981356000},{"time":"2020-12-30","value":364109000},{"time":"2021-12-30","value":532100000},{"time":"2022-12-30","value":295742000},{"time":"2023-12-30","value":317785000}],"ROE":[{"time":"2014-12-27","value":-0.006620163717371681},{"time":"2015-12-26","value":0.1044920743100083},{"time":"2016-12-24","value":0.04191010804359891},{"time":"2017-12-30","value":-0.001356775648620315},{"time":"2018-12-29","value":0.025245983466787875},{"time":"2019-12-30","value":-0.12349239215942023},{"time":"2020-12-30","value":-1.84669151270636},{"time":"2021-12-30","value":-0.255912422476978},{"time":"2022-12-30","value":-0.2646056359935349},{"time":"2023-12-30","value":-0.08777632676180437}],"ROA":[{"time":"2014-12-27","value":0.03194298838315588},{"time":"2015-12-26","value":0.0861686147119423},{"time":"2016-12-24","value":0.04593534576319394},{"time":"2017-12-30","value":0.0269667000637297},{"time":"2018-12-29","value":0.04026625776388912},{"time":"2019-12-30","value":-0.036560515131208116},{"time":"2020-12-30","value":-0.1440657412845772},{"time":"2021-12-30","value":0.03856942670069224},{"time":"2022-12-30","value":-0.014037279277058601},{"time":"2023-12-30","value":0.03955122918220633}]}

Gannett Co., Inc. operates as a media and marketing solutions company in the United States. It operates through two segments, Gannett Media and Digital Marketing Solutions. The company's principal products include 218 daily print media with total paid circulation of approximately 1.6 million and Sunday circulation of 4.1 million; 175 weekly print media; and 266 locally-focused websites. Its principal products also comprise 154 daily and weekly news media brands and approximately 90 magazines, and related digital platforms; sports network; and USA TODAY NETWORK, a community events platform. The company also offers digital marketing solutions, such as online presence solutions, online advertising products, conversion software, and cloud-based software solutions. In addition, it produces niche publications that address specific local market interests, such as recreation, sports, healthcare, and real estate. Further, the company offers local market news and information, as well as advertising and subscriptions, and commercial printing and distribution services; and prints commercial materials, including flyers, business cards, and invitations. The company was formerly known as New Media Investment Group Inc. and changed its name to Gannett Co., Inc. in November 2019. Gannett Co., Inc. was incorporated in 2013 and is headquartered in McLean, Virginia.

Sector

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7/1/18
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4/1/18
10-K
12/31/17

DCF

Discounted Cash Flow Valuation of Gannett Co., Inc.

Calculate

Growth Years

Growth

Start

End

Discount

Start

End

Multiple

g\r	+10%	+11%	+12%	+13%	+14%
0%	10	9	8	8	7
+1%	11	10	9	8	8
+2%	13	11	10	9	8
+3%	14	13	11	10	9
+4%	17	14	12	11	10

Years	0	1	2	3	4	5	6	7	8	9	10	TV
FCF	$67.99M	$62.56M	$57.57M	$52.97M	$48.74M	$44.85M	$41.27M	$37.98M	$34.94M	$32.15M	$29.59M	$295.9M
DCF		$54.4M	$43.53M	$34.83M	$27.87M	$22.3M	$17.84M	$14.28M	$11.42M	$9.14M	$7.313M	$73.13M
Value	$316.1M

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth -23%

Earnings Stability -51%

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

The Net Margin is too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Over time the ROA has been increasing indicating a higher marginal ROA with respect to the calculated one, giving a good sign for continued growth.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Net Margin	5.7%	2.5%	-0.068%	1.2%	-6.5%	-20%	-4.2%	-2.7%	-1%	-4.7%
ROA	8.6%	4.6%	2.7%	4%	-3.7%	-14%	3.9%	-1.4%	4%	0.79%
ROE	10%	4.2%	-0.14%	2.5%	-12%	-180%	-26%	-26%	-8.8%	-53%

What is the average Net Margin?

The average Net Margin over the past 5 years is -5.5%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is +0.45%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is -1.27%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is +0.7%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is -42.55%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is +1.72%.

Safety & Stabiliy

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

The company has high debt with respect to the cashflow it generates.

The Graham’s stability indicate a relevant drawdown, consider checking when it has occured and why.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Debt FCF	3.52	4.30	3.72	-	141.87	81.94	14.81	-265.72	19.63	16.15
Debt Equity	0.57	0.50	0.55	0.64	1.67	4.68	2.45	4.13	3.49	4.70
MIN
Graham Stability	-	-	-2.9%	55%	-740%	-	-	-	-	-740%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 16.15.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is -59.21.

What is the Graham’s Stability?

Graham’s Stability measure stands at -7.45.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Data are missing

Years	12-2016	12-2018	12-2020	12-2022	Trend
Revenue	11%	12%	-7.9%	-9.6%	-6.1%
Net Income	-	-	-	-	-
Stockholders Equity	-12%	-15%	-4.4%	7.5%	-4.1%
FCF	-6.1%	-10%	40%	-	18%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +11.78%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is -6.13%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is -.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is -.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is -15.02%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is -4.06%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is -10.43%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is +17.62%.