Gannett (GCI) AI Stock Analysis

• Market Cap: $527.17M
• Dividend Yield: N/A
• Average Volume (3M): 2.11M
• Price to Earnings (P/E): 11.8
• Beta (1Y): 0.79
• Revenue Growth: -7.04%
• EPS Growth: N/A
• Country: US
• Employees: 11,700
• Sector: Communication Services
• Sector Strength: 84
• Industry: Publishing
• EPS (TTM): -0.09
• Shares Outstanding: 146,435,730
• 10 Day Avg. Volume: 1,942,667
• 30 Day Avg. Volume: 2,106,227
• PEG Ratio: 0.03
• Price to Book (P/B): 3.08
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 9.26
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $5.55
• Price Target Upside: 54.17% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

Gannett's stock score reflects financial challenges, with declining revenues and high leverage posing risks. However, improvements in cash flow and cost management provide some optimism. The technical analysis indicates a cautious market stance, while the valuation is reasonable. The earnings call and corporate events suggest potential for strategic growth, but immediate revenue pressures weigh on the outlook.

Positive Factors

Digital Advertising Revenue

Engagement remains strong contributing to accelerating digital advertising revenue growth while digital-only subscribers accelerated and digital ARPU reached a new high.

Digital Revenue Growth

Gannett is expected to reaccelerate digital revenue growth by deepening engagement and monetization of its 200M average monthly unique visitors.

Negative Factors

DMS Revenue Decline

DMS revenue fell approximately 3% as macroeconomic challenges and elevated churn continue to impact results.

Financial Performance

Gannett reported results where revenue came in 4% below consensus and EBITDA came in $4.6M below consensus.

Gannett Business Overview & Revenue Model

Company Description

Gannett Co., Inc. operates as a media and marketing solutions company in the United States. It operates through two segments, Publishing and Digital Marketing Solutions. The company's principal products include 230 daily print media with total paid circulation of approximately 1.9 million and Sunday circulation of 2.2 million; 249 weekly print media with total circulation of approximately 1.4 million; and 292 locally-focused websites. Its principal products also comprise 123 daily and weekly news media brands and approximately 80 magazines, and related digital platforms; sports network, as well as Reviewed.com, an affiliate marketing service; 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.

How the Company Makes Money

Gannett generates revenue through a diverse range of streams. Its primary revenue sources include advertising, which encompasses both print and digital advertising across its media properties. This includes display ads, classified ads, and digital marketing services. In addition to advertising, Gannett earns revenue from subscriptions and sales of its print and digital publications. The company also offers marketing and advertising services to small and medium-sized businesses, leveraging its digital marketing expertise to provide solutions such as search engine optimization, social media marketing, and website development. Gannett's strategic partnerships and acquisitions in the digital media space further enhance its revenue potential by expanding its audience reach and diversifying its content offerings.

Gannett Financial Statement Overview

Summary

Gannett faces declining revenues and profitability challenges, with erratic net income and fluctuating margins. The balance sheet is heavily leveraged, posing financial risk. Despite these challenges, there are improvements in gross profit margins and cash flows, pointing to effective cost management and cash generation.

Income Statement

The income statement shows declining revenues over the years, with total revenue decreasing from approximately $3.4 billion in 2020 to $2.45 billion TTM (Trailing-Twelve-Months) as of March 2025. Gross profit margin has improved in the TTM period to 50.9%, indicating better cost management. However, net income has been volatile, with negative figures in previous periods and a low net profit margin of 2.1% in the TTM. EBIT and EBITDA margins have also been inconsistent, reflecting operational challenges.

Balance Sheet

The balance sheet reflects a high debt-to-equity ratio due to significant leverage, with total debt of $1.2 billion against stockholders' equity of $150 million as of the TTM period. This poses a financial risk. The equity ratio is low at 7.7%, suggesting limited asset backing for creditors. However, the company has managed to maintain a stable asset base around $2 billion, showcasing some level of stability in asset management.

Cash Flow

Cash flow analysis reveals positive operational cash flows, with an improvement in free cash flow from negative figures in 2022 to $51.1 million in the TTM. The operating cash flow to net income ratio is favorable, indicating efficient cash generation relative to earnings. However, the free cash flow growth rate is modest, and capital expenditures remain a drain on cash resources.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
2.45B	2.51B	2.66B	2.95B	3.21B	3.41B
	Gross Profit
886.88M	963.73M	971.52M	1.08B	1.31B	1.37B
	EBIT
36.84M	-42.84M	86.27M	113.21M	293.60M	188.44M
	EBITDA
264.64M	183.31M	261.53M	289.52M	478.86M	-263.12M
	Net Income Common Stockholders
51.08M	-26.35M	-27.79M	-78.25M	-136.17M	-672.40M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
85.91M	106.30M	100.18M	94.25M	130.76M	170.72M
	Total Assets
1.95B	2.04B	2.18B	2.39B	2.83B	3.11B
	Total Debt
1.20B	1.29B	1.29B	1.38B	1.49B	1.87B
	Net Debt
1.12B	1.18B	1.19B	1.29B	1.36B	1.70B
	Total Liabilities
1.80B	1.89B	1.86B	2.10B	2.30B	2.74B
	Stockholders Equity
150.14M	153.14M	317.79M	295.74M	532.10M	364.11M
Cash Flow		Free Cash Flow
51.09M	50.78M	56.46M	-4.60M	87.89M	20.80M
	Operating Cash Flow
101.17M	100.31M	94.57M	40.78M	127.45M	57.77M
	Investing Cash Flow
19.30M	-27.95M	46.98M	22.12M	70.65M	160.14M
	Financing Cash Flow
-128.96M	-68.85M	-135.51M	-102.87M	-261.17M	-201.34M

Gannett Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 3.60
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GCI, the sentiment is Neutral. The current price of 3.6 is above the 20-day moving average (MA) of 3.44, above the 50-day MA of 3.20, and below the 200-day MA of 4.54, indicating a neutral trend. The MACD of 0.11 indicates Negative momentum. The RSI at 57.83 is Neutral, neither overbought nor oversold. The STOCH value of 53.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GCI.

Gannett Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NYT	80 Outperform	$9.12B	30.51	16.68%	1.02%	6.85%	21.26%
GRVY	78 Outperform	$449.94M	7.84	14.97%	―	-33.83%	-38.30%
SSP	72 Outperform	$204.37M	2.53	11.23%	―	6.28%	―
Sector *	60 Neutral	$14.07B	6.89	-3.35%	3.68%	2.42%	-36.25%
GCI	52 Neutral	$527.17M	11.80	26.63%	―	-7.04%	―
DALN	47 Neutral	$23.60M	0.79	160.90%	3.60%	-8.98%	―
LEE	36 Underperform	$46.25M	―	0.00%	―	-7.29%	-258.59%

Gannett Corporate Events

Gannett Appoints Trisha Gosser as New CFO

On March 18, 2025, Gannett Co., Inc. announced the appointment of Trisha Gosser as its new Chief Financial Officer. Gosser, who has been with the company since 2007, brings over 20 years of financial experience, including significant roles within the media industry. Her appointment is expected to drive growth, innovation, and sustainability across Gannett’s expansive portfolio. The company also announced the separation of its current CFO, Douglas E. Horne, effective April 1, 2025, with a proposed agreement outlining his severance and benefits.