Gannett (GCI) AI Stock Analysis

• Market Cap: $483.24M
• Dividend Yield: N/A
• Average Volume (3M): 1.56M
• Price to Earnings (P/E): 11.3
• Beta (1Y): 0.86
• Revenue Growth: -7.04%
• EPS Growth: N/A
• Country: US
• Employees: 11,700
• Sector: Communication Services
• Sector Strength: 86
• Industry: Publishing
• EPS (TTM): -0.09
• Shares Outstanding: 146,435,730
• 10 Day Avg. Volume: 1,725,874
• 30 Day Avg. Volume: 1,558,681
• PEG Ratio: 0.08
• Price to Book (P/B): 0.94
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -60.42
• Enterprise Value/Market Cap: 3.24
• Enterprise Value/Revenue: 0.15
• Enterprise Value/Gross Profit: 1.76
• Enterprise Value/Ebitda: 1.94
• 1Y Price Target: $3.60
• Price Target Upside: 4.35% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 59 Neutral
• Price Target: $3.50 ▲(1.45%Upside)

Gannett's stock score reflects significant financial challenges and mixed technical indicators. The valuation is reasonable, and strategic changes could support future growth, yet current revenue declines and leverage are key risks.

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 combination of advertising and subscription services across its media platforms. The company's key revenue streams include print advertising, digital advertising, and circulation revenues from its newspapers and digital subscriptions. Advertising revenue is driven by both national and local advertisers leveraging Gannett's extensive reach and audience engagement. Subscription revenue comes from individual and institutional subscribers to both print and digital products. Additionally, Gannett monetizes its digital platforms through programmatic advertising and partnerships with technology companies to enhance its digital marketing solutions. The company also benefits from strategic partnerships and acquisitions that expand its content distribution capabilities and digital audience reach.

Gannett Financial Statement Overview

Summary

Gannett faces declining revenues and profitability pressures, with a heavily leveraged balance sheet posing financial risk. However, improvements in gross profit margins and cash flows indicate 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
EBITDA	264.64M	183.31M	261.53M	289.52M	478.86M	-263.12M
Net Income	51.08M	-26.35M	-27.79M	-78.25M	-136.17M	-672.40M
Balance Sheet
Total Assets	1.95B	2.04B	2.18B	2.39B	2.83B	3.11B
Cash, Cash Equivalents and Short-Term Investments	85.91M	106.30M	100.18M	94.25M	130.76M	170.72M
Total Debt	1.20B	1.29B	1.29B	1.38B	1.49B	1.87B
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: Positive
• Last Price: 3.45
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GCI, the sentiment is Positive. The current price of 3.45 is below the 20-day moving average (MA) of 3.47, above the 50-day MA of 3.43, and below the 200-day MA of 4.37, indicating a neutral trend. The MACD of -0.01 indicates Positive momentum. The RSI at 50.35 is Neutral, neither overbought nor oversold. The STOCH value of 49.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GCI.

Gannett Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GRVY	78 Outperform	$430.35M	7.57	14.97%	―	-33.83%	-38.30%
NYT	76 Outperform	$9.02B	29.86	16.68%	1.31%	6.85%	21.26%
SSP	72 Outperform	$269.27M	3.32	11.23%	―	6.28%	―
Sector *	61 Neutral	$39.23B	-1.09	-14.73%	4.04%	3.30%	-74.92%
GCI	59 Neutral	$483.24M	11.31	26.63%	―	-7.04%	―
DALN	47 Neutral	$22.00M	0.76	160.90%	3.60%	-8.98%	―
LEE	43 Neutral	$37.76M	―	0.00%	―	-7.29%	-258.59%

Gannett Corporate Events

Gannett Stockholders Elect Directors at Annual Meeting

At the Annual Meeting of Stockholders held on June 2, 2025, Gannett Co., Inc. stockholders elected nine directors to serve until the 2026 meeting and ratified the appointment of Grant Thornton LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025. However, stockholders did not approve several proposals to amend the company’s bylaws and charter, including those aimed at eliminating supermajority voting requirements, which would have required an 80% affirmative vote.

The most recent analyst rating on (GCI) stock is a Buy with a $9.00 price target. To see the full list of analyst forecasts on Gannett stock, see the GCI Stock Forecast page.