Gannett (GCI) AI Stock Analysis

• Market Cap: $465.67M
• Dividend Yield: N/A
• Average Volume (3M): 1.99M
• Price to Earnings (P/E): 10.4
• Beta (1Y): 0.89
• Revenue Growth: -7.04%
• EPS Growth: N/A
• Country: US
• Employees: 11,700
• Sector: Communication Services
• Sector Strength: 81
• Industry: Publishing
• EPS (TTM): -0.09
• Shares Outstanding: 146,435,730
• 10 Day Avg. Volume: 1,879,412
• 30 Day Avg. Volume: 1,994,029
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 4.14
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 2.00
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $5.55
• Price Target Upside: 74.53% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

Gannett's stock reflects significant financial challenges, notably high leverage and declining revenues, which weigh heavily on its score. The technical analysis suggests a downward trend, and valuation metrics are unfavorable due to negative profitability. However, there are promising signs in cost management, digital audience growth, and strategic initiatives, which offer some optimism for future recovery.

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. (GCI) is a leading media holding company headquartered in McLean, Virginia. The company operates in the publishing and digital media sectors, primarily focusing on delivering news and information through its extensive portfolio of local and national newspapers, digital platforms, and marketing services. Gannett is best known for its flagship publication, USA TODAY, and owns hundreds of local media outlets across the United States. The company is committed to providing high-quality journalism and engaging content to its audiences, while also offering innovative marketing solutions to businesses.

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

Gannett Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.18
• 50DMA: Negative
• 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 Negative. The current price of 3.18 is above the 20-day moving average (MA) of 3.14, below the 50-day MA of 3.25, and below the 200-day MA of 4.60, indicating a neutral trend. The MACD of 0.01 indicates Negative momentum. The RSI at 49.79 is Neutral, neither overbought nor oversold. The STOCH value of 30.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GCI.

Gannett Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GRVY	78 Outperform	$417.98M	6.70	16.75%	―	-33.83%	-38.30%
SSP	75 Outperform	$214.48M	2.48	11.68%	―	9.46%	―
NYT	74 Outperform	$8.56B	29.52	15.92%	1.09%	6.59%	26.68%
Sector *	59 Neutral	$13.76B	7.70	-1.87%	3.86%	2.21%	-37.55%
GCI	48 Neutral	$465.67M	10.43	26.63%	―	-7.04%	―
DALN	47 Neutral	$23.77M	0.80	160.90%	3.60%	-8.98%	―
LEE	38 Underperform	$50.95M	―	0.00%	―	-9.28%	-647.14%

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.