GCI Investment Analysis Report & Stock Research, Gannett Co., Inc.

Gannett Co., Inc. (GCI)

GCI Stock Report

2-Year Price History

View Larger GCI Chart
NYSE:GCI
$14.04
(2/9 2:57PM)
+2.6%
Open$13.72 Mkt Cap$3.2 Billion
High$14.42 52Wk High$17.33
Low$13.7 52Wk Low$1.85
Volume5.5 Million Avg Vol 10D9.2 Million

Ockham's Rating/Recommendation Summary

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GCI Revenue

Cash earnings is the most important factor in our analysis, but it goes without saying that if a company cannot produce sales then there is no ability to generate cash flow. By that logic we look very closely at revenue numbers as our second most important factor in valuing a company's stock. We have established reasonable Price to Sales per share ranges based on historical data of the last 10 years. For, GCI the high and low end of the Price to Sales per share ratios are 2.07x and 1.28x respectively.

Notice that GCI's current Price to Sales per share ratio is 0.57x, which is quite a bit below what we consider a normal Price to Sales ratio for this stock. Given normal conditions and a price of $13.53, GCI is 67% below where we would expect to see it. This will beneficially factor into our final analysis of GCI as it is not often that this stock sinks to these levels.

GCI Cash Earnings

When reviewing a company and their prospects for success, it is necessary to analyze their ability to generate positive Cash Earnings. This is a vital component to our analysis, because as a long term investment research firm, there are few factors more closely tied to the valuation of a company as Cash Earnings. In the case of GCI, it appears that either the current estimate for Cash Earnings is negative or GCI is not likely to generate positive Cash Earnings based upon their prior performance in the last several quarters. Remember that Cash Earnings is not the only way to value a company's potential, but in our analysis it is the most important. Thus, for our analysis GCI receives a negative score from a Cash perspective. At Ockham, we are fond of saying "Cash is King," and in this case the company is not generating any. If a company is not able to generate a profit then there is no reason to invest in them. Unless of course you believe in the story, and hope it will eventually lead to a profitable enterprise.

GCI Dividends

A positive Ockham rating does not require a company to pay out an inviting dividend or a dividend at all. However, we believe dividends provide a useful measure of a company's inherent expectations.

Comparable to our analysis of Sales and Cash Earnings per share, we examine dividend yields from GCI against the historic high and low levels over an available data range. Because GCI has an established history of paying a dividend to shareholders, there is value in comparing recent dividends to historical dividends. In GCI’s case, the estimated annual dividend is $0.16 producing a current dividend yield of 1.18%. The highest dividend yield from GCI in recent history was 32.00% while the lowest dividend yield was 0.92%. While it is quite common for a growth stock to pay no dividend at all, but for a mature company such as GCI that has a history of paying dividends it is disappointing to see their dividend yield drop so significantly. At this time, the current dividend yield is 92.83% below the median yield.

Peer Comparison

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Gannett Co., Inc. Industry Grouping

(2/8/2010)
Company Ticker Market Cap (Ml) Latest
Price
Price/Cash Earnings Price/Sales 5-Yr. Rev.
Growth Rate
5-Yr.
Avg. ROE.
Current 10-Yr. Range* Current 10-Yr. Range*
Peer Company Averages (not including GCI) 7.76 3.25 » 19.51 1.64 0.66 » 4.59 16.83% 8.72%
*10 year range does not include current year values
Rogers Communications, Inc. Class B Non Voting. RCI $3.5 Billion $30.90 7.76 1.46 » 21.86 2.13 0.42 » 5.02 19.53% 9.96%
The Washington Post Company WPO $3.4 Billion $416.46 11.09 7.90 » 21.84 0.88 0.61 » 2.90 9.46% 9.34%
Gannett Co., Inc. GCI $3.2 Billion $13.68 -1.00 6.65 » 16.91 0.57 0.07 » 3.64 0.17% 10.14%
Liberty Global, Inc. Class A LBTYA $3.1 Billion $24.15 3.33 1.25 » 8.88 0.05 0.02 » 3.14 35.00% 1.88%
Interpublic Group of Companies, Inc. IPG $3.1 Billion $6.35 10.14 2.77 » 33.63 0.51 0.17 » 2.67 3.50% 4.75%
Dreamworks Animation SKG, Inc. DWA $2.9 Billion $38.73 6.49 2.89 » 11.35 4.62 2.06 » 9.22 16.65% 17.66%
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10:19A, Feb. 05,2010 GCI $12.79 Gannett Co., Inc.
Squawk On The Street

Gannett Co., Inc. News Appeared on Squawk On The Street

The latest news from business television and influential blogs is always available through Ockham's RazorWire, and this news is in relation to Gannett Co., Inc..

Interestingly, overall sentiment looks bearish according to the Motley Fool's CAPS survey, as most of their users see Gannett Co., Inc. underperforming. Investors are headed for the exit following today's news as the stock is trading down $0.88. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Gannett Co., Inc. has actually sunk a bit in comparison to the others. The Ockham valuation currently has a Fairly Valued stance on GCI because it trades within the price range that we would expect given current market conditions and fundamentals.

“… Also worth a peek and maybe a buying opportunity GANNETT. Have you seen the week GANNETT has put together? It ain't pretty folks. Off 19% just in five days. …”

4:42P, Feb. 01,2010 GCI $14.77 Gannett Co., Inc.
Closing Bell

Be Aware There is a Lot of News Today On GCI and This Instance Comes from Closing Bell

We are observing a lot of attention being paid to GCI in the news, so if you hold the stock you may want to take a look at what is going on.

As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, GCI has been less covered in the news compared to the rest of our universe of stocks. After factoring in the current fundamentals versus their historically normal ranges, we have established a Fairly Valued stance on GCI. But we have noted the recent price declines that make this stock more attractive to value minded investors. Please be aware that GCI is trading off $1.38 today, and is clearly being affected by the latest news. The crowd at The Motley Fool does not like GCI and believes that it will Underperform.

“… Newspaper publisher GANNETT swung to a $133. 6 million profit after they lost $4. 7 billion a year ago. When you strip out a large one-time charge that did beat wall street ... …”

9:31A, Feb. 01,2010 GCI $15.22 Gannett Co., Inc.
Squawk On The Street

Earnings Discussion for Gannett Co., Inc. on Squawk On The Street

Earnings are one of the most important fundamental factors we track, so we are always interested in the latest profit reports and news.

Gannett Co., Inc. receives our Fairly Valued rating in our latest report because the current price does not seem out of line with the fundamentals. We noticed recently that in comparison to all other stocks we analyze in the news; GCI has received less coverage from the financial media in business television and blogs. A significant sell off of $0.93 is underway right now, so investors in GCI should pay close attention to the news. While bearish sentiment on a stock is not always a bad thing, it is something you need to be aware of. The Motley Fool survey of crowd sentiment shows that many investors believe this stock will underperform.

“… Finally GANNETT, very interesting numbers. They reported earnings above expectations but look above the hood here. Publishing digital broadcast, the three divisions all ... …”

5:23P, Jan. 29,2010 GCI $16.15 Gannett Co., Inc.
Happy Hour

Happy Hour Discussed the Latest Development of Gannett Co., Inc.

Gannett Co., Inc. is one of the thousands of companies that Ockham has news analytics on, and it was recently discussed on Happy Hour.

Gannett Co., Inc. receives our Fairly Valued rating in our latest report because the current price does not seem out of line with the fundamentals. While bearish sentiment on a stock is not always a bad thing, it is something you need to be aware of. The Motley Fool survey of crowd sentiment shows that many investors believe this stock will underperform. We noticed recently that in comparison to all other stocks we analyze in the news; GCI has received less coverage from the financial media in business television and blogs.

“… Let's ask radio host and GANNETT columnist, mike papantonio. Mike, do you have blue dogs democrats looking a little homeless right now, trying to figure out if obama will save ... …”

1:15P, Dec. 29,2009 GCI $15.14 Gannett Co., Inc.
Power Lunch

See Who is Talking About News from GCI on Power Lunch

Staying informed on the news is invaluable for investors, and RazorWire has captured a recently discussion on GCI from Power Lunch.

As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, GCI has been less covered in the news compared to the rest of our universe of stocks. The crowd at The Motley Fool does not like GCI and believes that it will Underperform. Check the news on this stock because there is a catalyst that has allowed this stock to advance 10.07% today. After factoring in the current fundamentals versus their historically normal ranges, we have established a Fairly Valued stance on GCI. That being said, the recent price appreciation may be too much, too fast and we will consider downgrading on our next report.

“… Cbs, news corp, walt disney check out GANNETT and "new york both stocks in a dogfight take the gold medal for the month. …”

3:56P, Dec. 23,2009 GCI $15.45 Gannett Co., Inc.
Countdown to the Closing Bell

Look Out for Gannett Co., Inc.: Its Very Active in the News

Something important is going on with GCI today, as it is getting a lot of attention on business television and influential blogs.

Gannett Co., Inc. received our Fairly Valued rating in our latest report because the price at the time of the report of $13.16 did not seem out of line with the fundamentals. The price has risen since then and all other things being equal that makes GCI less attractive. We noticed recently that in comparison to all other stocks we analyze in the news; GCI has received less coverage from the financial media in business television and blogs. The latest news on GCI has created quite a stir as the stock is trading $1.55 higher in today's session. While bearish sentiment on a stock is not always a bad thing, it is something you need to be aware of. The Motley Fool survey of crowd sentiment shows that many investors believe this stock will underperform.

“… GANNETT up as well. Number four, finish line. Athletic apparel store. Yeah, people are buying sneakers I guess. Surprised and the fiscal third quarter profit. …”

3:44P, Dec. 23,2009 GCI $15.44 Gannett Co., Inc.
Closing Bell

Discussion Turns to GCI and Merger Talk on Closing Bell

RazorWire captured a discussion on Closing Bell that contained talk of M&A activity and GCI was mentioned as well.

As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, GCI has been less covered in the news compared to the rest of our universe of stocks. Check the news on this stock because there is a catalyst that has allowed this stock to advance 11.06% today. The crowd at The Motley Fool does not like GCI and believes that it will Underperform. After factoring in the current fundamentals versus their historically normal ranges, we have established a Fairly Valued stance on GCI. That being said, the recent price appreciation may be too much, too fast and we will consider downgrading on our next report.

“… "new york times" and GANNETT helping propel to the two best names on the s&p. Rumors resurfacing that netflix could be a takeover target and in the past amazon's name has come ... …”

2:02P, Dec. 23,2009 GCI $15.25 Gannett Co., Inc.
Fox Business

Stocks in the News: Gannett Co., Inc. Among the Twenty Most Discussed Stocks

Something important is going on with GCI today, as it is getting a lot of attention on business television and influential blogs.

The latest news on GCI has created quite a stir as the stock is trading $1.35 higher in today's session. We noticed recently that in comparison to all other stocks we analyze in the news; GCI has received less coverage from the financial media in business television and blogs. While bearish sentiment on a stock is not always a bad thing, it is something you need to be aware of. The Motley Fool survey of crowd sentiment shows that many investors believe this stock will underperform. Gannett Co., Inc. received our Fairly Valued rating in our latest report because the price at the time of the report of $13.16 did not seem out of line with the fundamentals. The price has risen since then and all other things being equal that makes GCI less attractive.

“… GANNETT the parent of "usa today. " year to date, they're soaring and today doing better. > > liz: thank you, nicole. > > …”

1:45P, Dec. 23,2009 GCI $15.18 Gannett Co., Inc.
Power Lunch

Stocks in the News: Gannett Co., Inc. Among the Twenty Most Discussed Stocks

Something important is going on with GCI today, as it is getting a lot of attention on business television and influential blogs.

Take notice of the news on this stock because it is up $1.28 since the close of trading yesterday. Interestingly, overall sentiment looks bearish according to the Motley Fool's CAPS survey, as most of their users see Gannett Co., Inc. underperforming. The Ockham valuation currently has a Fairly Valued stance on GCI because it trades within the price range that we would expect given current market conditions and fundamentals. But as the price has risen in the last week, we have begun to look slightly less favorably on the valuation. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Gannett Co., Inc. has actually sunk a bit in comparison to the others.

“… GANNETT and new york times up big both touching new highs. Take a look at this, financials struggling a little bit as a american express is up. …”

1:40P, Dec. 23,2009 GCI $15.12 Gannett Co., Inc.
Power Lunch

Power Lunch: Will GCI Test Its 52-week High?

An abnormally high price is obviously a joyous occasion for investors in that stock. See what Power Lunch was talking about for GCI below.

The Ockham valuation currently has a Fairly Valued stance on GCI because it trades within the price range that we would expect given current market conditions and fundamentals. But as the price has risen in the last week, we have begun to look slightly less favorably on the valuation. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Gannett Co., Inc. has actually sunk a bit in comparison to the others. Interestingly, overall sentiment looks bearish according to the Motley Fool's CAPS survey, as most of their users see Gannett Co., Inc. underperforming. Take notice of the news on this stock because it is up $1.22 since the close of trading yesterday.

“… Nice little retailer, limited brands off its high but GANNETT, 52-week highs. To pursue the life you want, you need a financial advocate who knows where a merrill lynch now with ... …”

View All Gannett Co., Inc. Stock News

Key Fundamentals

GCI - Gannett Co., Inc. Fundamentals
Price (2/9 2:57PM) $14.04
Volume (2/9 2:57PM) 5.5 Million
Last Close Price $13.68
10 Day Average Volume 9.2 Million
13 Week Price Range $9.63 - $17.33
52 Week Price Range $1.85 - $17.33
LTM Revenue $5.6 Billion
 
Shares Outstanding (12/2009) 236.2 Million
Market Capitalization $3.2 Billion
Shares Held By Institutions 226.5 Million
Institutional Holders 484
% Shares Held By Institutions 96.50%
Earnings Per Share (EPS) $1.51
P/E Ratio 9.10
Book Value Per Share $5.84
 
Gross Margin 39.40%
Annual Dividend 0.16
Dividend Yield 1.20%
Beta 2.77
Fiscal Year Ends December

About Gannett Co., Inc.

Gannett Co., Inc. is considered to operate in the Services sector. They specifically operate in the Publishing - Newspapers business segment contained within the Media industry.

An international news and information company operating mainly in the United States and United Kingdom. It has three business segments: publishing, digital and broadcasting.