DallasNews (DALN) AI Stock Analysis

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DallasNews

(NASDAQ:DALN)

47Neutral

DallasNews is struggling with financial and operational challenges, reflected in its weak financial performance and technical indicators. Despite some positive steps such as cost savings and digital growth, the high P/E ratio and core revenue declines weigh heavily on its overall outlook.

DallasNews (DALN) vs. S&P 500 (SPY)

Market Cap

$24.73M

Dividend Yield3.31%

Average Volume (3M)43.06K

Price to Earnings (P/E)188.6

Beta (1Y)-0.05

Revenue Growth-10.24%

EPS GrowthN/A

CountryUS

Employees526

SectorCommunication Services

Sector Strength80

IndustryPublishing

Share Statistics

EPS (TTM)0.02

Shares Outstanding4,739,012

10 Day Avg. Volume20,052

30 Day Avg. Volume43,059

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)0.25

Price to Cash Flow (P/CF)-2.50

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

DallasNews Business Overview & Revenue Model

Company DescriptionDallasNews Corporation (DALN) is a leading local news and information publishing company based in Dallas, Texas. It is primarily known for its flagship product, The Dallas Morning News, which offers comprehensive coverage of local, national, and international news. The company operates in the media sector, focusing on delivering high-quality journalism across multiple platforms, including print, digital, and mobile formats.

How the Company Makes MoneyDallasNews Corporation generates revenue through a combination of advertising and subscription services. Advertisements are sold in both print and digital formats, which include display ads, classified listings, and sponsored content. Subscription revenue is derived from both digital and traditional print subscribers, who pay for access to news content. The company also engages in strategic partnerships with businesses for sponsored events, promotions, and collaborations that enhance its revenue streams. Additionally, DallasNews may receive revenue from commercial printing services and other ancillary media-related activities.

DallasNews Financial Statement Overview

Summary

DallasNews is facing financial challenges with declining revenues and thin profitability. The balance sheet shows high leverage, and cash flow metrics indicate significant operational struggles. The equity ratio provides some stability, but overall financial health needs improvement.

Income Statement

Neutral

DallasNews has witnessed a consistent decline in revenue over recent years, with a revenue growth rate of -10.25% from 2023 to 2024. The company’s profitability metrics show a challenging landscape: the Gross Profit Margin stands at 49% for 2024, but the Net Profit Margin is marginal at 0.10%, indicating thin profitability. The negative EBIT and EBITDA margins suggest ongoing operational challenges.

Balance Sheet

Neutral

The balance sheet reflects high leverage, with a Debt-to-Equity Ratio of 2.55 in 2024, indicating significant reliance on debt financing. The Return on Equity is low at 1.92%, reflecting weak profitability relative to shareholder investment. However, the Equity Ratio of 11.02% suggests some stability, albeit limited by overall high liabilities.

Cash Flow

Negative

Cash flow analysis reveals substantial challenges, with negative free cash flow growth indicating deteriorating cash generation capacity. The Operating Cash Flow to Net Income Ratio is negative, highlighting difficulties in translating profits into cash flow. The Free Cash Flow to Net Income Ratio is also negative, underscoring cash flow inefficiencies.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
125.39M	139.70M	150.65M	154.37M	154.30M
	Gross Profit
61.47M	62.90M	60.98M	63.45M	64.12M
	EBIT
-7.06M	-8.07M	-8.83M	-9.69M	-14.92M
	EBITDA
-7.06M	-6.55M	-6.52M	1.45M	-7.65M
	Net Income Common Stockholders
131.00K	-7.11M	-9.79M	-467.00K	-6.87M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
9.59M	22.48M	27.82M	32.44M	42.02M
	Total Assets
61.84M	62.23M	72.27M	105.45M	123.22M
	Total Debt
17.38M	16.92M	16.55M	19.18M	21.89M
	Net Debt
7.79M	5.23M	-11.28M	-13.26M	-20.13M
	Total Liabilities
55.03M	59.28M	59.90M	62.88M	76.81M
	Stockholders Equity
6.81M	2.96M	12.36M	42.58M	46.41M
Cash Flow		Free Cash Flow
-5.48M	-2.32M	-15.56M	-6.53M	-2.38M
	Operating Cash Flow
-5.48M	-1.17M	-13.93M	-5.76M	-1.49M
	Investing Cash Flow
4.23M	-11.53M	20.77M	-390.00K	18.00K
	Financing Cash Flow
-856.00K	-3.43M	-11.45M	-3.43M	-5.14M

DallasNews Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price4.64

Price Trends

50DMA

5.43

Negative

100DMA

5.87

Negative

200DMA

5.16

Negative

Market Momentum

MACD

-0.25

Negative

RSI

52.22

Neutral

STOCH

91.71

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DALN, the sentiment is Neutral. The current price of 4.64 is above the 20-day moving average (MA) of 4.31, below the 50-day MA of 5.43, and below the 200-day MA of 5.16, indicating a neutral trend. The MACD of -0.25 indicates Negative momentum. The RSI at 52.22 is Neutral, neither overbought nor oversold. The STOCH value of 91.71 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DALN.

DallasNews Risk Analysis

DallasNews disclosed 15 risk factors in its most recent earnings report. DallasNews reported the most risks in the “Finance & Corporate” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

DallasNews Peers Comparison

Overall Rating

UnderperformOutperform

Sector (58)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NYT	74 Outperform	$8.28B	28.56	15.92%	1.03%	6.59%	26.68%
Sector *	58 Neutral	$13.61B	6.75	-2.45%	3.85%	2.33%	-35.55%
GCI	50 Neutral	$503.74M	―	-11.19%	―	-5.79%	-10.12%
DALN	47 Neutral	$24.73M	188.57	2.68%	3.31%	-10.24%	―
SCOR	45 Neutral	$27.02M	―	-27.19%	―	-4.12%	22.94%
LEE	38 Underperform	$55.47M	―	0.00%	―	-9.28%	-647.14%
FENG	37 Underperform	$17.98M	―	-4.47%	―	0.22%	49.14%

* Communication Services Sector Average

Performance Comparison

DALN

DallasNews

4.84

1.18

32.24%

SCOR

comScore

5.50

-8.42

-60.49%

LEE

Lee Enterprises

8.96

-3.64

-28.89%

NYT

New York Times

50.61

7.83

18.30%

FENG

Phoenix New Media

1.62

-0.16

-8.99%

GCI

Gannett

3.44

0.86

33.33%

DallasNews Earnings Call Summary

Earnings Call Date: Mar 17, 2025 | % Change Since: -31.86% | Next Earnings Date: May 1, 2025

Earnings Call Sentiment Neutral

Despite facing significant revenue declines and challenges in advertising and circulation, DallasNews Corporation has shown improvements in net income, expense savings, and digital subscriber growth. The successful sale of the Plano property and impactful journalism efforts further highlight positive strides. However, the financial decline in core revenue streams remains a concern.

Highlights

Net Income and Operating Improvement

DallasNews Corporation reported a net income of $4 million for Q4 2024, compared to a net loss of $2.2 million in Q4 2023, and an improvement in operating loss from $2.5 million to $1.8 million.

Successful Sale of Plano Property

The company sold the Plano facility for $43.5 million, providing capital that will allow DallasNews to fully fund its pension plan.

Expense Savings Achieved

Achieved $15.4 million in expense savings for the year, with the greatest reductions in employee compensation, distribution, and newsprint.

Digital Subscriber Growth

Digital-only subscribers increased by 1,334 or 2.1% year-over-year, with a strong Q4 volume growth of 3,119 subscribers.

Journalistic Impact

An investigative series led to policy changes in Dallas to ensure paramedics have blood supplies, highlighting the social impact of the company's journalism.

Lowlights

Revenue Decline

Total revenue decreased from $34 million in Q4 2023 to $31.1 million in Q4 2024, and full-year revenue dropped from $139.7 million in 2023 to $125.4 million in 2024.

Advertising Revenue Drop

Advertising and marketing services revenue decreased by $11.1 million or 18.9% year-over-year, largely due to discontinued product lines.

Circulation Revenue Decline

Circulation revenue decreased by $500,000 due to a decline in print circulation.

Print Advertising Challenges

Print advertising revenue saw a decline of $1.1 million or 6% in Q4 2024 compared to the same period last year.

Company Guidance

During the DallasNews Corporation's fourth quarter and full-year 2024 investor call, the company reported a net income of $4 million or $0.74 per share on a GAAP basis for the quarter, compared to a net loss of $2.2 million in the previous year. Despite an operating loss of $1.8 million, total revenue for the quarter was $31.1 million, a decrease from $34 million in 2023, largely due to declines in advertising and circulation revenues. For the full year, DallasNews reported a net income of $131,000 or $0.02 per share, with a $7.1 million operating loss. The year included significant expense savings of $15.4 million, primarily from reduced employee compensation, distribution, and newsprint costs. Digital subscriptions grew by 2.1% year over year, reaching 64,334 digital-only subscribers. The company also completed the sale of its Plano property for $43.5 million, which will help fund the full annuitization of its pension plan, aiming to secure the retirement benefits of 1,300 employees. Looking ahead, DallasNews plans to focus on digital subscriber growth, product enhancements, and the continued excellence of its journalism.

DallasNews Corporate Events

M&A TransactionsBusiness Operations and Strategy

DallasNews Sells Plano Facility for $43.5 Million

Positive

Mar 13, 2025

On March 11, 2025, DallasNews Corporation completed the sale of its Plano, TX printing facility for $43.5 million, as part of its strategy to streamline operations and fully fund its pension liabilities. The sale marks a significant step in the company’s Return to Growth Plan, providing financial certainty for over 1,300 employees’ retirement benefits and allowing Denago EV to use the facility for production, enhancing DallasNews Corp.’s industry positioning.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.