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DallasNews (DALN)
NASDAQ:DALN
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DallasNews
(NASDAQ:DALN)
Rating:47Neutral
Price Target:―
DallasNews (DALN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$23.02M
Dividend Yield3.6%
Average Volume (3M)21.93K
Price to Earnings (P/E)0.8
Beta (1Y)<0.01
Revenue Growth-8.98%
EPS GrowthN/A
CountryUS
Employees461
SectorCommunication Services
Sector Strength92
IndustryPublishing
Share Statistics
EPS (TTM)5.28
Shares Outstanding4,739,014
10 Day Avg. Volume36,851
30 Day Avg. Volume21,925
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)1.67
Price to Sales (P/S)0.00
P/FCF Ratio-1.33
Enterprise Value/Market Cap0.41
Enterprise Value/Revenue0.02
Enterprise Value/Gross Profit0.12
Enterprise Value/Ebitda0.60
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 prominent news media company primarily operating in the publishing and digital media sectors. The company is best known for its flagship product, The Dallas Morning News, a leading daily newspaper that serves the Dallas-Fort Worth area. In addition to its print publication, DallasNews offers a variety of digital media products and services, including online news, advertising, and other digital content solutions.
How the Company Makes MoneyDallasNews Corporation generates revenue through several key streams. The core revenue source is advertising, which includes display ads, classified ads, and digital advertising on its websites and digital platforms. Subscription and circulation sales from its print and digital publications also contribute significantly to its income. Additionally, the company leverages partnerships with other media and technology companies to expand its digital offerings and reach a broader audience. These strategic partnerships can include content syndication and joint marketing efforts that help boost both advertising revenue and subscription numbers.
DallasNews Earnings Call Summary
Earnings Call Date:Apr 30, 2025
(Q1-2025)
| % Change Since: -12.24%|
Next Earnings Date:Jul 29, 2025
Earnings Call Sentiment Neutral
While the company reported significant improvements in net income and successfully funded its pension plan, it faced challenges with declining overall revenue, particularly in print advertising and circulation. The growth in digital subscriptions and the profitability of the Medium Giant agency provided positive momentum, but the balance of highlights and lowlights reflects a mixed performance.Q1-2025 Updates
Positive Updates
Significant Net Income Improvement
DallasNews Corporation reported a net income of $28.3 million compared to a net loss of $1.4 million in the first quarter of the previous year. This improvement includes a net gain of $36.2 million from the sale of the Plano printing facility.
Pension Plan Fully Funded
The company utilized approximately $10 million of company funds along with $132 million in plan assets to purchase an annuity contract, fully funding its pension obligations.
Digital Subscription Growth
Digital only subscriptions grew by 4.2% year-over-year, with a notable 16% lift in starts due to the implementation of a new dynamic paywall.
Medium Giant Agency Profitability
The agency saw an operating income increase of $600,000 due to a focus on larger, more profitable accounts and disciplined expense management.
Negative Updates
Overall Revenue Decline
Total revenue decreased by $2 million compared to the previous year, with advertising and marketing services revenue down by 7.2% and circulation revenue down by 5.2%.
Print Advertising Revenue Drop
Print advertising revenue declined by $700,000, or 12.2%, contributing to the overall decrease in advertising and marketing services revenue.
Print Circulation Revenue Decrease
Print circulation revenue fell by $700,000, or 6%, which significantly impacted overall circulation revenue.
Adjusted Operating Loss
On a non-GAAP basis, the company reported an adjusted operating loss of $1.2 million, an increase from a loss of $800,000 in the previous year.
Company Guidance
During the DallasNews Corporation's first quarter 2025 investor call, the company reported a GAAP net income of $28.3 million or $5.28 per share, bolstered by a $36.2 million gain from the sale of the Plano printing facility. Despite this, the corporation faced a non-GAAP adjusted operating loss of $1.2 million, down $400,000 from the previous year's $800,000 loss, mainly due to a $2 million decrease in total revenue, partially offset by $1.2 million in expense savings from employee compensation and benefits. Total revenue stood at $29.1 million, a $2 million decrease from the prior year, with advertising and marketing services revenue falling by 7.2% to $10.8 million, driven by a 12.2% decline in print advertising revenue. Circulation revenue dropped by 5.2% to $15.4 million, attributed to a 6% decrease in print circulation revenue. Digital subscriptions saw a modest growth of 4.2% year-over-year, with digital-only subscriptions reaching 65,028. The company emphasized its strategic focus on digital growth, supported by a 16% increase in starts from a new AI-driven paywall and ongoing investments in digital engagement tools. The recent sale of the Plano property also allowed DallasNews to fully fund its pension obligations, strengthening its balance sheet, with cash and cash equivalents reported at $36 million following pension funding. The company plans to realize further expense savings from transitioning print operations to a more efficient facility and is considering investments to drive digital revenue growth.DallasNews Financial Statement Overview
Summary
DallasNews faces a challenging financial environment. Revenue and profitability are declining, with a revenue growth rate of -10.25% and a marginal net profit margin of 0.10%. The company is highly leveraged with a debt-to-equity ratio of 2.55, and cash flow metrics show inefficiencies, highlighted by negative free cash flow growth.Income Statement
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.45
Neutral
Balance Sheet
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.50
Neutral
Cash Flow
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.40
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 123.41M | 125.39M | 139.70M | 150.65M | 154.37M | 154.30M |
| Gross Profit | 77.50M | 61.47M | 62.90M | 60.98M | 63.45M | 64.12M |
| EBITDA | 30.11M | -5.45M | -6.55M | -6.52M | 1.45M | -7.65M |
| Net Income | 29.78M | 131.00K | -7.11M | -9.79M | -467.00K | -6.87M |
Balance Sheet | ||||||
| Total Assets | 88.02M | 61.84M | 62.23M | 72.27M | 105.45M | 123.22M |
| Cash, Cash Equivalents and Short-Term Investments | 44.17M | 9.59M | 22.48M | 27.82M | 32.44M | 42.02M |
| Total Debt | 16.66M | 17.38M | 16.92M | 16.55M | 19.18M | 21.89M |
| Total Liabilities | 52.70M | 55.03M | 59.28M | 59.90M | 62.88M | 76.81M |
| Stockholders Equity | 35.32M | 6.81M | 2.96M | 12.36M | 42.58M | 46.41M |
Cash Flow | ||||||
| Free Cash Flow | -5.71M | -5.48M | -2.32M | -15.56M | -6.53M | -2.38M |
| Operating Cash Flow | -5.81M | -5.48M | -1.17M | -13.93M | -5.76M | -1.49M |
| Investing Cash Flow | 42.03M | 4.23M | -11.53M | 20.77M | -390.00K | 18.00K |
| Financing Cash Flow | 0.00 | -856.00K | -3.43M | -11.45M | -3.43M | -5.14M |
DallasNews Technical Analysis
Neutral
4.30
Price Trends
4.38
Negative
5.02
Negative
5.24
Negative
Market Momentum
-0.05
Negative
52.81
Neutral
28.72
Neutral
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 4.3 is above the 20-day moving average (MA) of 4.19, below the 50-day MA of 4.38, and below the 200-day MA of 5.24, indicating a neutral trend. The MACD of -0.05 indicates Negative momentum. The RSI at 52.81 is Neutral, neither overbought nor oversold. The STOCH value of 28.72 is Neutral, 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 (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $9.07B | 30.33 | 16.68% | 1.29% | 6.85% | 21.26% | |
61 Neutral | $41.40B | -1.28 | -14.21% | 3.95% | 2.45% | -73.69% | |
59 Neutral | $524.24M | 11.74 | 26.63% | ― | -7.04% | ― | |
47 Neutral | $23.02M | 0.77 | 160.90% | 3.60% | -8.98% | ― | |
45 Neutral | $25.70M | ― | -4.89% | ― | 0.38% | 19.52% | |
43 Neutral | $39.06M | ― | 0.00% | ― | -7.29% | -258.59% | |
42 Neutral | $23.85M | ― | -29.17% | ― | -3.17% | 13.15% |
* Communication Services Sector Average
Performance Comparison
DALN
DallasNews
4.30
0.74
20.79%
SCOR
comScore
4.82
-9.65
-66.69%
LEE
Lee Enterprises
6.28
-4.58
-42.17%
NYT
New York Times
55.61
4.73
9.30%
FENG
Phoenix New Media
2.14
-0.60
-21.90%
GCI
Gannett
3.58
-1.11
-23.67%
DallasNews Corporate Events
Executive/Board ChangesShareholder Meetings
DallasNews Holds Annual Shareholder Meeting, Elects Directors
Neutral
May 8, 2025
On May 8, 2025, DallasNews Corporation held its Annual Meeting of Shareholders, where the election of directors and the ratification of the appointment of an independent registered public accounting firm were key agenda items. Shareholders elected John A. Beckert, Louis E. Caldera, Ronald D. McCray, Grant S. Moise, and Dunia A. Shive as directors for a one-year term. Additionally, the appointment of Grant Thornton LLP as the independent registered public accounting firm for 2025 was ratified, indicating continued confidence in the company’s financial oversight.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.