Gannett (GCI) AI Stock Analysis

• Market Cap: $570.34M
• Dividend Yield: N/A
• Average Volume (3M): 1.76M
• Price to Earnings (P/E): 6.0
• Beta (1Y): 0.92
• Revenue Growth: -8.00%
• EPS Growth: N/A
• Country: US
• Employees: 11,700
• Sector: Communication Services
• Sector Strength: 82
• Industry: Publishing
• EPS (TTM): 0.45
• Shares Outstanding: 146,617,080
• 10 Day Avg. Volume: 2,264,113
• 30 Day Avg. Volume: 1,760,722
• PEG Ratio: 2.74
• Price to Book (P/B): 4.71
• Price to Sales (P/S): 0.29
• P/FCF Ratio: 14.20
• Enterprise Value/Market Cap: 3.14
• Enterprise Value/Revenue: 0.75
• Enterprise Value/Gross Profit: 1.98
• Enterprise Value/Ebitda: 7.03
• 1Y Price Target: $5.58
• Price Target Upside: 43.44% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

• Rating: 57 Neutral
• Price Target: $4.00 ▲(2.83% Upside)

Gannett's overall stock score is primarily influenced by its financial performance challenges, including declining revenue and high leverage. The technical analysis provides a neutral outlook, while the valuation suggests potential undervaluation. The earnings call indicates positive strategic initiatives, but ongoing revenue challenges persist.

Positive Factors

Digital Growth

Gannett Co. reiterated the FY25 outlook that calls for 7%-10% digital revenue growth and same store revenue growth, indicating a potential inflection to growth after many years of contraction.

Legal Advantage

Gannett Co. is well positioned following a favorable ruling in the DOJ v. Google AdTech monopoly case, which enhances the strength of GCI’s claims and increases the likelihood of a favorable recovery from Google.

Negative Factors

Revenue Challenges

DMS revenue fell approximately 3% year-over-year as macroeconomic challenges and elevated churn continue to impact results.

Gannett Business Overview & Revenue Model

Company Description

Gannett Co., Inc. (GCI) is a leading media holding company that operates in the print and digital publishing sectors. The company is best known for its extensive portfolio of local newspapers, including USA Today, along with a variety of digital marketing services. Gannett focuses on delivering news, information, and entertainment to audiences across the United States and beyond, while also providing advertising solutions to local businesses through its digital platforms.

How the Company Makes Money

Gannett generates revenue through multiple streams, primarily focusing on advertising and subscription services. The company's advertising revenue comes from both print and digital sources, where it provides businesses with targeted advertising solutions through its extensive reach and audience data. Additionally, Gannett earns money through digital subscriptions, offering readers access to premium content on its online platforms. The company has also expanded its revenue model by providing marketing services, including digital marketing and social media management, to local businesses. Strategic partnerships with technology firms and collaborations with other media outlets further bolster its revenue capabilities, allowing Gannett to leverage new technologies and expand its audience engagement.

Gannett Financial Statement Overview

Summary

Gannett faces significant financial challenges with declining revenues and profitability pressures. The company's balance sheet is heavily leveraged, indicating financial risk. However, improvements in gross profit margins and cash flows demonstrate effective cost management. Addressing revenue decline and high debt levels will be critical for sustainable growth.

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	2.39B	2.51B	2.66B	2.95B	3.21B	3.41B
Gross Profit	902.19M	963.73M	971.52M	1.08B	1.31B	1.37B
EBITDA	254.23M	183.31M	261.53M	289.52M	478.86M	-263.12M
Net Income	115.72M	-26.35M	-27.79M	-78.25M	-136.17M	-672.40M
Balance Sheet
Total Assets	2.01B	2.04B	2.18B	2.39B	2.83B	3.11B
Cash, Cash Equivalents and Short-Term Investments	88.54M	106.30M	100.18M	94.25M	130.76M	170.72M
Total Debt	1.18B	1.29B	1.29B	1.38B	1.49B	1.87B
Total Liabilities	1.77B	1.89B	1.86B	2.10B	2.30B	2.74B
Stockholders Equity	237.09M	153.14M	317.79M	295.74M	532.10M	364.11M
Cash Flow
Free Cash Flow	43.18M	50.78M	56.46M	-4.60M	87.89M	20.80M
Operating Cash Flow	98.60M	100.31M	94.57M	40.78M	127.45M	57.77M
Investing Cash Flow	16.12M	-27.95M	46.98M	22.12M	70.65M	160.14M
Financing Cash Flow	-127.49M	-68.85M	-135.51M	-102.87M	-261.17M	-201.34M

Gannett Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.89
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 3.89 is above the 20-day moving average (MA) of 3.80, above the 50-day MA of 3.66, and below the 200-day MA of 4.14, indicating a neutral trend. The MACD of 0.11 indicates Negative momentum. The RSI at 53.67 is Neutral, neither overbought nor oversold. The STOCH value of 59.08 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	$432.57M	7.54	14.21%	―	-4.71%	-14.88%
NYT	73 Outperform	$9.37B	29.60	17.13%	1.08%	7.82%	19.39%
SSP	63 Neutral	$221.03M	5.18	8.30%	―	5.25%	―
DALN	62 Neutral	$79.22M	2.66	-24.74%	3.60%	-8.00%	-46.22%
Sector *	60 Neutral	$43.34B	4.05	-7.48%	4.16%	2.19%	-39.41%
GCI	57 Neutral	$570.34M	5.99	47.54%	―	-8.00%	―
LEE	42 Neutral	$27.14M	―	0.00%	―	-5.68%	-127.26%

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.