Gannett (GCI) AI Stock Analysis

• Market Cap: $530.10M
• Dividend Yield: N/A
• Average Volume (3M): 1.53M
• Price to Earnings (P/E): 11.9
• Beta (1Y): 0.90
• Revenue Growth: -7.04%
• EPS Growth: N/A
• Country: US
• Employees: 11,700
• Sector: Communication Services
• Sector Strength: 85
• Industry: Publishing
• EPS (TTM): -0.09
• Shares Outstanding: 146,435,730
• 10 Day Avg. Volume: 1,372,091
• 30 Day Avg. Volume: 1,532,907
• PEG Ratio: 0.04
• Price to Book (P/B): 3.58
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 10.75
• Enterprise Value/Market Cap: 3.13
• Enterprise Value/Revenue: 0.16
• Enterprise Value/Gross Profit: 1.87
• Enterprise Value/Ebitda: 2.06
• 1Y Price Target: $5.80
• Price Target Upside: 60.22% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 55 Neutral
• Price Target: $4.00 ▲(10.50%Upside)

Gannett's overall score is driven by significant financial challenges and mixed technical indicators. While there are improvements in cost management and strategic growth prospects, the stock faces immediate challenges with declining revenues and a leveraged balance sheet. The reasonable valuation and potential advantages from the DOJ ruling against Google provide some optimism.

Positive Factors

Debt Management

Gannett Co. is focusing on paying down debt, having paid off $74.5M of debt and projecting further reductions, which could create value before litigation upside.

Digital Revenue 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 Outcome

The positive ruling in the DOJ v. Google AdTech case establishes extremely favorable case law for GCI's case against Google, giving Gannett Co. a strategic advantage.

Negative Factors

Macroeconomic Challenges

Macroeconomic challenges and elevated churn continue to impact Gannett's results, affecting overall revenue stability.

Revenue Decline

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 and marketing solutions company that operates across several sectors, including publishing, broadcasting, and digital media. With a portfolio that includes USA TODAY and more than 260 local news brands, Gannett provides news and information services across various platforms, including print, digital, and mobile. The company is committed to delivering high-quality journalism and engaging audiences through its diverse media offerings.

How the Company Makes Money

Gannett generates revenue through a combination of advertising and subscription services across its media platforms. The company's key revenue streams include print advertising, digital advertising, and circulation revenues from its newspapers and digital subscriptions. Advertising revenue is driven by both national and local advertisers leveraging Gannett's extensive reach and audience engagement. Subscription revenue comes from individual and institutional subscribers to both print and digital products. Additionally, Gannett monetizes its digital platforms through programmatic advertising and partnerships with technology companies to enhance its digital marketing solutions. The company also benefits from strategic partnerships and acquisitions that expand its content distribution capabilities and digital audience reach.

Gannett Financial Statement Overview

Summary

Gannett is facing significant financial challenges with declining revenues and profitability pressures. The company has a heavily leveraged balance sheet, increasing financial risk. However, improvements in gross profit margins and cash flows indicate 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
EBITDA	183.31M	261.53M	289.52M	478.86M	-263.12M
Net Income	-26.35M	-27.79M	-78.25M	-136.17M	-672.40M
Balance Sheet
Total Assets	2.04B	2.18B	2.39B	2.83B	3.11B
Cash, Cash Equivalents and Short-Term Investments	106.30M	100.18M	94.25M	130.76M	170.72M
Total Debt	1.29B	1.29B	1.38B	1.49B	1.87B
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: Neutral
• Last Price: 3.62
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GCI, the sentiment is Neutral. The current price of 3.62 is above the 20-day moving average (MA) of 3.62, above the 50-day MA of 3.55, and below the 200-day MA of 4.28, indicating a neutral trend. The MACD of 0.08 indicates Positive momentum. The RSI at 49.49 is Neutral, neither overbought nor oversold. The STOCH value of 30.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GCI.

Gannett Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GRVY	78 Outperform	$431.04M	7.61	14.97%	―	-33.83%	-38.30%
SSP	76 Outperform	$311.37M	3.76	11.23%	―	6.28%	―
NYT	75 Outperform	$8.87B	29.65	16.68%	1.32%	6.85%	21.26%
DALN	64 Neutral	$73.06M	2.48	160.90%	3.60%	-8.98%	―
Sector *	62 Neutral	$40.93B	-1.67	-12.06%	3.96%	2.10%	-69.66%
GCI	55 Neutral	$530.10M	11.87	26.63%	―	-7.04%	―
LEE	44 Neutral	$41.11M	―	0.00%	―	-7.29%	-258.59%

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.