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Lee Enterprises Inc. (LEE)
NASDAQ:LEE
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Lee Enterprises
(NASDAQ:LEE)
Rating:43Neutral
Price Target:
$6.50
▲(3.50%Upside)
Lee Enterprises (LEE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$39.06M
Dividend YieldN/A
Average Volume (3M)28.96K
Price to Earnings (P/E)―
Beta (1Y)1.10
Revenue Growth-7.29%
EPS Growth-258.59%
CountryUS
Employees2,674
SectorCommunication Services
Sector Strength93
IndustryPublishing
Share Statistics
EPS (TTM)-2.07
Shares Outstanding6,220,064
10 Day Avg. Volume56,523
30 Day Avg. Volume28,963
Financial Highlights & Ratios
PEG Ratio-1.19
Price to Book (P/B)6.84
Price to Sales (P/S)0.00
P/FCF Ratio-24.97
Enterprise Value/Market Cap15.43
Enterprise Value/Revenue0.25
Enterprise Value/Gross Profit2.68
Enterprise Value/Ebitda5.47
Forecast
1Y Price Target
$25.00Price Target Upside298.09% Upside
Rating ConsensusHold
Number of Analyst Covering0
Lee Enterprises Business Overview & Revenue Model
Company DescriptionLee Enterprises (LEE) is a leading provider of high-quality, trusted local news, information, and advertising in its markets. The company operates primarily in the media sector, focusing on publishing daily and weekly newspapers, digital media, and other niche publications. With a presence in numerous states across the United States, Lee Enterprises is committed to delivering essential news and advertising solutions to its communities.
How the Company Makes MoneyLee Enterprises generates revenue primarily through two main streams: advertising and subscription sales. Advertising revenue comes from both print and digital platforms, where the company offers advertisers a range of options, including display ads, classifieds, and digital marketing services. Subscription sales contribute to the company's revenue through the sale of print and digital subscriptions to its newspapers and online content. In addition, Lee Enterprises may engage in strategic partnerships and initiatives to enhance its digital offerings and extend its audience reach, further supporting its revenue model.
Lee Enterprises Earnings Call Summary
Earnings Call Date:May 08, 2025
(Q2-2025)
| % Change Since: -22.56%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong digital revenue growth and successful cost reductions. However, the significant impact of the cyber incident resulted in a net loss and challenges with cash flow and debt management. The launch of innovative AI products and support from Berkshire Hathaway are positive steps moving forward, but the incident's financial impact cannot be ignored.Q2-2025 Updates
Positive Updates
Digital Revenue Growth
Total digital revenue grew by 4% year-over-year on a same-store basis. Digital subscription revenue continued to lead with a 20% year-over-year growth.
Innovative AI Product Launch
Launched a suite of AI products, including A.I. Enablement, aimed at providing local businesses with advanced tools for thriving in a competitive environment.
Cost Reduction and Efficiency
Executed approximately $40 million in annualized cost reductions in the second quarter, aimed at driving margin growth and lowering costs, particularly in print.
Asset Monetization
Closed over $6 million in asset sales year-to-date, with an additional $25 million to monetize, which will improve liquidity and facilitate debt repayment.
Support from Berkshire Hathaway
Berkshire Hathaway waived interest and basic rent payments for March, April, and May to provide short-term liquidity after the cyber incident.
Negative Updates
Cyber Incident Impact
A significant cyber event in February caused disruption in operations, impacting advertising revenue and subscription revenue due to limited product availability.
Net Loss and Cash Flow Challenges
Net loss totaled $12 million in the quarter, with minimal free cash flow due to the cyber incident and associated costs.
Debt and Balance Sheet Impact
The cyber incident hampered the ability to build and collect from customers, impacting accounts receivable and payable. The incident temporarily increased the principal debt balance.
Company Guidance
During the Lee Enterprises 2025 Second Quarter Conference Call, key guidance metrics were highlighted, emphasizing the company's digital transformation and recovery from a recent cyber incident. The call disclosed that Lee aims to achieve $450 million in digital revenue by 2028, with current annual digital revenue at $303 million. Over the past three years, digital subscription revenue has grown by 40% annually, while Amplified Digital Agency revenue has increased by 18% annually. In the second quarter, digital revenue grew by 4% year-over-year, with digital subscription revenue rising by 20%. The company also introduced AI-empowered products to bolster local businesses' competitiveness. Despite a net loss of $12 million in the quarter, Lee anticipates positive free cash flow in the second half of fiscal year 2025, facilitated by $40 million in annualized cost reductions and non-core asset sales.Lee Enterprises Financial Statement Overview
Summary
Lee Enterprises is experiencing significant financial difficulties, with declining revenue, profitability, and cash flow metrics. The balance sheet indicates high leverage and negative equity, posing substantial financial risks.Income Statement
Lee Enterprises shows declining revenue and profitability metrics. Gross and net profit margins have been negative, with a significant net loss in the TTM. The EBIT and EBITDA margins have also contracted, indicating profitability challenges.30
Negative
Balance Sheet
The balance sheet reveals a negative stockholders' equity, indicating financial instability and high leverage. The debt-to-equity ratio is unfavorable due to the absence of equity, and the equity ratio is negative, suggesting solvency issues.20
Very Negative
Cash Flow
The company faces negative free cash flow and operating cash flow, with declining free cash flow growth. The operating cash flow to net income ratio is negative, reflecting cash flow challenges and profitability issues.25
Negative
| Breakdown | TTM | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 | Sep 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 600.26M | 611.38M | 691.14M | 780.97M | 794.65M | 618.00M |
| Gross Profit | 225.33M | 594.57M | 665.79M | 750.87M | 764.87M | 593.76M |
| EBITDA | -17.82M | 37.66M | 69.01M | 105.55M | 97.75M | 95.16M |
| Net Income | -42.19M | -25.84M | -5.27M | 899.00K | 22.75M | -1.26M |
Balance Sheet | ||||||
| Total Assets | 623.93M | 649.17M | 711.62M | 744.04M | 843.55M | 864.06M |
| Cash, Cash Equivalents and Short-Term Investments | 4.66M | 9.60M | 14.55M | 16.18M | 26.11M | 33.73M |
| Total Debt | 485.80M | 483.85M | 500.08M | 516.42M | 548.91M | 609.24M |
| Total Liabilities | 660.03M | 656.50M | 687.91M | 726.80M | 786.85M | 893.69M |
| Stockholders Equity | -38.92M | -9.89M | 21.24M | 15.01M | 54.56M | -31.56M |
Cash Flow | ||||||
| Free Cash Flow | -19.44M | -8.09M | -7.63M | -4.11M | 42.60M | 41.77M |
| Operating Cash Flow | -10.29M | 1.12M | -2.52M | 3.43M | 50.08M | 49.87M |
| Investing Cash Flow | 6.77M | 3.73M | 7.98M | 6.34M | -2.28M | -118.18M |
| Financing Cash Flow | -7.92M | -9.80M | -7.09M | -20.27M | -55.42M | 93.39M |
Lee Enterprises Technical Analysis
Negative
6.28
Price Trends
7.30
Negative
8.60
Negative
11.29
Negative
Market Momentum
-0.25
Negative
41.17
Neutral
66.90
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LEE, the sentiment is Negative. The current price of 6.28 is below the 20-day moving average (MA) of 6.53, below the 50-day MA of 7.30, and below the 200-day MA of 11.29, indicating a bearish trend. The MACD of -0.25 indicates Negative momentum. The RSI at 41.17 is Neutral, neither overbought nor oversold. The STOCH value of 66.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LEE.
Lee Enterprises Risk Analysis
Lee Enterprises disclosed 17 risk factors in its most recent earnings report. Lee Enterprises 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
Lee Enterprises 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% | |
72 Outperform | $244.71M | 3.03 | 11.23% | ― | 6.28% | ― | |
61 Neutral | $41.22B | -1.26 | -14.49% | 3.95% | 2.29% | -73.14% | |
59 Neutral | $524.24M | 11.74 | 26.63% | ― | -7.04% | ― | |
47 Neutral | $23.02M | 0.77 | 160.90% | 3.60% | -8.98% | ― | |
47 Neutral | $66.21M | ― | -16.65% | ― | 105.31% | 95.66% | |
43 Neutral | $39.06M | ― | 0.00% | ― | -7.29% | -258.59% |
* Communication Services Sector Average
Performance Comparison
LEE
Lee Enterprises
6.28
-4.58
-42.17%
DALN
DallasNews
4.30
0.74
20.79%
SSP
E. W. Scripps Company Class A
2.79
-0.34
-10.86%
NYT
New York Times
55.61
4.73
9.30%
GCI
Gannett
3.58
-1.11
-23.67%
CCG
Cheche Group
0.82
0.05
6.49%
Lee Enterprises Corporate Events
Business Operations and StrategyFinancial Disclosures
Lee Enterprises Reports Q2 2025 Revenue Growth
Positive
May 9, 2025
Lee Enterprises reported its second quarter fiscal 2025 results, highlighting a 20% year-over-year increase in digital-only subscription revenue and a 9% increase in revenue from its Amplified Digital® Agency. Despite a cyber security incident in February that incurred $2 million in restoration costs and impacted advertising revenue, the company has recovered and launched an AI solution to support local businesses. Cost reduction measures were implemented, resulting in $40 million in annualized savings, and the company anticipates improved financial performance in the latter half of fiscal year 2025.
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.