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New York Times Company (NYT)
NYSE:NYT
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New York Times
(NYSE:NYT)69Neutral
Positive Factors
Digital Subscription Growth
Digital subscription revenues still came in modestly ahead of expectations, led by ARPU growth across both Bundle and news-only subscribers.
Financial Performance
Continued confidence in healthy +12-13% EBITDA CAGR driven by NYT's scale, pricing power, and operating leverage.
Negative Factors
Customer Growth Risks
Slowing customer growth pose a risk to NYT's premium multiple.
New York Times (NYT) vs. S&P 500 (SPY)
Market Cap
$7.66B
Dividend Yield1.1%
Average Volume (3M)2.06M
Price to Earnings (P/E)26.5
Beta (1Y)0.81
Revenue Growth6.59%
EPS Growth26.68%
CountryUS
Employees5,900
SectorCommunication Services
Sector Strength85
IndustryTraditional Media
Share Statistics
EPS (TTM)1.77
Shares Outstanding162,522,380
10 Day Avg. Volume2,123,677
30 Day Avg. Volume2,063,612
Financial Highlights & Ratios
PEG Ratio0.99
Price to Book (P/B)N/A
Price to Sales (P/S)2.96
Price to Cash Flow (P/CF)12.60
P/FCF Ratio11.50
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$54.20Price Target Upside10.12% Upside
Rating ConsensusHold
Number of Analyst Covering5
New York Times Business Overview & Revenue Model
Company DescriptionThe New York Times Company is a leading global media organization headquartered in New York City. It operates in the publishing sector, offering high-quality journalism across multiple platforms, including print, digital, and mobile. The company's core product is its flagship newspaper, The New York Times, known for its in-depth reporting, analysis, and opinion pieces on a wide range of topics, including politics, business, technology, and culture.
How the Company Makes MoneyThe New York Times Company generates revenue primarily through a subscription-based model and advertising. Its key revenue streams include digital and print subscriptions, which provide access to its wide array of journalistic content. Subscription revenue has become increasingly significant as digital subscriptions have grown, driven by high-quality content and an expanding global audience. In addition to subscriptions, the company earns money from advertising, both in its print editions and through digital channels, including its website and mobile applications. The New York Times also engages in licensing and syndication of its content, further diversifying its income. Significant partnerships with technology companies and integration on various digital platforms contribute to audience reach and monetization.
New York Times Financial Statement Overview
Summary
New York Times showcases commendable financial health with strong revenue and profit growth, coupled with effective cost and cash flow management. The elimination of debt significantly reduces financial risk, though the absence of key balance sheet metrics in 2024 limits a complete picture of financial stability. Overall, the company is on a positive financial trajectory, demonstrating resilience in the traditional media industry.Income Statement
New York Times has demonstrated strong revenue growth, increasing from $2.42 billion in 2023 to $2.59 billion in 2024, reflecting a growth rate of 6.58%. The gross profit margin has improved to 49.37% in 2024, and the net profit margin is 11.36%, showing efficient cost management and profitability. EBIT and EBITDA margins are healthy at 13.57% and 18.03% respectively, indicating operational efficiency.85
Very Positive
Balance Sheet
The balance sheet shows a strong position with zero total debt in 2024, reducing financial risk. However, the lack of reported stockholders' equity in 2024 limits the calculation of debt-to-equity ratio and return on equity, which could impact comprehensive financial assessment. The equity ratio in 2023 was 64.95%, reflecting solid equity base relative to assets.75
Positive
Cash Flow
Operating cash flow has increased to $410.51 million, supporting a robust free cash flow of $381.34 million in 2024. The free cash flow growth rate of 12.82% from 2023 indicates strong cash generation capability. Operating cash flow to net income ratio of 1.40 suggests efficient conversion of earnings to cash.80
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 2.59B | 2.43B | 2.31B | 2.07B | 1.78B | Gross Profit |
| 1.28B | 1.18B | 1.10B | 1.04B | 823.42M | EBIT |
| 351.10M | 305.98M | 309.51M | 268.03M | 176.26M | EBITDA |
| 476.46M | 398.95M | 328.58M | 358.26M | 186.86M | Net Income Common Stockholders |
| 293.82M | 232.39M | 173.91M | 219.97M | 100.10M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 565.92M | 451.57M | 347.36M | 661.05M | 595.16M | Total Assets |
| 2.84B | 2.71B | 2.53B | 2.56B | 2.31B | Total Debt |
| 37.26M | 42.91M | 59.12M | 63.61M | 52.70M | Net Debt |
| -162.19M | -246.57M | -162.26M | -256.36M | -233.38M | Total Liabilities |
| 914.27M | 951.38M | 933.78M | 1.02B | 979.58M | Stockholders Equity |
| 1.93B | 1.76B | 1.60B | 1.54B | 1.33B |
| Cash Flow | Free Cash Flow | |||
| 381.34M | 337.95M | 113.73M | 234.46M | 263.48M | Operating Cash Flow |
| 410.51M | 360.62M | 150.69M | 269.10M | 297.93M | Investing Cash Flow |
| -306.09M | -159.69M | -73.56M | -180.81M | -199.08M | Financing Cash Flow |
| -192.72M | -132.71M | -174.31M | -54.95M | -44.97M |
New York Times Technical Analysis
Neutral
49.22
Price Trends
51.02
Negative
52.80
Negative
52.70
Negative
Market Momentum
-1.09
Negative
49.47
Neutral
55.37
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NYT, the sentiment is Neutral. The current price of 49.22 is above the 20-day moving average (MA) of 48.55, below the 50-day MA of 51.02, and below the 200-day MA of 52.70, indicating a neutral trend. The MACD of -1.09 indicates Negative momentum. The RSI at 49.47 is Neutral, neither overbought nor oversold. The STOCH value of 55.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for NYT.
New York Times Risk Analysis
New York Times disclosed 29 risk factors in its most recent earnings report. New York Times reported the most risks in the “Tech & Innovation” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
New York Times Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $7.66B | 26.48 | 15.92% | 1.10% | 6.59% | 26.68% | |
68 Neutral | $16.67B | 43.94 | 5.23% | 0.63% | -1.51% | 82.74% | |
61 Neutral | $118.35M | 35.65 | 4.03% | ― | -8.49% | -813.55% | |
59 Neutral | $30.54B | 0.25 | -13.23% | 4.04% | 2.36% | -49.53% | |
59 Neutral | $579.73M | ― | -0.42% | 3.88% | -3.89% | -106.78% | |
48 Neutral | $545.27M | ― | -11.19% | ― | -5.79% | -10.12% | |
37 Underperform | $51.76M | ― | 0.00% | ― | -9.28% | -647.14% |
* Communication Services Sector Average
Performance Comparison
NYT
New York Times
49.22
6.38
14.89%
LEE
Lee Enterprises
8.86
-2.15
-19.53%
MHH
Mastech Holdings
10.10
1.20
13.48%
SCHL
Scholastic
21.43
-16.41
-43.37%
GCI
Gannett
3.54
1.49
72.68%
NWS
News Class B
31.82
4.67
17.20%
New York Times Earnings Call Summary
Earnings Call Date: Feb 5, 2025 | % Change Since: -11.93% | Next Earnings Date: May 7, 2025
Earnings Call Sentiment Positive
The earnings call reflects a positive outlook for The New York Times, with significant growth in digital subscriptions and advertising revenue. While there are challenges in print revenue and some limitations in advertising associated with hard news, the company's strong financial performance and strategic innovations indicate a robust growth trajectory.Highlights
Digital Subscription Growth
The New York Times added over 1.1 million digital subscribers in 2024, with digital subscription revenue increasing by 14%.
Record Growth in Digital Advertising
Digital advertising revenue increased by 9.5% in Q4, with new AI-powered ad targeting tools contributing to this growth.
Strong Financial Performance
Adjusted operating profit grew by 17% to $455 million, with a margin expansion of 150 basis points to 17.6%.
Increased Free Cash Flow
The company generated $381 million in free cash flow in 2024, with $168 million returned to shareholders through share repurchases and dividends.
New Product Innovations
The New York Times relaunched its core news app and introduced a new version of its games app, contributing to increased user engagement.
Lowlights
Decline in Print Revenue
Ongoing decline in print revenue partially offset growth in digital subscriptions and advertising.
Challenges with Advertising in Hard News
Some advertisers continue to avoid hard news topics, impacting advertising revenue potential.
Company Guidance
During The New York Times Company's Fourth Quarter and Full Year 2024 Earnings Conference Call, the guidance provided highlighted several key metrics. The company added over 1.1 million digital subscribers in 2024, contributing to a 14% increase in digital subscription revenue. The fourth quarter alone saw the addition of 350,000 net new digital subscribers, with digital subscription revenue growth accelerating to 16%. The company's digital advertising revenue increased by 9.5%, notably from games and The Athletic. Moreover, the adjusted operating profit (AOP) grew by approximately 17% year over year to $455 million, with the AOP margin expanding by approximately 150 basis points to 17.6%. Free cash flow generation was strong at approximately $381 million, and the company returned $168 million to shareholders, including $85 million in share repurchases and $83 million in dividends. Looking forward, the guidance for the first quarter of 2025 anticipates a 14% to 17% increase in digital-only subscription revenues and a high single-digit increase in digital advertising revenues.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.