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The New York Times Company (NYT)
:NYT
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New York Times
(NYSE:NYT)
Rating:80Outperform
Price Target:
$61.00
▲(9.26%Upside)
Positive Factors
Audience Expansion
Amazon Alexa's 600 million devices represent a large audience opportunity for NYT.
Strategic Partnerships
The announced deal with Amazon marks NYT's first commercial agreement that allows for its editorial content to be trained by AI.
Subscription Strategy
The AI licensing agreement is expected to fuel NYT’s 'essential subscription' strategy by growing its audience base and engagement.
Negative Factors
Earnings Volatility
The EBITDA multiple is likely to compress if net subscriber additions slow down.
Litigation Risks
NYT's ongoing litigation with OpenAI and Microsoft over alleged copyright infringement adds a layer of complexity to its licensing strategy.
Subscriber Growth Concerns
Risks to long-term subscriber growth guide remain a concern despite the upside to 1Q news net adds.
New York Times (NYT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$9.14B
Dividend Yield1.02%
Average Volume (3M)1.61M
Price to Earnings (P/E)30.6
Beta (1Y)0.59
Revenue Growth6.85%
EPS Growth21.26%
CountryUS
Employees5,900
SectorCommunication Services
Sector Strength83
IndustryPublishing
Share Statistics
EPS (TTM)0.41
Shares Outstanding162,269,100
10 Day Avg. Volume1,418,000
30 Day Avg. Volume1,609,876
Financial Highlights & Ratios
PEG Ratio5.86
Price to Book (P/B)4.18
Price to Sales (P/S)0.00
P/FCF Ratio20.91
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$57.83Price Target Upside3.58% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
New York Times Business Overview & Revenue Model
Company DescriptionThe New York Times Company is a global media organization headquartered in New York City, renowned for its journalism of record and comprehensive news coverage. It operates in the sectors of news, digital media, and publishing, delivering high-quality content across various platforms including print, web, and mobile applications. Its core products and services include The New York Times newspaper, its website nytimes.com, and a suite of digital products such as podcasts, newsletters, and mobile applications.
How the Company Makes MoneyThe New York Times Company generates revenue through a diversified model that includes subscription, advertising, and other streams. Subscription revenue, which is the largest portion, comes from digital and print subscriptions to its news products, including its digital-only packages and print newspaper sales. Advertising revenue is derived from both digital and print ad sales, with digital ads becoming increasingly significant. Other revenue streams include licensing fees, affiliate revenue, and branded content. The company also benefits from strategic partnerships and acquisitions that enhance its content offerings and expand its audience reach.
New York Times Earnings Call Summary
Earnings Call Date:May 07, 2025
(Q1-2025)
| % Change Since: 6.02%|
Next Earnings Date:Jul 30, 2025
Earnings Call Sentiment Positive
The earnings call was generally positive with strong subscriber growth, digital revenue increases, and recognition for journalistic achievements. While there were some concerns about total advertising revenue growth and economic uncertainties, the highlights significantly outweighed the lowlights.Q1-2025 Updates
Positive Updates
Strong Subscriber Growth
The New York Times added 250,000 net new digital subscribers, surpassing 11 million digital-only subscribers, bringing the total subscriber base to 11.7 million.
Digital Subscription Revenue Surge
Digital subscription revenue, the largest and fastest-growing revenue stream, increased by more than 14%.
Digital Advertising Growth
Digital advertising revenue grew 12%, marking the strongest growth rate in three years.
Pulitzer Prize Recognition
The New York Times was awarded four Pulitzer Prizes for various outstanding reporting projects.
Significant Free Cash Flow
The company generated approximately $90 million of free cash flow in the first quarter, including a one-time benefit of approximately $33 million from the sale of excess land.
Engagement and Product Innovation
High engagement levels were reported, driven by new content, shows, features, and games. On-platform engagement with audio and video more than doubled in Q1.
Negative Updates
Limited Revenue Growth in Total Advertising
Total advertising revenues increased by only 4%, which, while higher than expected, shows limited growth compared to digital advertising.
Potential Economic Uncertainty Impact
Concerns were mentioned about navigating an uncertain economic and geopolitical environment, although no immediate impact on the company was noted.
Company Guidance
In the New York Times Company's first quarter 2025 earnings call, several key metrics were highlighted, showcasing a robust start to the year. The company added 250,000 net new digital subscribers, surpassing 11 million digital-only subscribers and bringing the total subscriber base to 11.7 million. Digital subscription revenue increased by over 14%, while digital advertising revenue grew by 12%, the strongest in three years. Total subscription revenues grew by 8%, and affiliate, licensing, and other revenues rose by 4%. Adjusted operating profit (AOP) increased by 22% year-over-year, with an AOP margin expansion of 180 basis points. Free cash flow was approximately $90 million, including $33 million from a one-time asset sale, and the company returned $81 million to shareholders. Looking ahead to Q2, digital-only subscription revenues are expected to rise by 13% to 16%, while total subscription revenues are anticipated to grow by 8% to 10%. Digital advertising revenues are projected to increase in high single digits, and operating costs are expected to rise by 5% to 6%. Overall, the company expressed confidence in its strategy and long-term growth drivers.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
Positive
55.83
Price Trends
51.82
Positive
50.90
Positive
52.47
Positive
Market Momentum
1.28
Positive
62.86
Neutral
65.38
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NYT, the sentiment is Positive. The current price of 55.83 is above the 20-day moving average (MA) of 55.17, above the 50-day MA of 51.82, and above the 200-day MA of 52.47, indicating a bullish trend. The MACD of 1.28 indicates Positive momentum. The RSI at 62.86 is Neutral, neither overbought nor oversold. The STOCH value of 65.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NYT.
New York Times Risk Analysis
New York Times disclosed 30 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 2 New Risks
1.
Our business depends on continued and unimpeded access to the internet and cloud-based hosting services we utilize. Q4, 2024
2.
Our ability to attract, retain and monetize a significant portion of our users is dependent on third parties. If these third parties make changes outside of our control, it could adversely affect our business, financial condition and results of operations. Q4, 2024
New York Times Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $9.14B | 30.57 | 16.68% | 1.02% | 6.85% | 21.26% | |
77 Outperform | $16.73B | 38.05 | 5.88% | 0.61% | -5.43% | 135.46% | |
75 Outperform | $16.73B | 32.90 | 5.88% | 0.71% | -5.43% | 135.46% | |
72 Outperform | $9.57B | 18.03 | 10.99% | 2.14% | -0.59% | 24.06% | |
65 Neutral | $453.73M | 28.53 | 1.92% | 4.70% | -3.10% | -58.47% | |
61 Neutral | $14.20B | 5.93 | -4.31% | 3.70% | 2.75% | -35.73% | |
55 Neutral | $505.20M | 11.44 | 26.63% | ― | -7.04% | ― |
* Communication Services Sector Average
Performance Comparison
NYT
New York Times
55.83
5.49
10.91%
NWSA
News Corp
27.85
0.35
1.27%
PSO
Pearson
15.00
3.18
26.90%
SCHL
Scholastic
17.61
-15.82
-47.32%
GCI
Gannett
3.50
-0.64
-15.46%
NWS
News Class B
32.16
4.04
14.37%
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.