Postmedia Network Canada (PNC.B) AI Stock Analysis

• Market Cap: $153.51M
• Dividend Yield: N/A
• Average Volume (3M): 43.00
• Price to Earnings (P/E): ―
• Beta (1Y): 0.68
• Revenue Growth: 0.15%
• EPS Growth: 10.95%
• Country: CA
• Employees: 1,510
• Sector: Communication Services
• Sector Strength: 84
• Industry: Publishing
• EPS (TTM): -0.60
• Shares Outstanding: 98,755,580
• 10 Day Avg. Volume: 130
• 30 Day Avg. Volume: 43
• PEG Ratio: 0.06
• Price to Book (P/B): -0.59
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -6.52
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $1.50
• Price Target Upside: 3.73% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 45 Neutral
• Price Target: C$1.50 ▲(3.45%Upside)

Postmedia Network Canada faces significant financial challenges with declining revenues, high leverage, and negative cash flows. Technical indicators show short-term bullish momentum but also suggest the stock may be overbought, requiring caution. Poor valuation metrics further weigh down the stock's overall score.

Postmedia Network Canada Business Overview & Revenue Model

Company Description

Postmedia Network Canada Corp., through its subsidiary, Postmedia Network Inc., publishes daily and non-daily newspapers in Canada. The company is involved in news and information gathering and dissemination operations through various platforms, such as print, online, and mobile. It also operates digital media and online assets, including newspaper's online website. The company was formerly known as Canwest Limited Partnership and changed its name to Postmedia Network Canada Corp. in July 2010. Postmedia Network Canada Corp. was founded in 2005 and is headquartered in Toronto, Canada.

How the Company Makes Money

Postmedia Network Canada Corp. generates revenue primarily through advertising, circulation, and digital subscriptions. Advertising revenue comes from print and digital ads across its various publications and online platforms. This includes display ads, classifieds, and sponsored content. Circulation revenue is derived from the sale of newspapers and subscriptions, both physical and digital. In recent years, Postmedia has been focusing on increasing its digital presence and monetizing its online platforms through digital subscriptions and partnerships. The company also explores additional revenue streams through events, licensing, and syndication of content.

Postmedia Network Canada Financial Statement Overview

Summary

Postmedia Network Canada is facing significant financial challenges characterized by declining revenues, persistent losses, and high leverage. The income statement shows a concerning trend with declining revenue and negative net income. Balance sheet reveals significant leverage issues with a negative stockholders' equity. Cash flow analysis shows negative operating and free cash flows, indicating challenges in generating cash from operations.

Income Statement

The income statement shows a concerning trend with declining revenue and negative net income. The gross profit margin is relatively high at 79.2% TTM, but the net profit margin is negative at -14.3% TTM. There is a notable decline in EBIT and EBITDA margins, both negative, indicating operational inefficiencies. Revenue has decreased by 9.4% from 2021 to 2022, and further declined in subsequent years, highlighting challenges in sustaining growth.

Balance Sheet

The company's balance sheet reveals significant leverage issues with a negative stockholders' equity of -$362.7 million TTM. The debt-to-equity ratio is concerning, as equity is negative. Total assets have been decreasing, indicating potential liquidity and solvency risks. The equity ratio is negative, further emphasizing the high financial risk due to substantial liabilities outweighing assets.

Cash Flow

Cash flow analysis shows negative operating and free cash flows, indicating challenges in generating cash from operations. The free cash flow to net income ratio is negative, and operating cash flow has been negative consistently, reflecting potential liquidity issues. Despite some improvement in cash flow from financing activities, overall cash flow management remains weak.

Breakdown	TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	415.06M	395.92M	448.50M	458.22M	442.34M	508.41M
Gross Profit	328.70M	343.92M	217.88M	370.90M	364.35M	421.70M
EBITDA	-2.47M	6.03M	-16.27M	-23.37M	85.09M	65.30M
Net Income	-59.43M	-49.66M	-72.57M	-110.13M	3.32M	-46.78M
Balance Sheet
Total Assets	147.26M	148.92M	169.38M	211.38M	276.20M	336.88M
Cash, Cash Equivalents and Short-Term Investments	5.87M	2.45M	6.19M	12.06M	62.00M	49.80M
Total Debt	410.41M	379.76M	342.90M	309.97M	296.95M	319.97M
Total Liabilities	509.95M	470.75M	441.68M	412.61M	415.91M	501.10M
Stockholders Equity	-362.70M	-321.82M	-272.31M	-201.23M	-139.71M	-164.22M
Cash Flow
Free Cash Flow	-3.36M	-18.87M	-24.70M	-24.42M	36.10M	41.76M
Operating Cash Flow	-751.00K	-17.01M	-23.41M	-21.46M	39.02M	44.83M
Investing Cash Flow	5.07M	3.26M	28.17M	-6.85M	11.94M	422.00K
Financing Cash Flow	-3.94M	10.01M	-10.63M	-21.62M	-38.76M	-10.92M

Postmedia Network Canada Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.45
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:PNC.B, the sentiment is Positive. The current price of 1.45 is above the 20-day moving average (MA) of 1.43, above the 50-day MA of 1.43, and above the 200-day MA of 1.26, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 78.27 is Negative, neither overbought nor oversold. The STOCH value of 49.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:PNC.B.

Postmedia Network Canada Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$40.70B	-0.98	-11.97%	3.93%	2.03%	-69.70%
PNC.B	45 Neutral	$153.51M	―	18.33%	―	0.15%	10.95%
YLWDF		$113.90M	7.23	40.32%	8.74%	―	―
CJREF		$14.59M	―		―	―	―
RAY.A	74 Outperform	C$695.94M	19.19	14.14%	4.02%	12.00%	―
TVA.B	54 Neutral	C$32.40M	―	-6.62%	―	-2.38%	59.61%
GVC	48 Neutral	C$22.29M	―	-58.96%	―	-7.18%	75.46%