Postmedia Network Canada (PNC.B) AI Stock Analysis

• Market Cap: $99.06M
• Dividend Yield: N/A
• Average Volume (3M): 116.00
• Price to Earnings (P/E): ―
• Beta (1Y): 0.15
• Revenue Growth: 4.79%
• EPS Growth: 38.25%
• Country: CA
• Employees: 1,510
• Sector: Communication Services
• Sector Strength: 97
• Industry: Publishing
• EPS (TTM): 0.08
• Shares Outstanding: 98,754,170
• 10 Day Avg. Volume: 280
• 30 Day Avg. Volume: 116
• PEG Ratio: 0.10
• Price to Book (P/B): -0.47
• Price to Sales (P/S): 0.38
• P/FCF Ratio: -8.02
• Enterprise Value/Market Cap: 5.28
• Enterprise Value/Revenue: 1.24
• Enterprise Value/Gross Profit: 1.42
• Enterprise Value/Ebitda: 23.76
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 41 Neutral
• Price Target: C$1.50 ▲(56.25% Upside)

Postmedia Network Canada's stock is rated poorly due to significant financial challenges, including high leverage and negative equity. The technical analysis indicates a bearish trend, and the valuation metrics are unattractive with a negative P/E ratio. These factors contribute to a low overall stock 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 generates revenue primarily through advertising sales and subscription fees. The advertising revenue comes from both print and digital platforms, with businesses purchasing ad space to reach targeted audiences. Subscription fees are collected from readers who subscribe to the company's print newspapers and digital services. Additionally, Postmedia has explored partnerships and collaborations with other media entities and technology firms to expand its audience reach and enhance its digital offerings. The company also monetizes its content through sponsored content and events, contributing further to its revenue streams.

Postmedia Network Canada Financial Statement Overview

Summary

Postmedia Network Canada faces significant financial challenges. Despite slight revenue growth and a strong gross profit margin, the company struggles with profitability, high leverage, and negative equity. Cash flow generation is weak, further complicating the financial outlook.

Income Statement

Postmedia Network Canada shows a mixed performance in its income statement. The TTM (Trailing-Twelve-Months) data indicates a slight revenue growth of 2.01%, which is a positive sign. However, the company struggles with profitability, as evidenced by a negative net profit margin of -8.42% and a low EBIT margin of 1.48%. The gross profit margin is strong at 87.25%, suggesting efficient cost management, but the overall profitability is hindered by high operating expenses.

Balance Sheet

The balance sheet reveals significant financial challenges for Postmedia Network Canada. The company has a negative stockholders' equity, leading to a concerning debt-to-equity ratio of -1.09. This indicates high leverage and financial instability. The return on equity is positive at 10.29%, but this is due to the negative equity base rather than strong performance. The equity ratio is also negative, reflecting the company's reliance on debt financing.

Cash Flow

Cash flow analysis shows some areas of concern. The TTM data indicates a negative free cash flow growth of -209.16%, highlighting cash flow challenges. The operating cash flow to net income ratio is low at 0.05, suggesting limited cash generation relative to net income. However, the free cash flow to net income ratio is relatively better at 0.61, indicating some ability to convert earnings into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	423.41M	395.92M	448.50M	458.22M	442.34M	508.41M
Gross Profit	369.43M	343.92M	217.88M	370.90M	364.35M	421.70M
EBITDA	22.03M	6.03M	-16.27M	-23.37M	85.09M	65.30M
Net Income	-35.64M	-49.66M	-72.57M	-110.13M	3.32M	-46.78M
Balance Sheet
Total Assets	142.08M	148.92M	169.38M	211.38M	276.20M	336.88M
Cash, Cash Equivalents and Short-Term Investments	3.26M	2.45M	6.19M	12.06M	62.00M	49.80M
Total Debt	386.10M	379.76M	342.90M	309.97M	296.95M	319.97M
Total Liabilities	496.31M	470.75M	441.68M	412.61M	415.91M	501.10M
Stockholders Equity	-354.23M	-321.82M	-272.31M	-201.23M	-139.71M	-164.22M
Cash Flow
Free Cash Flow	3.67M	-18.87M	-24.70M	-24.42M	36.10M	41.76M
Operating Cash Flow	6.02M	-17.01M	-23.41M	-21.46M	39.02M	44.83M
Investing Cash Flow	8.23M	3.26M	28.17M	-6.85M	11.94M	422.00K
Financing Cash Flow	-12.51M	10.01M	-10.63M	-21.62M	-38.76M	-10.92M

Postmedia Network Canada Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.96
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:PNC.B, the sentiment is Negative. The current price of 0.96 is below the 20-day moving average (MA) of 1.08, below the 50-day MA of 1.26, and below the 200-day MA of 1.28, indicating a bearish trend. The MACD of -0.08 indicates Positive momentum. The RSI at 28.96 is Positive, neither overbought nor oversold. The STOCH value of 23.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
RAY.A	73 Outperform	C$776.33M	16.92	17.21%	2.65%	10.68%	―
Y	63 Neutral	$154.65M	9.88	28.37%	8.70%	-8.13%	-53.95%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
TVA.B	54 Neutral	C$25.92M	-1.42	-5.50%	―	-6.56%	46.49%
GVC	45 Neutral	C$20.98M	-0.80	-47.89%	―	-3.78%	78.12%
PNC.B	41 Neutral	$99.06M	-2.78	―	―	4.79%	38.25%
CJR.B	41 Neutral	$7.98M	-0.02	―	―	-11.27%	57.50%