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Postmedia Network Canada Corp. (TSE:PNC.B)
TSX:PNC.B

Postmedia Network Canada (PNC.B) AI Stock Analysis

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Postmedia Network Canada

(TSX:PNC.B)

Rating:45Neutral
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 (PNC.B) vs. iShares MSCI Canada ETF (EWC)

Postmedia Network Canada Business Overview & Revenue Model

Company DescriptionPostmedia 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 MoneyPostmedia 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
45
Neutral
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
30
Negative
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
40
Negative
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.
BreakdownTTMSep 2024Sep 2023Sep 2022Sep 2021Sep 2020
Income Statement
Total Revenue415.06M395.92M448.50M458.22M442.34M508.41M
Gross Profit328.70M343.92M217.88M370.90M364.35M421.70M
EBITDA-2.47M6.03M-16.27M-23.37M85.09M65.30M
Net Income-59.43M-49.66M-72.57M-110.13M3.32M-46.78M
Balance Sheet
Total Assets147.26M148.92M169.38M211.38M276.20M336.88M
Cash, Cash Equivalents and Short-Term Investments5.87M2.45M6.19M12.06M62.00M49.80M
Total Debt410.41M379.76M342.90M309.97M296.95M319.97M
Total Liabilities509.95M470.75M441.68M412.61M415.91M501.10M
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-24.42M36.10M41.76M
Operating Cash Flow-751.00K-17.01M-23.41M-21.46M39.02M44.83M
Investing Cash Flow5.07M3.26M28.17M-6.85M11.94M422.00K
Financing Cash Flow-3.94M10.01M-10.63M-21.62M-38.76M-10.92M

Postmedia Network Canada Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1.45
Price Trends
50DMA
1.43
Positive
100DMA
1.23
Positive
200DMA
1.26
Positive
Market Momentum
MACD
0.02
Negative
RSI
78.27
Negative
STOCH
49.39
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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
61
Neutral
$40.70B-0.98-11.97%3.93%2.03%-69.70%
45
Neutral
$153.51M18.33%0.15%10.95%
$113.90M7.2340.32%8.74%
$14.59M
74
Outperform
C$695.94M19.1914.14%4.02%12.00%
54
Neutral
C$32.40M-6.62%-2.38%59.61%
TSGVC
48
Neutral
C$22.29M-58.96%-7.18%75.46%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:PNC.B
Postmedia Network Canada
1.45
0.23
18.85%
YLWDF
Yellow Pages
8.16
1.88
29.94%
CJREF
Corus Entertainment
0.07
-0.07
-50.00%
TSE:GVC
Glacier Media
0.17
0.08
88.89%
TSE:RAY.A
Stingray Digit SV
10.01
2.78
38.45%
TSE:TVA.B
TVA Group Inc B NV
0.63
-0.48
-43.24%
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.Date of analysis: Jun 05, 2025