Postmedia Network Canada (PNC.B) AI Stock Analysis

• Market Cap: C$140.63M
• Dividend Yield: N/A
• Average Volume (3M): 102.00
• Price to Earnings (P/E): ―
• Beta (1Y): 1.02
• Revenue Growth: 0.15%
• EPS Growth: 10.95%
• Country: CA
• Employees: 1,510
• Sector: Communication Services
• Sector Strength: 88
• Industry: Publishing
• EPS (TTM): -0.60
• Shares Outstanding: 98,755,580
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 102
• PEG Ratio: -0.28
• Price to Book (P/B): -0.30
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -32.30
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 45 Neutral
• Price Target: C$1.50 ▲(5.63%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. (PNC.B) is a prominent Canadian news media company that operates various print, digital, and mobile platforms. It is one of the largest newspaper publishers in Canada, offering a wide range of content through its extensive portfolio of publications, including major national, regional, and community newspapers. Postmedia is headquartered in Toronto and focuses on delivering news, information, and entertainment to a diverse Canadian audience.

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. The income statement shows declining revenues and persistent losses. The balance sheet indicates negative equity and high leverage, suggesting potential insolvency risks. Additionally, the cash flow statement reveals negative cash flows, raising concerns about sustainability without external financing.

Income Statement

The company has shown a declining trend in revenue with a negative revenue growth rate over the years. The gross profit margin has improved in the TTM period compared to the previous year, indicating some cost efficiency. However, the company has negative EBIT and net income, resulting in negative net profit and EBIT margins, highlighting ongoing operational challenges and profitability issues.

Balance Sheet

The balance sheet reveals significant financial instability, with negative stockholders' equity indicating insolvency risks. The debt-to-equity ratio is not meaningful due to negative equity, and total liabilities exceed total assets. This financial structure suggests a highly leveraged position with potential liquidity issues.

Cash Flow

The company's cash flow statement shows negative operating and free cash flows, suggesting challenges in generating cash from core operations. The operating cash flow to net income ratio is negative, indicating weak cash flow relative to reported net losses. This raises concerns about the company's ability to sustain operations without external financing.

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
	EBIT
1.81M	-12.84M	-37.44M	-8.30M	14.78M	39.32M
	EBITDA
-2.47M	6.03M	-16.27M	-23.37M	85.09M	65.30M
	Net Income Common Stockholders
-59.43M	-49.66M	-72.57M	-110.13M	3.32M	-46.78M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
5.87M	2.45M	6.19M	12.06M	62.00M	49.80M
	Total Assets
147.26M	148.92M	169.38M	211.38M	276.20M	336.88M
	Total Debt
410.41M	381.64M	342.90M	309.97M	296.95M	319.97M
	Net Debt
404.54M	379.19M	336.71M	297.91M	234.96M	270.18M
	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: 1.42
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Negative

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 1.42 is above the 20-day moving average (MA) of 1.42, above the 50-day MA of 1.27, and above the 200-day MA of 1.26, indicating a bullish trend. The MACD of 0.03 indicates Positive momentum. The RSI at 77.30 is Negative, neither overbought nor oversold. The STOCH value of 100.00 is Negative, 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
Y	71 Outperform	$152.38M	6.99	40.32%	8.82%	-9.07%	-39.56%
RAY.A	64 Neutral	C$572.91M	―	-6.14%	3.55%	9.94%	-147.16%
Sector *	61 Neutral	$14.59B	5.85	-4.31%	3.69%	2.76%	-30.36%
TVA.B	54 Neutral	C$28.95M	―	-6.62%	―	-2.38%	59.61%
CJR.B	46 Neutral	$19.94M	―	175.81%	―	-14.72%	-99.07%
PNC.B	45 Neutral	C$140.63M	―	18.33%	―	0.15%	10.95%
GVC	44 Neutral	C$17.05M	―	-58.96%	―	-7.18%	75.46%