Gannett drops -1.4 percent in spite of significant market boost

This feature is directed to investors considering to exit their positions in Gannett. I will examine why in spite of prevalent disturbance, the overall long-run investment outlook of the entity is still stable. Is the stock valuation justified? Here I will also cover Gannett prospective on valuation to give you a better outlook on taking a position in this stock. Gannett retains regular Real Value of $9.655 per share. The prevalent price of the corporation is $7.75. At this time the corporation appears to be undervalued. Macroaxis calculates value of Gannett from evaluating the corporation fundamentals such as Return On Asset of 3.89%, Current Valuation of 1.4B and Return On Equity of 0.34% as well as inspecting its technical indicators and Probability Of Bankruptcy. In general, we encourage to acquire undervalued assets and to sell overvalued assets since at some point stocks prices and their ongoing real values will come together.
Published over a year ago
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Reviewed by Gabriel Shpitalnik

The company has 605.77M in debt with debt to equity (D/E) ratio of 58.3 . This implies that the organisation may be unable to create cash to meet all of its financial commitments. This firm dividends can provide a clue to current valuation of the stock. Gannett one year expected dividend income is about $0.32 per share. The company has Net Profit Margin of 0.12 % which implies that it may need a different competitive strategy as even a very small decline in it revenue may erase profits and result in a net loss. This is way below average. In the same way, it shows Net Operating Margin of 10.61 % which entails that for every 100 dollars of revenue it generated 0.11 of operating income.
We determine the current worth of Gannett Co using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Gannett based exclusively on its fundamental and basic technical indicators. By analyzing Gannett's financials, quarterly and monthly indicators, and related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Gannett's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Gannett. We calculate exposure to Gannett's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Gannett's related companies.

Gannett Investment Alerts

Gannett investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring Gannett Co performance across your portfolios.Please check all investment alerts for Gannett

Gannett Valuation Ratios as Compared to Competition

Our valuation model uses many indicators to compare Gannett value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Gannett competition to find correlations between indicators driving the intrinsic value of Gannett.

Gannett Gross Profit

Gannett Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Gannett previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Gannett Gross Profit growth over the last 10 years. Please check Gannett's gross profit and other fundamental indicators for more details.

Is Gannett valued properly by the market?

Gannett harnesses its working resources almost 3.89 (percent), generating $0.0389 for each dollar of working resources held by the corporation. An expanding assets utilization attests that the company is being more effective with each dollar of working resources it retains. In other words assets utilization of Gannett shows how effective it operates for each dollar spent on its working resources. The big decline in price over the last few months for Gannettmay raise some interest from investors. The Stock closed today at a share price of 7.55 on 2662242.000 in trading volume. The company management failed to add value to investors and positioning the corporation components to exploit market volatility in May. However, diversifying your holdings with Gannett or any similar stocks can still protect your portfolios during high-volatility market scenarios. The stock standard deviation of daily returns for 30 days (very short) investing horizon is currently 1.9174. The below-average Stock volatility is a good sign for a longer term investment options and for buy-and-hold investors. Gannett is trading at 7.75 which is 1.4 percent decrease. Day high is 8.34. Gannett Dividend Yield is increasing over the last 5 years. Further, Gannett Asset Turnover is nearly stable at the moment.
Cost of RevenueConsolidated Income
 2013 0.00  0.00 
 2014 0.00  0.00 
 2015 0.00  0.00 
 2018 0.00  0.00 
 2019 (projected) 0.00  0.00 
In closing, our final 'Buy vs. Hold vs. Sell' recommendation on the entity is Hold. Gannett is currently undervalued with below average probability of bankruptcy for the next two years.

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Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Gannett Co. Please refer to our Terms of Use for any information regarding our disclosure principles.

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