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GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 7/10

vs
industry
vs
history
Cash to Debt 0.03
GCI's Cash to Debt is ranked higher than
100% of the 185 Companies
in the Global Publishing industry.

( Industry Median: 1.22 vs. GCI: 0.03 )
Ranked among companies with meaningful Cash to Debt only.
GCI' s 10-Year Cash to Debt Range
Min: 0.01  Med: 0.03 Max: 0.61
Current: 0.03
0.01
0.61
Equity to Asset 0.30
GCI's Equity to Asset is ranked higher than
100% of the 167 Companies
in the Global Publishing industry.

( Industry Median: 0.51 vs. GCI: 0.30 )
Ranked among companies with meaningful Equity to Asset only.
GCI' s 10-Year Equity to Asset Range
Min: 0.14  Med: 0.48 Max: 0.62
Current: 0.3
0.14
0.62
Interest Coverage 3.87
GCI's Interest Coverage is ranked higher than
100% of the 112 Companies
in the Global Publishing industry.

( Industry Median: 141.94 vs. GCI: 3.87 )
Ranked among companies with meaningful Interest Coverage only.
GCI' s 10-Year Interest Coverage Range
Min: 3.87  Med: 7.86 Max: 17.45
Current: 3.87
3.87
17.45
F-Score: 6
Z-Score: 2.86
M-Score: -2.59
WACC vs ROIC
11.66%
13.11%
WACC
ROIC
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 7/10

vs
industry
vs
history
Operating margin (%) 17.85
GCI's Operating margin (%) is ranked higher than
100% of the 182 Companies
in the Global Publishing industry.

( Industry Median: 6.34 vs. GCI: 17.85 )
Ranked among companies with meaningful Operating margin (%) only.
GCI' s 10-Year Operating margin (%) Range
Min: -101.33  Med: 24.20 Max: 30.67
Current: 17.85
-101.33
30.67
Net-margin (%) 18.36
GCI's Net-margin (%) is ranked higher than
100% of the 182 Companies
in the Global Publishing industry.

( Industry Median: 4.55 vs. GCI: 18.36 )
Ranked among companies with meaningful Net-margin (%) only.
GCI' s 10-Year Net-margin (%) Range
Min: -100.12  Med: 15.36 Max: 27.63
Current: 18.36
-100.12
27.63
ROE (%) 37.06
GCI's ROE (%) is ranked higher than
100% of the 180 Companies
in the Global Publishing industry.

( Industry Median: 5.14 vs. GCI: 37.06 )
Ranked among companies with meaningful ROE (%) only.
GCI' s 10-Year ROE (%) Range
Min: -131.99  Med: 18.35 Max: 37.16
Current: 37.06
-131.99
37.16
ROA (%) 11.10
GCI's ROA (%) is ranked higher than
100% of the 187 Companies
in the Global Publishing industry.

( Industry Median: 2.93 vs. GCI: 11.10 )
Ranked among companies with meaningful ROA (%) only.
GCI' s 10-Year ROA (%) Range
Min: -56.13  Med: 8.42 Max: 15.64
Current: 11.1
-56.13
15.64
ROC (Joel Greenblatt) (%) 97.26
GCI's ROC (Joel Greenblatt) (%) is ranked higher than
100% of the 181 Companies
in the Global Publishing industry.

( Industry Median: 16.88 vs. GCI: 97.26 )
Ranked among companies with meaningful ROC (Joel Greenblatt) (%) only.
GCI' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: -275.21  Med: 64.64 Max: 151.58
Current: 97.26
-275.21
151.58
Revenue Growth (3Y)(%) 6.30
GCI's Revenue Growth (3Y)(%) is ranked higher than
100% of the 155 Companies
in the Global Publishing industry.

( Industry Median: -1.90 vs. GCI: 6.30 )
Ranked among companies with meaningful Revenue Growth (3Y)(%) only.
GCI' s 10-Year Revenue Growth (3Y)(%) Range
Min: -11  Med: 4.80 Max: 13.9
Current: 6.3
-11
13.9
EBITDA Growth (3Y)(%) 24.60
GCI's EBITDA Growth (3Y)(%) is ranked higher than
100% of the 122 Companies
in the Global Publishing industry.

( Industry Median: -4.70 vs. GCI: 24.60 )
Ranked among companies with meaningful EBITDA Growth (3Y)(%) only.
GCI' s 10-Year EBITDA Growth (3Y)(%) Range
Min: -23.8  Med: 3.30 Max: 27.4
Current: 24.6
-23.8
27.4
EPS Growth (3Y)(%) 34.30
GCI's EPS Growth (3Y)(%) is ranked higher than
100% of the 114 Companies
in the Global Publishing industry.

( Industry Median: -1.60 vs. GCI: 34.30 )
Ranked among companies with meaningful EPS Growth (3Y)(%) only.
GCI' s 10-Year EPS Growth (3Y)(%) Range
Min: -32.3  Med: 6.30 Max: 34.3
Current: 34.3
-32.3
34.3
» GCI's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q2 2014

GCI Guru Trades in Q2 2014

Jana Partners 200,000 sh (New)
Carl Icahn 2,734,888 sh (New)
Manning & Napier Advisors, Inc 53,970 sh (New)
Pioneer Investments 446,279 sh (+721.95%)
David Dreman 3,181 sh (+44.85%)
Diamond Hill Capital 4,923,010 sh (+9.87%)
John Keeley 16,550 sh (+2.48%)
John Hussman Sold Out
John Rogers 6,734,763 sh (-1.91%)
Jim Simons 1,090,500 sh (-27.85%)
Joel Greenblatt 30,668 sh (-63.38%)
Mario Gabelli 20,040 sh (-63.65%)
Jeremy Grantham 23,600 sh (-69.45%)
» More
Q3 2014

GCI Guru Trades in Q3 2014

Paul Tudor Jones 7,021 sh (New)
Manning & Napier Advisors, Inc 5,067,940 sh (+9290.29%)
Carl Icahn 14,967,373 sh (+447.28%)
Joel Greenblatt 112,059 sh (+265.39%)
Diamond Hill Capital 5,055,569 sh (+2.69%)
Mario Gabelli 20,040 sh (unchged)
Pioneer Investments 1,032,874 sh (unchged)
John Keeley 16,550 sh (unchged)
Carl Icahn 14,967,373 sh (unchged)
David Dreman Sold Out
Jana Partners Sold Out
Jeremy Grantham Sold Out
Jim Simons 1,076,700 sh (-1.27%)
John Rogers 6,068,818 sh (-9.89%)
» More
Q4 2014

GCI Guru Trades in Q4 2014

David Dreman 4,645 sh (New)
Steven Cohen 325,900 sh (New)
Manning & Napier Advisors, Inc 9,249,112 sh (+82.50%)
Joel Greenblatt 193,230 sh (+72.44%)
Paul Tudor Jones 9,970 sh (+42.00%)
Diamond Hill Capital 5,474,615 sh (+8.29%)
Mario Gabelli 20,040 sh (unchged)
Carl Icahn 14,967,373 sh (unchged)
Pioneer Investments 1,031,388 sh (-0.14%)
John Rogers 5,952,133 sh (-1.92%)
John Keeley 16,050 sh (-3.02%)
Jim Simons 565,300 sh (-47.50%)
» More
Q1 2015

GCI Guru Trades in Q1 2015

Murray Stahl 50,200 sh (New)
Joel Greenblatt 383,406 sh (+98.42%)
David Dreman 8,304 sh (+78.77%)
Pioneer Investments 1,315,854 sh (+27.58%)
John Keeley 16,750 sh (+4.36%)
Carl Icahn 14,967,373 sh (unchged)
Mario Gabelli 20,040 sh (unchged)
Paul Tudor Jones Sold Out
Steven Cohen Sold Out
Carl Icahn Sold Out
Diamond Hill Capital 5,280,280 sh (-3.55%)
John Rogers 5,364,072 sh (-9.88%)
Jim Simons 437,100 sh (-22.68%)
Manning & Napier Advisors, Inc 6,161,759 sh (-33.38%)
» More
» Details

Insider Trades

Latest Guru Trades with GCI

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Guru Investment Theses on Gannett Co Inc

John Rogers Comments on Gannett Co. - Nov 05, 2013

In contrast to our financial names, one of our best performers during the quarter was a name many challenged in the not-so-distant past. As many know, although our media names fall squarely within our circle of competence as evidenced by our deep expertise in the industry, they represented some of our poorest performing and most controversial holdings during the worst of the financial crisis. During that tough period, we re-examined every position with a fresh perspective that required us to consider each stock from a lens of having never owned it. In the case of Gannett Co., Inc. (GCI), despite its underperformance, we still saw tremendous value and, true to our contrarian leanings, doubled and tripled down on the holding as the price became more and more attractive—making the stock one of our largest positions. It is important to note, after taking some lumps, we eliminated other media names whose brands and franchises did not appear to be nearly as compelling over the long-term.

On June 13th, Gannett agreed to acquire Belo Corporation (BLC) and its 20 television stations that reach more than 14 percent of U.S. television households in a $2.2 billion transaction. The New York Times dubbed it, "…the biggest local television station sale in more than a decade."2 The acquisition will nearly double Gannett's broadcast properties (from 23 to 43) and create the fourth-largest owner of major network affiliates reaching nearly one-third of all U.S. television households. Gannett will have 21 stations in the top 25 markets and will become the second largest owner of network-affiliated television stations. While normally skeptical and wary of acquisitions, we immediately saw the value of this transaction and future possibilities for Gannett Investors also applauded the deal as evidenced by the fact that Gannett's stock closed +34% higher on the day of the announcement while Belo shares increased +28%. The reason being, Belo will not only accelerate Gannett's transformation into a diversified media company with higher profitability and returns—it will also give Gannett more leverage when negotiating the valuable retransmission fees local television stations receive from cable and satellite operators in exchange for the right to carry those stations on their systems. Size matters when seeking higher retransmission fees with cable and satellite distributors and also when bargaining with the broadcast networks for their cut of that revenue. Retransmission revenues create a dual revenue stream for Gannett, similar to cable networks, while reducing cyclicality from what has historically been an advertising-only business model. And whereas advertising can be hard to forecast, contractual agreements make retransmission revenues predictable and sticky. Moreover, we anticipate a meaningful increase in these revenues once broadcast network compensation becomes more aligned with their ratings.

Despite primetime viewership declines, television still remains the most effective mass advertising platform precisely because it reaches so many people at once. In fact, broadcast television’s significantly larger primetime ratings and greater household coverage give it a distinct advantage over cable. Even though the number of adults under 24 who regularly watch television has declined, adults 65 and older continue to watch. Bernstein Research estimates that adults 65 and over watch 8 hours of television a day, twice as much as adults aged 18-24.

While acknowledging the inherent structural issues in print media, we welcome Gannett’s multimedia diversification through strategic investments and acquisitions. In publishing, Gannett is succeeding in converting its customers from print to a digital platform with an all-access content subscription model that has been a significant driver of recent revenue stability. It is worth noting that the company’s digital platforms attract 54.6 million unique users each month. Meanwhile, broadcast trends remain encouraging. Strong local advertising—specifically from auto dealers, increasing political campaign expenditures and accelerating retransmission revenues—have propelled the company’s strong operating performance. Finally, CareerBuilder’s future looks promising (Gannett owns 52.9%) as labor markets improve and it continues to gain market share from competitors. Gannett CEO Gracia Martore has also proven to be a visionary leader, patient investor and strong capital allocator. To the latter point, she aggressively strengthened the balance sheet by substantially reducing debt before allocating capital to share buybacks, dividends and strategic acquisitions.

Even though we still like small town community newspapers—last week, Warren Buffett purchased his 30th community paper since November 2011—we think Gannett’s real value lies in its ongoing evolution. Given the stock’s recent performance, Wall Street seems to agree.

From John Rogers' Ariel Fund and Ariel Appreciate Fund portfolio manager letter third quarter 2013.

Check out John Rogers latest stock trades

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Ratios

vs
industry
vs
history
P/E(ttm) 6.03
GCI's P/E(ttm) is ranked higher than
100% of the 137 Companies
in the Global Publishing industry.

( Industry Median: 17.60 vs. GCI: 6.03 )
Ranked among companies with meaningful P/E(ttm) only.
GCI' s 10-Year P/E(ttm) Range
Min: 4.29  Med: 10.75 Max: 19.84
Current: 6.03
4.29
19.84
Forward P/E 16.08
GCI's Forward P/E is ranked higher than
100% of the 62 Companies
in the Global Publishing industry.

( Industry Median: 14.68 vs. GCI: 16.08 )
Ranked among companies with meaningful Forward P/E only.
N/A
PE(NRI) 7.70
GCI's PE(NRI) is ranked higher than
100% of the 137 Companies
in the Global Publishing industry.

( Industry Median: 17.90 vs. GCI: 7.70 )
Ranked among companies with meaningful PE(NRI) only.
GCI' s 10-Year PE(NRI) Range
Min: 4.29  Med: 10.91 Max: 19.84
Current: 7.7
4.29
19.84
P/B 2.02
GCI's P/B is ranked higher than
100% of the 177 Companies
in the Global Publishing industry.

( Industry Median: 1.32 vs. GCI: 2.02 )
Ranked among companies with meaningful P/B only.
GCI' s 10-Year P/B Range
Min: 0.22  Med: 1.69 Max: 2.79
Current: 2.02
0.22
2.79
P/S 0.42
GCI's P/S is ranked higher than
100% of the 183 Companies
in the Global Publishing industry.

( Industry Median: 0.90 vs. GCI: 0.42 )
Ranked among companies with meaningful P/S only.
GCI' s 10-Year P/S Range
Min: 0.08  Med: 1.07 Max: 3.28
Current: 0.42
0.08
3.28
PFCF 10.33
GCI's PFCF is ranked higher than
100% of the 99 Companies
in the Global Publishing industry.

( Industry Median: 15.80 vs. GCI: 10.33 )
Ranked among companies with meaningful PFCF only.
GCI' s 10-Year PFCF Range
Min: 0.7  Med: 8.76 Max: 18.46
Current: 10.33
0.7
18.46
POCF 8.38
GCI's POCF is ranked higher than
100% of the 123 Companies
in the Global Publishing industry.

( Industry Median: 12.14 vs. GCI: 8.38 )
Ranked among companies with meaningful POCF only.
GCI' s 10-Year POCF Range
Min: 0.57  Med: 7.67 Max: 14.89
Current: 8.38
0.57
14.89
EV-to-EBIT 7.44
GCI's EV-to-EBIT is ranked higher than
100% of the 140 Companies
in the Global Publishing industry.

( Industry Median: 12.68 vs. GCI: 7.44 )
Ranked among companies with meaningful EV-to-EBIT only.
GCI' s 10-Year EV-to-EBIT Range
Min: -10.1  Med: 8.70 Max: 14
Current: 7.44
-10.1
14
PEG 1.00
GCI's PEG is ranked higher than
100% of the 45 Companies
in the Global Publishing industry.

( Industry Median: 1.23 vs. GCI: 1.00 )
Ranked among companies with meaningful PEG only.
GCI' s 10-Year PEG Range
Min: 1.23  Med: 2.38 Max: 12.64
Current: 1
1.23
12.64
Shiller P/E 12.01
GCI's Shiller P/E is ranked higher than
100% of the 97 Companies
in the Global Publishing industry.

( Industry Median: 16.48 vs. GCI: 12.01 )
Ranked among companies with meaningful Shiller P/E only.
GCI' s 10-Year Shiller P/E Range
Min: 1.9  Med: 12.20 Max: 18.7
Current: 12.01
1.9
18.7
Current Ratio 1.30
GCI's Current Ratio is ranked higher than
100% of the 169 Companies
in the Global Publishing industry.

( Industry Median: 1.41 vs. GCI: 1.30 )
Ranked among companies with meaningful Current Ratio only.
GCI' s 10-Year Current Ratio Range
Min: 0.68  Med: 1.18 Max: 2.18
Current: 1.3
0.68
2.18
Quick Ratio 1.26
GCI's Quick Ratio is ranked higher than
100% of the 169 Companies
in the Global Publishing industry.

( Industry Median: 1.17 vs. GCI: 1.26 )
Ranked among companies with meaningful Quick Ratio only.
GCI' s 10-Year Quick Ratio Range
Min: 0.62  Med: 1.09 Max: 2.13
Current: 1.26
0.62
2.13
Days Inventory 6.11
GCI's Days Inventory is ranked higher than
100% of the 163 Companies
in the Global Publishing industry.

( Industry Median: 37.62 vs. GCI: 6.11 )
Ranked among companies with meaningful Days Inventory only.
GCI' s 10-Year Days Inventory Range
Min: 5.32  Med: 10.87 Max: 14.53
Current: 6.11
5.32
14.53
Days Sales Outstanding 49.95
GCI's Days Sales Outstanding is ranked higher than
100% of the 145 Companies
in the Global Publishing industry.

( Industry Median: 69.25 vs. GCI: 49.95 )
Ranked among companies with meaningful Days Sales Outstanding only.
GCI' s 10-Year Days Sales Outstanding Range
Min: 46.29  Med: 49.56 Max: 63.14
Current: 49.95
46.29
63.14

Valuation & Return

vs
industry
vs
history
Price/Projected FCF 0.82
GCI's Price/Projected FCF is ranked higher than
100% of the 112 Companies
in the Global Publishing industry.

( Industry Median: 0.99 vs. GCI: 0.82 )
Ranked among companies with meaningful Price/Projected FCF only.
GCI' s 10-Year Price/Projected FCF Range
Min: 0.04  Med: 0.80 Max: 2.29
Current: 0.82
0.04
2.29
Price/Median PS Value 1.14
GCI's Price/Median PS Value is ranked higher than
100% of the 174 Companies
in the Global Publishing industry.

( Industry Median: 1.04 vs. GCI: 1.14 )
Ranked among companies with meaningful Price/Median PS Value only.
GCI' s 10-Year Price/Median PS Value Range
Min: 0.07  Med: 1.93 Max: 4.33
Current: 1.14
0.07
4.33
Price/Peter Lynch Fair Value 1.15
GCI's Price/Peter Lynch Fair Value is ranked higher than
100% of the 30 Companies
in the Global Publishing industry.

( Industry Median: 1.30 vs. GCI: 1.15 )
Ranked among companies with meaningful Price/Peter Lynch Fair Value only.
GCI' s 10-Year Price/Peter Lynch Fair Value Range
Min: 0.96  Med: 1.63 Max: 3.68
Current: 1.15
0.96
3.68
Earnings Yield (Greenblatt) (%) 14.29
GCI's Earnings Yield (Greenblatt) (%) is ranked higher than
100% of the 180 Companies
in the Global Publishing industry.

( Industry Median: 5.70 vs. GCI: 14.29 )
Ranked among companies with meaningful Earnings Yield (Greenblatt) (%) only.
GCI' s 10-Year Earnings Yield (Greenblatt) (%) Range
Min: 7.1  Med: 10.70 Max: 22.4
Current: 14.29
7.1
22.4
Forward Rate of Return (Yacktman) (%) 12.68
GCI's Forward Rate of Return (Yacktman) (%) is ranked higher than
100% of the 101 Companies
in the Global Publishing industry.

( Industry Median: 7.18 vs. GCI: 12.68 )
Ranked among companies with meaningful Forward Rate of Return (Yacktman) (%) only.
GCI' s 10-Year Forward Rate of Return (Yacktman) (%) Range
Min: -2.4  Med: 14.40 Max: 217.4
Current: 12.68
-2.4
217.4

Business Description

Industry: Publishing » Publishing
Compare: » details
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