NYT Stock -- What's In It For Investors?

Today we're going to take a closer look at mid-cap Consumer Discretionary company New York Times Company, whose shares are currently trading at $41.87. We've been asking ourselves whether the company is under or over valued at today's prices... let's perform a brief value analysis to find out!

The Market May Be Overvaluing New York Times Company's Earnings and Assets:

The New York Times Company, together with its subsidiaries, provides news and information for readers and viewers across various platforms worldwide. The company belongs to the Consumer Discretionary sector, which has an average price to earnings (P/E) ratio of 22.33 and an average price to book (P/B) ratio of 3.12. In contrast, New York Times Company has a trailing 12 month P/E ratio of 39.5 and a P/B ratio of 4.29.

New York Times Company's PEG ratio is 2.26, which shows that the stock is probably overvalued in terms of its estimated growth. For reference, a PEG ratio near or below 1 is a potential signal that a company is undervalued.

The Company Enjoys Exceptional EPS Growth:

2018-02-27 2019-02-26 2020-02-27 2021-02-25 2022-02-23 2023-02-28
Revenue (MM) $1,676 $1,749 $1,812 $1,784 $2,075 $2,308
Gross Margins 63.0% 46.0% 45.0% 46.0% 50.0% 48.0%
Operating Margins 11% 11% 10% 10% 13% 11%
Net Margins 0.0% 7.0% 8.0% 6.0% 11.0% 8.0%
Net Income (MM) $4 $126 $140 $100 $220 $174
Earnings Per Share $0.03 $0.75 $0.84 $0.6 $1.3 $1.04
EPS Growth n/a 2400.0% 12.0% -28.57% 116.67% -20.0%
Diluted Shares (MM) 164 167 168 168 169 167
Free Cash Flow (MM) $171 $235 $235 $332 $304 $188
Capital Expenditures (MM) -$85 -$77 -$45 -$34 -$35 -$37
Net Current Assets (MM) -$453 -$261 n/a n/a n/a n/a

New York Times Company has weak revenue growth and a flat capital expenditure trend, irregular cash flows, and just enough current assets to cover current liabilities. We also note that the company benefits from strong margins with a stable trend and exceptional EPS growth. However, the firm has slimmer gross margins than its peers.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.