What Are the Fundamentals Of NYT?

New York Times Company logged a 1.1% change during today's morning session, and is now trading at a price of $44.84 per share.

New York Times Company returned gains of 25.0% last year, with its stock price reaching a high of $45.33 and a low of $31.46. Over the same period, the stock outperformed the S&P 500 index by 10.0%. More recently, the company's 50-day average price was $42.14. The New York Times Company, together with its subsidiaries, provides news and information for readers and viewers across various platforms worldwide. Based in New York, NY, the mid-cap Consumer Discretionary company has 5,800 full time employees. New York Times Company has offered a 1.2% dividend yield over the last 12 months.

The Business Runs With Low Leverage Levels:

2018 2019 2020 2021 2022 2023
Revenue (MM) $1,749 $1,812 $1,784 $2,075 $2,308 $2,367
Gross Margins 11% 10% 10% 13% 11% 10%
Operating Margins 11.0% 10.0% 10.0% 14.0% 10.0% 10.0%
Net Margins 7.0% 8.0% 6.0% 11.0% 8.0% 7.0%
Net Income (MM) $127 $140 $101 $220 $174 $176
Net Interest Expense (MM) -$17 -$4 $23 $33 $41 $12
Depreciation & Amort. (MM) $59 $61 $62 $58 $83 $86
Earnings Per Share $0.75 $0.83 $0.6 $1.31 $1.04 $1.05
Diluted Shares (MM) 167 168 168 169 167 162
Free Cash Flow (MM) $80 $144 $263 $234 $114 $226
Capital Expenditures (MM) $77 $45 $34 $35 $37 $29
Net Current Assets (MM) -$261 -$198 -$144 -$71 -$278 -$197
Long Term Debt (MM) $0 $0 $0 $0 $0 $0
Net Debt / EBITDA -0.68 -0.98 -1.2 -0.92 -0.69 -0.76

New York Times Company has low leverage and growing revenues and decreasing reinvestment in the business. Additionally, the company's financial statements display decent operating margins with a stable trend and positive EPS growth. However, the firm has slimmer gross margins than its peers. Finally, we note that New York Times Company has irregular cash flows.

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

New York Times Company has a trailing twelve month P/E ratio of 36.3, compared to an average of 22.33 for the Consumer Discretionary sector. Based on its EPS guidance of $1.59, the company has a forward P/E ratio of 26.5. The company doesn't issue forward earnings guidance, and the compound average growth rate of its last 6 years of reported EPS is 5.8%. On this basis, the company's PEG ratio is 6.3, which suggests that it is overpriced. Furthermore, New York Times Company is likely overvalued compared to the book value of its equity, since its P/B ratio of 4.46 is higher than the sector average of 3.12. The company's shares are currently trading 191.4% above their Graham number.

New York Times Company Has an Average Rating of Hold:

The 7 analysts following New York Times Company have set target prices ranging from $40.0 to $53.0 per share, for an average of $46.0 with a hold rating. As of April 2023, the company is trading -8.4% away from its average target price, indicating that there is an analyst consensus of some upside potential.

New York Times Company has an average amount of shares sold short because 4.1% of the company's shares are sold short. Institutions own 92.8% of the company's shares, and the insider ownership rate stands at 1.76%, suggesting a small amount of insider investors. The largest shareholder is Farallon Capital Management Llc, whose 10% stake in the company is worth $714,282,459.

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.