New York Times Co (NYSE: NYT)

Sector: Communication Services Industry: Publishing CIK: 0000071691
Market Cap 10.36 Bn
P/B 21.18
P/E -238.81
P/S 4.11
ROIC (Qtr) 16.09
Div Yield % 0.32
Rev 1y % (Qtr) 9.47
Total Debt (Qtr) 0.00
Debt/Equity (Qtr) 0.00
Add ratio to table...

About

The New York Times Company (NYT) is a global media organization that operates in the news and information industry. The company, which was incorporated in 1896 and is headquartered in New York City, is a leading provider of news, information, and entertainment to a global audience. Its portfolio of brands includes The New York Times, The Athletic, Cooking, Games, Wirecutter, and more. NYT's main business activities include distributing content through its digital and print platforms. The company offers a bundle of interconnected digital products,...

Read more

Investment thesis

Bull case

  • Robust free cash flow of 536.52M exceeds capital expenditure of 35.51M by 15.11x, indicating strong organic growth funding capability.
  • Tangible assets of 2.24B provide exceptional 11.32x coverage of deferred revenue 197.94M, showing strong service capability backing.
  • Operating cash flow of 572.03M provides solid 0.93x coverage of current liabilities 615.49M, showing strong operational health.
  • Long-term investments of 479.43M provide solid 1.49x backing of working capital 322.81M, showing strategic capital allocation.
  • Operating cash flow of 572.03M fully covers other non-current liabilities 93.44M by 6.12x, showing strong long-term stability.

Bear case

  • Operating cash flow of 572.03M barely covers its investment activities of (257.74M), with a coverage ratio of -2.22, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (257.74M) provide weak support for R&D spending of 259.23M, which is -0.99x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of 572.03M provides thin coverage of dividend payments of (102.43M) with a -5.58 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Long-term investments of 479.43M represent a high 1.02x of fixed assets 471M, indicating potential overexposure to financial assets versus operational capabilities.
  • Short-term investments of 368.01M represent 1.14x of working capital 322.81M, suggesting potentially excessive financial asset allocation versus operational needs.

Segments Breakdown of Revenue (2024)

Segments Breakdown of Revenue (2024)

Peer comparison

Companies in the Publishing
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 NYT New York Times Co 10.36 Bn -238.81 4.11 0.00 Mn
2 PSO Pearson Plc 8.41 Bn 13.92 1.74 -
3 WLY John Wiley & Sons, Inc. 1.73 Bn 13.05 1.06 964.63 Mn
4 SCHL Scholastic Corp 1.25 Bn 28.48 0.67 400.90 Mn
5 LEE LEE ENTERPRISES, Inc 0.04 Bn -1.63 0.08 479.84 Mn
6 EDUC Educational Development Corp 0.01 Bn 2.94 0.47 6.95 Mn
7 TNMG TNL Mediagene 0.00 Bn -0.04 0.07 -

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 3.93 1.30
EV to Cash from Ops. EV/CFO 47.23 24.67
EV to Debt EV to Debt 0.00 2.97
EV to EBIT EV/EBIT 892.37 149.23
EV to EBITDA EV/EBITDA 72.79 17.29
EV to Free Cash Flow [EV/FCF] EV/FCF 59.94 24.30
EV to Market Cap EV to Market Cap 1.09 3.67
EV to Revenue EV/Rev 4.49 1.80
Price to Book Value [P/B] P/B 21.18 3.94
Price to Earnings [P/E] P/E -238.81 -26.01
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 3.30 1.18
Dividend Payout Ratio % Div Payout % (Qtr) 30.00 -34.74
Dividend per Basic Share Div per Share (Qtr) 0.67 0.46
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 20.36 26.60
Interest Coverage Int. cover (Qtr) -10.68 -0.64
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -30.33 954.28
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 21.85 8.48
Dividend Growth (1y) % Div 1y % (Qtr) 34.00 5.68
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 21.65 1,653.65
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 19.99 -147.25
EBIT Growth (1y) % EBIT 1y % (Qtr) 20.56 119.12
EBT Growth (1y) % EBT 1y % (Qtr) 19.60 79.49
EPS Growth (1y) % EPS 1y % (Qtr) 21.05 81.09
FCF Growth (1y) % FCF 1y % (Qtr) 45.76 652.20
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 11.73 -5.44
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.95 0.73
Cash Payout Ratio Cash Payout (Qtr) 0.17 0.11
Cash Ratio Cash Ratio (Qtr) 0.41 0.23
Current Ratio Curr Ratio (Qtr) 1.52 1.53
Debt to Equity Ratio Debt/Equity (Qtr) 0.00 -1.00
Interest Cover Ratio Int Coverage (Qtr) -10.68 -0.64
Times Interest Earned Times Interest Earned (Qtr) -10.68 -0.64
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 18.10 -3.80
EBIT Margin % EBIT Margin % (Qtr) 14.61 -11.37
EBT Margin % EBT Margin % (Qtr) 15.98 -16.08
Gross Margin % Gross Margin % (Qtr) 50.50 55.09
Net Profit Margin % Net Margin % (Qtr) 12.30 -17.99