Gannett Co., Inc. (NYSE:GCI) reported Q1 2025 revenue of $571.6 million, missing estimates.
The company’s price-to-earnings (P/E) ratio stands at 8.70, indicating a moderate market valuation.
GCI’s high debt-to-equity ratio of 8.02 suggests significant reliance on debt financing.
Gannett Co., Inc. (NYSE:GCI), a leading media holding company, disclosed its earnings before the market opened on May 1, 2025. The company reported a revenue of approximately $571.6 million for the quarter, which was below the anticipated $604.9 million, underscoring a discrepancy between expected and actual performance.
During the Q1 2025 earnings conference call, CEO Mike Reed and CFO Trisha Gosser, along with analysts such as Giuliano Bologna from Compass Point, delved into GCI’s strategic direction. Despite the shortfall in revenue, the company’s price-to-earnings (P/E) ratio of 8.70 suggests a moderate valuation of its earnings in the market.
The financial metrics of GCI paint a detailed picture of its market standing. With a price-to-sales ratio of 0.18 and an enterprise value to sales ratio of 0.64, the market seems to undervalue the company’s revenue capabilities. Furthermore, the enterprise value to operating cash flow ratio of 15.51 highlights how the market appreciates GCI’s cash-generating efficiency. However, a debt-to-equity ratio of 8.02 points to a heavy reliance on debt, which could present risks if not properly managed.
Moreover, GCI’s current ratio of 0.72 raises concerns about its short-term liquidity, juxtaposed with an earnings yield of 11.50%, offering a nuanced view on the company’s financial health and potential returns for investors.