New Media Investment Stock Analysis, Valuation (NYSE:NEWM)

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$16.94 $0.16 (0.95%) NEWM stock closing price Apr 25, 2018 (Closing)
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New Media Investment
Updated on : Apr 25, 2018
previous close
NEWM 16.9 (0%)
S&P 500 2639.4 (0%)
Closing Price On: Apr 25, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Publishing-Newspapers
Sector :
Consumer Staples
5 Quarter Revenue
Revenue Growth
2017-Q4
$million
%
YOY GROWTH
Compared to the industry
Operating Profit
Operating Margin:
2.6%
Sector Average:
11.9%
5 Quarter Net Profit
Net Margins
2017-Q4
%
LTM Margin
Cash Flow
Operating cash flow:
$30M
Net Income:
$26.4M
Dividend Yield
NEWM dividend yield:
8.38%
PROS      CONS
High Dividend Yield
PS Valuation
Operating Margins
Net Margins
ROIC
ROE
PE Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
NEWM PS :
0.7
Industry PS :
1.6
Sector:   Consumer Staples.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
2.4%
Return on Equity:
-0.1%
Free Cash Flow Margin:
6.6%
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NEWM Stock Analysis

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Investors can watch the Amigobulls New Media Investment stock analysis video here. Our analyst opinion covering the buy and sell arguments for NEWM stock is shown in the video.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

New Media Investment Group Inc Stock Rating 2.3/5

Amigobulls NEWM stock analysis relies on business fundamentals such as New Media Investment revenue growth, profits and return on equity measures from the latest quarter 2017 Q4 earnings. We compare New Media Investment valuation with its sector peers to gauge relative attractiveness of NEWM stock. New Media Investment stock rating encapsulates our opinion about the company based on the fundamentals.

Should you buy NEWM stock?

  • NEWM stock is trading at a favorable price to sales multiple of 0.7 as against the Publishing-Newspapers industry average multiple of 1.6.
  • New Media Investment's dividend yield of 8.38% is attractive.

Should you sell NEWM stock?

  • New Media Investment had a poor average operating margin of 2.6% over the last 4 quarters.
  • New Media Investment registered an average TTM Net loss of -0.1%.
  • Trading at a PE ratio of 30.8, NEWM stock is overvalued in comparison to industry average multiple of 22.1.
  • New Media Investment has a low ROIC (Return on Invested Capital) of 2.4%.
  • A negative ROE of -0.1% indicates that the company is not able to generate profits with the money shareholders have invested.

Comments on this video and New Media Investment stock

Amigobulls New Media Investment stock analysis helps investors in understanding how the company's fundamentals have performed in the last few quarters. Fundamental analysis of a company is the most often used approach to find the intrinsic value of a stock.

New Media Investment revenue growth is an indicator of the demand for a company's products while profit margin is indicative of company's pricing power and pricing strategy. Along with fundamentals, investors can utilize technical analysis to get a better idea about the price trend of New Media Investment stock.