New York Times (NYT) AI Stock Analysis

• Market Cap: $7.93B
• Dividend Yield: 1.07%
• Average Volume (3M): 1.91M
• Price to Earnings (P/E): 27.4
• Beta (1Y): 0.58
• Revenue Growth: 6.59%
• EPS Growth: 26.68%
• Country: US
• Employees: 5,900
• Sector: Communication Services
• Sector Strength: 79
• Industry: Publishing
• EPS (TTM): 1.77
• Shares Outstanding: 162,798,480
• 10 Day Avg. Volume: 1,908,552
• 30 Day Avg. Volume: 1,914,742
• PEG Ratio: 1.03
• Price to Book (P/B): N/A
• Price to Sales (P/S): 3.07
• Price to Cash Flow (P/CF): 13.10
• P/FCF Ratio: 11.90
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $54.20
• Price Target Upside: 11.78% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5

The New York Times demonstrates strong financial performance and a positive outlook from its earnings call, especially with growth in digital subscriptions and advertising. However, technical indicators suggest a bearish trend, and the high P/E ratio raises valuation concerns. Despite these challenges, the company's strategic focus on digital growth positions it well for the future.

Positive Factors

AI licensing agreements

Additional upside from potential AI licensing agreements position the company to deliver strong double-digit growth in Adj. Operating Profit and to return increasing amounts of capital to shareholders.

Digital subscription revenues

Digital subscription revenues still came in modestly ahead of expectations, led by ARPU growth across both Bundle and news-only subscribers.

EBITDA growth

Continued confidence in healthy +12-13% EBITDA CAGR driven by NYT's scale, pricing power, and operating leverage.

Negative Factors

Customer growth

Slowing customer growth pose a risk to NYT's premium multiple.

Subscriber penetration

Lower than expected 3Q net adds amid a very heavy election news cycle point to the risk that core US news subscriber penetration is approaching maturity.

Total addressable market (TAM)

Lower 3Q net adds in the context of a heavy news cycle increase the risk that the TAM for paid news is smaller.

New York Times Business Overview & Revenue Model

Company Description

The New York Times Company is a leading global media organization headquartered in New York City. It operates in the publishing sector, offering high-quality journalism across multiple platforms, including print, digital, and mobile. The company's core product is its flagship newspaper, The New York Times, known for its in-depth reporting, analysis, and opinion pieces on a wide range of topics, including politics, business, technology, and culture.

How the Company Makes Money

The New York Times Company generates revenue primarily through a subscription-based model and advertising. Its key revenue streams include digital and print subscriptions, which provide access to its wide array of journalistic content. Subscription revenue has become increasingly significant as digital subscriptions have grown, driven by high-quality content and an expanding global audience. In addition to subscriptions, the company earns money from advertising, both in its print editions and through digital channels, including its website and mobile applications. The New York Times also engages in licensing and syndication of its content, further diversifying its income. Significant partnerships with technology companies and integration on various digital platforms contribute to audience reach and monetization.

New York Times Financial Statement Overview

Summary

New York Times showcases commendable financial health with strong revenue and profit growth, coupled with effective cost and cash flow management. The elimination of debt significantly reduces financial risk, though the absence of key balance sheet metrics in 2024 limits a complete picture of financial stability. Overall, the company is on a positive financial trajectory, demonstrating resilience in the traditional media industry.

Income Statement

New York Times has demonstrated strong revenue growth, increasing from $2.42 billion in 2023 to $2.59 billion in 2024, reflecting a growth rate of 6.58%. The gross profit margin has improved to 49.37% in 2024, and the net profit margin is 11.36%, showing efficient cost management and profitability. EBIT and EBITDA margins are healthy at 13.57% and 18.03% respectively, indicating operational efficiency.

Balance Sheet

The balance sheet shows a strong position with zero total debt in 2024, reducing financial risk. However, the lack of reported stockholders' equity in 2024 limits the calculation of debt-to-equity ratio and return on equity, which could impact comprehensive financial assessment. The equity ratio in 2023 was 64.95%, reflecting solid equity base relative to assets.

Cash Flow

Operating cash flow has increased to $410.51 million, supporting a robust free cash flow of $381.34 million in 2024. The free cash flow growth rate of 12.82% from 2023 indicates strong cash generation capability. Operating cash flow to net income ratio of 1.40 suggests efficient conversion of earnings to cash.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
2.59B	2.43B	2.31B	2.07B	1.78B
	Gross Profit
1.28B	1.18B	1.10B	1.04B	823.42M
	EBIT
351.10M	305.98M	309.51M	268.03M	176.26M
	EBITDA
476.46M	398.95M	328.58M	358.26M	186.86M
	Net Income Common Stockholders
293.82M	232.39M	173.91M	219.97M	100.10M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
565.92M	451.57M	347.36M	661.05M	595.16M
	Total Assets
2.84B	2.71B	2.53B	2.56B	2.31B
	Total Debt
37.26M	42.91M	59.12M	63.61M	52.70M
	Net Debt
-162.19M	-246.57M	-162.26M	-256.36M	-233.38M
	Total Liabilities
914.27M	951.38M	933.78M	1.02B	979.58M
	Stockholders Equity
1.93B	1.76B	1.60B	1.54B	1.33B
Cash Flow		Free Cash Flow
381.34M	337.95M	113.73M	234.46M	263.48M
	Operating Cash Flow
410.51M	360.62M	150.69M	269.10M	297.93M
	Investing Cash Flow
-306.09M	-159.69M	-73.56M	-180.81M	-199.08M
	Financing Cash Flow
-192.72M	-132.71M	-174.31M	-54.95M	-44.97M

New York Times Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 48.49
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NYT, the sentiment is Neutral. The current price of 48.49 is above the 20-day moving average (MA) of 48.42, below the 50-day MA of 48.70, and below the 200-day MA of 52.35, indicating a neutral trend. The MACD of -0.27 indicates Negative momentum. The RSI at 50.56 is Neutral, neither overbought nor oversold. The STOCH value of 63.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for NYT.

New York Times Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PSO	71 Outperform	$9.98B	18.97	10.99%	1.96%	-0.59%	24.06%
NYT	69 Neutral	$7.93B	27.36	15.92%	1.07%	6.59%	26.68%
NWSA	65 Neutral	$15.63B	36.12	5.23%	0.76%	-1.51%	82.74%
SCHL	65 Neutral	$436.93M	27.47	1.92%	4.88%	-3.10%	-58.47%
NWS	63 Neutral	$15.63B	41.71	5.23%	0.66%	-1.51%	82.74%
Sector *	58 Neutral	$26.42B	2.90	-10.89%	4.33%	2.18%	-46.94%
GCI	44 Neutral	$393.48M	―	-11.19%	―	-5.79%	-10.12%