Postmedia Network Canada Corp. () Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Transcontinental, Inc.

Postmedia Network Canada Corp.

FP Newspapers, Inc.

Why is Postmedia Network Canada Corp. ?

With a Negative Book Value, the company has a Weak Long Term Fundamental Strength

Poor long term growth as Net Sales has grown by an annual rate of -5.06% and Operating profit at -14.15% over the last 5 years
Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 0.08

The company declared negative results in Nov'24 after positive results in Aug'24

INTEREST(HY) At CAD 21.19 MM has Grown at 14.3%
DEBT-EQUITY RATIO (HY) Highest at -108.08 %

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 4.41%, its profits have risen by 46.9%

Underperformed the market in the last 1 year

The stock has generated a return of 4.41% in the last 1 year, much lower than market (S&P/TSX 60) returns of 22.54%

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Media & Entertainment)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Postmedia Network Canada Corp. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Postmedia Network Canada Corp.

-100.0%

0.11

61.94%

S&P/TSX 60

21.87%

1.54

14.62%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-1.57%

EBIT Growth (5y)

-24.08%

EBIT to Interest (avg)

0.08

Debt to EBITDA (avg)

27.67

Net Debt to Equity (avg)

-1.04

Sales to Capital Employed (avg)

-9.82

Tax Ratio

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

32.31%

ROE (avg)

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

-0.23

EV to EBIT

49.76

EV to EBITDA

19.94

EV to Capital Employed

-26.75

EV to Sales

1.14

PEG Ratio

Dividend Yield

ROCE (Latest)

Negative Capital Employed

ROE (Latest)

Negative BV

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

Bearish

Bollinger Bands

Sideways

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

No Trend

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

7What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CAD 7 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 204.97 times

NET PROFIT(9M)

Higher at CAD -20.28 MM

NET SALES(Q)

Highest at CAD 111.88 MM

-15What is not working for the Company

PRE-TAX PROFIT(Q)

At CAD -18.62 MM has Fallen at -101.18%

NET PROFIT(Q)

At CAD -18.62 MM has Fallen at -101.18%

DEBT-EQUITY RATIO (HY)

Highest at -98.37 %

RAW MATERIAL COST(Y)

Grown by 7.19% (YoY

CASH AND EQV(HY)

Lowest at CAD 8.61 MM

DEBTORS TURNOVER RATIO(HY)

Lowest at 6.89 times

INTEREST(Q)

Highest at CAD 11.46 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 4.55 %

Here's what is working for Postmedia Network Canada Corp.

Operating Cash Flow

Highest at CAD 7 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CAD MM)

Inventory Turnover Ratio

Highest at 204.97 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Net Sales

Highest at CAD 111.88 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CAD MM)

Here's what is not working for Postmedia Network Canada Corp.

Pre-Tax Profit

At CAD -18.62 MM has Fallen at -101.18%

over average net sales of the previous four periods of CAD -9.26 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CAD MM)

Net Profit

At CAD -18.62 MM has Fallen at -101.18%

over average net sales of the previous four periods of CAD -9.26 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CAD MM)

Debt-Equity Ratio

Highest at -98.37 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Interest

Highest at CAD 11.46 MM

in the last five periods and Increased by 9.03% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)

Operating Profit Margin

Lowest at 4.55 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Cash and Eqv

Lowest at CAD 8.61 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debtors Turnover Ratio

Lowest at 6.89 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 7.19% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales