New York Times Company (The) Common Stock (NYT)

FairStock Score: 55/100 — STEADY

Key Financials

Strengths

• Generates $446 million in annual free cash flow (3.4% yield on market cap)
• Strong Piotroski F-Score of 8/9 indicating robust financial health across profitability, leverage, and efficiency metrics
• Solid return on equity of 17.3% above cost of capital
• Conservative balance sheet with debt-to-equity of just 0.02, providing financial flexibility
• Altman Z-Score of 10.0 confirms minimal bankruptcy risk and strong solvency

Concerns

• Trades significantly above Graham Number ($24) with negative 233% margin of safety—limited downside protection

AI Analysis

New York Times Company (The) Common Stock is a mid-cap communication services company valued at $13.1 billion. Revenue stands at $2.8 billion. From a quality standpoint, New shows near-perfect Piotroski F-Score of 8/9 indicating exceptional financial health and Altman Z-Score of 10.0 confirms fortress-level solvency. On valuation, the stock is trading at a premium 38.5x earnings, with trades far above its Graham Number ($24) with no margin of safety. Growth dynamics show revenue growing at 10.4% and profit growth of 4.9%. The 1.1% dividend yield adds an income component for patient holders. Our composite FairStock Score of 55/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $446 million in annual free cash flow (3.4% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

At 38x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer