USA TODAY Co. Inc. Common Stock (TDAY)
StalwartFairStock Score: 17/100 — RISKY
Key Financials
| Current Price | $7.39 |
| Market Cap | $1.1B |
| P/E Ratio | 41.06 |
| ROE | 19.91% |
| Dividend Yield | —% |
| Sector | Communication Services |
Strengths
- Generates $133 million in annual free cash flow (12.6% yield on market cap)
Concerns
- Trades significantly above Graham Number ($0) with negative 1369% margin of safety—limited downside protection
- High leverage at 7.34x debt-to-equity increases financial risk and interest expense burden
- Currently unprofitable—sustained losses could lead to dilutive capital raises or balance sheet deterioration
- Revenue declining at 5.8% year-over-year signals potential demand weakness or market share loss
AI Analysis
USA TODAY Co. Inc. Common Stock is a micro-cap communication services company valued at $1.1 billion. Revenue stands at $2.3 billion, though the company is currently unprofitable. From a quality standpoint, USA shows solid Piotroski F-Score of 6/9 and distressed Altman Z-Score of -0.1 warrants caution. On valuation, the stock is commanding a steep 726.0x multiple, with trades far above its Graham Number ($0) with no margin of safety. Growth dynamics show revenue growing at -5.8% and profit growth of -146.7%. Our composite FairStock Score of 17/100 reflects below-average fundamentals overall. Without profitability, this remains speculative—suitable only for those with high risk tolerance and a long time horizon.
Bull Case
Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $133 million in annual free cash flow (12.6% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.
Bear Case
At 726x 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