Postmedia Network Canada logo

Postmedia Network Canada

PNC-B.TO
23
Publishing · Communication Services
Price
C$0.94
+0.00 (+0.00%)
Market Cap
C$92.8M
Exchange
Toronto Stock Exchange
Winston Score
23
Winston looking worried
Winston is worried
Weak fundamentals across most pillars.

Winston Score below 40. The stock fails on most of our quality checks.

Postmedia Network Canada Corp. is a Canadian media company that owns and operates a large portfolio of newspapers and news websites across Canada. Its brands include the National Post, the Vancouver Sun, the Calgary Herald, and dozens of other regional papers. It is one of the largest print and digital news publishers in Canada by number of titles.

Postmedia makes money through print and digital advertising, paid subscriptions, and content licensing. The company operates almost entirely within Canada and reaches millions of readers each month across its network of properties. Its large audience and recognizable regional brands give it some staying power, but the business faces a structural challenge: print advertising revenue has been declining for years across the industry, and the company carries significant debt. The key question for Postmedia is whether growth in digital subscriptions and advertising can offset the ongoing erosion of its traditional print business fast enough to remain financially stable.

Winston Score History

Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-0.8% YoY

YoY Growth Rate

Revenue declining

EPS Growth

+121.9% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

$0/ year

0.0% of revenue

Below sector average (12%)

Research and development spending

Insider Activity

13.3%ownership

Insiders own a meaningful stake in the company

Cash Position

Cash flow positive

$5M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Winston looking concerned
Revenue declining

Postmedia Network Canada's revenue is actually shrinking. In a growth stock, that removes the core investment thesis. The low Winston Score here may be warranted — unless there's a turnaround story.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

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Quality

Gross Margin
21.7%
Thin — 21.7% gross margin
Operating Margin
6.4%
Modest — 6.4% operating margin
ROCE
N/A
Data not available

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Growth

Sales YoY
+6.9%
Slow sales growth (6.9% YoY)
EPS YoY
N/A
Data not available
EPS Consistency
4/8 quarters
Earnings inconsistent quarter-to-quarter

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Cash Flow

Cash Conversion
N/A
Data not available
FCF Margin
2.0%
Thin free cash flow (2.0%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

Debt / Equity
N/A
Data not available
Interest Cover
0.41x
Dangerous — barely covers interest (0.4x)

Interest coverage below 1. Their profits don't cover the interest bill.

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Valuation

P/E Ratio
N/M
Negative earnings — P/E not meaningful
P/E vs Forward
N/A
not available
Data not available

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Dividends

Not applicable for this business.
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