The Consumer Cyclical sector includes twenty-eight industries ranging from Advertising Agencies to Apparel, Autos, Broadcasting, Department Stores, Footwear, Gambling, Leisure, Lodging, Packaging, Personal Services, Restaurants, Rubber, Plastics, & Textiles, and all such consumer aimed enterprises.
Today I'm reviewing a small-cap U.S. based publishing firm.
It's name is New Media Investment Group Inc.
It's trading ticker symbol is NEWM.
New Media Investment Group Inc owns, operates and invests in local media assets. The company focuses on two categories namely consumers and small to medium-sized businesses.
The company's principal products include 142 daily newspapers; 326 weekly newspapers; 140 shoppers; 2 yellow page directories; 70 business publications.
In digital media, the company has 569 locally-focused Websites, including Internet and mobile devices with approximately 290 million page views per month. It also owns UpCurve Cloud and ThriveHive digital marketing services.
In addition, the company produces niche publications that address specific local market interests, such as recreation, sports, healthcare, and real estate. Further, it produces approximately 250 annual events and white label event services.
It reaches approximately 22 million people per week; and serves approximately 215,000 business customers. New Media Investment Group Inc. was founded in 1997 and is based in New York, New York.
I use three key data points gauge the value of any dividend equity or fund like New Media Investment Group Inc:
(1) Price
(2) Dividends
(3) Returns
After those three, four more keys will finally unlock an equity or fund in which to invest.
No matter what, it's the first three primary traits that best tell whether a company has made, is making, and will make money.
NEWM Price
New Media's price was $18.80 per share at Yesterday's market close. Last July its price was $13.35 for a gain of $5.45 per share in the past year.
Assuming New Media's price will continue to trade in the range of $13 to $23 next year, its price could grow another $3.00 from $18.80 to $21.80 by July 10, 2019.
NEWM Dividends
New Medias most recently declared quarterly dividend was $0.37 per share paid May 16th. The $1.48 annual dividend promises a possible 7.87% yield at yesterday's $18.80 closing stock price.
Gains For NEWM?
New Media's $3.00 estimated year over year price gain plus an anticipated annual dividend of $1.48 makes a projected gross annual gain of $4.48 per share, which will be reduced by the costs to trade those shares.
A little over $1,000.00 invested today at the $18.80 price buys 53 shares.
A $10 broker fee paid half at purchase and half at sale subtracts $0.19 per share.
Taking that $0.19 brokerage cost out of the estimated $4.48 gross gain per share leaves a net gain of $4.29 X 53 shares
= $227.37
or a 23% potential net gain on a $996.40 investment.
New Media Investment Group Inc (whose ticker symbol is NEWM), now shows a possible 23% net gain including a 7.87% dividend yield.
Two analysts cover this stock their median one year target is $3.00 lower than the current market price.
Y Charts has rated NEWM "neutral" for an overall "Y" rating. Y Charts also rates the company "good" for a Value score. And YCharts has given them "average" for a Fundamental reading. A Historic Valuation score for NEWM shows as 19% over a $15.80 historic multiple by Y Charts.
You could look at all those numbers like this: New Media Investment Group has made money, is making money, and could net a 23% net gain next year including a 7.87% annual dividend yield. It could be more, it could be less.
The above speculation is conjecture based on past year performance. Actual results remain to be seen. They could turn out to be far higher or lower. More study is required for you to determine if New Media Investment Group is worth your time and money.
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