STA Research Assigns Postmedia Network Canada Corp.(PNC-A:TSX) with a Hold rating

STA Research Assigns Postmedia Network Canada Corp. with a Hold rating and a target price of $2 on the company’s stock.

Based on the Postmedia Network Canada Corp stock forecast from 1 analysts, the average analyst target price for Postmedia Network Canada Corp is $2.00 over the next 12 months. Postmedia Network Canada Corp’s average analyst rating is Hold . Stock Target Advisor’s own stock analysis of Postmedia Network Canada Corp is Neutral, which is based on 5 positive signals and 5 negative signals. At the last closing, Postmedia Network Canada stock price was CAD 1.84Postmedia Network Canada stock price has changed by +16.46% over the past week, +16.46% over the past month and -7.54% over the last year.

About Postmedia Network Canada Corp (PNC-A:CA:TSX)

Postmedia Network Canada Corp., through its subsidiary, Postmedia Network Inc., publishes daily and non-daily newspapers in Canada. The company is involved in news and information gathering and dissemination operations through various platforms, such as print, online, and mobile. It also operates digital media and online assets, including newspaper’s online website. The company was formerly known as Canwest Limited Partnership and changed its name to Postmedia Network Canada Corp. in July 2010. Postmedia Network Canada Corp. was founded in 2005 and is headquartered in Toronto, Canada.

What we like:

High market capitalization

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Low volatility

The stock’s annual returns have been stable and consistent compared to its sector peers(for a hold period of at least 12 months) and is in the top quartile. Although stability is good, also keep in mind it can limit returns.

Underpriced compared to earnings

The stock is trading low compared to its peers on a price to earning basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Superior capital utilization

The company management has delivered better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

What we don’t like:

Poor risk adjusted returns

This company is delivering below median risk adjusted returns in its peers. Even if it is outperforming on returns , the returns are unpredictable. Proceed with caution.

Below median dividend returns

The company’s average income yield over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.

Overpriced on cashflow basis

The stock is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Poor return on assets

The company management has delivered below median return on assets in the most recent 4 quarters compared to its peers.

Negative free cash flow

The company had negative total free cash flow in the most recent four quarters.