The New York Times Hits 17% EPS CAGR While Trading at 31x P/E
The New York Times trades at roughly 31x trailing P/E and holds $600 million in cash, with operating margins of 15% and a 1.1% dividend yield. Subscription-driven revenue accounts for 70% with five-year revenue and EPS growth CAGRs of 10% and 17%, and management is targeting 15 million subscribers.
1. Bullish Valuation Metrics
The New York Times trades at around 31x trailing P/E and 25x forward P/E, with trailing and forward EV/EBITDA multiples of 18x and 15x. The company holds $600 million in cash, operates at 15% margins and offers a 1.1% dividend yield.
2. Subscription-Driven Growth
Subscriptions generate roughly 70% of revenue, supported by digital news and games like Wordle and Crossword. Over the last five years, revenue grew at a 10% CAGR while EPS climbed at a 17% CAGR as management eyes 15 million subscribers.
3. Risks and Competitive Position
Heavy reliance on subscriptions poses risks from free content and digital ad pressures, with advertising at 20% of revenue. The hybrid news-and-games offering builds sticky demand, but much growth may already be reflected in current valuations.