Add a New Bulls Reason

Company: Lee Enterprises (LEE)
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90%
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11 votes

  "Earnings, while declining, are high-quality"

While the earnings are declining, they do appear trustworthy. The accrual ratio measures the difference between cash-based earnings and accounting (accrual) based earnings. The closer to zero, the better. With the exception of a spike in 2005 related to the Pulitzer acquisition, Lee’s earnings quality has been high.

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100%
agree
3 votes

  Return of The Bulls--And Milwaukee Mark

While most newspaper companies have been beaten up, none are a better value than Lee Corp. Lee is a well managed company and generates a good deal of free cash. In my opinion it is hard to lose. You are paid appx 8 to 10% in dividends to wait till the market rebuilds itself.

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100%
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2 votes

  Lee is less debt-ridden than competitors but valued the same

Although its valuation multiples and price performance resemble those of the other small firms, Lee is less heavily leveraged (a mere 3:1 debt/market cap ratio compared to 4:1 at McClatchy and 12:1 at Journal Register) and generates a significantly higher free cash flow yield than those firms.

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0%
agree
1 votes

  Earnings, while declining, are high-quality

While the earnings are declining, they do appear trustworthy. The accrual ratio measures the difference between cash-based earnings and accounting (accrual) based earnings. The closer to zero, the better. With the exception of a spike in 2005 related to the Pulitzer acquisition, Lee’s earnings quality has been high.

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0%
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1 votes

  Dividends will continue

There doesn’t appear to be much near-term risk to the dividend due to its relatively small share of annual cash flows. Pension plan is under-funded by $75 million, but the annual required contributions are just a few million.

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