Let me begin with some of the eye ? catching metrics that might lead an investor to consider purchasing shares of the Journal Register Company (JRC). This newspaper company has a price ? to ? earnings ratio of 11.3, a price ? to ? sales ratio of 0.93, a 5 year average return on capital of 17.6%, and a five year average pre-tax profit margin of 27.4%.
Now, for the bad news. The Journal Register Company has an enterprise value ? to ? EBITDA ratio of 9.07 and an enterprise value ? to ? revenue ratio of 2.24. Obviously, this company is carrying a lot of debt. So, perhaps the multiples on the common stock price are deceptive.
Before I go any further, let me take a moment to point out the fact that, in the case of Journal Register, the shares you buy are literally View the rest of this article
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