Valassis CommunicationsVCI

Morningstar Rating

Stock Research and Analysis

by Carlton Moore

There are reasons to be optimistic about Valassis Communications in the near term because of pending litigation that will likely bring a cash payout to the firm and boost the earnings potential of one of its business segments. However, we do not think Read more

Bulls Say

By cross-selling a wide range of marketing products, Valassis provides an attractive value proposition to advertisers.

Valassis has serviced an impressive list of clients, including T-Mobile, Geico, Wal-Mart WMT, and Verizon VZ.

The downfall of newspaper businesses in the U.S. can benefit Valassis. Local advertisers will look for alternatives and Valassis has a versatile product offering.

Bears Say

Valassis' retail customer base has become increasingly consolidated, and we expect that trend to continue. This could lower sales and reduce the company's bargaining leverage with its clients.

Advertising sales and newspaper circulations have declined nationwide in correlation with a weak economy, and we do not anticipate a fast turnaround. This is a head wind for Valassis' operations.

The company's large debt balance crimps its financial flexibility, and the terms of its credit agreement prevent it from paying dividends.

Strategy

Valassis strives to integrate all of its marketing channels into a multifaceted media package. The company hopes advertisers will appreciate the value of a blended platform as a method for reaching a Read more

Management

Alan F. Schultz has served as Valassis' CEO and chairman of the board since 1998. In our opinion, Valassis' corporate governance policies are satisfactory, but we think the company has room for improvement. For example, we would like to see the roles Read more

Profile

Valassis Communications is a leading marketing services company offering a wide range of marketing options to more than 15,000 advertisers. The company reaches 100 million Read more

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