QUAD GRAPHICS INC (QUAD) Stock Fundamental Analysis
NYSE:QUAD - New York Stock Exchange, Inc. - US7473011093 - Common Stock - Currency: USD
Taking everything into account, QUAD scores 4 out of 10 in our fundamental rating. QUAD was compared to 83 industry peers in the Commercial Services & Supplies industry. There are concerns on the financial health of QUAD while its profitability can be described as average. QUAD is cheap, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
QUAD had positive earnings in the past year.
QUAD had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: QUAD reported negative net income in multiple years.
In the past 5 years QUAD always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of -3.92%, QUAD is doing worse than 63.86% of the companies in the same industry.
QUAD's Return On Equity of -102.00% is on the low side compared to the rest of the industry. QUAD is outperformed by 81.93% of its industry peers.
Looking at the Return On Invested Capital, with a value of 15.88%, QUAD belongs to the top of the industry, outperforming 89.16% of the companies in the same industry.
QUAD had an Average Return On Invested Capital over the past 3 years of 11.93%. This is in line with the industry average of 10.74%.
The 3 year average ROIC (11.93%) for QUAD is below the current ROIC(15.88%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.92% | ||
| ROE | -102% | ||
| ROIC | 15.88% |
ROA(3y)-2.35%
ROA(5y)-2.34%
ROE(3y)-47.66%
ROE(5y)-53.58%
ROIC(3y)11.93%
ROIC(5y)9.63%
1.3 Margins
With a Operating Margin value of 4.52%, QUAD perfoms like the industry average, outperforming 45.78% of the companies in the same industry.
In the last couple of years the Operating Margin of QUAD has grown nicely.
QUAD has a Gross Margin of 21.70%. This is in the lower half of the industry: QUAD underperforms 69.88% of its industry peers.
QUAD's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.52% | ||
| PM (TTM) | N/A | ||
| GM | 21.71% |
OM growth 3Y15.32%
OM growth 5Y7.39%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y4.04%
GM growth 5Y3.09%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), QUAD is creating some value.
Compared to 1 year ago, QUAD has more shares outstanding
QUAD has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, QUAD has an improved debt to assets ratio.
2.2 Solvency
QUAD has an Altman-Z score of 1.65. This is a bad value and indicates that QUAD is not financially healthy and even has some risk of bankruptcy.
QUAD has a Altman-Z score of 1.65. This is comparable to the rest of the industry: QUAD outperforms 40.96% of its industry peers.
QUAD has a debt to FCF ratio of 6.81. This is a slightly negative value and a sign of low solvency as QUAD would need 6.81 years to pay back of all of its debts.
QUAD has a Debt to FCF ratio of 6.81. This is in the better half of the industry: QUAD outperforms 61.45% of its industry peers.
QUAD has a Debt/Equity ratio of 7.02. This is a high value indicating a heavy dependency on external financing.
QUAD has a Debt to Equity ratio of 7.02. This is amonst the worse of the industry: QUAD underperforms 87.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.02 | ||
| Debt/FCF | 6.81 | ||
| Altman-Z | 1.65 |
ROIC/WACC1.51
WACC10.53%
2.3 Liquidity
QUAD has a Current Ratio of 0.76. This is a bad value and indicates that QUAD is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of QUAD (0.76) is worse than 83.13% of its industry peers.
A Quick Ratio of 0.53 indicates that QUAD may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.53, QUAD is doing worse than 91.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.53 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 64.71% over the past year.
Measured over the past years, QUAD shows a very strong growth in Earnings Per Share. The EPS has been growing by 28.47% on average per year.
QUAD shows a decrease in Revenue. In the last year, the revenue decreased by -9.65%.
QUAD shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -7.39% yearly.
EPS 1Y (TTM)64.71%
EPS 3YN/A
EPS 5Y28.47%
EPS Q2Q%56.52%
Revenue 1Y (TTM)-9.65%
Revenue growth 3Y-3.36%
Revenue growth 5Y-7.39%
Sales Q2Q%-10.09%
3.2 Future
QUAD is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.97% yearly.
QUAD is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -6.30% yearly.
EPS Next Y0.79%
EPS Next 2Y7.97%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-9.73%
Revenue Next 2Y-6.3%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 6.11 indicates a rather cheap valuation of QUAD.
92.77% of the companies in the same industry are more expensive than QUAD, based on the Price/Earnings ratio.
QUAD's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.33.
A Price/Forward Earnings ratio of 6.06 indicates a rather cheap valuation of QUAD.
Compared to the rest of the industry, the Price/Forward Earnings ratio of QUAD indicates a rather cheap valuation: QUAD is cheaper than 96.39% of the companies listed in the same industry.
QUAD's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.11 | ||
| Fwd PE | 6.06 |
4.2 Price Multiples
QUAD's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. QUAD is cheaper than 95.18% of the companies in the same industry.
95.18% of the companies in the same industry are more expensive than QUAD, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.64 | ||
| EV/EBITDA | 2.73 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates QUAD does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)7.77
PEG (5Y)0.21
EPS Next 2Y7.97%
EPS Next 3YN/A
5. Dividend
5.1 Amount
QUAD has a Yearly Dividend Yield of 4.34%, which is a nice return.
The stock price of QUAD dropped by -24.08% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
QUAD's Dividend Yield is rather good when compared to the industry average which is at 2.57. QUAD pays more dividend than 90.36% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.51, QUAD pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.34% |
5.2 History
The dividend of QUAD decreases each year by -30.13%.
QUAD has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-30.13%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
QUAD has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-18.47%
EPS Next 2Y7.97%
EPS Next 3YN/A
5.13
-0.04 (-0.77%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners54.58%
Inst Owner Change0.3%
Ins Owners14.33%
Ins Owner Change0.36%
Market Cap258.35M
Analysts85
Price Target10.35 (101.75%)
Short Float %4.65%
Short Ratio4.81
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.34% |
Yearly Dividend0.18
Dividend Growth(5Y)-30.13%
DP-18.47%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.07%
Min EPS beat(2)-8.33%
Max EPS beat(2)8.47%
EPS beat(4)3
Avg EPS beat(4)107.19%
Min EPS beat(4)-8.33%
Max EPS beat(4)390.2%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-2.32%
Min Revenue beat(2)-4.43%
Max Revenue beat(2)-0.21%
Revenue beat(4)0
Avg Revenue beat(4)-2.97%
Min Revenue beat(4)-6.26%
Max Revenue beat(4)-0.21%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-66%
EPS NY rev (1m)-28.14%
EPS NY rev (3m)-28.14%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.5%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.11 | ||
| Fwd PE | 6.06 | ||
| P/S | 0.1 | ||
| P/FCF | 4.64 | ||
| P/OCF | 2.29 | ||
| P/B | 5.18 | ||
| P/tB | N/A | ||
| EV/EBITDA | 2.73 |
EPS(TTM)0.84
EY16.37%
EPS(NY)0.85
Fwd EY16.5%
FCF(TTM)1.11
FCFY21.56%
OCF(TTM)2.24
OCFY43.7%
SpS53.06
BVpS0.99
TBVpS-1.14
PEG (NY)7.77
PEG (5Y)0.21
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.92% | ||
| ROE | -102% | ||
| ROCE | 20.11% | ||
| ROIC | 15.88% | ||
| ROICexc | 16.7% | ||
| ROICexgc | 20.57% | ||
| OM | 4.52% | ||
| PM (TTM) | N/A | ||
| GM | 21.71% | ||
| FCFM | 2.08% |
ROA(3y)-2.35%
ROA(5y)-2.34%
ROE(3y)-47.66%
ROE(5y)-53.58%
ROIC(3y)11.93%
ROIC(5y)9.63%
ROICexc(3y)12.58%
ROICexc(5y)10.42%
ROICexgc(3y)15.34%
ROICexgc(5y)12.79%
ROCE(3y)15.1%
ROCE(5y)12.19%
ROICexcg growth 3Y20.86%
ROICexcg growth 5Y21.93%
ROICexc growth 3Y22.21%
ROICexc growth 5Y21.03%
OM growth 3Y15.32%
OM growth 5Y7.39%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y4.04%
GM growth 5Y3.09%
F-Score5
Asset Turnover2.06
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.02 | ||
| Debt/FCF | 6.81 | ||
| Debt/EBITDA | 1.57 | ||
| Cap/Depr | 55.8% | ||
| Cap/Sales | 2.14% | ||
| Interest Coverage | 2.28 | ||
| Cash Conversion | 50.58% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.53 | ||
| Altman-Z | 1.65 |
F-Score5
WACC10.53%
ROIC/WACC1.51
Cap/Depr(3y)51.15%
Cap/Depr(5y)43.77%
Cap/Sales(3y)2.14%
Cap/Sales(5y)2.04%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)64.71%
EPS 3YN/A
EPS 5Y28.47%
EPS Q2Q%56.52%
EPS Next Y0.79%
EPS Next 2Y7.97%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-9.65%
Revenue growth 3Y-3.36%
Revenue growth 5Y-7.39%
Sales Q2Q%-10.09%
Revenue Next Year-9.73%
Revenue Next 2Y-6.3%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y16.96%
EBIT growth 3Y11.45%
EBIT growth 5Y-0.55%
EBIT Next Year379.04%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-27.47%
FCF growth 3Y-13.65%
FCF growth 5Y4.59%
OCF growth 1Y-23.51%
OCF growth 3Y-6.13%
OCF growth 5Y-6.2%