QUAD GRAPHICS INC (QUAD) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:QUAD - US7473011093 - Common Stock
6.07 USD
-0.14 (-2.25%)
6.07 USD
0 (0%)
Taking everything into account, QUAD scores 5 out of 10 in our fundamental rating. QUAD was compared to 80 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 valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
- QUAD had positive earnings in the past year.
- In the past year QUAD had a positive cash flow from operations.
- In multiple years QUAD reported negative net income over the last 5 years.
- In the past 5 years QUAD always reported a positive cash flow from operatings.
1.2 Ratios
- QUAD has a Return On Assets (1.62%) which is comparable to the rest of the industry.
- The Return On Equity of QUAD (21.30%) is better than 85.00% of its industry peers.
- With an excellent Return On Invested Capital value of 13.24%, QUAD belongs to the best of the industry, outperforming 83.75% 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 10.58%.
- The 3 year average ROIC (11.93%) for QUAD is below the current ROIC(13.24%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.62% | ||
| ROE | 21.3% | ||
| ROIC | 13.24% |
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
- QUAD has a Profit Margin (0.82%) which is comparable to the rest of the industry.
- With a Operating Margin value of 4.89%, QUAD perfoms like the industry average, outperforming 51.25% of the companies in the same industry.
- QUAD's Operating Margin has improved in the last couple of years.
- QUAD has a Gross Margin of 21.86%. This is in the lower half of the industry: QUAD underperforms 71.25% of its industry peers.
- In the last couple of years the Gross Margin of QUAD has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.89% | ||
| PM (TTM) | 0.82% | ||
| GM | 21.86% |
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
- QUAD has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- The number of shares outstanding for QUAD has been increased compared to 1 year ago.
- The number of shares outstanding for QUAD has been reduced compared to 5 years ago.
- QUAD has a better debt/assets ratio than last year.
2.2 Solvency
- QUAD has an Altman-Z score of 1.74. 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 (1.74) which is comparable to the rest of the industry.
- QUAD has a debt to FCF ratio of 7.54. This is a slightly negative value and a sign of low solvency as QUAD would need 7.54 years to pay back of all of its debts.
- QUAD has a better Debt to FCF ratio (7.54) than 66.25% of its industry peers.
- A Debt/Equity ratio of 4.49 is on the high side and indicates that QUAD has dependencies on debt financing.
- Looking at the Debt to Equity ratio, with a value of 4.49, QUAD is doing worse than 87.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.49 | ||
| Debt/FCF | 7.54 | ||
| Altman-Z | 1.74 |
ROIC/WACC1.24
WACC10.67%
2.3 Liquidity
- A Current Ratio of 0.98 indicates that QUAD may have some problems paying its short term obligations.
- Looking at the Current ratio, with a value of 0.98, QUAD is doing worse than 76.25% of the companies in the same industry.
- QUAD has a Quick Ratio of 0.98. 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 Quick ratio of QUAD (0.65) is worse than 83.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.65 |
3. Growth
3.1 Past
- QUAD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 42.25%, which is quite impressive.
- 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.
- Looking at the last year, QUAD shows a decrease in Revenue. The Revenue has decreased by -9.23% in the last year.
- Measured over the past years, QUAD shows a decrease in Revenue. The Revenue has been decreasing by -7.39% on average per year.
EPS 1Y (TTM)42.25%
EPS 3YN/A
EPS 5Y28.47%
EPS Q2Q%19.23%
Revenue 1Y (TTM)-9.23%
Revenue growth 3Y-3.36%
Revenue growth 5Y-7.39%
Sales Q2Q%-12.86%
3.2 Future
- QUAD is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 17.14% yearly.
- QUAD is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -6.32% yearly.
EPS Next Y22.64%
EPS Next 2Y17.14%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-9.95%
Revenue Next 2Y-6.32%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
- The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 6.01, the valuation of QUAD can be described as very cheap.
- Compared to the rest of the industry, the Price/Earnings ratio of QUAD indicates a rather cheap valuation: QUAD is cheaper than 93.75% of the companies listed in the same industry.
- QUAD's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.21.
- With a Price/Forward Earnings ratio of 5.27, the valuation of QUAD can be described as very cheap.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of QUAD indicates a rather cheap valuation: QUAD is cheaper than 97.50% of the companies listed in the same industry.
- QUAD is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.01 | ||
| Fwd PE | 5.27 |
4.2 Price Multiples
- 93.75% of the companies in the same industry are more expensive than QUAD, based on the Enterprise Value to EBITDA ratio.
- 97.50% 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 | 4.94 | ||
| EV/EBITDA | 3.78 |
4.3 Compensation for Growth
- QUAD's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- QUAD has a very decent profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as QUAD's earnings are expected to grow with 17.14% in the coming years.
PEG (NY)0.27
PEG (5Y)0.21
EPS Next 2Y17.14%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- QUAD has a Yearly Dividend Yield of 4.83%, which is a nice return.
- QUAD's Dividend Yield is rather good when compared to the industry average which is at 0.82. QUAD pays more dividend than 93.75% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.81, QUAD pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.83% |
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
- 64.56% of the earnings are spent on dividend by QUAD. This is not a sustainable payout ratio.
DP64.56%
EPS Next 2Y17.14%
EPS Next 3YN/A
QUAD GRAPHICS INC / QUAD FAQ
What is the ChartMill fundamental rating of QUAD GRAPHICS INC (QUAD) stock?
ChartMill assigns a fundamental rating of 5 / 10 to QUAD.
What is the valuation status for QUAD stock?
ChartMill assigns a valuation rating of 9 / 10 to QUAD GRAPHICS INC (QUAD). This can be considered as Undervalued.
How profitable is QUAD GRAPHICS INC (QUAD) stock?
QUAD GRAPHICS INC (QUAD) has a profitability rating of 6 / 10.
What is the financial health of QUAD GRAPHICS INC (QUAD) stock?
The financial health rating of QUAD GRAPHICS INC (QUAD) is 2 / 10.
How sustainable is the dividend of QUAD GRAPHICS INC (QUAD) stock?
The dividend rating of QUAD GRAPHICS INC (QUAD) is 5 / 10 and the dividend payout ratio is 64.56%.