QUAD GRAPHICS INC (QUAD) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:QUAD - US7473011093 - Common Stock
6.05 USD
+0.04 (+0.67%)
6.05 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to QUAD. 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 scores decently on growth, while it is valued quite cheap. This could make an interesting 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
- With a Return On Assets value of 1.62%, QUAD perfoms like the industry average, outperforming 51.25% of the companies in the same industry.
- The Return On Equity of QUAD (21.30%) is better than 85.00% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 13.24%, QUAD belongs to the top of the industry, outperforming 83.75% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for QUAD 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
- The Profit Margin of QUAD (0.82%) is comparable to the rest of the industry.
- QUAD has a Operating Margin (4.89%) which is in line with its industry peers.
- QUAD's Operating Margin has improved in the last couple of years.
- With a Gross Margin value of 21.86%, QUAD is not doing good in the industry: 71.25% of the companies in the same industry are doing better.
- QUAD's Gross Margin has improved in the last couple of years.
| 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
- 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
- Based on the Altman-Z score of 1.74, we must say that QUAD is in the distress zone and has some risk of bankruptcy.
- The Altman-Z score of QUAD (1.74) 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.
- QUAD has a worse Debt to Equity ratio (4.49) than 87.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.49 | ||
| Debt/FCF | 7.54 | ||
| Altman-Z | 1.74 |
ROIC/WACC1.23
WACC10.74%
2.3 Liquidity
- QUAD has a Current 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.
- With a Current ratio value of 0.98, QUAD is not doing good in the industry: 76.25% of the companies in the same industry are doing better.
- 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.
- QUAD has a Quick ratio of 0.65. This is amonst the worse of the industry: QUAD underperforms 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.
- The Earnings Per Share has been growing by 28.47% on average over the past years. This is a very strong growth
- QUAD shows a decrease in Revenue. In the last year, the revenue decreased by -9.23%.
- 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
- Based on estimates for the next years, QUAD will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.14% on average per year.
- The Revenue is expected to decrease by -6.32% on average over the next years.
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
- A Price/Earnings ratio of 5.99 indicates a rather cheap valuation of QUAD.
- 93.75% of the companies in the same industry are more expensive than QUAD, based on the Price/Earnings ratio.
- Compared to an average S&P500 Price/Earnings ratio of 28.39, QUAD is valued rather cheaply.
- QUAD is valuated cheaply with a Price/Forward Earnings ratio of 5.25.
- Based on the Price/Forward Earnings ratio, QUAD is valued cheaply inside the industry as 97.50% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.72, QUAD is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.99 | ||
| Fwd PE | 5.25 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, QUAD is valued cheaper than 95.00% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of QUAD indicates a rather cheap valuation: QUAD is cheaper than 96.25% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.93 | ||
| EV/EBITDA | 3.76 |
4.3 Compensation for Growth
- The 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.
- QUAD's earnings are expected to grow with 17.14% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.26
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.
- QUAD's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| 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%.