QUAD GRAPHICS INC (QUAD) Stock Fundamental Analysis
USA - NYSE:QUAD - US7473011093 - Common Stock
5.34 USD
+0.09 (+1.71%)
5.36 USD
+0.02 (+0.37%)
We assign a fundamental rating of 5 out of 10 to QUAD. QUAD was compared to 82 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
In the past year QUAD was profitable.
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.
QUAD had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
QUAD's Return On Assets of 1.62% is in line compared to the rest of the industry. QUAD outperforms 47.56% of its industry peers.
Looking at the Return On Equity, with a value of 21.30%, QUAD belongs to the top of the industry, outperforming 86.59% of the companies in the same industry.
QUAD has a better Return On Invested Capital (13.24%) than 85.37% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for QUAD is in line with the industry average of 10.46%.
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
With a Profit Margin value of 0.82%, QUAD perfoms like the industry average, outperforming 47.56% of the companies in the same industry.
With a Operating Margin value of 4.89%, QUAD perfoms like the industry average, outperforming 51.22% 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 21.86%. This is in the lower half of the industry: QUAD underperforms 73.17% 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), QUAD is creating some value.
The number of shares outstanding for QUAD has been increased compared to 1 year ago.
Compared to 5 years ago, QUAD has less shares outstanding
QUAD has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.72, we must say that QUAD is in the distress zone and has some risk of bankruptcy.
QUAD has a Altman-Z score of 1.72. This is comparable to the rest of the industry: QUAD outperforms 43.90% of its industry peers.
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.
With a decent Debt to FCF ratio value of 7.54, QUAD is doing good in the industry, outperforming 60.98% of the companies in the same industry.
QUAD has a Debt/Equity ratio of 4.49. This is a high value indicating a heavy dependency on external financing.
QUAD's Debt to Equity ratio of 4.49 is on the low side compared to the rest of the industry. QUAD is outperformed by 84.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.49 | ||
| Debt/FCF | 7.54 | ||
| Altman-Z | 1.72 |
ROIC/WACC1.24
WACC10.71%
2.3 Liquidity
A Current Ratio of 0.98 indicates that QUAD may have some problems paying its short term obligations.
The Current ratio of QUAD (0.98) is worse than 74.39% of its industry peers.
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 worse Quick ratio (0.65) than 84.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.65 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 42.25% over the past year.
QUAD shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 28.47% yearly.
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 17.91% yearly.
QUAD is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -5.91% yearly.
EPS Next Y19.61%
EPS Next 2Y17.91%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-9.26%
Revenue Next 2Y-5.91%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past 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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 5.29, the valuation of QUAD can be described as very cheap.
Based on the Price/Earnings ratio, QUAD is valued cheaper than 95.12% of the companies in the same industry.
QUAD is valuated cheaply when we compare the Price/Earnings ratio to 25.51, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 4.57, which indicates a rather cheap valuation of QUAD.
QUAD's Price/Forward Earnings ratio is rather cheap when compared to the industry. QUAD is cheaper than 97.56% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of QUAD to the average of the S&P500 Index (34.98), we can say QUAD is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.29 | ||
| Fwd PE | 4.57 |
4.2 Price Multiples
95.12% of the companies in the same industry are more expensive than QUAD, based on the Enterprise Value to EBITDA ratio.
QUAD's Price/Free Cash Flow ratio is rather cheap when compared to the industry. QUAD is cheaper than 96.34% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.31 | ||
| EV/EBITDA | 3.59 |
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.
The decent profitability rating of QUAD may justify a higher PE ratio.
QUAD's earnings are expected to grow with 17.91% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.27
PEG (5Y)0.19
EPS Next 2Y17.91%
EPS Next 3YN/A
5. Dividend
5.1 Amount
QUAD has a Yearly Dividend Yield of 5.32%, which is a nice return.
QUAD's Dividend Yield is rather good when compared to the industry average which is at 2.55. QUAD pays more dividend than 93.90% of the companies in the same industry.
QUAD's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.32% |
5.2 History
The dividend of QUAD decreases each year by -30.13%.
QUAD has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-30.13%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
QUAD pays out 64.56% of its income as dividend. This is not a sustainable payout ratio.
DP64.56%
EPS Next 2Y17.91%
EPS Next 3YN/A
5.34
+0.09 (+1.71%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners58.59%
Inst Owner Change0.2%
Ins Owners12.97%
Ins Owner Change1.1%
Market Cap269.51M
Revenue(TTM)2.50B
Net Income(TTM)20.60M
Analysts85
Price Target9.49 (77.72%)
Short Float %6.46%
Short Ratio8.92
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.32% |
Yearly Dividend0.18
Dividend Growth(5Y)-30.13%
DP64.56%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)5.3%
Min EPS beat(2)-1.96%
Max EPS beat(2)12.56%
EPS beat(4)2
Avg EPS beat(4)33.24%
Min EPS beat(4)-8.33%
Max EPS beat(4)130.68%
EPS beat(8)6
Avg EPS beat(8)80.44%
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)1
Avg Revenue beat(2)-1.86%
Min Revenue beat(2)-4.74%
Max Revenue beat(2)1.02%
Revenue beat(4)2
Avg Revenue beat(4)-0.81%
Min Revenue beat(4)-4.74%
Max Revenue beat(4)4.92%
Revenue beat(8)3
Avg Revenue beat(8)-1.1%
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)-1.59%
EPS NQ rev (1m)2.86%
EPS NQ rev (3m)4.35%
EPS NY rev (1m)3.14%
EPS NY rev (3m)4.23%
Revenue NQ rev (1m)-0.33%
Revenue NQ rev (3m)1.09%
Revenue NY rev (1m)-0.24%
Revenue NY rev (3m)0.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.29 | ||
| Fwd PE | 4.57 | ||
| P/S | 0.11 | ||
| P/FCF | 4.31 | ||
| P/OCF | 2.44 | ||
| P/B | 2.79 | ||
| P/tB | N/A | ||
| EV/EBITDA | 3.59 |
EPS(TTM)1.01
EY18.91%
EPS(NY)1.17
Fwd EY21.87%
FCF(TTM)1.24
FCFY23.19%
OCF(TTM)2.19
OCFY41%
SpS49.49
BVpS1.92
TBVpS-0.51
PEG (NY)0.27
PEG (5Y)0.19
Graham Number6.6
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.62% | ||
| ROE | 21.3% | ||
| ROCE | 16.77% | ||
| ROIC | 13.24% | ||
| ROICexc | 13.36% | ||
| ROICexgc | 16.09% | ||
| OM | 4.89% | ||
| PM (TTM) | 0.82% | ||
| GM | 21.86% | ||
| FCFM | 2.5% |
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%
ROICexgc growth 3Y20.86%
ROICexgc 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-Score7
Asset Turnover1.97
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.49 | ||
| Debt/FCF | 7.54 | ||
| Debt/EBITDA | 2.12 | ||
| Cap/Depr | 57.97% | ||
| Cap/Sales | 1.92% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 53.93% | ||
| Profit Quality | 303.4% | ||
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.65 | ||
| Altman-Z | 1.72 |
F-Score7
WACC10.71%
ROIC/WACC1.24
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)42.25%
EPS 3YN/A
EPS 5Y28.47%
EPS Q2Q%19.23%
EPS Next Y19.61%
EPS Next 2Y17.91%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-9.23%
Revenue growth 3Y-3.36%
Revenue growth 5Y-7.39%
Sales Q2Q%-12.86%
Revenue Next Year-9.26%
Revenue Next 2Y-5.91%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y5.62%
EBIT growth 3Y11.45%
EBIT growth 5Y-0.55%
EBIT Next Year367.97%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-59.86%
FCF growth 3Y-13.65%
FCF growth 5Y4.59%
OCF growth 1Y-51.11%
OCF growth 3Y-6.13%
OCF growth 5Y-6.2%
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 of QUAD GRAPHICS INC (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.
Can you provide the financial health for QUAD stock?
The financial health rating of QUAD GRAPHICS INC (QUAD) is 2 / 10.
Can you provide the dividend sustainability for QUAD stock?
The dividend rating of QUAD GRAPHICS INC (QUAD) is 5 / 10 and the dividend payout ratio is 64.56%.