QUAD GRAPHICS INC (QUAD) Stock Fundamental Analysis
NYSE:QUAD - New York Stock Exchange, Inc. - US7473011093 - Common Stock - Currency: USD
Overall QUAD gets a fundamental rating of 4 out of 10. We evaluated QUAD against 83 industry peers in the Commercial Services & Supplies industry. While QUAD is still in line with the averages on profitability rating, there are concerns on its financial health. QUAD may be a bit undervalued, certainly considering the very reasonable score 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.
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's Return On Assets of -1.36% is on the low side compared to the rest of the industry. QUAD is outperformed by 61.45% of its industry peers.
Looking at the Return On Equity, with a value of -19.45%, QUAD is doing worse than 68.67% of the companies in the same industry.
With an excellent Return On Invested Capital value of 13.85%, QUAD belongs to the best of the industry, outperforming 83.13% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for QUAD is in line with the industry average of 11.67%.
The 3 year average ROIC (11.93%) for QUAD is below the current ROIC(13.85%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.36% | ||
| ROE | -19.45% | ||
| ROIC | 13.85% |
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 Operating Margin of QUAD (4.73%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of QUAD has grown nicely.
QUAD has a worse Gross Margin (21.76%) than 69.88% of its industry peers.
In the last couple of years the Gross Margin of QUAD has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.73% | ||
| PM (TTM) | N/A | ||
| GM | 21.76% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so QUAD is still creating some value.
QUAD has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, QUAD has less shares outstanding
Compared to 1 year ago, QUAD has an improved debt to assets ratio.
2.2 Solvency
QUAD has an Altman-Z score of 1.87. This is not the best score and indicates that QUAD is in the grey zone with still only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 1.87, QUAD is not doing good in the industry: 60.24% of the companies in the same industry are doing better.
The Debt to FCF ratio of QUAD is 18.47, which is on the high side as it means it would take QUAD, 18.47 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of QUAD (18.47) is comparable to the rest of the industry.
A Debt/Equity ratio of 5.03 is on the high side and indicates that QUAD has dependencies on debt financing.
The Debt to Equity ratio of QUAD (5.03) is worse than 85.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.03 | ||
| Debt/FCF | 18.47 | ||
| Altman-Z | 1.87 |
ROIC/WACC1.29
WACC10.7%
2.3 Liquidity
A Current Ratio of 0.96 indicates that QUAD may have some problems paying its short term obligations.
QUAD has a Current ratio of 0.96. This is in the lower half of the industry: QUAD underperforms 77.11% of its industry peers.
QUAD has a Quick Ratio of 0.96. 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 0.66. This is amonst the worse of the industry: QUAD underperforms 86.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.66 |
3. Growth
3.1 Past
QUAD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 104.35%, which is quite impressive.
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 -7.00% in the last year.
The Revenue has been decreasing by -7.39% on average over the past years.
EPS 1Y (TTM)104.35%
EPS 3YN/A
EPS 5Y28.47%
EPS Q2Q%100%
Revenue 1Y (TTM)-7%
Revenue growth 3Y-3.36%
Revenue growth 5Y-7.39%
Sales Q2Q%-3.88%
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 12.65% on average per year.
QUAD is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -6.28% yearly.
EPS Next Y14.75%
EPS Next 2Y12.65%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-10.02%
Revenue Next 2Y-6.28%
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 6.19, the valuation of QUAD can be described as very cheap.
Based on the Price/Earnings ratio, QUAD is valued cheaper than 92.77% of the companies in the same industry.
QUAD's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.45.
The Price/Forward Earnings ratio is 5.46, which indicates a rather cheap valuation of QUAD.
Based on the Price/Forward Earnings ratio, QUAD is valued cheaper than 97.59% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.90. QUAD is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.19 | ||
| Fwd PE | 5.46 |
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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of QUAD indicates a rather cheap valuation: QUAD is cheaper than 86.75% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.55 | ||
| EV/EBITDA | 3.46 |
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.
A more expensive valuation may be justified as QUAD's earnings are expected to grow with 12.65% in the coming years.
PEG (NY)0.42
PEG (5Y)0.22
EPS Next 2Y12.65%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.30%, QUAD is a good candidate for dividend investing.
QUAD's Dividend Yield is rather good when compared to the industry average which is at 2.43. QUAD pays more dividend than 93.98% of the companies in the same industry.
QUAD's Dividend Yield is rather good when compared to the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.3% |
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-61.76%
EPS Next 2Y12.65%
EPS Next 3YN/A
5.82
+0.09 (+1.57%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners57.25%
Inst Owner Change3.07%
Ins Owners12.92%
Ins Owner Change1.73%
Market Cap294.55M
Analysts85
Price Target9.64 (65.64%)
Short Float %5.11%
Short Ratio4.59
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.3% |
Yearly Dividend0.18
Dividend Growth(5Y)-30.13%
DP-61.76%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)61.18%
Min EPS beat(2)-8.33%
Max EPS beat(2)130.68%
EPS beat(4)3
Avg EPS beat(4)42.31%
Min EPS beat(4)-8.33%
Max EPS beat(4)130.68%
EPS beat(8)7
Avg EPS beat(8)98.99%
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)0.24%
Min Revenue beat(2)-4.43%
Max Revenue beat(2)4.92%
Revenue beat(4)1
Avg Revenue beat(4)-1.49%
Min Revenue beat(4)-6.26%
Max Revenue beat(4)4.92%
Revenue beat(8)2
Avg Revenue beat(8)-2.02%
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)-6.9%
PT rev (3m)-6.9%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.7%
EPS NY rev (1m)0%
EPS NY rev (3m)13.86%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.47%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.19 | ||
| Fwd PE | 5.46 | ||
| P/S | 0.11 | ||
| P/FCF | 11.55 | ||
| P/OCF | 3.87 | ||
| P/B | 3.37 | ||
| P/tB | N/A | ||
| EV/EBITDA | 3.46 |
EPS(TTM)0.94
EY16.15%
EPS(NY)1.07
Fwd EY18.31%
FCF(TTM)0.5
FCFY8.66%
OCF(TTM)1.5
OCFY25.84%
SpS52.3
BVpS1.73
TBVpS-0.38
PEG (NY)0.42
PEG (5Y)0.22
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.36% | ||
| ROE | -19.45% | ||
| ROCE | 17.54% | ||
| ROIC | 13.85% | ||
| ROICexc | 14.01% | ||
| ROICexgc | 16.5% | ||
| OM | 4.73% | ||
| PM (TTM) | N/A | ||
| GM | 21.76% | ||
| FCFM | 0.96% |
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-Score7
Asset Turnover2.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.03 | ||
| Debt/FCF | 18.47 | ||
| Debt/EBITDA | 2.01 | ||
| Cap/Depr | 54.06% | ||
| Cap/Sales | 1.91% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 34.8% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.66 | ||
| Altman-Z | 1.87 |
F-Score7
WACC10.7%
ROIC/WACC1.29
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)104.35%
EPS 3YN/A
EPS 5Y28.47%
EPS Q2Q%100%
EPS Next Y14.75%
EPS Next 2Y12.65%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-7%
Revenue growth 3Y-3.36%
Revenue growth 5Y-7.39%
Sales Q2Q%-3.88%
Revenue Next Year-10.02%
Revenue Next 2Y-6.28%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y26.49%
EBIT growth 3Y11.45%
EBIT growth 5Y-0.55%
EBIT Next Year367.97%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-50%
FCF growth 3Y-13.65%
FCF growth 5Y4.59%
OCF growth 1Y-37.06%
OCF growth 3Y-6.13%
OCF growth 5Y-6.2%