QUAD GRAPHICS INC (QUAD) Stock Fundamental Analysis
USA - NYSE:QUAD - US7473011093 - Common Stock
6.77 USD
-0.08 (-1.17%)
6.77 USD
0 (0%)
QUAD gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 84 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
In the past year QUAD was profitable.
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
The Return On Assets of QUAD (-1.15%) is worse than 61.90% of its industry peers.
QUAD's Return On Equity of -16.44% is on the low side compared to the rest of the industry. QUAD is outperformed by 66.67% of its industry peers.
QUAD has a Return On Invested Capital of 13.73%. This is amongst the best in the industry. QUAD outperforms 86.90% of its industry peers.
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 10.60%.
The 3 year average ROIC (11.93%) for QUAD is below the current ROIC(13.73%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.15% | ||
| ROE | -16.44% | ||
| ROIC | 13.73% |
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 Operating Margin (4.75%) which is in line with its industry peers.
In the last couple of years the Operating Margin of QUAD has grown nicely.
The Gross Margin of QUAD (21.64%) is worse than 70.24% of its industry peers.
QUAD's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.75% | ||
| PM (TTM) | N/A | ||
| GM | 21.64% |
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.
Compared to 1 year ago, QUAD has more shares outstanding
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 1.83. 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.
QUAD has a Altman-Z score (1.83) which is comparable to the rest of the industry.
QUAD has a debt to FCF ratio of 6.21. This is a slightly negative value and a sign of low solvency as QUAD would need 6.21 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 6.21, QUAD is in the better half of the industry, outperforming 64.29% of the companies in the same industry.
QUAD has a Debt/Equity ratio of 4.85. This is a high value indicating a heavy dependency on external financing.
QUAD has a Debt to Equity ratio of 4.85. This is amonst the worse of the industry: QUAD underperforms 84.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.85 | ||
| Debt/FCF | 6.21 | ||
| Altman-Z | 1.83 |
ROIC/WACC1.28
WACC10.76%
2.3 Liquidity
A Current Ratio of 0.92 indicates that QUAD may have some problems paying its short term obligations.
QUAD has a Current ratio of 0.92. This is in the lower half of the industry: QUAD underperforms 78.57% of its industry peers.
A Quick Ratio of 0.64 indicates that QUAD may have some problems paying its short term obligations.
QUAD has a Quick ratio of 0.64. This is amonst the worse of the industry: QUAD underperforms 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.92 | ||
| Quick Ratio | 0.64 |
3. Growth
3.1 Past
QUAD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 71.43%, 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.
The Revenue has decreased by -6.94% in the past year.
The Revenue has been decreasing by -7.39% on average over the past years.
EPS 1Y (TTM)71.43%
EPS 3YN/A
EPS 5Y28.47%
EPS Q2Q%16.67%
Revenue 1Y (TTM)-6.94%
Revenue growth 3Y-3.36%
Revenue growth 5Y-7.39%
Sales Q2Q%-9.82%
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 18.43% on average per year.
Based on estimates for the next years, QUAD will show a decrease in Revenue. The Revenue will decrease by -5.78% on average per year.
EPS Next Y19%
EPS Next 2Y18.43%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-9.04%
Revenue Next 2Y-5.78%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 7.05 indicates a rather cheap valuation of QUAD.
Based on the Price/Earnings ratio, QUAD is valued cheaply inside the industry as 92.86% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.20, QUAD is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 5.75, the valuation of QUAD can be described as very cheap.
QUAD's Price/Forward Earnings ratio is rather cheap when compared to the industry. QUAD is cheaper than 97.62% of the companies 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 22.70.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.05 | ||
| Fwd PE | 5.75 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, QUAD is valued cheaper than 96.43% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, QUAD is valued cheaply inside the industry as 96.43% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.66 | ||
| EV/EBITDA | 3.77 |
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's earnings are expected to grow with 18.43% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.37
PEG (5Y)0.25
EPS Next 2Y18.43%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.14%, QUAD is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.27, QUAD pays a better dividend. On top of this QUAD pays more dividend than 92.86% of the companies listed in the same industry.
QUAD's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.14% |
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-84.62%
EPS Next 2Y18.43%
EPS Next 3YN/A
6.77
-0.08 (-1.17%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners57.7%
Inst Owner Change0.17%
Ins Owners12.92%
Ins Owner Change0.81%
Market Cap341.68M
Analysts85
Price Target9.49 (40.18%)
Short Float %5.73%
Short Ratio6.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.14% |
Yearly Dividend0.18
Dividend Growth(5Y)-30.13%
DP-84.62%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)64.36%
Min EPS beat(2)-1.96%
Max EPS beat(2)130.68%
EPS beat(4)2
Avg EPS beat(4)32.22%
Min EPS beat(4)-8.33%
Max EPS beat(4)130.68%
EPS beat(8)6
Avg EPS beat(8)81.34%
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)2
Avg Revenue beat(2)2.97%
Min Revenue beat(2)1.02%
Max Revenue beat(2)4.92%
Revenue beat(4)2
Avg Revenue beat(4)0.32%
Min Revenue beat(4)-4.43%
Max Revenue beat(4)4.92%
Revenue beat(8)3
Avg Revenue beat(8)-1.29%
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)-1.59%
PT rev (3m)-1.59%
EPS NQ rev (1m)-8.47%
EPS NQ rev (3m)-1.82%
EPS NY rev (1m)3.7%
EPS NY rev (3m)3.7%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)0.07%
Revenue NY rev (1m)1.09%
Revenue NY rev (3m)1.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.05 | ||
| Fwd PE | 5.75 | ||
| P/S | 0.13 | ||
| P/FCF | 4.66 | ||
| P/OCF | 2.82 | ||
| P/B | 3.93 | ||
| P/tB | N/A | ||
| EV/EBITDA | 3.77 |
EPS(TTM)0.96
EY14.18%
EPS(NY)1.18
Fwd EY17.4%
FCF(TTM)1.45
FCFY21.45%
OCF(TTM)2.4
OCFY35.5%
SpS51.21
BVpS1.72
TBVpS-0.73
PEG (NY)0.37
PEG (5Y)0.25
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.15% | ||
| ROE | -16.44% | ||
| ROCE | 17.38% | ||
| ROIC | 13.73% | ||
| ROICexc | 13.86% | ||
| ROICexgc | 16.85% | ||
| OM | 4.75% | ||
| PM (TTM) | N/A | ||
| GM | 21.64% | ||
| FCFM | 2.84% |
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 Turnover2.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.85 | ||
| Debt/FCF | 6.21 | ||
| Debt/EBITDA | 2 | ||
| Cap/Depr | 54.61% | ||
| Cap/Sales | 1.86% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 57.57% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.92 | ||
| Quick Ratio | 0.64 | ||
| Altman-Z | 1.83 |
F-Score7
WACC10.76%
ROIC/WACC1.28
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)71.43%
EPS 3YN/A
EPS 5Y28.47%
EPS Q2Q%16.67%
EPS Next Y19%
EPS Next 2Y18.43%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-6.94%
Revenue growth 3Y-3.36%
Revenue growth 5Y-7.39%
Sales Q2Q%-9.82%
Revenue Next Year-9.04%
Revenue Next 2Y-5.78%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y15.74%
EBIT growth 3Y11.45%
EBIT growth 5Y-0.55%
EBIT Next Year367.97%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-31.11%
FCF growth 3Y-13.65%
FCF growth 5Y4.59%
OCF growth 1Y-32.01%
OCF growth 3Y-6.13%
OCF growth 5Y-6.2%