QUAD GRAPHICS INC (QUAD) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:QUAD - US7473011093 - Common Stock
6.06 USD
+0.05 (+0.83%)
QUAD gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 80 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on QUAD.
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.
- Each year in the past 5 years QUAD had a positive operating cash flow.
1.2 Ratios
- QUAD has a Return On Assets (1.62%) which is comparable to the rest of the industry.
- QUAD has a better Return On Equity (21.30%) than 85.00% of its industry peers.
- QUAD's Return On Invested Capital of 13.24% is amongst the best of the industry. QUAD outperforms 83.75% 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 10.58%.
- The last Return On Invested Capital (13.24%) for QUAD is above the 3 year average (11.93%), which is a sign of increasing profitability.
| 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 50.00% of the companies in the same industry.
- QUAD has a Operating Margin (4.89%) which is comparable to the rest of the industry.
- 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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so QUAD is still 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
- 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's Altman-Z score of 1.74 is in line compared to the rest of the industry. QUAD outperforms 45.00% of its industry peers.
- The Debt to FCF ratio of QUAD is 7.54, which is on the high side as it means it would take QUAD, 7.54 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 7.54, QUAD is in the better half of the industry, outperforming 66.25% of the companies in the same industry.
- A Debt/Equity ratio of 4.49 is on the high side and indicates that QUAD has dependencies on debt 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 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
WACC10.73%
2.3 Liquidity
- A Current Ratio of 0.98 indicates that QUAD may have some problems paying its short term obligations.
- QUAD's Current ratio of 0.98 is on the low side compared to the rest of the industry. QUAD is outperformed by 76.25% 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 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.
- QUAD shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 28.47% yearly.
- The Revenue has decreased by -9.23% in the past year.
- The Revenue has been decreasing by -7.39% on average over the past years.
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
- The Earnings Per Share is expected to grow by 17.14% on average over the next years. This is quite good.
- 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.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 6.00, the valuation of QUAD can be described as very cheap.
- 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 28.60, QUAD is valued rather cheaply.
- With a Price/Forward Earnings ratio of 5.26, the valuation of QUAD can be described as very cheap.
- 97.50% of the companies in the same industry are more expensive than QUAD, based on the Price/Forward Earnings ratio.
- When comparing the Price/Forward Earnings ratio of QUAD to the average of the S&P500 Index (25.83), we can say QUAD is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6 | ||
| Fwd PE | 5.26 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, QUAD is valued cheaply inside the industry as 95.00% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, QUAD is valued cheaply inside the industry as 96.25% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.93 | ||
| EV/EBITDA | 3.76 |
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)0.26
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.
- Compared to an average S&P500 Dividend Yield of 1.82, 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%.