QUAD GRAPHICS INC (QUAD) Stock Fundamental Analysis
NYSE:QUAD - New York Stock Exchange, Inc. - US7473011093 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to QUAD. QUAD was compared to 83 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.
In the past year QUAD had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: QUAD reported negative net income in multiple years.
In the past 5 years QUAD always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of -3.92%, QUAD is doing worse than 65.48% of the companies in the same industry.
QUAD has a Return On Equity of -102.00%. This is amonst the worse of the industry: QUAD underperforms 84.52% of its industry peers.
QUAD has a better Return On Invested Capital (15.88%) than 89.29% 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 10.88%.
The last Return On Invested Capital (15.88%) for QUAD is above the 3 year average (11.93%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.92% | ||
| ROE | -102% | ||
| ROIC | 15.88% |
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 Operating Margin value of 4.52%, QUAD perfoms like the industry average, outperforming 44.05% of the companies in the same industry.
In the last couple of years the Operating Margin of QUAD has grown nicely.
Looking at the Gross Margin, with a value of 21.70%, QUAD is doing worse than 69.05% of the companies in the same industry.
QUAD's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.52% | ||
| PM (TTM) | N/A | ||
| GM | 21.71% |
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
Compared to 5 years ago, QUAD has less shares outstanding
The debt/assets ratio for QUAD has been reduced compared to a year ago.
2.2 Solvency
QUAD has an Altman-Z score of 1.67. This is a bad value and indicates that QUAD is not financially healthy and even has some risk of bankruptcy.
QUAD has a Altman-Z score of 1.67. This is in the lower half of the industry: QUAD underperforms 60.71% of its industry peers.
QUAD has a debt to FCF ratio of 6.81. This is a slightly negative value and a sign of low solvency as QUAD would need 6.81 years to pay back of all of its debts.
QUAD has a Debt to FCF ratio of 6.81. This is comparable to the rest of the industry: QUAD outperforms 59.52% of its industry peers.
QUAD has a Debt/Equity ratio of 7.02. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 7.02, QUAD is not doing good in the industry: 89.29% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.02 | ||
| Debt/FCF | 6.81 | ||
| Altman-Z | 1.67 |
ROIC/WACC1.51
WACC10.5%
2.3 Liquidity
A Current Ratio of 0.76 indicates that QUAD may have some problems paying its short term obligations.
QUAD has a worse Current ratio (0.76) than 83.33% of its industry peers.
A Quick Ratio of 0.53 indicates that QUAD may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.53, QUAD is doing worse than 92.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.53 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 64.71% 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 -9.65% 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)64.71%
EPS 3YN/A
EPS 5Y28.47%
EPS Q2Q%56.52%
Revenue 1Y (TTM)-9.65%
Revenue growth 3Y-3.36%
Revenue growth 5Y-7.39%
Sales Q2Q%-10.09%
3.2 Future
Based on estimates for the next years, QUAD will show a very strong growth in Earnings Per Share. The EPS will grow by 116.22% on average per year.
The Revenue is expected to decrease by -6.30% on average over the next years.
EPS Next Y40.25%
EPS Next 2Y116.22%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-9.73%
Revenue Next 2Y-6.3%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last 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
The Price/Earnings ratio is 6.90, which indicates a rather cheap valuation of QUAD.
Based on the Price/Earnings ratio, QUAD is valued cheaper than 90.48% 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 29.35.
A Price/Forward Earnings ratio of 4.92 indicates a rather cheap valuation of QUAD.
Based on the Price/Forward Earnings ratio, QUAD is valued cheaply inside the industry as 96.43% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of QUAD to the average of the S&P500 Index (22.10), we can say QUAD is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.9 | ||
| Fwd PE | 4.92 |
4.2 Price Multiples
95.24% of the companies in the same industry are more expensive than QUAD, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, QUAD is valued cheaper than 91.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.45 | ||
| EV/EBITDA | 2.93 |
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.
A more expensive valuation may be justified as QUAD's earnings are expected to grow with 116.22% in the coming years.
PEG (NY)0.17
PEG (5Y)0.24
EPS Next 2Y116.22%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.91%, QUAD has a reasonable but not impressive dividend return.
The stock price of QUAD dropped by -32.87% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 2.36, QUAD pays a better dividend. On top of this QUAD pays more dividend than 91.67% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.33, QUAD pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.91% |
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 has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-18.47%
EPS Next 2Y116.22%
EPS Next 3YN/A
5.8
+0.04 (+0.69%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners54.58%
Inst Owner Change7.36%
Ins Owners14.33%
Ins Owner Change0.47%
Market Cap303.63M
Analysts85
Price Target10.35 (78.45%)
Short Float %4.14%
Short Ratio4.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.91% |
Yearly Dividend0.18
Dividend Growth(5Y)-30.13%
DP-18.47%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.07%
Min EPS beat(2)-8.33%
Max EPS beat(2)8.47%
EPS beat(4)3
Avg EPS beat(4)107.19%
Min EPS beat(4)-8.33%
Max EPS beat(4)390.2%
EPS beat(8)N/A
Avg EPS beat(8)N/A
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)0
Avg Revenue beat(2)-2.32%
Min Revenue beat(2)-4.43%
Max Revenue beat(2)-0.21%
Revenue beat(4)0
Avg Revenue beat(4)-2.97%
Min Revenue beat(4)-6.26%
Max Revenue beat(4)-0.21%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
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)0%
EPS NQ rev (1m)-52.78%
EPS NQ rev (3m)-66%
EPS NY rev (1m)0%
EPS NY rev (3m)-6.48%
Revenue NQ rev (1m)-0.5%
Revenue NQ rev (3m)-0.5%
Revenue NY rev (1m)-2.09%
Revenue NY rev (3m)-2.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.9 | ||
| Fwd PE | 4.92 | ||
| P/S | 0.11 | ||
| P/FCF | 5.45 | ||
| P/OCF | 2.69 | ||
| P/B | 6.08 | ||
| P/tB | N/A | ||
| EV/EBITDA | 2.93 |
EPS(TTM)0.84
EY14.48%
EPS(NY)1.18
Fwd EY20.31%
FCF(TTM)1.06
FCFY18.34%
OCF(TTM)2.16
OCFY37.18%
SpS51.04
BVpS0.95
TBVpS-1.1
PEG (NY)0.17
PEG (5Y)0.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.92% | ||
| ROE | -102% | ||
| ROCE | 20.11% | ||
| ROIC | 15.88% | ||
| ROICexc | 16.7% | ||
| ROICexgc | 20.57% | ||
| OM | 4.52% | ||
| PM (TTM) | N/A | ||
| GM | 21.71% | ||
| FCFM | 2.08% |
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-Score5
Asset Turnover2.06
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.02 | ||
| Debt/FCF | 6.81 | ||
| Debt/EBITDA | 1.57 | ||
| Cap/Depr | 55.8% | ||
| Cap/Sales | 2.14% | ||
| Interest Coverage | 2.28 | ||
| Cash Conversion | 50.58% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.53 | ||
| Altman-Z | 1.67 |
F-Score5
WACC10.5%
ROIC/WACC1.51
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)64.71%
EPS 3YN/A
EPS 5Y28.47%
EPS Q2Q%56.52%
EPS Next Y40.25%
EPS Next 2Y116.22%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-9.65%
Revenue growth 3Y-3.36%
Revenue growth 5Y-7.39%
Sales Q2Q%-10.09%
Revenue Next Year-9.73%
Revenue Next 2Y-6.3%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y16.96%
EBIT growth 3Y11.45%
EBIT growth 5Y-0.55%
EBIT Next Year419.89%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-27.47%
FCF growth 3Y-13.65%
FCF growth 5Y4.59%
OCF growth 1Y-23.51%
OCF growth 3Y-6.13%
OCF growth 5Y-6.2%