QUAD GRAPHICS INC (QUAD) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:QUAD - US7473011093 - Common Stock
6.17 USD
-0.03 (-0.48%)
6.17 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to QUAD. QUAD was compared to 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. QUAD is valued quite cheap, while showing a decent growth score. This is a good 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.
In multiple years QUAD reported negative net income over the last 5 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 51.25% of its industry peers.
The Return On Equity of QUAD (21.30%) is better than 85.00% of its industry peers.
QUAD has a better Return On Invested Capital (13.24%) than 83.75% of its industry peers.
The Average Return On Invested Capital over the past 3 years for QUAD is in line with the industry average of 10.54%.
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
The Profit Margin of QUAD (0.82%) is comparable to the rest of the industry.
With a Operating Margin value of 4.89%, QUAD perfoms like the industry average, outperforming 51.25% of the companies in the same industry.
QUAD's Operating Margin has improved in the last couple of years.
QUAD has a Gross Margin of 21.86%. This is in the lower half of the industry: QUAD underperforms 70.00% 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
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
The number of shares outstanding for QUAD has been reduced compared to 5 years ago.
Compared to 1 year ago, QUAD has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.74, we must say that QUAD is in the distress zone and 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.
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.
QUAD has a Debt to FCF ratio of 7.54. This is in the better half of the industry: QUAD outperforms 66.25% of its industry peers.
A Debt/Equity ratio of 4.49 is on the high side and indicates that QUAD has dependencies on debt financing.
QUAD has a worse Debt to Equity ratio (4.49) than 86.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.49 | ||
| Debt/FCF | 7.54 | ||
| Altman-Z | 1.74 |
ROIC/WACC1.25
WACC10.6%
2.3 Liquidity
QUAD has a Current 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.
Looking at the Current ratio, with a value of 0.98, QUAD is doing worse than 76.25% of the companies in the same industry.
A Quick Ratio of 0.65 indicates that QUAD may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.65, QUAD is doing worse than 83.75% of the companies in the same industry.
| 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.
The Earnings Per Share has been growing by 28.47% on average over the past years. This is a very strong growth
QUAD shows a decrease in Revenue. In the last year, the revenue decreased by -9.23%.
QUAD shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -7.39% yearly.
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
Based on estimates for the next years, QUAD will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.14% on average per year.
QUAD is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -6.32% yearly.
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
QUAD is valuated cheaply with a Price/Earnings ratio of 6.11.
Based on the Price/Earnings ratio, QUAD is valued cheaper than 93.75% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.30. QUAD is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 5.35, the valuation of QUAD can be described as very cheap.
Based on the Price/Forward Earnings ratio, QUAD is valued cheaper than 97.50% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of QUAD to the average of the S&P500 Index (24.04), we can say QUAD is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.11 | ||
| Fwd PE | 5.35 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, QUAD is valued cheaper than 93.75% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, QUAD is valued cheaper than 96.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.02 | ||
| EV/EBITDA | 3.81 |
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.
The decent profitability rating of QUAD may justify a higher PE ratio.
QUAD's earnings are expected to grow with 17.14% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.27
PEG (5Y)0.21
EPS Next 2Y17.14%
EPS Next 3YN/A
5. Dividend
5.1 Amount
QUAD has a Yearly Dividend Yield of 4.87%, which is a nice return.
Compared to an average industry Dividend Yield of 0.88, QUAD pays a better dividend. On top of this QUAD pays more dividend than 93.75% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 1.92, QUAD pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.87% |
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
6.17
-0.03 (-0.48%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners58.93%
Inst Owner Change0.17%
Ins Owners12.78%
Ins Owner Change12.66%
Market Cap313.93M
Revenue(TTM)2.50B
Net Income(TTM)20.60M
Analysts85
Price Target8.36 (35.49%)
Short Float %6.4%
Short Ratio8.43
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.87% |
Yearly Dividend0.18
Dividend Growth(5Y)-30.13%
DP64.56%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
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)-11.83%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.86%
EPS NY rev (1m)0%
EPS NY rev (3m)5.76%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.33%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.11 | ||
| Fwd PE | 5.35 | ||
| P/S | 0.13 | ||
| P/FCF | 5.02 | ||
| P/OCF | 2.84 | ||
| P/B | 3.25 | ||
| P/tB | N/A | ||
| EV/EBITDA | 3.81 |
EPS(TTM)1.01
EY16.37%
EPS(NY)1.15
Fwd EY18.68%
FCF(TTM)1.23
FCFY19.91%
OCF(TTM)2.17
OCFY35.2%
SpS49.09
BVpS1.9
TBVpS-0.51
PEG (NY)0.27
PEG (5Y)0.21
Graham Number6.57
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 | 1.74 |
F-Score7
WACC10.6%
ROIC/WACC1.25
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 Y22.64%
EPS Next 2Y17.14%
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-9.95%
Revenue Next 2Y-6.32%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y5.62%
EBIT growth 3Y11.45%
EBIT growth 5Y-0.55%
EBIT Next Year366.32%
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 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%.