QUAD GRAPHICS INC (QUAD) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:QUAD - US7473011093 - Common Stock
6.04 USD
-0.1 (-1.63%)
Overall QUAD gets a fundamental rating of 5 out of 10. We evaluated QUAD against 80 industry peers in the Commercial Services & Supplies industry. QUAD has a medium profitability rating, but doesn't score so well on its financial health evaluation. A decent growth rate in combination with a cheap valuation! Better keep an eye on QUAD.
1. Profitability
1.1 Basic Checks
- QUAD had positive earnings in the past year.
- 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.
- 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 1.62%, QUAD is in line with its industry, outperforming 51.25% of the companies in the same industry.
- QUAD has a better Return On Equity (21.30%) than 85.00% of its industry peers.
- The Return On Invested Capital of QUAD (13.24%) is better 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 10.58%.
- 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
- Looking at the Profit Margin, with a value of 0.82%, QUAD is in line with its industry, outperforming 50.00% of the companies in the same industry.
- The Operating Margin of QUAD (4.89%) is comparable to the rest of the industry.
- QUAD's Operating Margin has improved in the last couple of years.
- QUAD has a worse Gross Margin (21.86%) than 71.25% of its industry peers.
- 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
- 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
- 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
- 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 has a Altman-Z score (1.74) which is in line with 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.
- With a decent Debt to FCF ratio value of 7.54, QUAD is doing good in 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 has a worse Debt to Equity ratio (4.49) than 87.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.49 | ||
| Debt/FCF | 7.54 | ||
| Altman-Z | 1.74 |
ROIC/WACC1.24
WACC10.7%
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.
- The Current ratio of QUAD (0.98) is worse than 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.
- The Quick ratio of QUAD (0.65) is worse 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
- QUAD is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 17.14% yearly.
- 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
- 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 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 5.98, which indicates a rather cheap valuation of QUAD.
- 93.75% of the companies in the same industry are more expensive than QUAD, based on the Price/Earnings ratio.
- QUAD's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.82.
- With a Price/Forward Earnings ratio of 5.24, the valuation of QUAD can be described as very cheap.
- Based on the Price/Forward Earnings ratio, QUAD is valued cheaply inside the industry as 97.50% of the companies are valued more expensively.
- When comparing the Price/Forward Earnings ratio of QUAD to the average of the S&P500 Index (25.95), we can say QUAD is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.98 | ||
| Fwd PE | 5.24 |
4.2 Price Multiples
- 95.00% 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 cheaply inside the industry as 96.25% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.92 | ||
| EV/EBITDA | 3.8 |
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.
- 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)0.26
PEG (5Y)0.21
EPS Next 2Y17.14%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 4.83%, QUAD is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 0.82, 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 1.82, 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 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
- 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%.