We assign a fundamental rating of 4 out of 10 to STGW. STGW was compared to 93 industry peers in the Media industry. While STGW 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 STGW.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year STGW was profitable.
STGW had a positive operating cash flow in the past year.
In multiple years STGW reported negative net income over the last 5 years.
In the past 5 years STGW always reported a positive cash flow from operatings.

1.2 Ratios

The Return On Assets of STGW (0.46%) is better than 67.74% of its industry peers.
With a decent Return On Equity value of 2.63%, STGW is doing good in the industry, outperforming 69.89% of the companies in the same industry.
With a Return On Invested Capital value of 3.06%, STGW perfoms like the industry average, outperforming 56.99% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for STGW is below the industry average of 7.08%.

		Industry Rank	Sector Rank
ROA	0.46%
ROE	2.63%
ROIC	3.06%

ROA(3y)0.25%

ROA(5y)-3.09%

ROE(3y)2.13%

ROE(5y)N/A

ROIC(3y)4.06%

ROIC(5y)3.45%

1.3 Margins

With a decent Profit Margin value of 0.68%, STGW is doing good in the industry, outperforming 64.52% of the companies in the same industry.
STGW has a Operating Margin of 5.06%. This is in the better half of the industry: STGW outperforms 60.22% of its industry peers.
In the last couple of years the Operating Margin of STGW has declined.
The Gross Margin of STGW (36.17%) is comparable to the rest of the industry.
STGW's Gross Margin has improved in the last couple of years.

		Industry Rank	Sector Rank
OM	5.06%
PM (TTM)	0.68%
GM	36.17%

OM growth 3Y4.6%

OM growth 5Y-5.28%

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y-2.82%

GM growth 5Y1.81%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so STGW is destroying value.
STGW has less shares outstanding than it did 1 year ago.
STGW has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, STGW has a worse debt to assets ratio.

2.2 Solvency

Based on the Altman-Z score of 1.06, we must say that STGW is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of STGW (1.06) is comparable to the rest of the industry.
The Debt to FCF ratio of STGW is 7.12, which is on the high side as it means it would take STGW, 7.12 years of fcf income to pay off all of its debts.
STGW has a Debt to FCF ratio of 7.12. This is in the better half of the industry: STGW outperforms 72.04% of its industry peers.
STGW has a Debt/Equity ratio of 2.04. This is a high value indicating a heavy dependency on external financing.
STGW has a worse Debt to Equity ratio (2.04) than 67.74% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	2.04
Debt/FCF	7.12
Altman-Z	1.06

ROIC/WACC0.43

WACC7.06%

2.3 Liquidity

A Current Ratio of 0.89 indicates that STGW may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.89, STGW is doing worse than 62.37% of the companies in the same industry.
STGW has a Quick Ratio of 0.89. This is a bad value and indicates that STGW is not financially healthy enough and could expect problems in meeting its short term obligations.
STGW has a Quick ratio of 0.89. This is in the lower half of the industry: STGW underperforms 60.22% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	0.89
Quick Ratio	0.89

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

STGW shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 20.31%, which is quite impressive.
Looking at the last year, STGW shows a small growth in Revenue. The Revenue has grown by 6.75% in the last year.
Measured over the past years, STGW shows a quite strong growth in Revenue. The Revenue has been growing by 14.95% on average per year.

EPS 1Y (TTM)20.31%

EPS 3YN/A

EPS 5YN/A

EPS Q2Q%9.09%

Revenue 1Y (TTM)6.75%

Revenue growth 3Y24.58%

Revenue growth 5Y14.95%

Sales Q2Q%4.46%

3.2 Future

The Earnings Per Share is expected to grow by 18.07% on average over the next years. This is quite good.
STGW is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.13% yearly.

EPS Next Y7.94%

EPS Next 2Y19.11%

EPS Next 3Y19.87%

EPS Next 5Y18.07%

Revenue Next Year4.1%

Revenue Next 2Y6.51%

Revenue Next 3Y3.37%

Revenue Next 5Y4.13%

3.3 Evolution

The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

STGW is valuated reasonably with a Price/Earnings ratio of 8.62.
83.87% of the companies in the same industry are more expensive than STGW, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.21. STGW is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 6.16, the valuation of STGW can be described as very cheap.
83.87% of the companies in the same industry are more expensive than STGW, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, STGW is valued rather cheaply.

		Industry Rank	Sector Rank
PE	8.62
Fwd PE	6.16

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, STGW is valued a bit cheaper than the industry average as 63.44% of the companies are valued more expensively.
75.27% of the companies in the same industry are more expensive than STGW, based on the Price/Free Cash Flow ratio.

		Industry Rank	Sector Rank
P/FCF	7.81
EV/EBITDA	10.07

4.3 Compensation for Growth

The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
STGW's earnings are expected to grow with 19.87% in the coming years. This may justify a more expensive valuation.