STAGWELL INC (STGW) Stock Fundamental Analysis
NASDAQ:STGW - Nasdaq - US85256A1097 - Common Stock - Currency: USD
We assign a fundamental rating of 3 out of 10 to STGW. STGW was compared to 97 industry peers in the Media industry. STGW has a medium profitability rating, but doesn't score so well on its financial health evaluation. STGW has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year STGW was profitable.
STGW had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: STGW reported negative net income in multiple years.
Each year in the past 5 years STGW had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.02%, STGW is in line with its industry, outperforming 57.73% of the companies in the same industry.
The Return On Equity of STGW (0.19%) is comparable to the rest of the industry.
STGW has a Return On Invested Capital (2.87%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for STGW is below the industry average of 7.56%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.02% | ||
| ROE | 0.19% | ||
| ROIC | 2.87% |
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
STGW has a Profit Margin of 0.02%. This is comparable to the rest of the industry: STGW outperforms 57.73% of its industry peers.
The Operating Margin of STGW (4.45%) is comparable to the rest of the industry.
STGW's Operating Margin has declined in the last couple of years.
STGW has a Gross Margin (35.86%) which is in line with its industry peers.
In the last couple of years the Gross Margin of STGW has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.45% | ||
| PM (TTM) | 0.02% | ||
| GM | 35.86% |
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%
2. Health
2.1 Basic Checks
STGW has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for STGW has been reduced compared to 1 year ago.
Compared to 5 years ago, STGW has more shares outstanding
STGW has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.99, we must say that STGW is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.99, STGW perfoms like the industry average, outperforming 50.52% of the companies in the same industry.
The Debt to FCF ratio of STGW is 12.36, which is on the high side as it means it would take STGW, 12.36 years of fcf income to pay off all of its debts.
STGW has a Debt to FCF ratio (12.36) which is comparable to the rest of the industry.
STGW has a Debt/Equity ratio of 4.38. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 4.38, STGW is not doing good in the industry: 82.47% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.38 | ||
| Debt/FCF | 12.36 | ||
| Altman-Z | 0.99 |
ROIC/WACC0.42
WACC6.83%
2.3 Liquidity
A Current Ratio of 0.91 indicates that STGW may have some problems paying its short term obligations.
With a Current ratio value of 0.91, STGW is not doing good in the industry: 72.16% of the companies in the same industry are doing better.
A Quick Ratio of 0.91 indicates that STGW may have some problems paying its short term obligations.
The Quick ratio of STGW (0.91) is worse than 71.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.91 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 16.13% over the past year.
The Revenue has grown by 9.63% in the past year. This is quite good.
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)16.13%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-25%
Revenue 1Y (TTM)9.63%
Revenue growth 3Y24.58%
Revenue growth 5Y14.95%
Sales Q2Q%-2.73%
3.2 Future
Based on estimates for the next years, STGW will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.94% on average per year.
STGW is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.83% yearly.
EPS Next Y4.11%
EPS Next 2Y12.66%
EPS Next 3Y11.94%
EPS Next 5YN/A
Revenue Next Year4.31%
Revenue Next 2Y7.64%
Revenue Next 3Y4.83%
Revenue Next 5YN/A
3.3 Evolution
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 6.81, the valuation of STGW can be described as very cheap.
STGW's Price/Earnings ratio is rather cheap when compared to the industry. STGW is cheaper than 88.66% of the companies in the same industry.
STGW is valuated cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 5.08, the valuation of STGW can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of STGW indicates a rather cheap valuation: STGW is cheaper than 89.69% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 36.06. STGW is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.81 | ||
| Fwd PE | 5.08 |
4.2 Price Multiples
STGW's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, STGW is valued a bit cheaper than 77.32% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.12 | ||
| EV/EBITDA | 9.09 |
4.3 Compensation for Growth
STGW's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.66
PEG (5Y)N/A
EPS Next 2Y12.66%
EPS Next 3Y11.94%
5. Dividend
5.1 Amount
No dividends for STGW!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
4.9
+0.22 (+4.7%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners48.39%
Inst Owner Change0%
Ins Owners4.48%
Ins Owner Change7.89%
Market Cap1.32B
Analysts77.14
Price Target8.5 (73.47%)
Short Float %5.49%
Short Ratio4.63
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-13.08%
Min EPS beat(2)-23.04%
Max EPS beat(2)-3.12%
EPS beat(4)1
Avg EPS beat(4)-11.02%
Min EPS beat(4)-23.04%
Max EPS beat(4)2.01%
EPS beat(8)2
Avg EPS beat(8)-14.25%
EPS beat(12)3
Avg EPS beat(12)-16.64%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)-0.41%
Min Revenue beat(2)-3.83%
Max Revenue beat(2)3.01%
Revenue beat(4)3
Avg Revenue beat(4)1.16%
Min Revenue beat(4)-3.83%
Max Revenue beat(4)4.63%
Revenue beat(8)4
Avg Revenue beat(8)-0.43%
Revenue beat(12)4
Avg Revenue beat(12)-1.73%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)-13.1%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-12.5%
EPS NY rev (1m)-6.54%
EPS NY rev (3m)-8.28%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.7%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.81 | ||
| Fwd PE | 5.08 | ||
| P/S | 0.47 | ||
| P/FCF | 11.12 | ||
| P/OCF | 9.7 | ||
| P/B | 3.94 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.09 |
EPS(TTM)0.72
EY14.69%
EPS(NY)0.96
Fwd EY19.69%
FCF(TTM)0.44
FCFY8.99%
OCF(TTM)0.51
OCFY10.31%
SpS10.49
BVpS1.24
TBVpS-7.62
PEG (NY)1.66
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.02% | ||
| ROE | 0.19% | ||
| ROCE | 4.76% | ||
| ROIC | 2.87% | ||
| ROICexc | 3.03% | ||
| ROICexgc | 63.98% | ||
| OM | 4.45% | ||
| PM (TTM) | 0.02% | ||
| GM | 35.86% | ||
| FCFM | 4.2% |
ROA(3y)0.25%
ROA(5y)-3.09%
ROE(3y)2.13%
ROE(5y)N/A
ROIC(3y)4.06%
ROIC(5y)3.45%
ROICexc(3y)4.36%
ROICexc(5y)3.7%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)6.74%
ROCE(5y)5.72%
ROICexcg growth 3YN/A
ROICexcg growth 5Y56.69%
ROICexc growth 3Y33.28%
ROICexc growth 5Y-10.55%
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%
F-Score8
Asset Turnover0.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.38 | ||
| Debt/FCF | 12.36 | ||
| Debt/EBITDA | 5.15 | ||
| Cap/Depr | 10.95% | ||
| Cap/Sales | 0.62% | ||
| Interest Coverage | 1.34 | ||
| Cash Conversion | 47.79% | ||
| Profit Quality | 19003.5% | ||
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.91 | ||
| Altman-Z | 0.99 |
F-Score8
WACC6.83%
ROIC/WACC0.42
Cap/Depr(3y)13.24%
Cap/Depr(5y)26.95%
Cap/Sales(3y)0.69%
Cap/Sales(5y)1.13%
Profit Quality(3y)18834.8%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)16.13%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-25%
EPS Next Y4.11%
EPS Next 2Y12.66%
EPS Next 3Y11.94%
EPS Next 5YN/A
Revenue 1Y (TTM)9.63%
Revenue growth 3Y24.58%
Revenue growth 5Y14.95%
Sales Q2Q%-2.73%
Revenue Next Year4.31%
Revenue Next 2Y7.64%
Revenue Next 3Y4.83%
Revenue Next 5YN/A
EBIT growth 1Y11.18%
EBIT growth 3Y30.32%
EBIT growth 5Y8.88%
EBIT Next Year181.69%
EBIT Next 3Y49.66%
EBIT Next 5YN/A
FCF growth 1Y-59.32%
FCF growth 3Y-11.41%
FCF growth 5Y12.4%
OCF growth 1Y-56.29%
OCF growth 3Y-10.74%
OCF growth 5Y10.25%