STAGWELL INC (STGW) Stock Fundamental Analysis
USA - NASDAQ:STGW - US85256A1097 - Common Stock
5.325 USD
+0.16 (+3%)
STGW gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 96 industry peers in the Media industry. STGW may be in some trouble as it scores bad on both profitability and health. STGW 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 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
STGW's Return On Assets of -0.04% is in line compared to the rest of the industry. STGW outperforms 54.17% of its industry peers.
STGW has a Return On Equity (-0.22%) which is in line with its industry peers.
Looking at the Return On Invested Capital, with a value of 2.68%, STGW is in line with its industry, outperforming 51.04% 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 8.26%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.04% | ||
| ROE | -0.22% | ||
| ROIC | 2.68% |
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's Operating Margin of 4.43% is in line compared to the rest of the industry. STGW outperforms 51.04% of its industry peers.
STGW's Operating Margin has declined in the last couple of years.
STGW's Gross Margin of 35.95% is in line compared to the rest of the industry. STGW outperforms 46.88% of its industry peers.
In the last couple of years the Gross Margin of STGW has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.43% | ||
| PM (TTM) | N/A | ||
| GM | 35.95% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), STGW is destroying value.
The number of shares outstanding for STGW has been reduced compared to 1 year ago.
The number of shares outstanding for STGW has been increased compared to 5 years ago.
The debt/assets ratio for STGW is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.93, we must say that STGW is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of STGW (0.93) is comparable to the rest of the industry.
The Debt to FCF ratio of STGW is 5.89, which is a neutral value as it means it would take STGW, 5.89 years of fcf income to pay off all of its debts.
STGW has a Debt to FCF ratio of 5.89. This is in the better half of the industry: STGW outperforms 71.88% of its industry peers.
STGW has a Debt/Equity ratio of 1.95. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of STGW (1.95) is worse than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.95 | ||
| Debt/FCF | 5.89 | ||
| Altman-Z | 0.93 |
ROIC/WACC0.39
WACC6.85%
2.3 Liquidity
STGW has a Current Ratio of 0.86. This is a bad value and indicates that STGW is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.86, STGW is doing worse than 66.67% of the companies in the same industry.
A Quick Ratio of 0.86 indicates that STGW may have some problems paying its short term obligations.
The Quick ratio of STGW (0.86) is worse than 65.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 20.31% over the past year.
Looking at the last year, STGW shows a quite strong growth in Revenue. The Revenue has grown by 12.43% in the last year.
STGW shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.95% yearly.
EPS 1Y (TTM)20.31%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%9.09%
Revenue 1Y (TTM)12.43%
Revenue growth 3Y24.58%
Revenue growth 5Y14.95%
Sales Q2Q%4.46%
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 13.17% on average per year.
Based on estimates for the next years, STGW will show a small growth in Revenue. The Revenue will grow by 5.49% on average per year.
EPS Next Y8.26%
EPS Next 2Y16.43%
EPS Next 3Y13.17%
EPS Next 5YN/A
Revenue Next Year3.61%
Revenue Next 2Y6.34%
Revenue Next 3Y6.1%
Revenue Next 5Y5.49%
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 6.92 indicates a rather cheap valuation of STGW.
Based on the Price/Earnings ratio, STGW is valued cheaper than 85.42% of the companies in the same industry.
STGW's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.47.
STGW is valuated cheaply with a Price/Forward Earnings ratio of 5.17.
Based on the Price/Forward Earnings ratio, STGW is valued cheaper than 83.33% of the companies in the same industry.
STGW's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 35.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.92 | ||
| Fwd PE | 5.17 |
4.2 Price Multiples
60.42% of the companies in the same industry are more expensive than STGW, based on the Enterprise Value to EBITDA ratio.
82.29% 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 | 5.54 | ||
| EV/EBITDA | 9.2 |
4.3 Compensation for Growth
STGW's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
STGW's earnings are expected to grow with 13.17% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.84
PEG (5Y)N/A
EPS Next 2Y16.43%
EPS Next 3Y13.17%
5. Dividend
5.1 Amount
No dividends for STGW!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:STGW (11/20/2025, 10:46:02 AM)
5.325
+0.16 (+3%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners44.17%
Inst Owner Change-3.9%
Ins Owners12.61%
Ins Owner Change-0.98%
Market Cap1.38B
Revenue(TTM)2.84B
Net Income(TTM)-1.67M
Analysts78.46
Price Target8.05 (51.17%)
Short Float %7.07%
Short Ratio2.75
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)1
Avg EPS beat(2)-10.35%
Min EPS beat(2)-23.04%
Max EPS beat(2)2.34%
EPS beat(4)2
Avg EPS beat(4)-5.45%
Min EPS beat(4)-23.04%
Max EPS beat(4)2.34%
EPS beat(8)3
Avg EPS beat(8)-10.98%
EPS beat(12)4
Avg EPS beat(12)-13.14%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-1.97%
Min Revenue beat(2)-3.83%
Max Revenue beat(2)-0.12%
Revenue beat(4)2
Avg Revenue beat(4)0.92%
Min Revenue beat(4)-3.83%
Max Revenue beat(4)4.63%
Revenue beat(8)4
Avg Revenue beat(8)0.63%
Revenue beat(12)4
Avg Revenue beat(12)-1.65%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-5.96%
PT rev (3m)-3.67%
EPS NQ rev (1m)-5.71%
EPS NQ rev (3m)-8.88%
EPS NY rev (1m)-0.41%
EPS NY rev (3m)3.99%
Revenue NQ rev (1m)-1.88%
Revenue NQ rev (3m)-1.88%
Revenue NY rev (1m)-0.64%
Revenue NY rev (3m)-0.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.92 | ||
| Fwd PE | 5.17 | ||
| P/S | 0.48 | ||
| P/FCF | 5.54 | ||
| P/OCF | 5.19 | ||
| P/B | 1.84 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.2 |
EPS(TTM)0.77
EY14.46%
EPS(NY)1.03
Fwd EY19.35%
FCF(TTM)0.96
FCFY18.05%
OCF(TTM)1.03
OCFY19.25%
SpS11.05
BVpS2.9
TBVpS-6.64
PEG (NY)0.84
PEG (5Y)N/A
Graham Number7.09
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.04% | ||
| ROE | -0.22% | ||
| ROCE | 4.44% | ||
| ROIC | 2.68% | ||
| ROICexc | 2.86% | ||
| ROICexgc | 37.46% | ||
| OM | 4.43% | ||
| PM (TTM) | N/A | ||
| GM | 35.95% | ||
| FCFM | 8.7% |
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%
ROICexgc growth 3YN/A
ROICexgc 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-Score5
Asset Turnover0.66
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.95 | ||
| Debt/FCF | 5.89 | ||
| Debt/EBITDA | 5.14 | ||
| Cap/Depr | 10.44% | ||
| Cap/Sales | 0.58% | ||
| Interest Coverage | 1.33 | ||
| Cash Conversion | 93.07% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.86 | ||
| Altman-Z | 0.93 |
F-Score5
WACC6.85%
ROIC/WACC0.39
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)20.31%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%9.09%
EPS Next Y8.26%
EPS Next 2Y16.43%
EPS Next 3Y13.17%
EPS Next 5YN/A
Revenue 1Y (TTM)12.43%
Revenue growth 3Y24.58%
Revenue growth 5Y14.95%
Sales Q2Q%4.46%
Revenue Next Year3.61%
Revenue Next 2Y6.34%
Revenue Next 3Y6.1%
Revenue Next 5Y5.49%
EBIT growth 1Y22.72%
EBIT growth 3Y30.32%
EBIT growth 5Y8.88%
EBIT Next Year175.84%
EBIT Next 3Y48.15%
EBIT Next 5YN/A
FCF growth 1Y-15.58%
FCF growth 3Y-11.41%
FCF growth 5Y12.4%
OCF growth 1Y-14.67%
OCF growth 3Y-10.74%
OCF growth 5Y10.25%
STAGWELL INC / STGW FAQ
Can you provide the ChartMill fundamental rating for STAGWELL INC?
ChartMill assigns a fundamental rating of 4 / 10 to STGW.
What is the valuation status of STAGWELL INC (STGW) stock?
ChartMill assigns a valuation rating of 8 / 10 to STAGWELL INC (STGW). This can be considered as Undervalued.
What is the profitability of STGW stock?
STAGWELL INC (STGW) has a profitability rating of 3 / 10.
What is the valuation of STAGWELL INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for STAGWELL INC (STGW) is 6.92 and the Price/Book (PB) ratio is 1.84.
Can you provide the financial health for STGW stock?
The financial health rating of STAGWELL INC (STGW) is 2 / 10.