STAGWELL INC (STGW) Stock Fundamental Analysis
USA - NASDAQ:STGW - US85256A1097 - Common Stock
4.75 USD
-0.06 (-1.25%)
4.74 USD
-0.01 (-0.21%)
We assign a fundamental rating of 4 out of 10 to STGW. STGW was compared to 94 industry peers in the Media industry. STGW may be in some trouble as it scores bad on both profitability and health. STGW 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 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.
STGW had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
STGW has a Return On Assets of -0.04%. This is comparable to the rest of the industry: STGW outperforms 56.38% of its industry peers.
STGW has a Return On Equity (-0.22%) which is in line with its industry peers.
With a Return On Invested Capital value of 2.68%, STGW perfoms like the industry average, outperforming 53.19% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for STGW is below the industry average of 8.50%.
| 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 has a Operating Margin (4.43%) which is in line with its industry peers.
In the last couple of years the Operating Margin of STGW has declined.
STGW has a Gross Margin of 35.95%. This is comparable to the rest of the industry: STGW outperforms 46.81% 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
STGW has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
STGW has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, STGW has more shares outstanding
The debt/assets ratio for STGW is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.91, we must say that STGW is in the distress zone and has some risk of bankruptcy.
STGW has a Altman-Z score (0.91) which is in line with its industry peers.
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.
With a decent Debt to FCF ratio value of 5.89, STGW is doing good in the industry, outperforming 70.21% of the companies in the same industry.
STGW has a Debt/Equity ratio of 1.95. This is a high value indicating a heavy dependency on external financing.
STGW has a Debt to Equity ratio of 1.95. This is in the lower half of the industry: STGW underperforms 67.02% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.95 | ||
| Debt/FCF | 5.89 | ||
| Altman-Z | 0.91 |
ROIC/WACC0.41
WACC6.49%
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.
The Current ratio of STGW (0.86) is worse than 69.15% of its industry peers.
A Quick Ratio of 0.86 indicates that STGW may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.86, STGW is doing worse than 68.09% of the companies in the same industry.
| 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 25.00% over the past year.
STGW shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.37%.
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)25%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%21.43%
Revenue 1Y (TTM)9.37%
Revenue growth 3Y24.58%
Revenue growth 5Y14.95%
Sales Q2Q%5.31%
3.2 Future
STGW is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.17% yearly.
STGW is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.49% yearly.
EPS Next Y8.71%
EPS Next 2Y16.43%
EPS Next 3Y13.17%
EPS Next 5YN/A
Revenue Next Year4.27%
Revenue Next 2Y6.51%
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 6.33 indicates a rather cheap valuation of STGW.
Compared to the rest of the industry, the Price/Earnings ratio of STGW indicates a rather cheap valuation: STGW is cheaper than 89.36% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.76, STGW is valued rather cheaply.
A Price/Forward Earnings ratio of 4.61 indicates a rather cheap valuation of STGW.
90.43% of the companies in the same industry are more expensive than STGW, based on the Price/Forward Earnings ratio.
STGW is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.63, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.33 | ||
| Fwd PE | 4.61 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of STGW indicates a somewhat cheap valuation: STGW is cheaper than 63.83% of the companies listed in the same industry.
STGW's Price/Free Cash Flow ratio is rather cheap when compared to the industry. STGW is cheaper than 85.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.94 | ||
| EV/EBITDA | 8.81 |
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)0.73
PEG (5Y)N/A
EPS Next 2Y16.43%
EPS Next 3Y13.17%
5. Dividend
5.1 Amount
STGW does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
4.75
-0.06 (-1.25%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners44.17%
Inst Owner Change-1.87%
Ins Owners12.61%
Ins Owner Change-0.97%
Market Cap1.23B
Revenue(TTM)2.86B
Net Income(TTM)-1672000
Analysts78.46
Price Target8.56 (80.21%)
Short Float %7.27%
Short Ratio7.05
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)0%
PT rev (3m)0.67%
EPS NQ rev (1m)0%
EPS NQ rev (3m)5.37%
EPS NY rev (1m)0%
EPS NY rev (3m)4.42%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.03%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.33 | ||
| Fwd PE | 4.61 | ||
| P/S | 0.43 | ||
| P/FCF | 4.94 | ||
| P/OCF | 4.63 | ||
| P/B | 1.64 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.81 |
EPS(TTM)0.75
EY15.79%
EPS(NY)1.03
Fwd EY21.69%
FCF(TTM)0.96
FCFY20.24%
OCF(TTM)1.03
OCFY21.58%
SpS11.05
BVpS2.9
TBVpS-6.64
PEG (NY)0.73
PEG (5Y)N/A
Graham Number7
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 | 0.91 |
F-Score5
WACC6.49%
ROIC/WACC0.41
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)25%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%21.43%
EPS Next Y8.71%
EPS Next 2Y16.43%
EPS Next 3Y13.17%
EPS Next 5YN/A
Revenue 1Y (TTM)9.37%
Revenue growth 3Y24.58%
Revenue growth 5Y14.95%
Sales Q2Q%5.31%
Revenue Next Year4.27%
Revenue Next 2Y6.51%
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 6.33 and the Price/Book (PB) ratio is 1.64.
Can you provide the financial health for STGW stock?
The financial health rating of STAGWELL INC (STGW) is 2 / 10.