6.23 USD
-0.2 (-3.11%)
Taking everything into account, STGW scores 4 out of 10 in our fundamental rating. STGW was compared to 92 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. STGW is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
- STGW had positive earnings in the past year.
- In the past year STGW had a positive cash flow from operations.
- In multiple years STGW reported negative net income over the last 5 years.
- STGW had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- STGW has a better Return On Assets (0.46%) than 68.48% of its industry peers.
- STGW has a Return On Equity of 2.63%. This is in the better half of the industry: STGW outperforms 70.65% of its industry peers.
- STGW's Return On Invested Capital of 3.06% is in line compared to the rest of the industry. STGW outperforms 57.61% of its industry peers.
- STGW had an Average Return On Invested Capital over the past 3 years of 4.06%. This is below the industry average of 7.07%.
| 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
- STGW's Profit Margin of 0.68% is fine compared to the rest of the industry. STGW outperforms 65.22% of its industry peers.
- STGW has a better Operating Margin (5.06%) than 60.87% 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.
- In the last couple of years the Gross Margin of STGW has grown nicely.
| 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%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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
- STGW has an Altman-Z score of 1.04. This is a bad value and indicates that STGW is not financially healthy and even has some risk of bankruptcy.
- STGW's Altman-Z score of 1.04 is in line compared to the rest of the industry. STGW outperforms 57.61% of its industry peers.
- STGW has a debt to FCF ratio of 7.12. This is a slightly negative value and a sign of low solvency as STGW would need 7.12 years to pay back of all of its debts.
- STGW has a better Debt to FCF ratio (7.12) than 72.83% of its industry peers.
- A Debt/Equity ratio of 2.04 is on the high side and indicates that STGW has dependencies on debt financing.
- With a Debt to Equity ratio value of 2.04, STGW is not doing good in the industry: 67.39% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.04 | ||
| Debt/FCF | 7.12 | ||
| Altman-Z | 1.04 |
ROIC/WACC0.43
WACC7.11%
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 63.04% of the companies in the same industry.
- A Quick Ratio of 0.89 indicates that STGW may have some problems paying its short term obligations.
- STGW's Quick ratio of 0.89 is on the low side compared to the rest of the industry. STGW is outperformed by 60.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.89 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 20.31% over the past year.
- STGW shows a small growth in Revenue. In the last year, the Revenue has grown by 6.75%.
- The Revenue has been growing by 14.95% on average over the past years. This is quite good.
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
- STGW is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 18.07% yearly.
- 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 2Y15.35%
EPS Next 3Y13.4%
EPS Next 5Y18.07%
Revenue Next Year4.1%
Revenue Next 2Y6.51%
Revenue Next 3Y3.37%
Revenue Next 5Y4.13%
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
- Based on the Price/Earnings ratio of 8.09, the valuation of STGW can be described as reasonable.
- Based on the Price/Earnings ratio, STGW is valued cheaply inside the industry as 85.87% of the companies are valued more expensively.
- The average S&P500 Price/Earnings ratio is at 27.25. STGW is valued rather cheaply when compared to this.
- A Price/Forward Earnings ratio of 6.16 indicates a rather cheap valuation of STGW.
- 83.70% of the companies in the same industry are more expensive than STGW, based on the Price/Forward Earnings ratio.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. STGW is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.09 | ||
| Fwd PE | 6.16 |
4.2 Price Multiples
- 65.22% of the companies in the same industry are more expensive than STGW, based on the Enterprise Value to EBITDA ratio.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of STGW indicates a somewhat cheap valuation: STGW is cheaper than 78.26% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.33 | ||
| EV/EBITDA | 9.64 |
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 13.40% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.02
PEG (5Y)N/A
EPS Next 2Y15.35%
EPS Next 3Y13.4%
5. Dividend
5.1 Amount
- No dividends for STGW!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
STAGWELL INC / STGW FAQ
Can you provide the ChartMill fundamental rating for STAGWELL INC?
ChartMill assigns a fundamental rating of 4 / 10 to STGW.
Can you provide the valuation status for STAGWELL INC?
ChartMill assigns a valuation rating of 7 / 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 5 / 10.
What are the PE and PB ratios of STAGWELL INC (STGW) stock?
The Price/Earnings (PE) ratio for STAGWELL INC (STGW) is 8.09 and the Price/Book (PB) ratio is 2.1.
How sustainable is the dividend of STAGWELL INC (STGW) stock?
The dividend rating of STAGWELL INC (STGW) is 0 / 10 and the dividend payout ratio is 0%.