6.795 USD
-0.17 (-2.37%)
We assign a fundamental rating of 4 out of 10 to STGW. STGW was compared to 93 industry peers in the Media industry. There are concerns on the financial health of STGW while its profitability can be described as average. A decent growth rate in combination with a cheap valuation! Better keep an eye on STGW.
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.
- STGW had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- STGW's Return On Assets of 0.46% is fine compared to the rest of the industry. STGW outperforms 67.74% of its industry peers.
- STGW's Return On Equity of 2.63% is fine compared to the rest of the industry. STGW outperforms 69.89% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 3.06%, STGW is in line with its industry, 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
- STGW has a Profit Margin of 0.68%. This is in the better half of the industry: STGW outperforms 64.52% of its industry peers.
- Looking at the Operating Margin, with a value of 5.06%, STGW is in the better half of the industry, outperforming 60.22% of the companies in the same industry.
- STGW's Operating Margin has declined in the last couple of years.
- STGW has a Gross Margin (36.17%) which 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
- 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 1.06, we must say that STGW is in the distress zone and has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 1.06, STGW is in line with its industry, outperforming 56.99% of the companies in the same industry.
- 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 72.04% 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.
- The Debt to Equity ratio of STGW (2.04) is worse 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
WACC7.05%
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.
- A Quick Ratio of 0.89 indicates that STGW may have some problems paying 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 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 20.31% over the past year.
- The Revenue has been growing slightly by 6.75% in the past year.
- 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
- The Earnings Per Share is expected to grow by 18.07% on average over the next years. This is quite good.
- The Revenue is expected to grow by 4.13% on average over the next years.
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.
4. Valuation
4.1 Price/Earnings Ratio
- STGW is valuated reasonably with a Price/Earnings ratio of 8.82.
- 83.87% of the companies in the same industry are more expensive than STGW, based on the Price/Earnings ratio.
- STGW is valuated cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 6.30 indicates a rather cheap valuation of STGW.
- Based on the Price/Forward Earnings ratio, STGW is valued cheaply inside the industry as 83.87% of the companies are valued more expensively.
- The average S&P500 Price/Forward Earnings ratio is at 24.32. STGW is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.82 | ||
| Fwd PE | 6.3 |
4.2 Price Multiples
- STGW's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. STGW is cheaper than 63.44% of the companies in the same industry.
- 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 | 7.99 | ||
| 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.
PEG (NY)1.11
PEG (5Y)N/A
EPS Next 2Y19.11%
EPS Next 3Y19.87%
5. Dividend
5.1 Amount
- STGW does not give a dividend.
| 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 8.82 and the Price/Book (PB) ratio is 2.29.
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%.