STAGWELL INC (STGW) Stock Fundamental Analysis
USA - NASDAQ:STGW - US85256A1097 - Common Stock
5.21 USD
-0.04 (-0.76%)
5.31 USD
+0.1 (+1.92%)
Taking everything into account, STGW scores 4 out of 10 in our fundamental rating. STGW was compared to 99 industry peers in the Media industry. Both the profitability and financial health of STGW have multiple concerns. STGW may be a bit undervalued, certainly considering the very reasonable score on growth
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.
Each year in the past 5 years STGW had a positive operating cash flow.
1.2 Ratios
STGW has a Return On Assets (-0.04%) which is comparable to the rest of the industry.
STGW's Return On Equity of -0.22% is in line compared to the rest of the industry. STGW outperforms 55.56% of its industry peers.
STGW has a Return On Invested Capital (2.68%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for STGW is below the industry average of 8.87%.
| 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
With a Operating Margin value of 4.43%, STGW perfoms like the industry average, outperforming 53.54% of the companies in the same industry.
STGW's Operating Margin has declined in the last couple of years.
STGW has a Gross Margin of 35.95%. This is comparable to the rest of the industry: STGW outperforms 47.47% of its industry peers.
STGW's Gross Margin has improved in the last couple of years.
| 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.
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.
STGW has a worse debt/assets ratio than last year.
2.2 Solvency
STGW has an Altman-Z score of 0.93. This is a bad value and indicates that STGW is not financially healthy and even has some risk of bankruptcy.
STGW has a Altman-Z score of 0.93. This is comparable to the rest of the industry: STGW outperforms 49.49% of 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.
STGW's Debt to FCF ratio of 5.89 is fine compared to the rest of the industry. STGW outperforms 71.72% 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.
STGW has a Debt to Equity ratio of 1.95. This is in the lower half of the industry: STGW underperforms 67.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.95 | ||
| Debt/FCF | 5.89 | ||
| Altman-Z | 0.93 |
ROIC/WACC0.4
WACC6.62%
2.3 Liquidity
A Current Ratio of 0.86 indicates that STGW may have some problems paying its short term obligations.
STGW has a worse Current ratio (0.86) than 69.70% 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 68.69% 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.
Looking at the last year, STGW shows a quite strong growth in Revenue. The Revenue has grown by 9.37% in the last year.
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)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 10.85% yearly.
The Revenue is expected to grow by 5.49% on average over the next years.
EPS Next Y8.71%
EPS Next 2Y16.43%
EPS Next 3Y10.85%
EPS Next 5YN/A
Revenue Next Year4.27%
Revenue Next 2Y6.51%
Revenue Next 3Y6.1%
Revenue Next 5Y5.49%
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
With a Price/Earnings ratio of 6.95, the valuation of STGW can be described as very cheap.
88.89% of the companies in the same industry are more expensive than STGW, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.20. STGW is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 5.06, the valuation of STGW can be described as very cheap.
Based on the Price/Forward Earnings ratio, STGW is valued cheaply inside the industry as 89.90% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.70. STGW is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.95 | ||
| Fwd PE | 5.06 |
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 64.65% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, STGW is valued cheaper than 86.87% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.42 | ||
| EV/EBITDA | 9.27 |
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.
PEG (NY)0.8
PEG (5Y)N/A
EPS Next 2Y16.43%
EPS Next 3Y10.85%
5. Dividend
5.1 Amount
No dividends for STGW!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
5.21
-0.04 (-0.76%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners41.09%
Inst Owner Change7.71%
Ins Owners12.83%
Ins Owner Change5.52%
Market Cap1.35B
Analysts77.14
Price Target8.56 (64.3%)
Short Float %7.32%
Short Ratio6.16
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)2.43%
PT rev (3m)0.67%
EPS NQ rev (1m)-3.36%
EPS NQ rev (3m)6.06%
EPS NY rev (1m)4.42%
EPS NY rev (3m)-2.41%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.44%
Revenue NY rev (1m)0.3%
Revenue NY rev (3m)-0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.95 | ||
| Fwd PE | 5.06 | ||
| P/S | 0.47 | ||
| P/FCF | 5.42 | ||
| P/OCF | 5.08 | ||
| P/B | 1.8 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.27 |
EPS(TTM)0.75
EY14.4%
EPS(NY)1.03
Fwd EY19.77%
FCF(TTM)0.96
FCFY18.45%
OCF(TTM)1.03
OCFY19.68%
SpS11.05
BVpS2.9
TBVpS-6.64
PEG (NY)0.8
PEG (5Y)N/A
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%
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-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
WACC6.62%
ROIC/WACC0.4
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 3Y10.85%
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 Year179.86%
EBIT Next 3Y48.9%
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%