STAGWELL INC (STGW) Stock Fundamental Analysis
NASDAQ:STGW - Nasdaq - US85256A1097 - Common Stock
Overall STGW gets a fundamental rating of 3 out of 10. We evaluated STGW against 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 has a valuation in line with the averages, but it does not seem to be growing.
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
The Return On Assets of STGW (0.07%) is comparable to the rest of the industry.
The Return On Equity of STGW (0.96%) is comparable to the rest of the industry.
The Return On Invested Capital of STGW (3.07%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for STGW is below the industry average of 6.90%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.07% | ||
| ROE | 0.96% | ||
| ROIC | 3.07% |
ROA(3y)0.2%
ROA(5y)-3.29%
ROE(3y)1.57%
ROE(5y)N/A
ROIC(3y)4.14%
ROIC(5y)4.65%
1.3 Margins
STGW's Profit Margin of 0.10% is in line compared to the rest of the industry. STGW outperforms 55.17% of its industry peers.
STGW's Operating Margin of 4.11% is in line compared to the rest of the industry. STGW outperforms 43.68% of its industry peers.
In the last couple of years the Operating Margin of STGW has declined.
The Gross Margin of STGW (34.98%) is comparable to the rest of the industry.
STGW's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.11% | ||
| PM (TTM) | 0.1% | ||
| GM | 34.98% |
OM growth 3Y-1.57%
OM growth 5Y-7.66%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.06%
GM growth 5Y1.79%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so STGW is destroying value.
The number of shares outstanding for STGW has been reduced compared to 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 1.09. 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 1.09 is in line compared to the rest of the industry. STGW outperforms 52.87% of its industry peers.
The Debt to FCF ratio of STGW is 12.15, which is on the high side as it means it would take STGW, 12.15 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 12.15, STGW perfoms like the industry average, outperforming 54.02% of the companies in the same industry.
A Debt/Equity ratio of 5.11 is on the high side and indicates that STGW has dependencies on debt financing.
With a Debt to Equity ratio value of 5.11, STGW is not doing good in the industry: 86.21% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.11 | ||
| Debt/FCF | 12.15 | ||
| Altman-Z | 1.09 |
ROIC/WACC0.4
WACC7.73%
2.3 Liquidity
A Current Ratio of 0.95 indicates that STGW may have some problems paying its short term obligations.
STGW has a Current ratio of 0.95. This is in the lower half of the industry: STGW underperforms 75.86% of its industry peers.
A Quick Ratio of 0.95 indicates that STGW may have some problems paying its short term obligations.
The Quick ratio of STGW (0.95) is worse than 73.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.95 |
3. Growth
3.1 Past
The earnings per share for STGW have decreased by -7.25% in the last year.
Looking at the last year, STGW shows a small growth in Revenue. The Revenue has grown by 4.92% in the last year.
STGW shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.37% yearly.
EPS 1Y (TTM)-7.25%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%22.22%
Revenue 1Y (TTM)4.92%
Revenue growth 3Y28.22%
Revenue growth 5Y11.37%
Sales Q2Q%15.17%
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 11.88% yearly.
Based on estimates for the next years, STGW will show a small growth in Revenue. The Revenue will grow by 4.45% on average per year.
EPS Next Y32.87%
EPS Next 2Y16.76%
EPS Next 3Y11.88%
EPS Next 5YN/A
Revenue Next Year9.51%
Revenue Next 2Y4.44%
Revenue Next 3Y4.45%
Revenue Next 5YN/A
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
Based on the Price/Earnings ratio of 10.36, the valuation of STGW can be described as reasonable.
78.16% of the companies in the same industry are more expensive than STGW, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 28.29, STGW is valued rather cheaply.
The Price/Forward Earnings ratio is 8.24, which indicates a very decent valuation of STGW.
Based on the Price/Forward Earnings ratio, STGW is valued cheaply inside the industry as 86.21% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of STGW to the average of the S&P500 Index (24.44), we can say STGW is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.36 | ||
| Fwd PE | 8.24 |
4.2 Price Multiples
STGW's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of STGW is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.67 | ||
| EV/EBITDA | 11.8 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.32
PEG (5Y)N/A
EPS Next 2Y16.76%
EPS Next 3Y11.88%
5. Dividend
5.1 Amount
STGW does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
STAGWELL INC
NASDAQ:STGW (1/21/2025, 8:00:00 PM)
After market: 6.63 0 (0%)6.63
+0.1 (+1.53%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners96.17%
Inst Owner Change-0.11%
Ins Owners3.64%
Ins Owner Change0.1%
Market Cap1.77B
Analysts77.14
Price Target8.96 (35.14%)
Short Float %3.02%
Short Ratio6.98
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)-8.96%
Min EPS beat(2)-19.94%
Max EPS beat(2)2.01%
EPS beat(4)2
Avg EPS beat(4)-13.48%
Min EPS beat(4)-56.66%
Max EPS beat(4)20.66%
EPS beat(8)3
Avg EPS beat(8)-10.17%
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)2.72%
Min Revenue beat(2)0.81%
Max Revenue beat(2)4.63%
Revenue beat(4)3
Avg Revenue beat(4)2.52%
Min Revenue beat(4)-3.53%
Max Revenue beat(4)8.17%
Revenue beat(8)3
Avg Revenue beat(8)-1.12%
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)11.51%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.17%
EPS NY rev (1m)0%
EPS NY rev (3m)0.94%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)5.27%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.36 | ||
| Fwd PE | 8.24 | ||
| P/S | 0.65 | ||
| P/FCF | 14.67 | ||
| P/OCF | 12.69 | ||
| P/B | 6.17 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.8 |
EPS(TTM)0.64
EY9.65%
EPS(NY)0.8
Fwd EY12.13%
FCF(TTM)0.45
FCFY6.82%
OCF(TTM)0.52
OCFY7.88%
SpS10.16
BVpS1.07
TBVpS-7.52
PEG (NY)0.32
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.07% | ||
| ROE | 0.96% | ||
| ROCE | 4.23% | ||
| ROIC | 3.07% | ||
| ROICexc | 3.25% | ||
| ROICexgc | 41.28% | ||
| OM | 4.11% | ||
| PM (TTM) | 0.1% | ||
| GM | 34.98% | ||
| FCFM | 4.45% |
ROA(3y)0.2%
ROA(5y)-3.29%
ROE(3y)1.57%
ROE(5y)N/A
ROIC(3y)4.14%
ROIC(5y)4.65%
ROICexc(3y)4.47%
ROICexc(5y)5.07%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)5.7%
ROCE(5y)6.41%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y-12.43%
ROICexc growth 5Y-15.76%
OM growth 3Y-1.57%
OM growth 5Y-7.66%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.06%
GM growth 5Y1.79%
F-Score8
Asset Turnover0.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.11 | ||
| Debt/FCF | 12.15 | ||
| Debt/EBITDA | 5.65 | ||
| Cap/Depr | 12.69% | ||
| Cap/Sales | 0.69% | ||
| Interest Coverage | 1.05 | ||
| Cash Conversion | 53.71% | ||
| Profit Quality | 4374.27% | ||
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.95 | ||
| Altman-Z | 1.09 |
F-Score8
WACC7.73%
ROIC/WACC0.4
Cap/Depr(3y)18.81%
Cap/Depr(5y)34.17%
Cap/Sales(3y)0.98%
Cap/Sales(5y)1.26%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-7.25%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%22.22%
EPS Next Y32.87%
EPS Next 2Y16.76%
EPS Next 3Y11.88%
EPS Next 5YN/A
Revenue 1Y (TTM)4.92%
Revenue growth 3Y28.22%
Revenue growth 5Y11.37%
Sales Q2Q%15.17%
Revenue Next Year9.51%
Revenue Next 2Y4.44%
Revenue Next 3Y4.45%
Revenue Next 5YN/A
EBIT growth 1Y-31.29%
EBIT growth 3Y26.21%
EBIT growth 5Y2.84%
EBIT Next Year181%
EBIT Next 3Y49.95%
EBIT Next 5YN/A
FCF growth 1Y-45.1%
FCF growth 3Y100.37%
FCF growth 5YN/A
OCF growth 1Y-45.14%
OCF growth 3Y35.45%
OCF growth 5Y55.19%