STAGWELL INC (STGW) Stock Fundamental Analysis
USA - NASDAQ:STGW - US85256A1097 - Common Stock
5.005 USD
-0.16 (-3%)
We assign a fundamental rating of 4 out of 10 to STGW. STGW was compared to 95 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
STGW had positive earnings in the past year.
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.
Each year in the past 5 years STGW had a positive operating cash flow.
1.2 Ratios
STGW's Return On Assets of -0.04% is in line compared to the rest of the industry. STGW outperforms 55.79% of its industry peers.
With a Return On Equity value of -0.22%, STGW perfoms like the industry average, outperforming 56.84% of the companies in the same industry.
STGW has a Return On Invested Capital (2.68%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for STGW is below the industry average of 8.51%.
| 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 comparable to the rest of the 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 47.37% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so STGW is destroying value.
STGW has less shares outstanding than it did 1 year ago.
The number of shares outstanding for STGW has been increased compared to 5 years ago.
The debt/assets ratio for STGW is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.93, we must say that STGW is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of STGW (0.93) is comparable to the rest of the industry.
STGW has a debt to FCF ratio of 5.89. This is a neutral value as STGW would need 5.89 years to pay back of all of its debts.
The Debt to FCF ratio of STGW (5.89) is better than 70.53% 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.
With a Debt to Equity ratio value of 1.95, STGW is not doing good in the industry: 66.32% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.95 | ||
| Debt/FCF | 5.89 | ||
| Altman-Z | 0.93 |
ROIC/WACC0.39
WACC6.82%
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.
STGW has a Current ratio of 0.86. This is in the lower half of the industry: STGW underperforms 67.37% of its industry peers.
STGW has a Quick 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 Quick ratio of STGW (0.86) is worse than 66.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
STGW shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 20.31%, which is quite impressive.
STGW shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.43%.
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)12.43%
Revenue growth 3Y24.58%
Revenue growth 5Y14.95%
Sales Q2Q%4.46%
3.2 Future
The Earnings Per Share is expected to grow by 13.17% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.49% on average over the next years.
EPS Next Y8.26%
EPS Next 2Y16.43%
EPS Next 3Y13.17%
EPS Next 5YN/A
Revenue Next Year3.61%
Revenue Next 2Y6.34%
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 6.50 indicates a rather cheap valuation of STGW.
STGW's Price/Earnings ratio is rather cheap when compared to the industry. STGW is cheaper than 86.32% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.34. STGW is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 4.86, the valuation of STGW can be described as very cheap.
STGW's Price/Forward Earnings ratio is rather cheap when compared to the industry. STGW is cheaper than 85.26% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of STGW to the average of the S&P500 Index (34.43), we can say STGW is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.5 | ||
| Fwd PE | 4.86 |
4.2 Price Multiples
61.05% of the companies in the same industry are more expensive than STGW, based on the Enterprise Value to EBITDA ratio.
84.21% 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 | 5.21 | ||
| EV/EBITDA | 9.19 |
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.
STGW's earnings are expected to grow with 13.17% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.79
PEG (5Y)N/A
EPS Next 2Y16.43%
EPS Next 3Y13.17%
5. Dividend
5.1 Amount
No dividends for STGW!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:STGW (11/13/2025, 1:07:50 PM)
5.005
-0.16 (-3%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners44.17%
Inst Owner Change-2.4%
Ins Owners12.61%
Ins Owner Change-0.98%
Market Cap1.29B
Revenue(TTM)2.84B
Net Income(TTM)-1.67M
Analysts78.46
Price Target8.05 (60.84%)
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)-5.96%
PT rev (3m)-3.67%
EPS NQ rev (1m)-5.71%
EPS NQ rev (3m)-7.78%
EPS NY rev (1m)-0.41%
EPS NY rev (3m)3.99%
Revenue NQ rev (1m)-1.88%
Revenue NQ rev (3m)-1.42%
Revenue NY rev (1m)-0.64%
Revenue NY rev (3m)-0.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.5 | ||
| Fwd PE | 4.86 | ||
| P/S | 0.45 | ||
| P/FCF | 5.21 | ||
| P/OCF | 4.88 | ||
| P/B | 1.73 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.19 |
EPS(TTM)0.77
EY15.38%
EPS(NY)1.03
Fwd EY20.58%
FCF(TTM)0.96
FCFY19.21%
OCF(TTM)1.03
OCFY20.48%
SpS11.05
BVpS2.9
TBVpS-6.64
PEG (NY)0.79
PEG (5Y)N/A
Graham Number7.09
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 | 0.93 |
F-Score5
WACC6.82%
ROIC/WACC0.39
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)20.31%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%9.09%
EPS Next Y8.26%
EPS Next 2Y16.43%
EPS Next 3Y13.17%
EPS Next 5YN/A
Revenue 1Y (TTM)12.43%
Revenue growth 3Y24.58%
Revenue growth 5Y14.95%
Sales Q2Q%4.46%
Revenue Next Year3.61%
Revenue Next 2Y6.34%
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 6.5 and the Price/Book (PB) ratio is 1.73.
Can you provide the financial health for STGW stock?
The financial health rating of STAGWELL INC (STGW) is 2 / 10.