QUAD GRAPHICS INC (QUAD) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:QUAD - US7473011093 - Common Stock
6.04 USD
+0.09 (+1.51%)
6.04 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to QUAD. QUAD was compared to 82 industry peers in the Commercial Services & Supplies industry. There are concerns on the financial health of QUAD while its profitability can be described as average. QUAD may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
In the past year QUAD was profitable.
In the past year QUAD had a positive cash flow from operations.
In multiple years QUAD reported negative net income over the last 5 years.
In the past 5 years QUAD always reported a positive cash flow from operatings.
1.2 Ratios
QUAD has a Return On Assets of 1.62%. This is comparable to the rest of the industry: QUAD outperforms 47.56% of its industry peers.
QUAD has a Return On Equity of 21.30%. This is amongst the best in the industry. QUAD outperforms 86.59% of its industry peers.
The Return On Invested Capital of QUAD (13.24%) is better than 85.37% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for QUAD is in line with the industry average of 10.51%.
The last Return On Invested Capital (13.24%) for QUAD is above the 3 year average (11.93%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.62% | ||
| ROE | 21.3% | ||
| ROIC | 13.24% |
ROA(3y)-2.35%
ROA(5y)-2.34%
ROE(3y)-47.66%
ROE(5y)-53.58%
ROIC(3y)11.93%
ROIC(5y)9.63%
1.3 Margins
QUAD has a Profit Margin (0.82%) which is in line with its industry peers.
QUAD's Operating Margin of 4.89% is in line compared to the rest of the industry. QUAD outperforms 50.00% of its industry peers.
QUAD's Operating Margin has improved in the last couple of years.
QUAD has a worse Gross Margin (21.86%) than 71.95% of its industry peers.
In the last couple of years the Gross Margin of QUAD has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.89% | ||
| PM (TTM) | 0.82% | ||
| GM | 21.86% |
OM growth 3Y15.32%
OM growth 5Y7.39%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y4.04%
GM growth 5Y3.09%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so QUAD is still creating some value.
Compared to 1 year ago, QUAD has more shares outstanding
The number of shares outstanding for QUAD has been reduced compared to 5 years ago.
Compared to 1 year ago, QUAD has an improved debt to assets ratio.
2.2 Solvency
QUAD has an Altman-Z score of 1.74. This is a bad value and indicates that QUAD is not financially healthy and even has some risk of bankruptcy.
QUAD has a Altman-Z score (1.74) which is comparable to the rest of the industry.
The Debt to FCF ratio of QUAD is 7.54, which is on the high side as it means it would take QUAD, 7.54 years of fcf income to pay off all of its debts.
QUAD's Debt to FCF ratio of 7.54 is fine compared to the rest of the industry. QUAD outperforms 62.20% of its industry peers.
QUAD has a Debt/Equity ratio of 4.49. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 4.49, QUAD is not doing good in the industry: 85.37% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.49 | ||
| Debt/FCF | 7.54 | ||
| Altman-Z | 1.74 |
ROIC/WACC1.24
WACC10.72%
2.3 Liquidity
QUAD has a Current Ratio of 0.98. This is a bad value and indicates that QUAD is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.98, QUAD is doing worse than 76.83% of the companies in the same industry.
QUAD has a Quick Ratio of 0.98. This is a bad value and indicates that QUAD is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.65, QUAD is doing worse than 84.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.65 |
3. Growth
3.1 Past
QUAD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 42.25%, which is quite impressive.
QUAD shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 28.47% yearly.
The Revenue has decreased by -9.23% in the past year.
The Revenue has been decreasing by -7.39% on average over the past years.
EPS 1Y (TTM)42.25%
EPS 3YN/A
EPS 5Y28.47%
EPS Q2Q%19.23%
Revenue 1Y (TTM)-9.23%
Revenue growth 3Y-3.36%
Revenue growth 5Y-7.39%
Sales Q2Q%-12.86%
3.2 Future
The Earnings Per Share is expected to grow by 17.91% on average over the next years. This is quite good.
Based on estimates for the next years, QUAD will show a decrease in Revenue. The Revenue will decrease by -5.91% on average per year.
EPS Next Y19.61%
EPS Next 2Y17.91%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-9.26%
Revenue Next 2Y-5.91%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 5.98, which indicates a rather cheap valuation of QUAD.
Based on the Price/Earnings ratio, QUAD is valued cheaper than 93.90% of the companies in the same industry.
QUAD is valuated cheaply when we compare the Price/Earnings ratio to 26.46, which is the current average of the S&P500 Index.
QUAD is valuated cheaply with a Price/Forward Earnings ratio of 5.17.
Compared to the rest of the industry, the Price/Forward Earnings ratio of QUAD indicates a rather cheap valuation: QUAD is cheaper than 97.56% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.10, QUAD is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.98 | ||
| Fwd PE | 5.17 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, QUAD is valued cheaply inside the industry as 95.12% of the companies are valued more expensively.
95.12% of the companies in the same industry are more expensive than QUAD, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.92 | ||
| EV/EBITDA | 3.75 |
4.3 Compensation for Growth
QUAD's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of QUAD may justify a higher PE ratio.
QUAD's earnings are expected to grow with 17.91% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.31
PEG (5Y)0.21
EPS Next 2Y17.91%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.27%, QUAD is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.48, QUAD pays a better dividend. On top of this QUAD pays more dividend than 93.90% of the companies listed in the same industry.
QUAD's Dividend Yield is rather good when compared to the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.27% |
5.2 History
The dividend of QUAD decreases each year by -30.13%.
QUAD has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-30.13%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
QUAD pays out 64.56% of its income as dividend. This is not a sustainable payout ratio.
DP64.56%
EPS Next 2Y17.91%
EPS Next 3YN/A
6.04
+0.09 (+1.51%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners58.59%
Inst Owner Change0.3%
Ins Owners12.97%
Ins Owner Change-0.25%
Market Cap307.32M
Revenue(TTM)2.50B
Net Income(TTM)20.60M
Analysts85
Price Target8.36 (38.41%)
Short Float %6.65%
Short Ratio9.34
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.27% |
Yearly Dividend0.18
Dividend Growth(5Y)-30.13%
DP64.56%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)5.3%
Min EPS beat(2)-1.96%
Max EPS beat(2)12.56%
EPS beat(4)2
Avg EPS beat(4)33.24%
Min EPS beat(4)-8.33%
Max EPS beat(4)130.68%
EPS beat(8)6
Avg EPS beat(8)80.44%
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)1
Avg Revenue beat(2)-1.86%
Min Revenue beat(2)-4.74%
Max Revenue beat(2)1.02%
Revenue beat(4)2
Avg Revenue beat(4)-0.81%
Min Revenue beat(4)-4.74%
Max Revenue beat(4)4.92%
Revenue beat(8)3
Avg Revenue beat(8)-1.1%
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)-11.83%
PT rev (3m)-11.83%
EPS NQ rev (1m)2.86%
EPS NQ rev (3m)4.35%
EPS NY rev (1m)3.14%
EPS NY rev (3m)0.51%
Revenue NQ rev (1m)-0.33%
Revenue NQ rev (3m)1.09%
Revenue NY rev (1m)-0.24%
Revenue NY rev (3m)0.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.98 | ||
| Fwd PE | 5.17 | ||
| P/S | 0.12 | ||
| P/FCF | 4.92 | ||
| P/OCF | 2.78 | ||
| P/B | 3.18 | ||
| P/tB | N/A | ||
| EV/EBITDA | 3.75 |
EPS(TTM)1.01
EY16.72%
EPS(NY)1.17
Fwd EY19.34%
FCF(TTM)1.23
FCFY20.34%
OCF(TTM)2.17
OCFY35.96%
SpS49.09
BVpS1.9
TBVpS-0.51
PEG (NY)0.31
PEG (5Y)0.21
Graham Number6.57
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.62% | ||
| ROE | 21.3% | ||
| ROCE | 16.77% | ||
| ROIC | 13.24% | ||
| ROICexc | 13.36% | ||
| ROICexgc | 16.09% | ||
| OM | 4.89% | ||
| PM (TTM) | 0.82% | ||
| GM | 21.86% | ||
| FCFM | 2.5% |
ROA(3y)-2.35%
ROA(5y)-2.34%
ROE(3y)-47.66%
ROE(5y)-53.58%
ROIC(3y)11.93%
ROIC(5y)9.63%
ROICexc(3y)12.58%
ROICexc(5y)10.42%
ROICexgc(3y)15.34%
ROICexgc(5y)12.79%
ROCE(3y)15.1%
ROCE(5y)12.19%
ROICexgc growth 3Y20.86%
ROICexgc growth 5Y21.93%
ROICexc growth 3Y22.21%
ROICexc growth 5Y21.03%
OM growth 3Y15.32%
OM growth 5Y7.39%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y4.04%
GM growth 5Y3.09%
F-Score7
Asset Turnover1.97
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.49 | ||
| Debt/FCF | 7.54 | ||
| Debt/EBITDA | 2.12 | ||
| Cap/Depr | 57.97% | ||
| Cap/Sales | 1.92% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 53.93% | ||
| Profit Quality | 303.4% | ||
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.65 | ||
| Altman-Z | 1.74 |
F-Score7
WACC10.72%
ROIC/WACC1.24
Cap/Depr(3y)51.15%
Cap/Depr(5y)43.77%
Cap/Sales(3y)2.14%
Cap/Sales(5y)2.04%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)42.25%
EPS 3YN/A
EPS 5Y28.47%
EPS Q2Q%19.23%
EPS Next Y19.61%
EPS Next 2Y17.91%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-9.23%
Revenue growth 3Y-3.36%
Revenue growth 5Y-7.39%
Sales Q2Q%-12.86%
Revenue Next Year-9.26%
Revenue Next 2Y-5.91%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y5.62%
EBIT growth 3Y11.45%
EBIT growth 5Y-0.55%
EBIT Next Year367.97%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-59.86%
FCF growth 3Y-13.65%
FCF growth 5Y4.59%
OCF growth 1Y-51.11%
OCF growth 3Y-6.13%
OCF growth 5Y-6.2%
QUAD GRAPHICS INC / QUAD FAQ
What is the ChartMill fundamental rating of QUAD GRAPHICS INC (QUAD) stock?
ChartMill assigns a fundamental rating of 5 / 10 to QUAD.
What is the valuation status of QUAD GRAPHICS INC (QUAD) stock?
ChartMill assigns a valuation rating of 9 / 10 to QUAD GRAPHICS INC (QUAD). This can be considered as Undervalued.
How profitable is QUAD GRAPHICS INC (QUAD) stock?
QUAD GRAPHICS INC (QUAD) has a profitability rating of 6 / 10.
Can you provide the financial health for QUAD stock?
The financial health rating of QUAD GRAPHICS INC (QUAD) is 2 / 10.
Can you provide the dividend sustainability for QUAD stock?
The dividend rating of QUAD GRAPHICS INC (QUAD) is 5 / 10 and the dividend payout ratio is 64.56%.