QUAD GRAPHICS INC (QUAD) Stock Fundamental Analysis
NYSE:QUAD - New York Stock Exchange, Inc. - US7473011093 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to QUAD. QUAD was compared to 83 industry peers in the Commercial Services & Supplies industry. QUAD has a medium profitability rating, but doesn't score so well on its financial health evaluation. QUAD is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
QUAD had positive earnings in the past year.
In the past year QUAD had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: QUAD reported negative net income in multiple years.
QUAD had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
QUAD has a Return On Assets of -1.36%. This is in the lower half of the industry: QUAD underperforms 60.24% of its industry peers.
With a Return On Equity value of -19.45%, QUAD is not doing good in the industry: 68.67% of the companies in the same industry are doing better.
Looking at the Return On Invested Capital, with a value of 13.85%, QUAD belongs to the top of the industry, outperforming 84.34% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for QUAD is in line with the industry average of 10.89%.
The last Return On Invested Capital (13.85%) for QUAD is above the 3 year average (11.93%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.36% | ||
| ROE | -19.45% | ||
| ROIC | 13.85% |
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 Operating Margin (4.73%) which is comparable to the rest of the industry.
QUAD's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 21.76%, QUAD is not doing good in the industry: 68.67% of the companies in the same industry are doing better.
QUAD's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.73% | ||
| PM (TTM) | N/A | ||
| GM | 21.76% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), QUAD is creating some value.
QUAD has more shares outstanding than it did 1 year ago.
The number of shares outstanding for QUAD has been reduced compared to 5 years ago.
QUAD has a better debt/assets ratio than last year.
2.2 Solvency
QUAD has an Altman-Z score of 1.87. This is not the best score and indicates that QUAD is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 1.87, QUAD is in line with its industry, outperforming 42.17% of the companies in the same industry.
The Debt to FCF ratio of QUAD is 18.47, which is on the high side as it means it would take QUAD, 18.47 years of fcf income to pay off all of its debts.
QUAD's Debt to FCF ratio of 18.47 is in line compared to the rest of the industry. QUAD outperforms 48.19% of its industry peers.
QUAD has a Debt/Equity ratio of 5.03. This is a high value indicating a heavy dependency on external financing.
QUAD has a Debt to Equity ratio of 5.03. This is amonst the worse of the industry: QUAD underperforms 85.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.03 | ||
| Debt/FCF | 18.47 | ||
| Altman-Z | 1.87 |
ROIC/WACC1.29
WACC10.71%
2.3 Liquidity
QUAD has a Current Ratio of 0.96. This is a bad value and indicates that QUAD is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of QUAD (0.96) is worse than 75.90% of its industry peers.
QUAD has a Quick Ratio of 0.96. This is a bad value and indicates that QUAD is not financially healthy enough and could expect problems in meeting its short term obligations.
QUAD's Quick ratio of 0.66 is on the low side compared to the rest of the industry. QUAD is outperformed by 87.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.66 |
3. Growth
3.1 Past
QUAD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 104.35%, 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.
Looking at the last year, QUAD shows a decrease in Revenue. The Revenue has decreased by -7.00% in the last year.
Measured over the past years, QUAD shows a decrease in Revenue. The Revenue has been decreasing by -7.39% on average per year.
EPS 1Y (TTM)104.35%
EPS 3YN/A
EPS 5Y28.47%
EPS Q2Q%100%
Revenue 1Y (TTM)-7%
Revenue growth 3Y-3.36%
Revenue growth 5Y-7.39%
Sales Q2Q%-3.88%
3.2 Future
The Earnings Per Share is expected to grow by 12.65% on average over the next years. This is quite good.
QUAD is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -6.28% yearly.
EPS Next Y14.75%
EPS Next 2Y12.65%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-10.02%
Revenue Next 2Y-6.28%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 5.60, the valuation of QUAD can be described as very cheap.
Based on the Price/Earnings ratio, QUAD is valued cheaply inside the industry as 93.98% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 25.91, QUAD is valued rather cheaply.
With a Price/Forward Earnings ratio of 4.93, the valuation of QUAD can be described as very cheap.
QUAD's Price/Forward Earnings ratio is rather cheap when compared to the industry. QUAD is cheaper than 97.59% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of QUAD to the average of the S&P500 Index (21.85), we can say QUAD is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.6 | ||
| Fwd PE | 4.93 |
4.2 Price Multiples
QUAD's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. QUAD is cheaper than 95.18% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, QUAD is valued cheaply inside the industry as 81.93% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.39 | ||
| EV/EBITDA | 3.41 |
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.
A more expensive valuation may be justified as QUAD's earnings are expected to grow with 12.65% in the coming years.
PEG (NY)0.38
PEG (5Y)0.2
EPS Next 2Y12.65%
EPS Next 3YN/A
5. Dividend
5.1 Amount
QUAD has a Yearly Dividend Yield of 4.36%, which is a nice return.
Compared to an average industry Dividend Yield of 2.47, QUAD pays a better dividend. On top of this QUAD pays more dividend than 91.57% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, QUAD pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.36% |
5.2 History
The dividend of QUAD decreases each year by -30.13%.
QUAD has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-30.13%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
The earnings of QUAD are negative and hence is the payout ratio. QUAD will probably not be able to sustain this dividend level.
DP-61.76%
EPS Next 2Y12.65%
EPS Next 3YN/A
5.26
-0.34 (-6.07%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners54.58%
Inst Owner Change1.93%
Ins Owners14.33%
Ins Owner Change0.93%
Market Cap264.89M
Analysts85
Price Target10.35 (96.77%)
Short Float %5.22%
Short Ratio4.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.36% |
Yearly Dividend0.18
Dividend Growth(5Y)-30.13%
DP-61.76%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)61.18%
Min EPS beat(2)-8.33%
Max EPS beat(2)130.68%
EPS beat(4)3
Avg EPS beat(4)42.31%
Min EPS beat(4)-8.33%
Max EPS beat(4)130.68%
EPS beat(8)7
Avg EPS beat(8)98.99%
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)0.24%
Min Revenue beat(2)-4.43%
Max Revenue beat(2)4.92%
Revenue beat(4)1
Avg Revenue beat(4)-1.49%
Min Revenue beat(4)-6.26%
Max Revenue beat(4)4.92%
Revenue beat(8)2
Avg Revenue beat(8)-2.02%
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)0%
EPS NQ rev (1m)3.7%
EPS NQ rev (3m)-39.13%
EPS NY rev (1m)13.86%
EPS NY rev (3m)-18.18%
Revenue NQ rev (1m)-3.47%
Revenue NQ rev (3m)-5.1%
Revenue NY rev (1m)-0.32%
Revenue NY rev (3m)-2.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.6 | ||
| Fwd PE | 4.93 | ||
| P/S | 0.1 | ||
| P/FCF | 10.39 | ||
| P/OCF | 3.48 | ||
| P/B | 3.03 | ||
| P/tB | N/A | ||
| EV/EBITDA | 3.41 |
EPS(TTM)0.94
EY17.87%
EPS(NY)1.07
Fwd EY20.26%
FCF(TTM)0.51
FCFY9.63%
OCF(TTM)1.51
OCFY28.73%
SpS52.56
BVpS1.74
TBVpS-0.38
PEG (NY)0.38
PEG (5Y)0.2
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.36% | ||
| ROE | -19.45% | ||
| ROCE | 17.54% | ||
| ROIC | 13.85% | ||
| ROICexc | 14.01% | ||
| ROICexgc | 16.5% | ||
| OM | 4.73% | ||
| PM (TTM) | N/A | ||
| GM | 21.76% | ||
| FCFM | 0.96% |
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%
ROICexcg growth 3Y20.86%
ROICexcg 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 Turnover2.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.03 | ||
| Debt/FCF | 18.47 | ||
| Debt/EBITDA | 2.01 | ||
| Cap/Depr | 54.06% | ||
| Cap/Sales | 1.91% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 34.8% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.66 | ||
| Altman-Z | 1.87 |
F-Score7
WACC10.71%
ROIC/WACC1.29
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)104.35%
EPS 3YN/A
EPS 5Y28.47%
EPS Q2Q%100%
EPS Next Y14.75%
EPS Next 2Y12.65%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-7%
Revenue growth 3Y-3.36%
Revenue growth 5Y-7.39%
Sales Q2Q%-3.88%
Revenue Next Year-10.02%
Revenue Next 2Y-6.28%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y26.49%
EBIT growth 3Y11.45%
EBIT growth 5Y-0.55%
EBIT Next Year379.04%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-50%
FCF growth 3Y-13.65%
FCF growth 5Y4.59%
OCF growth 1Y-37.06%
OCF growth 3Y-6.13%
OCF growth 5Y-6.2%