QUAD GRAPHICS INC (QUAD) Stock Fundamental Analysis
NYSE:QUAD - US7473011093 - Common Stock
6.66 USD
+0.11 (+1.68%)
6.66 USD
0 (0%)
QUAD gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 84 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on QUAD.
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.
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
With a Return On Assets value of -1.15%, QUAD is not doing good in the industry: 60.71% of the companies in the same industry are doing better.
The Return On Equity of QUAD (-16.44%) is worse than 66.67% of its industry peers.
QUAD's Return On Invested Capital of 13.73% is amongst the best of the industry. QUAD outperforms 86.90% of its industry peers.
The Average Return On Invested Capital over the past 3 years for QUAD is in line with the industry average of 10.78%.
The 3 year average ROIC (11.93%) for QUAD is below the current ROIC(13.73%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.15% | ||
| ROE | -16.44% | ||
| ROIC | 13.73% |
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
The Operating Margin of QUAD (4.75%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of QUAD has grown nicely.
With a Gross Margin value of 21.64%, QUAD is not doing good in the industry: 69.05% 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 | 4.75% | ||
| PM (TTM) | N/A | ||
| GM | 21.64% |
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
QUAD has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, QUAD has more shares outstanding
QUAD has less shares outstanding than it did 5 years ago.
The debt/assets ratio for QUAD has been reduced compared to a year ago.
2.2 Solvency
QUAD has an Altman-Z score of 1.82. 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.
The Altman-Z score of QUAD (1.82) is comparable to the rest of the industry.
The Debt to FCF ratio of QUAD is 6.21, which is on the high side as it means it would take QUAD, 6.21 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of QUAD (6.21) is better than 65.48% of its industry peers.
A Debt/Equity ratio of 4.85 is on the high side and indicates that QUAD has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 4.85, QUAD is doing worse than 83.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.85 | ||
| Debt/FCF | 6.21 | ||
| Altman-Z | 1.82 |
ROIC/WACC1.27
WACC10.79%
2.3 Liquidity
QUAD has a Current Ratio of 0.92. 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 Current ratio of 0.92 is on the low side compared to the rest of the industry. QUAD is outperformed by 77.38% of its industry peers.
A Quick Ratio of 0.64 indicates that QUAD may have some problems paying its short term obligations.
QUAD has a Quick ratio of 0.64. This is amonst the worse of the industry: QUAD underperforms 84.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.92 | ||
| Quick Ratio | 0.64 |
3. Growth
3.1 Past
QUAD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 71.43%, 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 -6.94% in the last year.
QUAD shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -7.39% yearly.
EPS 1Y (TTM)71.43%
EPS 3YN/A
EPS 5Y28.47%
EPS Q2Q%16.67%
Revenue 1Y (TTM)-6.94%
Revenue growth 3Y-3.36%
Revenue growth 5Y-7.39%
Sales Q2Q%-9.82%
3.2 Future
The Earnings Per Share is expected to grow by 18.43% on average over the next years. This is quite good.
The Revenue is expected to decrease by -6.24% on average over the next years.
EPS Next Y19%
EPS Next 2Y18.43%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-9.95%
Revenue Next 2Y-6.24%
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.
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 6.94, the valuation of QUAD can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of QUAD indicates a rather cheap valuation: QUAD is cheaper than 92.86% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of QUAD to the average of the S&P500 Index (27.08), we can say QUAD is valued rather cheaply.
QUAD is valuated cheaply with a Price/Forward Earnings ratio of 5.65.
Compared to the rest of the industry, the Price/Forward Earnings ratio of QUAD indicates a rather cheap valuation: QUAD is cheaper than 97.62% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of QUAD to the average of the S&P500 Index (22.72), we can say QUAD is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.94 | ||
| Fwd PE | 5.65 |
4.2 Price Multiples
QUAD's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. QUAD is cheaper than 97.62% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, QUAD is valued cheaply inside the industry as 96.43% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.59 | ||
| EV/EBITDA | 3.7 |
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.
A more expensive valuation may be justified as QUAD's earnings are expected to grow with 18.43% in the coming years.
PEG (NY)0.37
PEG (5Y)0.24
EPS Next 2Y18.43%
EPS Next 3YN/A
5. Dividend
5.1 Amount
QUAD has a Yearly Dividend Yield of 4.47%, which is a nice return.
Compared to an average industry Dividend Yield of 2.36, QUAD pays a better dividend. On top of this QUAD pays more dividend than 94.05% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, QUAD pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.47% |
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
The earnings of QUAD are negative and hence is the payout ratio. QUAD will probably not be able to sustain this dividend level.
DP-84.62%
EPS Next 2Y18.43%
EPS Next 3YN/A
6.66
+0.11 (+1.68%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners57.7%
Inst Owner Change0.17%
Ins Owners12.92%
Ins Owner Change-4.44%
Market Cap336.13M
Analysts85
Price Target9.49 (42.49%)
Short Float %5.44%
Short Ratio5.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.47% |
Yearly Dividend0.18
Dividend Growth(5Y)-30.13%
DP-84.62%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)64.36%
Min EPS beat(2)-1.96%
Max EPS beat(2)130.68%
EPS beat(4)2
Avg EPS beat(4)32.22%
Min EPS beat(4)-8.33%
Max EPS beat(4)130.68%
EPS beat(8)6
Avg EPS beat(8)81.34%
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)2.97%
Min Revenue beat(2)1.02%
Max Revenue beat(2)4.92%
Revenue beat(4)2
Avg Revenue beat(4)0.32%
Min Revenue beat(4)-4.43%
Max Revenue beat(4)4.92%
Revenue beat(8)3
Avg Revenue beat(8)-1.29%
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)-1.59%
PT rev (3m)-8.37%
EPS NQ rev (1m)7.27%
EPS NQ rev (3m)7.27%
EPS NY rev (1m)3.7%
EPS NY rev (3m)3.7%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.42%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.94 | ||
| Fwd PE | 5.65 | ||
| P/S | 0.13 | ||
| P/FCF | 4.59 | ||
| P/OCF | 2.77 | ||
| P/B | 3.86 | ||
| P/tB | N/A | ||
| EV/EBITDA | 3.7 |
EPS(TTM)0.96
EY14.41%
EPS(NY)1.18
Fwd EY17.69%
FCF(TTM)1.45
FCFY21.81%
OCF(TTM)2.4
OCFY36.09%
SpS51.21
BVpS1.72
TBVpS-0.73
PEG (NY)0.37
PEG (5Y)0.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.15% | ||
| ROE | -16.44% | ||
| ROCE | 17.38% | ||
| ROIC | 13.73% | ||
| ROICexc | 13.86% | ||
| ROICexgc | 16.85% | ||
| OM | 4.75% | ||
| PM (TTM) | N/A | ||
| GM | 21.64% | ||
| FCFM | 2.84% |
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 Turnover2.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.85 | ||
| Debt/FCF | 6.21 | ||
| Debt/EBITDA | 2 | ||
| Cap/Depr | 54.61% | ||
| Cap/Sales | 1.86% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 57.57% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.92 | ||
| Quick Ratio | 0.64 | ||
| Altman-Z | 1.82 |
F-Score7
WACC10.79%
ROIC/WACC1.27
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)71.43%
EPS 3YN/A
EPS 5Y28.47%
EPS Q2Q%16.67%
EPS Next Y19%
EPS Next 2Y18.43%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-6.94%
Revenue growth 3Y-3.36%
Revenue growth 5Y-7.39%
Sales Q2Q%-9.82%
Revenue Next Year-9.95%
Revenue Next 2Y-6.24%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y15.74%
EBIT growth 3Y11.45%
EBIT growth 5Y-0.55%
EBIT Next Year367.97%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-31.11%
FCF growth 3Y-13.65%
FCF growth 5Y4.59%
OCF growth 1Y-32.01%
OCF growth 3Y-6.13%
OCF growth 5Y-6.2%