QUAD GRAPHICS INC (QUAD) Stock Fundamental Analysis
USA - NYSE:QUAD - US7473011093 - Common Stock
5.68 USD
+0.08 (+1.43%)
5.68 USD
0 (0%)
Taking everything into account, QUAD scores 4 out of 10 in our fundamental rating. QUAD was compared to 82 industry peers in the Commercial Services & Supplies industry. While QUAD is still in line with the averages on profitability rating, there are concerns on its financial health. QUAD may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
QUAD had positive earnings in the past year.
QUAD had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: QUAD reported negative net income in multiple years.
In the past 5 years QUAD always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of QUAD (-1.15%) is worse than 60.98% of its industry peers.
With a Return On Equity value of -16.44%, QUAD is not doing good in the industry: 65.85% of the companies in the same industry are doing better.
Looking at the Return On Invested Capital, with a value of 13.73%, QUAD belongs to the top of the industry, outperforming 86.59% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for QUAD is in line with the industry average of 10.38%.
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
With a Operating Margin value of 4.75%, QUAD perfoms like the industry average, outperforming 48.78% of the companies in the same industry.
QUAD's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 21.64%, QUAD is not doing good in the industry: 70.73% 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so QUAD is still creating some value.
The number of shares outstanding for QUAD has been increased compared to 1 year ago.
QUAD has less shares outstanding than it did 5 years ago.
QUAD has a better debt/assets ratio than last year.
2.2 Solvency
QUAD has an Altman-Z score of 1.80. 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 of 1.80. This is comparable to the rest of the industry: QUAD outperforms 47.56% of its industry peers.
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.
QUAD has a better Debt to FCF ratio (6.21) than 64.63% of its industry peers.
QUAD has a Debt/Equity ratio of 4.85. This is a high value indicating a heavy dependency on external financing.
QUAD has a Debt to Equity ratio of 4.85. This is amonst the worse of the industry: QUAD underperforms 84.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.85 | ||
| Debt/FCF | 6.21 | ||
| Altman-Z | 1.8 |
ROIC/WACC1.28
WACC10.69%
2.3 Liquidity
A Current Ratio of 0.92 indicates that QUAD may have some problems paying its short term obligations.
With a Current ratio value of 0.92, QUAD is not doing good in the industry: 76.83% of the companies in the same industry are doing better.
A Quick Ratio of 0.64 indicates that QUAD may have some problems paying its short term obligations.
QUAD has a worse Quick ratio (0.64) than 84.15% 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.
The Earnings Per Share has been growing by 28.47% on average over the past years. This is a very strong growth
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
QUAD is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.62% yearly.
QUAD is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -5.78% yearly.
EPS Next Y15.96%
EPS Next 2Y16.62%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-9.04%
Revenue Next 2Y-5.78%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 5.92, which indicates a rather cheap valuation of QUAD.
93.90% of the companies in the same industry are more expensive than QUAD, based on the Price/Earnings ratio.
QUAD's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.40.
With a Price/Forward Earnings ratio of 4.97, 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 97.56% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.94. QUAD is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.92 | ||
| Fwd PE | 4.97 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of QUAD indicates a rather cheap valuation: QUAD is cheaper than 96.34% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, QUAD is valued cheaper than 95.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.91 | ||
| EV/EBITDA | 3.49 |
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 16.62% in the coming years.
PEG (NY)0.37
PEG (5Y)0.21
EPS Next 2Y16.62%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.91%, QUAD is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.51, 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 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.91% |
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
QUAD has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-84.62%
EPS Next 2Y16.62%
EPS Next 3YN/A
5.68
+0.08 (+1.43%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners58.59%
Inst Owner Change-0.75%
Ins Owners12.97%
Ins Owner Change0.81%
Market Cap286.67M
Analysts85
Price Target9.49 (67.08%)
Short Float %5.85%
Short Ratio6.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.91% |
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)0%
PT rev (3m)-1.59%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.82%
EPS NY rev (1m)-2.55%
EPS NY rev (3m)1.06%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.07%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.92 | ||
| Fwd PE | 4.97 | ||
| P/S | 0.11 | ||
| P/FCF | 3.91 | ||
| P/OCF | 2.36 | ||
| P/B | 3.3 | ||
| P/tB | N/A | ||
| EV/EBITDA | 3.49 |
EPS(TTM)0.96
EY16.9%
EPS(NY)1.14
Fwd EY20.11%
FCF(TTM)1.45
FCFY25.57%
OCF(TTM)2.4
OCFY42.31%
SpS51.21
BVpS1.72
TBVpS-0.73
PEG (NY)0.37
PEG (5Y)0.21
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 | 1.8 |
F-Score7
WACC10.69%
ROIC/WACC1.28
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 Y15.96%
EPS Next 2Y16.62%
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-9.04%
Revenue Next 2Y-5.78%
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%