STAGWELL INC (STGW) Stock Fundamental Analysis
NASDAQ:STGW - Nasdaq - US85256A1097 - Common Stock - Currency: USD
Overall STGW gets a fundamental rating of 3 out of 10. We evaluated STGW against 96 industry peers in the Media industry. While STGW is still in line with the averages on profitability rating, there are concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on STGW.
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.
In the past 5 years STGW always reported a positive cash flow from operatings.
1.2 Ratios
STGW has a Return On Assets of 0.02%. This is comparable to the rest of the industry: STGW outperforms 58.33% of its industry peers.
The Return On Equity of STGW (0.19%) is comparable to the rest of the industry.
STGW has a Return On Invested Capital of 2.87%. This is comparable to the rest of the industry: STGW outperforms 57.29% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for STGW is below the industry average of 6.73%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.02% | ||
| ROE | 0.19% | ||
| ROIC | 2.87% |
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 Profit Margin (0.02%) which is comparable to the rest of the industry.
STGW has a Operating Margin (4.45%) which is in line with its industry peers.
STGW's Operating Margin has declined in the last couple of years.
STGW has a Gross Margin (35.86%) which is in line with its industry peers.
STGW's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.45% | ||
| PM (TTM) | 0.02% | ||
| GM | 35.86% |
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
STGW has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, STGW has less shares outstanding
STGW has more shares outstanding than it did 5 years ago.
The debt/assets ratio for STGW is higher compared to a year ago.
2.2 Solvency
STGW has an Altman-Z score of 0.99. This is a bad value and indicates that STGW is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of STGW (0.99) is comparable to the rest of the industry.
The Debt to FCF ratio of STGW is 12.36, which is on the high side as it means it would take STGW, 12.36 years of fcf income to pay off all of its debts.
STGW has a Debt to FCF ratio of 12.36. This is comparable to the rest of the industry: STGW outperforms 57.29% of its industry peers.
STGW has a Debt/Equity ratio of 4.38. This is a high value indicating a heavy dependency on external financing.
STGW's Debt to Equity ratio of 4.38 is on the low side compared to the rest of the industry. STGW is outperformed by 76.04% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.38 | ||
| Debt/FCF | 12.36 | ||
| Altman-Z | 0.99 |
ROIC/WACC0.4
WACC7.18%
2.3 Liquidity
STGW has a Current Ratio of 0.91. 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 Current ratio of STGW (0.91) is worse than 67.71% of its industry peers.
STGW has a Quick Ratio of 0.91. 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's Quick ratio of 0.91 is on the low side compared to the rest of the industry. STGW is outperformed by 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.91 |
3. Growth
3.1 Past
STGW shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.13%, which is quite good.
The Revenue has grown by 9.63% in the past year. This is quite good.
Measured over the past years, STGW shows a quite strong growth in Revenue. The Revenue has been growing by 14.95% on average per year.
EPS 1Y (TTM)16.13%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-25%
Revenue 1Y (TTM)9.63%
Revenue growth 3Y24.58%
Revenue growth 5Y14.95%
Sales Q2Q%-2.73%
3.2 Future
STGW is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.94% yearly.
The Revenue is expected to grow by 4.83% on average over the next years.
EPS Next Y11.39%
EPS Next 2Y17.66%
EPS Next 3Y11.94%
EPS Next 5YN/A
Revenue Next Year4.41%
Revenue Next 2Y6.25%
Revenue Next 3Y4.83%
Revenue Next 5YN/A
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
Based on the Price/Earnings ratio of 6.54, the valuation of STGW can be described as very cheap.
Based on the Price/Earnings ratio, STGW is valued cheaply inside the industry as 89.58% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of STGW to the average of the S&P500 Index (25.82), we can say STGW is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 4.48, the valuation of STGW can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of STGW indicates a rather cheap valuation: STGW is cheaper than 92.71% of the companies listed in the same industry.
STGW's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.54 | ||
| Fwd PE | 4.48 |
4.2 Price Multiples
STGW's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of STGW indicates a somewhat cheap valuation: STGW is cheaper than 73.96% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.69 | ||
| EV/EBITDA | 9.12 |
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.
PEG (NY)0.57
PEG (5Y)N/A
EPS Next 2Y17.66%
EPS Next 3Y11.94%
5. Dividend
5.1 Amount
STGW does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
4.71
-0.05 (-1.05%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners93.97%
Inst Owner Change0.53%
Ins Owners3.56%
Ins Owner Change7.72%
Market Cap1.27B
Analysts78.57
Price Target9.07 (92.57%)
Short Float %1.71%
Short Ratio5.46
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)0
Avg EPS beat(2)-13.08%
Min EPS beat(2)-23.04%
Max EPS beat(2)-3.12%
EPS beat(4)1
Avg EPS beat(4)-11.02%
Min EPS beat(4)-23.04%
Max EPS beat(4)2.01%
EPS beat(8)2
Avg EPS beat(8)-14.25%
EPS beat(12)3
Avg EPS beat(12)-16.64%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)-0.41%
Min Revenue beat(2)-3.83%
Max Revenue beat(2)3.01%
Revenue beat(4)3
Avg Revenue beat(4)1.16%
Min Revenue beat(4)-3.83%
Max Revenue beat(4)4.63%
Revenue beat(8)4
Avg Revenue beat(8)-0.43%
Revenue beat(12)4
Avg Revenue beat(12)-1.73%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-7.35%
PT rev (3m)1.22%
EPS NQ rev (1m)-12.5%
EPS NQ rev (3m)-22.73%
EPS NY rev (1m)-1.02%
EPS NY rev (3m)5.25%
Revenue NQ rev (1m)1.7%
Revenue NQ rev (3m)3.65%
Revenue NY rev (1m)0.95%
Revenue NY rev (3m)4.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.54 | ||
| Fwd PE | 4.48 | ||
| P/S | 0.45 | ||
| P/FCF | 10.69 | ||
| P/OCF | 9.32 | ||
| P/B | 3.79 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.12 |
EPS(TTM)0.72
EY15.29%
EPS(NY)1.05
Fwd EY22.34%
FCF(TTM)0.44
FCFY9.35%
OCF(TTM)0.51
OCFY10.73%
SpS10.49
BVpS1.24
TBVpS-7.62
PEG (NY)0.57
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.02% | ||
| ROE | 0.19% | ||
| ROCE | 4.76% | ||
| ROIC | 2.87% | ||
| ROICexc | 3.03% | ||
| ROICexgc | 63.98% | ||
| OM | 4.45% | ||
| PM (TTM) | 0.02% | ||
| GM | 35.86% | ||
| FCFM | 4.2% |
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%
ROICexcg growth 3YN/A
ROICexcg 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-Score8
Asset Turnover0.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.38 | ||
| Debt/FCF | 12.36 | ||
| Debt/EBITDA | 5.15 | ||
| Cap/Depr | 10.95% | ||
| Cap/Sales | 0.62% | ||
| Interest Coverage | 1.34 | ||
| Cash Conversion | 47.79% | ||
| Profit Quality | 19003.5% | ||
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.91 | ||
| Altman-Z | 0.99 |
F-Score8
WACC7.18%
ROIC/WACC0.4
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)16.13%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-25%
EPS Next Y11.39%
EPS Next 2Y17.66%
EPS Next 3Y11.94%
EPS Next 5YN/A
Revenue 1Y (TTM)9.63%
Revenue growth 3Y24.58%
Revenue growth 5Y14.95%
Sales Q2Q%-2.73%
Revenue Next Year4.41%
Revenue Next 2Y6.25%
Revenue Next 3Y4.83%
Revenue Next 5YN/A
EBIT growth 1Y11.18%
EBIT growth 3Y30.32%
EBIT growth 5Y8.88%
EBIT Next Year181.69%
EBIT Next 3Y49.66%
EBIT Next 5YN/A
FCF growth 1Y-59.32%
FCF growth 3Y-11.41%
FCF growth 5Y12.4%
OCF growth 1Y-56.29%
OCF growth 3Y-10.74%
OCF growth 5Y10.25%