STAGWELL INC (STGW) Stock Fundamental Analysis
USA - NASDAQ:STGW - US85256A1097 - Common Stock
5.62 USD
+0.81 (+16.84%)
5.1163 USD
-0.5 (-8.96%)
We assign a fundamental rating of 4 out of 10 to STGW. STGW was compared to 95 industry peers in the Media industry. STGW may be in some trouble as it scores bad on both profitability and health. STGW is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
In the past year STGW was profitable.
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.
Each year in the past 5 years STGW had a positive operating cash flow.
1.2 Ratios
STGW's Return On Assets of -0.04% is in line compared to the rest of the industry. STGW outperforms 55.79% of its industry peers.
The Return On Equity of STGW (-0.22%) is comparable to the rest of the industry.
STGW has a Return On Invested Capital (2.68%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for STGW is below the industry average of 8.55%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.04% | ||
| ROE | -0.22% | ||
| ROIC | 2.68% |
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 Operating Margin of 4.43%. This is comparable to the rest of the industry: STGW outperforms 53.68% of its industry peers.
STGW's Operating Margin has declined in the last couple of years.
STGW has a Gross Margin of 35.95%. This is comparable to the rest of the industry: STGW outperforms 47.37% of its industry peers.
In the last couple of years the Gross Margin of STGW has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.43% | ||
| PM (TTM) | N/A | ||
| GM | 35.95% |
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
The number of shares outstanding for STGW has been increased compared to 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 0.91. This is a bad value and indicates that STGW is not financially healthy and even has some risk of bankruptcy.
STGW has a Altman-Z score of 0.91. This is comparable to the rest of the industry: STGW outperforms 50.53% of its industry peers.
The Debt to FCF ratio of STGW is 5.89, which is a neutral value as it means it would take STGW, 5.89 years of fcf income to pay off all of its debts.
STGW has a Debt to FCF ratio of 5.89. This is in the better half of the industry: STGW outperforms 69.47% of its industry peers.
STGW has a Debt/Equity ratio of 1.95. This is a high value indicating a heavy dependency on external financing.
STGW's Debt to Equity ratio of 1.95 is on the low side compared to the rest of the industry. STGW is outperformed by 66.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.95 | ||
| Debt/FCF | 5.89 | ||
| Altman-Z | 0.91 |
ROIC/WACC0.39
WACC6.91%
2.3 Liquidity
A Current Ratio of 0.86 indicates that STGW may have some problems paying its short term obligations.
The Current ratio of STGW (0.86) is worse than 68.42% of its industry peers.
A Quick Ratio of 0.86 indicates that STGW may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.86, STGW is doing worse than 67.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
STGW shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 25.00%, which is quite impressive.
The Revenue has grown by 9.37% in the past year. This is quite good.
STGW shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.95% yearly.
EPS 1Y (TTM)25%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%21.43%
Revenue 1Y (TTM)9.37%
Revenue growth 3Y24.58%
Revenue growth 5Y14.95%
Sales Q2Q%5.31%
3.2 Future
Based on estimates for the next years, STGW will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.17% on average per year.
Based on estimates for the next years, STGW will show a small growth in Revenue. The Revenue will grow by 5.49% on average per year.
EPS Next Y8.71%
EPS Next 2Y16.43%
EPS Next 3Y13.17%
EPS Next 5YN/A
Revenue Next Year4.27%
Revenue Next 2Y6.51%
Revenue Next 3Y6.1%
Revenue Next 5Y5.49%
3.3 Evolution
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 7.49, the valuation of STGW can be described as very cheap.
85.26% of the companies in the same industry are more expensive than STGW, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 25.67, STGW is valued rather cheaply.
The Price/Forward Earnings ratio is 5.46, which indicates a rather cheap valuation of STGW.
Compared to the rest of the industry, the Price/Forward Earnings ratio of STGW indicates a rather cheap valuation: STGW is cheaper than 87.37% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of STGW to the average of the S&P500 Index (31.86), we can say STGW is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.49 | ||
| Fwd PE | 5.46 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, STGW is valued a bit cheaper than 63.16% of the companies in the same industry.
83.16% of the companies in the same industry are more expensive than STGW, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.85 | ||
| EV/EBITDA | 8.87 |
4.3 Compensation for Growth
STGW'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 STGW's earnings are expected to grow with 13.17% in the coming years.
PEG (NY)0.86
PEG (5Y)N/A
EPS Next 2Y16.43%
EPS Next 3Y13.17%
5. Dividend
5.1 Amount
No dividends for STGW!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
5.62
+0.81 (+16.84%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners44.17%
Inst Owner Change-2.66%
Ins Owners12.61%
Ins Owner Change-0.97%
Market Cap1.45B
Revenue(TTM)2.86B
Net Income(TTM)-1672000
Analysts78.46
Price Target8.05 (43.24%)
Short Float %7.27%
Short Ratio7.05
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)1
Avg EPS beat(2)-10.35%
Min EPS beat(2)-23.04%
Max EPS beat(2)2.34%
EPS beat(4)2
Avg EPS beat(4)-5.45%
Min EPS beat(4)-23.04%
Max EPS beat(4)2.34%
EPS beat(8)3
Avg EPS beat(8)-10.98%
EPS beat(12)4
Avg EPS beat(12)-13.14%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-1.97%
Min Revenue beat(2)-3.83%
Max Revenue beat(2)-0.12%
Revenue beat(4)2
Avg Revenue beat(4)0.92%
Min Revenue beat(4)-3.83%
Max Revenue beat(4)4.63%
Revenue beat(8)4
Avg Revenue beat(8)0.63%
Revenue beat(12)4
Avg Revenue beat(12)-1.65%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-5.96%
PT rev (3m)-5.32%
EPS NQ rev (1m)-0.71%
EPS NQ rev (3m)-1.12%
EPS NY rev (1m)0%
EPS NY rev (3m)4.42%
Revenue NQ rev (1m)-0.88%
Revenue NQ rev (3m)0.07%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.49 | ||
| Fwd PE | 5.46 | ||
| P/S | 0.51 | ||
| P/FCF | 5.85 | ||
| P/OCF | 5.48 | ||
| P/B | 1.94 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.87 |
EPS(TTM)0.75
EY13.35%
EPS(NY)1.03
Fwd EY18.33%
FCF(TTM)0.96
FCFY17.11%
OCF(TTM)1.03
OCFY18.24%
SpS11.05
BVpS2.9
TBVpS-6.64
PEG (NY)0.86
PEG (5Y)N/A
Graham Number7
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.04% | ||
| ROE | -0.22% | ||
| ROCE | 4.44% | ||
| ROIC | 2.68% | ||
| ROICexc | 2.86% | ||
| ROICexgc | 37.46% | ||
| OM | 4.43% | ||
| PM (TTM) | N/A | ||
| GM | 35.95% | ||
| FCFM | 8.7% |
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%
ROICexgc growth 3YN/A
ROICexgc 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-Score5
Asset Turnover0.66
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.95 | ||
| Debt/FCF | 5.89 | ||
| Debt/EBITDA | 5.14 | ||
| Cap/Depr | 10.44% | ||
| Cap/Sales | 0.58% | ||
| Interest Coverage | 1.33 | ||
| Cash Conversion | 93.07% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.86 | ||
| Altman-Z | 0.91 |
F-Score5
WACC6.91%
ROIC/WACC0.39
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)25%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%21.43%
EPS Next Y8.71%
EPS Next 2Y16.43%
EPS Next 3Y13.17%
EPS Next 5YN/A
Revenue 1Y (TTM)9.37%
Revenue growth 3Y24.58%
Revenue growth 5Y14.95%
Sales Q2Q%5.31%
Revenue Next Year4.27%
Revenue Next 2Y6.51%
Revenue Next 3Y6.1%
Revenue Next 5Y5.49%
EBIT growth 1Y22.72%
EBIT growth 3Y30.32%
EBIT growth 5Y8.88%
EBIT Next Year175.84%
EBIT Next 3Y48.15%
EBIT Next 5YN/A
FCF growth 1Y-15.58%
FCF growth 3Y-11.41%
FCF growth 5Y12.4%
OCF growth 1Y-14.67%
OCF growth 3Y-10.74%
OCF growth 5Y10.25%
STAGWELL INC / STGW FAQ
Can you provide the ChartMill fundamental rating for STAGWELL INC?
ChartMill assigns a fundamental rating of 4 / 10 to STGW.
What is the valuation status of STAGWELL INC (STGW) stock?
ChartMill assigns a valuation rating of 8 / 10 to STAGWELL INC (STGW). This can be considered as Undervalued.
What is the profitability of STGW stock?
STAGWELL INC (STGW) has a profitability rating of 3 / 10.
What is the valuation of STAGWELL INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for STAGWELL INC (STGW) is 7.49 and the Price/Book (PB) ratio is 1.94.
Can you provide the financial health for STGW stock?
The financial health rating of STAGWELL INC (STGW) is 2 / 10.