STAGWELL INC (STGW) Stock Fundamental Analysis
USA - NASDAQ:STGW - US85256A1097 - Common Stock
5.19 USD
0 (0%)
5.19 USD
0 (0%)
Overall STGW gets a fundamental rating of 4 out of 10. We evaluated STGW against 95 industry peers in the Media industry. STGW may be in some trouble as it scores bad on both profitability and health. A decent growth rate in combination with a cheap valuation! Better keep an eye on STGW.
1. Profitability
1.1 Basic Checks
In the past year STGW was profitable.
In the past year STGW had a positive cash flow from operations.
In multiple years STGW reported negative net income over the last 5 years.
Each year in the past 5 years STGW had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of -0.04%, STGW is in line with its industry, outperforming 56.84% of the companies in the same industry.
Looking at the Return On Equity, with a value of -0.22%, STGW is in line with its industry, outperforming 57.89% of the companies in the same industry.
With a Return On Invested Capital value of 2.68%, STGW perfoms like the industry average, outperforming 53.68% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for STGW is below the industry average of 8.50%.
| 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's Operating Margin of 4.43% is in line compared to the rest of the industry. STGW outperforms 53.68% of its industry peers.
In the last couple of years the Operating Margin of STGW has declined.
Looking at the Gross Margin, with a value of 35.95%, STGW is in line with its industry, outperforming 47.37% of the companies in the same industry.
STGW's Gross Margin has improved in the last couple of years.
| 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.
The number of shares outstanding for STGW has been reduced compared to 1 year ago.
The number of shares outstanding for STGW has been increased compared to 5 years ago.
Compared to 1 year ago, STGW has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.93, we must say that STGW is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.93, STGW is in line with its industry, outperforming 49.47% of the companies in the same industry.
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 better Debt to FCF ratio (5.89) than 70.53% 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.
The Debt to Equity ratio of STGW (1.95) is worse than 67.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.95 | ||
| Debt/FCF | 5.89 | ||
| Altman-Z | 0.93 |
ROIC/WACC0.41
WACC6.61%
2.3 Liquidity
A Current Ratio of 0.86 indicates that STGW may have some problems paying its short term obligations.
STGW's Current ratio of 0.86 is on the low side compared to the rest of the industry. STGW is outperformed by 69.47% of its industry peers.
A Quick Ratio of 0.86 indicates that STGW may have some problems paying its short term obligations.
STGW's Quick ratio of 0.86 is on the low side compared to the rest of the industry. STGW is outperformed by 68.42% of its industry peers.
| 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.
The Revenue has been growing by 14.95% on average over the past years. This is quite good.
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
The Earnings Per Share is expected to grow by 13.17% on average over the next years. This is quite good.
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
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
A Price/Earnings ratio of 6.92 indicates a rather cheap valuation of STGW.
Based on the Price/Earnings ratio, STGW is valued cheaper than 86.32% of the companies in the same industry.
STGW's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.53.
The Price/Forward Earnings ratio is 5.04, which indicates a rather cheap valuation of STGW.
Based on the Price/Forward Earnings ratio, STGW is valued cheaper than 88.42% of the companies 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 23.04.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.92 | ||
| Fwd PE | 5.04 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, STGW is valued a bit cheaper than the industry average as 62.11% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, STGW is valued cheaply inside the industry as 85.26% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.4 | ||
| EV/EBITDA | 9.21 |
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.
STGW's earnings are expected to grow with 13.17% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.79
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 |
5.19
0 (0%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners44.17%
Inst Owner Change-0.01%
Ins Owners12.61%
Ins Owner Change1.52%
Market Cap1.34B
Analysts78.46
Price Target8.56 (64.93%)
Short Float %6.81%
Short Ratio5.98
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)2.43%
PT rev (3m)0.67%
EPS NQ rev (1m)0%
EPS NQ rev (3m)6.06%
EPS NY rev (1m)0%
EPS NY rev (3m)4.42%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.44%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.92 | ||
| Fwd PE | 5.04 | ||
| P/S | 0.47 | ||
| P/FCF | 5.4 | ||
| P/OCF | 5.06 | ||
| P/B | 1.79 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.21 |
EPS(TTM)0.75
EY14.45%
EPS(NY)1.03
Fwd EY19.85%
FCF(TTM)0.96
FCFY18.52%
OCF(TTM)1.03
OCFY19.75%
SpS11.05
BVpS2.9
TBVpS-6.64
PEG (NY)0.79
PEG (5Y)N/A
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%
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-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 | 0.93 |
F-Score5
WACC6.61%
ROIC/WACC0.41
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%