STAGWELL INC (STGW) Stock Fundamental Analysis
NASDAQ:STGW - US85256A1097 - Common Stock
5.64 USD
+0.1 (+1.81%)
5.64 USD
0 (0%)
Taking everything into account, STGW scores 4 out of 10 in our fundamental rating. STGW was compared to 99 industry peers in the Media industry. STGW has a bad profitability rating. Also its financial health evaluation is rather negative. STGW is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
STGW had positive earnings in the past year.
In the past year STGW had a positive cash flow from operations.
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 56.57% of its industry peers.
STGW's Return On Equity of -0.22% is in line compared to the rest of the industry. STGW outperforms 55.56% of its industry peers.
STGW's Return On Invested Capital of 2.68% is in line compared to the rest of the industry. STGW outperforms 54.55% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for STGW is below the industry average of 8.87%.
| 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 53.54% of its industry peers.
In the last couple of years the Operating Margin of STGW has declined.
With a Gross Margin value of 35.95%, STGW perfoms like the industry average, outperforming 47.47% of the companies in the same industry.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so STGW is destroying value.
The number of shares outstanding for STGW has been reduced compared to 1 year ago.
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 0.95. 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 (0.95) which is in line with its industry peers.
STGW has a debt to FCF ratio of 5.89. This is a neutral value as STGW would need 5.89 years to pay back of all of its debts.
The Debt to FCF ratio of STGW (5.89) is better than 71.72% 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 has a worse Debt to Equity ratio (1.95) than 67.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.95 | ||
| Debt/FCF | 5.89 | ||
| Altman-Z | 0.95 |
ROIC/WACC0.39
WACC6.8%
2.3 Liquidity
STGW has a Current Ratio of 0.86. 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 has a worse Current ratio (0.86) than 69.70% 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 68.69% 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.
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
STGW is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.85% yearly.
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 3Y10.85%
EPS Next 5YN/A
Revenue Next Year4.24%
Revenue Next 2Y6.46%
Revenue Next 3Y4.9%
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
STGW is valuated cheaply with a Price/Earnings ratio of 7.52.
Compared to the rest of the industry, the Price/Earnings ratio of STGW indicates a rather cheap valuation: STGW is cheaper than 85.86% of the companies listed in the same industry.
STGW is valuated cheaply when we compare the Price/Earnings ratio to 27.13, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 5.47, the valuation of STGW can be described as very cheap.
Based on the Price/Forward Earnings ratio, STGW is valued cheaper than 88.89% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of STGW to the average of the S&P500 Index (22.76), we can say STGW is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.52 | ||
| Fwd PE | 5.47 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, STGW is valued a bit cheaper than the industry average as 61.62% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of STGW indicates a rather cheap valuation: STGW is cheaper than 85.86% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.87 | ||
| EV/EBITDA | 9.62 |
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.
PEG (NY)0.86
PEG (5Y)N/A
EPS Next 2Y16.43%
EPS Next 3Y10.85%
5. Dividend
5.1 Amount
STGW does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
5.64
+0.1 (+1.81%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners41.09%
Inst Owner Change7.71%
Ins Owners12.83%
Ins Owner Change5.67%
Market Cap1.46B
Analysts77.14
Price Target8.36 (48.23%)
Short Float %7.66%
Short Ratio5.82
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)-1.71%
PT rev (3m)-7.81%
EPS NQ rev (1m)3.05%
EPS NQ rev (3m)16.82%
EPS NY rev (1m)4.42%
EPS NY rev (3m)-2.41%
Revenue NQ rev (1m)0.95%
Revenue NQ rev (3m)6.43%
Revenue NY rev (1m)0.27%
Revenue NY rev (3m)-0.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.52 | ||
| Fwd PE | 5.47 | ||
| P/S | 0.51 | ||
| P/FCF | 5.87 | ||
| P/OCF | 5.5 | ||
| P/B | 1.95 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.62 |
EPS(TTM)0.75
EY13.3%
EPS(NY)1.03
Fwd EY18.27%
FCF(TTM)0.96
FCFY17.04%
OCF(TTM)1.03
OCFY18.18%
SpS11.05
BVpS2.9
TBVpS-6.64
PEG (NY)0.86
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 | 0.95 |
F-Score5
WACC6.8%
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 3Y10.85%
EPS Next 5YN/A
Revenue 1Y (TTM)9.37%
Revenue growth 3Y24.58%
Revenue growth 5Y14.95%
Sales Q2Q%5.31%
Revenue Next Year4.24%
Revenue Next 2Y6.46%
Revenue Next 3Y4.9%
Revenue Next 5Y5.49%
EBIT growth 1Y22.72%
EBIT growth 3Y30.32%
EBIT growth 5Y8.88%
EBIT Next Year179.86%
EBIT Next 3Y48.9%
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%