4.73 USD
-0.16 (-3.27%)
4.8 USD
+0.07 (+1.48%)
We assign a fundamental rating of 4 out of 10 to STGW. STGW was compared to 91 industry peers in the Media industry. There are concerns on the financial health of STGW while its profitability can be described as average. STGW scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
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.
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
STGW has a Return On Assets of 0.46%. This is in the better half of the industry: STGW outperforms 67.03% of its industry peers.
Looking at the Return On Equity, with a value of 2.63%, STGW is in the better half of the industry, outperforming 69.23% of the companies in the same industry.
STGW has a Return On Invested Capital of 3.06%. This is comparable to the rest of the industry: STGW outperforms 56.04% of its industry peers.
STGW had an Average Return On Invested Capital over the past 3 years of 4.06%. This is below the industry average of 6.93%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.46% | ||
| ROE | 2.63% | ||
| ROIC | 3.06% |
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 better Profit Margin (0.68%) than 63.74% of its industry peers.
With a Operating Margin value of 5.06%, STGW perfoms like the industry average, outperforming 59.34% of the companies in the same industry.
In the last couple of years the Operating Margin of STGW has declined.
STGW's Gross Margin of 36.17% is in line compared to the rest of the industry. STGW outperforms 46.15% of its industry peers.
In the last couple of years the Gross Margin of STGW has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.06% | ||
| PM (TTM) | 0.68% | ||
| GM | 36.17% |
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.
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
Based on the Altman-Z score of 0.96, we must say that STGW is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of STGW (0.96) is comparable to the rest of the industry.
STGW has a debt to FCF ratio of 7.12. This is a slightly negative value and a sign of low solvency as STGW would need 7.12 years to pay back of all of its debts.
STGW has a Debt to FCF ratio of 7.12. This is in the better half of the industry: STGW outperforms 71.43% of its industry peers.
STGW has a Debt/Equity ratio of 2.04. This is a high value indicating a heavy dependency on external financing.
STGW has a Debt to Equity ratio of 2.04. This is in the lower half of the industry: STGW underperforms 69.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.04 | ||
| Debt/FCF | 7.12 | ||
| Altman-Z | 0.96 |
ROIC/WACC0.46
WACC6.58%
2.3 Liquidity
A Current Ratio of 0.89 indicates that STGW may have some problems paying its short term obligations.
With a Current ratio value of 0.89, STGW is not doing good in the industry: 63.74% of the companies in the same industry are doing better.
STGW has a Quick Ratio of 0.89. 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 Quick ratio of 0.89. This is in the lower half of the industry: STGW underperforms 60.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.89 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 20.31% over the past year.
STGW shows a small growth in Revenue. In the last year, the Revenue has grown by 6.75%.
The Revenue has been growing by 14.95% on average over the past years. This is quite good.
EPS 1Y (TTM)20.31%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%9.09%
Revenue 1Y (TTM)6.75%
Revenue growth 3Y24.58%
Revenue growth 5Y14.95%
Sales Q2Q%4.46%
3.2 Future
Based on estimates for the next years, STGW will show a very strong growth in Earnings Per Share. The EPS will grow by 23.03% on average per year.
STGW is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.13% yearly.
EPS Next Y7.94%
EPS Next 2Y19.11%
EPS Next 3Y19.87%
EPS Next 5Y23.03%
Revenue Next Year4.1%
Revenue Next 2Y6.51%
Revenue Next 3Y3.37%
Revenue Next 5Y4.13%
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
STGW is valuated cheaply with a Price/Earnings ratio of 6.14.
91.21% of the companies in the same industry are more expensive than STGW, based on the Price/Earnings ratio.
STGW's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.60.
Based on the Price/Forward Earnings ratio of 4.39, the valuation of STGW can be described as very cheap.
90.11% of the companies in the same industry are more expensive than STGW, based on the Price/Forward Earnings ratio.
STGW is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.23, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.14 | ||
| Fwd PE | 4.39 |
4.2 Price Multiples
68.13% of the companies in the same industry are more expensive than STGW, based on the Enterprise Value to EBITDA ratio.
STGW's Price/Free Cash Flow ratio is rather cheap when compared to the industry. STGW is cheaper than 82.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.57 | ||
| EV/EBITDA | 8.27 |
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 19.87% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.77
PEG (5Y)N/A
EPS Next 2Y19.11%
EPS Next 3Y19.87%
5. Dividend
5.1 Amount
No dividends for STGW!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
4.73
-0.16 (-3.27%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners41.43%
Inst Owner Change0%
Ins Owners12.94%
Ins Owner Change-1.15%
Market Cap1.19B
Revenue(TTM)2.89B
Net Income(TTM)19.68M
Analysts78.57
Price Target8.41 (77.8%)
Short Float %8%
Short Ratio2.81
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.64%
Min EPS beat(2)2.34%
Max EPS beat(2)6.95%
EPS beat(4)2
Avg EPS beat(4)-4.22%
Min EPS beat(4)-23.04%
Max EPS beat(4)6.95%
EPS beat(8)4
Avg EPS beat(8)-8.85%
EPS beat(12)5
Avg EPS beat(12)-8.19%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-0.18%
Min Revenue beat(2)-0.25%
Max Revenue beat(2)-0.12%
Revenue beat(4)1
Avg Revenue beat(4)-0.29%
Min Revenue beat(4)-3.83%
Max Revenue beat(4)3.01%
Revenue beat(8)4
Avg Revenue beat(8)1.11%
Revenue beat(12)4
Avg Revenue beat(12)-0.85%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)-1.71%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.44%
EPS NY rev (1m)0.33%
EPS NY rev (3m)-0.7%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.51%
Revenue NY rev (1m)0.13%
Revenue NY rev (3m)-0.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.14 | ||
| Fwd PE | 4.39 | ||
| P/S | 0.41 | ||
| P/FCF | 5.57 | ||
| P/OCF | 4.91 | ||
| P/B | 1.59 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.27 |
EPS(TTM)0.77
EY16.28%
EPS(NY)1.08
Fwd EY22.8%
FCF(TTM)0.85
FCFY17.97%
OCF(TTM)0.96
OCFY20.36%
SpS11.46
BVpS2.97
TBVpS-6.74
PEG (NY)0.77
PEG (5Y)N/A
Graham Number7.17
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.46% | ||
| ROE | 2.63% | ||
| ROCE | 5.07% | ||
| ROIC | 3.06% | ||
| ROICexc | 3.2% | ||
| ROICexgc | 28.95% | ||
| OM | 5.06% | ||
| PM (TTM) | 0.68% | ||
| GM | 36.17% | ||
| FCFM | 7.41% |
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-Score7
Asset Turnover0.68
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.04 | ||
| Debt/FCF | 7.12 | ||
| Debt/EBITDA | 4.88 | ||
| Cap/Depr | 17.14% | ||
| Cap/Sales | 0.99% | ||
| Interest Coverage | 1.55 | ||
| Cash Conversion | 77.63% | ||
| Profit Quality | 1089.04% | ||
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.89 | ||
| Altman-Z | 0.96 |
F-Score7
WACC6.58%
ROIC/WACC0.46
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)20.31%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%9.09%
EPS Next Y7.94%
EPS Next 2Y19.11%
EPS Next 3Y19.87%
EPS Next 5Y23.03%
Revenue 1Y (TTM)6.75%
Revenue growth 3Y24.58%
Revenue growth 5Y14.95%
Sales Q2Q%4.46%
Revenue Next Year4.1%
Revenue Next 2Y6.51%
Revenue Next 3Y3.37%
Revenue Next 5Y4.13%
EBIT growth 1Y31.41%
EBIT growth 3Y30.32%
EBIT growth 5Y8.88%
EBIT Next Year173.31%
EBIT Next 3Y48.76%
EBIT Next 5YN/A
FCF growth 1Y55.73%
FCF growth 3Y-11.41%
FCF growth 5Y12.4%
OCF growth 1Y65.17%
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.
Can you provide the valuation status for STAGWELL INC?
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 4 / 10.
What are the PE and PB ratios of STAGWELL INC (STGW) stock?
The Price/Earnings (PE) ratio for STAGWELL INC (STGW) is 6.14 and the Price/Book (PB) ratio is 1.59.
How sustainable is the dividend of STAGWELL INC (STGW) stock?
The dividend rating of STAGWELL INC (STGW) is 0 / 10 and the dividend payout ratio is 0%.