STAGWELL INC (STGW) Stock Fundamental Analysis
NASDAQ:STGW - Nasdaq - US85256A1097 - Common Stock - Currency: USD
Taking everything into account, STGW scores 3 out of 10 in our fundamental rating. STGW was compared to 97 industry peers in the Media industry. There are concerns on the financial health of STGW while its profitability can be described as average. STGW has a correct valuation and a medium growth rate.
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.
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
The Return On Assets of STGW (0.02%) is comparable to the rest of the industry.
STGW has a Return On Equity of 0.19%. This is comparable to the rest of the industry: STGW outperforms 57.73% of its industry peers.
Looking at the Return On Invested Capital, with a value of 2.87%, STGW is in line with its industry, outperforming 56.70% of the companies in the same industry.
STGW had an Average Return On Invested Capital over the past 3 years of 4.06%. This is below the industry average of 7.58%.
| 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 in line with its industry peers.
STGW's Operating Margin of 4.45% is in line compared to the rest of the industry. STGW outperforms 52.58% 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 35.86%, STGW is in line with its industry, outperforming 50.52% of the companies in the same industry.
STGW's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.45% | ||
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), STGW is destroying value.
STGW has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, STGW has more shares outstanding
STGW has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.00, we must say that STGW is in the distress zone and has some risk of bankruptcy.
STGW has a Altman-Z score of 1.00. This is comparable to the rest of the industry: STGW outperforms 50.52% of its industry peers.
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 58.76% 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 82.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.38 | ||
| Debt/FCF | 12.36 | ||
| Altman-Z | 1 |
ROIC/WACC0.42
WACC6.81%
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.
STGW has a Current ratio of 0.91. This is in the lower half of the industry: STGW underperforms 72.16% 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 has a worse Quick ratio (0.91) than 70.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.91 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 16.13% over the past year.
Looking at the last year, STGW shows a quite strong growth in Revenue. The Revenue has grown by 9.63% in the last year.
The Revenue has been growing by 14.95% on average over the past years. This is quite good.
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
Based on estimates for the next years, STGW will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.94% on average per year.
The Revenue is expected to grow by 4.83% on average over the next years.
EPS Next Y4.11%
EPS Next 2Y12.66%
EPS Next 3Y11.94%
EPS Next 5YN/A
Revenue Next Year4.31%
Revenue Next 2Y7.64%
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
The Price/Earnings ratio is 6.85, which indicates a rather cheap valuation of STGW.
STGW's Price/Earnings ratio is rather cheap when compared to the industry. STGW is cheaper than 87.63% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.50. STGW is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 5.11, which indicates a rather cheap valuation of STGW.
87.63% 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 36.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.85 | ||
| Fwd PE | 5.11 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as STGW.
76.29% 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 | 11.19 | ||
| EV/EBITDA | 9.33 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.67
PEG (5Y)N/A
EPS Next 2Y12.66%
EPS Next 3Y11.94%
5. Dividend
5.1 Amount
No dividends for STGW!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
4.93
-0.15 (-2.95%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners48.39%
Inst Owner Change2.83%
Ins Owners4.48%
Ins Owner Change7.89%
Market Cap1.33B
Analysts77.14
Price Target8.5 (72.41%)
Short Float %5.49%
Short Ratio4.63
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)0%
PT rev (3m)-13.1%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-12.5%
EPS NY rev (1m)0%
EPS NY rev (3m)-7.5%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.7%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.85 | ||
| Fwd PE | 5.11 | ||
| P/S | 0.47 | ||
| P/FCF | 11.19 | ||
| P/OCF | 9.76 | ||
| P/B | 3.97 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.33 |
EPS(TTM)0.72
EY14.6%
EPS(NY)0.96
Fwd EY19.57%
FCF(TTM)0.44
FCFY8.94%
OCF(TTM)0.51
OCFY10.25%
SpS10.49
BVpS1.24
TBVpS-7.62
PEG (NY)1.67
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 | 1 |
F-Score8
WACC6.81%
ROIC/WACC0.42
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 Y4.11%
EPS Next 2Y12.66%
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 Year4.31%
Revenue Next 2Y7.64%
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%