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STAGWELL INC (STGW) Stock Fundamental Analysis

NASDAQ:STGW - Nasdaq - US85256A1097 - Common Stock - Currency: USD

4.37  0 (0%)

Fundamental Rating

3

Overall STGW gets a fundamental rating of 3 out of 10. We evaluated STGW against 97 industry peers in the Media industry. While STGW is still in line with the averages on profitability rating, there are concerns on its financial health. STGW is valued quite cheap, while showing a decent growth score. This is a good combination!


Dividend Valuation Growth Profitability Health

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4

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.
STGW had a positive operating cash flow in each of the past 5 years.
STGW Yearly Net Income VS EBIT VS OCF VS FCFSTGW Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 100M -100M 200M -200M 300M

1.2 Ratios

STGW has a Return On Assets (0.02%) which is in line with its industry peers.
STGW has a Return On Equity (0.19%) which is comparable to the rest of the industry.
STGW's Return On Invested Capital of 2.87% is in line compared to the rest of the industry. STGW outperforms 56.70% 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 7.63%.
Industry RankSector 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%
STGW Yearly ROA, ROE, ROICSTGW Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50 -50 -100

1.3 Margins

STGW has a Profit Margin of 0.02%. This is comparable to the rest of the industry: STGW outperforms 57.73% of its industry peers.
STGW has a Operating Margin (4.45%) which is comparable to the rest of the industry.
STGW's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 35.86%, STGW perfoms like the industry average, outperforming 50.52% of the companies in the same industry.
In the last couple of years the Gross Margin of STGW has grown nicely.
Industry RankSector 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%
STGW Yearly Profit, Operating, Gross MarginsSTGW Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 -10 20 -20 30

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1

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.
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.
STGW Yearly Shares OutstandingSTGW Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M 200M 250M
STGW Yearly Total Debt VS Total AssetsSTGW Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B

2.2 Solvency

Based on the Altman-Z score of 0.97, 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 0.97, STGW is in line with its industry, outperforming 49.48% of the companies in the same industry.
STGW has a debt to FCF ratio of 12.36. This is a negative value and a sign of low solvency as STGW would need 12.36 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 12.36, STGW is in line with its industry, outperforming 58.76% of the companies in the same industry.
STGW has a Debt/Equity ratio of 4.38. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 4.38, STGW is doing worse than 81.44% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 4.38
Debt/FCF 12.36
Altman-Z 0.97
ROIC/WACC0.41
WACC6.98%
STGW Yearly LT Debt VS Equity VS FCFSTGW Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M -500M 1B

2.3 Liquidity

A Current Ratio of 0.91 indicates that STGW may have some problems paying 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 71.13% of its industry peers.
Industry RankSector Rank
Current Ratio 0.91
Quick Ratio 0.91
STGW Yearly Current Assets VS Current LiabilitesSTGW Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B

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4

3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 16.13% over the past year.
The Revenue has grown by 9.63% 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)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

The Earnings Per Share is expected to grow by 11.94% on average over the next years. This is quite good.
STGW is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.83% yearly.
EPS Next Y11.39%
EPS Next 2Y17.66%
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.
STGW Yearly Revenue VS EstimatesSTGW Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 1B 2B 3B
STGW Yearly EPS VS EstimatesSTGW Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2022 2023 2024 2025 2026 2027 0 1 -1

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8

4. Valuation

4.1 Price/Earnings Ratio

STGW is valuated cheaply with a Price/Earnings ratio of 6.07.
Compared to the rest of the industry, the Price/Earnings ratio of STGW indicates a rather cheap valuation: STGW is cheaper than 88.66% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.32. STGW is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 4.15 indicates a rather cheap valuation of STGW.
Based on the Price/Forward Earnings ratio, STGW is valued cheaper than 93.81% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.19. STGW is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 6.07
Fwd PE 4.15
STGW Price Earnings VS Forward Price EarningsSTGW Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, STGW is valued a bit cheaper than the industry average as 60.82% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of STGW indicates a somewhat cheap valuation: STGW is cheaper than 78.35% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 9.92
EV/EBITDA 8.8
STGW Per share dataSTGW EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 -5 10

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)0.53
PEG (5Y)N/A
EPS Next 2Y17.66%
EPS Next 3Y11.94%

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0

5. Dividend

5.1 Amount

STGW does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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STAGWELL INC

NASDAQ:STGW (6/18/2025, 10:51:33 AM)

4.37

0 (0%)

Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)05-08 2025-05-08/bmo
Earnings (Next)07-30 2025-07-30/bmo
Inst Owners48.39%
Inst Owner Change0.37%
Ins Owners4.48%
Ins Owner Change7.74%
Market Cap1.18B
Analysts77.14
Price Target8.5 (94.51%)
Short Float %4.46%
Short Ratio4.52
Dividend
Industry RankSector 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)-6.21%
PT rev (3m)-9.56%
EPS NQ rev (1m)-7.75%
EPS NQ rev (3m)-15%
EPS NY rev (1m)0%
EPS NY rev (3m)5.25%
Revenue NQ rev (1m)0.41%
Revenue NQ rev (3m)1.72%
Revenue NY rev (1m)-0.1%
Revenue NY rev (3m)0.85%
Valuation
Industry RankSector Rank
PE 6.07
Fwd PE 4.15
P/S 0.42
P/FCF 9.92
P/OCF 8.65
P/B 3.52
P/tB N/A
EV/EBITDA 8.8
EPS(TTM)0.72
EY16.48%
EPS(NY)1.05
Fwd EY24.07%
FCF(TTM)0.44
FCFY10.08%
OCF(TTM)0.51
OCFY11.56%
SpS10.49
BVpS1.24
TBVpS-7.62
PEG (NY)0.53
PEG (5Y)N/A
Profitability
Industry RankSector 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 RankSector 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 0.97
F-Score8
WACC6.98%
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)16.13%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-25%
EPS Next Y11.39%
EPS Next 2Y17.66%
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%