Stagwell Inc.
Stagwell Inc. Fundamental Analysis
Stagwell Inc. (STGW) shows weak financial fundamentals with a PE ratio of 53.04, profit margin of 1.00%, and ROE of 4.42%. The company generates $2.9B in annual revenue with strong year-over-year growth of 12.43%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 23.4/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze STGW's fundamental strength across five key dimensions:
Efficiency Score
WeakSTGW struggles to generate sufficient returns from assets.
Valuation Score
ModerateSTGW shows balanced valuation metrics.
Growth Score
ExcellentSTGW delivers strong and consistent growth momentum.
Financial Health Score
WeakSTGW carries high financial risk with limited liquidity.
Profitability Score
WeakSTGW struggles to sustain strong margins.
Key Financial Metrics
Is STGW Expensive or Cheap?
P/E Ratio
STGW trades at 53.04 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, STGW's PEG of 1.89 indicates fair valuation.
Price to Book
The market values Stagwell Inc. at 1.99 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 0.12 times EBITDA. This is generally considered low.
How Well Does STGW Make Money?
Net Profit Margin
For every $100 in sales, Stagwell Inc. keeps $1.00 as profit after all expenses.
Operating Margin
Core operations generate 5.47 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $4.42 in profit for every $100 of shareholder equity.
ROA
Stagwell Inc. generates $0.69 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Stagwell Inc. produces operating cash flow of $362.12M, showing steady but balanced cash generation.
Free Cash Flow
Stagwell Inc. generates strong free cash flow of $306.81M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.22 in free cash annually.
FCF Yield
STGW converts 19.67% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
53.04
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.89
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.99
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.53
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
2.07
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.79
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.04
vs 25 benchmark
ROA
Return on assets percentage
0.007
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How STGW Stacks Against Its Sector Peers
| Metric | STGW Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 53.04 | 23.32 | Worse (Expensive) |
| ROE | 4.42% | 1104.00% | Weak |
| Net Margin | 1.00% | -55937.00% (disorted) | Weak |
| Debt/Equity | 2.07 | 1.38 | Weak (High Leverage) |
| Current Ratio | 0.79 | 1.56 | Weak Liquidity |
| ROA | 0.69% | -45352.00% (disorted) | Weak |
STGW outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Stagwell Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
181.76%
Industry Style: Growth, Technology, Streaming
High GrowthEPS CAGR
-92.35%
Industry Style: Growth, Technology, Streaming
DecliningFCF CAGR
37.34%
Industry Style: Growth, Technology, Streaming
High Growth