NYSE:QUAD

Stock Analysis Report

Executive Summary

Quad/Graphics, Inc. provides marketing solutions worldwide.

Snowflake

Fundamentals

Fair value with mediocre balance sheet.


Similar Companies

Share Price & News

How has Quad/Graphics's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0.1%

QUAD

1.3%

US Commercial Services

1.3%

US Market


1 Year Return

-45.0%

QUAD

15.9%

US Commercial Services

5.9%

US Market

Return vs Industry: QUAD underperformed the US Commercial Services industry which returned 15.9% over the past year.

Return vs Market: QUAD underperformed the US Market which returned 5.9% over the past year.


Shareholder returns

QUADIndustryMarket
7 Day0.1%1.3%1.3%
30 Day-13.1%1.8%-1.9%
90 Day23.5%0.9%-1.8%
1 Year-39.4%-45.0%20.4%15.9%8.3%5.9%
3 Year-52.4%-61.2%69.9%58.3%45.6%36.2%
5 Year-33.6%-53.1%105.8%85.0%66.1%47.9%

Price Volatility Vs. Market

How volatile is Quad/Graphics's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Quad/Graphics undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: QUAD ($9.66) is trading below our estimate of fair value ($37.69)

Significantly Undervalued: QUAD is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: QUAD is unprofitable, so we can't compare its PE Ratio to the Commercial Services industry average.

PE vs Market: QUAD is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate QUAD's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: QUAD is good value based on its PB Ratio (1.4x) compared to the US Commercial Services industry average (1.8x).


Next Steps

Future Growth

How is Quad/Graphics forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

25.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: QUAD is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: QUAD is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: QUAD is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: QUAD's revenue is expected to decline over the next 3 years (-2% per year).

High Growth Revenue: QUAD's revenue is forecast to decline over the next 3 years (-2%).


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if QUAD's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Quad/Graphics performed over the past 5 years?

32.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: QUAD is unprofitable, but has reduced losses over the past 5 years at a rate of 32.7% per year.

Accelerating Growth: Unable to compare QUAD's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: QUAD is unprofitable, making it difficult to compare its past year earnings growth to the Commercial Services industry (-2.4%).


Return on Equity

High ROE: QUAD has a negative Return on Equity (-9.14%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: QUAD is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: QUAD is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Quad/Graphics's financial position?


Financial Position Analysis

Short Term Liabilities: QUAD's short term assets ($839.1M) exceeds its short term liabilities ($793.0M)

Long Term Liabilities: QUAD's short term assets (839.1M) do not cover its long term liabilities (1.4B)


Debt to Equity History and Analysis

Debt Level: QUAD's debt to equity ratio (281.7%) is considered high

Reducing Debt: QUAD's debt to equity ratio has increased from 127.6% to 281.7% over the past 5 years.


Balance Sheet

Inventory Level: QUAD has a high level of physical assets or inventory.

Debt Coverage by Assets: QUAD's debt is not covered by short term assets (assets are 0.8x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable QUAD has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: QUAD is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -36.6% per year.


Next Steps

Dividend

What is Quad/Graphics's current dividend yield, its reliability and sustainability?

12.42%

Current Dividend Yield


Dividend Yield vs Market

company12.4%marketbottom25%1.5%markettop25%3.8%industryaverage1.6%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: QUAD's dividend (12.42%) is higher than the bottom 25% of dividend payers in the US market (1.47%).

High Dividend: QUAD's dividend (12.42%) is in the top 25% of dividend payers in the US market (3.77%)

Stable Dividend: Whilst dividend payments have been stable, QUAD has been paying a dividend for less than 10 years.

Growing Dividend: QUAD's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: QUAD is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Quad/Graphics's salary, the management and board of directors tenure and is there insider trading?

4.3yrs

Average management tenure


CEO

J. Quadracci (50yo)

13.3yrs

Tenure

US$6,459,795

Compensation

Mr. J. Joel Quadracci serves as President of Quad/Greenfield, LLC and Graphic Imaging Technology, LLC. Mr. Quadracci has been the Chairman, Chief Executive Officer and President of Quad/Graphics, Inc. sinc ...


CEO Compensation Analysis

Compensation vs. Market: J.'s total compensation ($USD6.46M) is about average for companies of similar size in the US market ($USD1.83M).

Compensation vs Earnings: J.'s compensation has increased whilst the company is unprofitable.


Management Age and Tenure

4.3yrs

Average Tenure

51.5yo

Average Age

Experienced Management: QUAD's management team is considered experienced (4.3 years average tenure).


Board Age and Tenure

5.8yrs

Average Tenure

60yo

Average Age

Experienced Board: QUAD's board of directors are considered experienced (5.8 years average tenure).


Insider Trading

Insider Buying: QUAD insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$53,08312 Aug 19
Kathryn Flores
EntityIndividual
Role
Member of the Board of Directors
Director
Shares4,974
Max PriceUS$10.67
SellUS$111,92406 Aug 19
John Fowler
EntityIndividual
Role
Member of the Board of Directors
Director
Shares10,000
Max PriceUS$11.53
SellUS$197,06308 Mar 19
Eric Ashworth
EntityIndividual
Role
Senior Key Executive
Executive Vice President of Product & Market Strategy
Shares15,000
Max PriceUS$13.14

Ownership Breakdown


Management Team

  • Tom Frankowski (58yo)

    Executive VP of Manufacturing & COO

    • Tenure: 5.6yrs
    • Compensation: US$2.92m
  • J. Quadracci (50yo)

    Chairman

    • Tenure: 13.3yrs
    • Compensation: US$6.46m
  • Renee Badura (55yo)

    Executive Vice President of Sales & Marketing

    • Tenure: 4.3yrs
  • Steve Jaeger (54yo)

    Chief Information Officer

    • Tenure: 5.6yrs
    • Compensation: US$1.20m
  • Dave Honan (50yo)

    Executive VP & CFO

    • Tenure: 5.6yrs
    • Compensation: US$2.01m
  • Eric Ashworth (53yo)

    Executive Vice President of Product & Market Strategy

    • Tenure: 3.5yrs
    • Compensation: US$1.53m
  • Maura Packham (50yo)

    Vice President of Corporate Communications

    • Tenure: 2.8yrs
  • Jennifer Kent (47yo)

    Executive VP of Administration

    • Tenure: 4.3yrs
    • Compensation: US$1.69m
  • Dana Gruen

    Chief Compliance Officer

    • Tenure: 2.8yrs
  • Kyle Egan

    Director of Investor Relations & Assistant Treasurer

    • Tenure: 0yrs

Board Members

  • John Fowler (68yo)

    Director

    • Tenure: 3.3yrs
    • Compensation: US$252.18k
  • John Shiely (66yo)

    Independent Director

    • Tenure: 23.8yrs
    • Compensation: US$248.69k
  • Mark Angelson (67yo)

    Independent Director

    • Tenure: 4.6yrs
    • Compensation: US$233.69k
  • Douglas Buth (64yo)

    Independent Director

    • Tenure: 14.8yrs
    • Compensation: US$253.69k
  • Jay Rothman (60yo)

    Independent Director

    • Tenure: 2.4yrs
    • Compensation: US$223.69k
  • Chris Harned (56yo)

    Director

    • Tenure: 14.8yrs
    • Compensation: US$243.69k
  • J. Quadracci (50yo)

    Chairman

    • Tenure: 13.3yrs
    • Compensation: US$6.46m
  • Kathryn Flores (51yo)

    Director

    • Tenure: 5.8yrs
    • Compensation: US$233.69k
  • Steve Fuller (58yo)

    Director

    • Tenure: 3.8yrs
    • Compensation: US$233.69k

Company Information

Quad/Graphics, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Quad/Graphics, Inc.
  • Ticker: QUAD
  • Exchange: NYSE
  • Founded: 1971
  • Industry: Commercial Printing
  • Sector: Commercial Services
  • Market Cap: US$510.529m
  • Shares outstanding: 52.85m
  • Website: https://www.quad.com

Number of Employees


Location

  • Quad/Graphics, Inc.
  • N61 W23044 Harry’s Way
  • Sussex
  • Wisconsin
  • 53089
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
QUADNYSE (New York Stock Exchange)YesClass A Common StockUSUSDJul 2010
QGUDB (Deutsche Boerse AG)YesClass A Common StockDEEURJul 2010

Biography

Quad/Graphics, Inc. provides marketing solutions worldwide. The company operates through United States Print and Related Services, and International segments. It offers printing services, such as retail in ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/15 00:09
End of Day Share Price2019/10/14 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.