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STGW

Stagwell NasdaqGS:STGW Stock Report

Last Price

US$6.60

Market Cap

US$2.0b

7D

2.3%

1Y

-2.9%

Updated

14 Aug, 2022

Data

Company Financials +
STGW fundamental analysis
Snowflake Score
Valuation3/6
Future Growth1/6
Past Performance0/6
Financial Health0/6
Dividends0/6

STGW Stock Overview

Stagwell Inc. provides digital transformation, performance media and data, consumer insights and strategy, and creativity and communications services.

Stagwell Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Stagwell
Historical stock prices
Current Share PriceUS$6.60
52 Week HighUS$11.04
52 Week LowUS$4.80
Beta0
1 Month Change31.47%
3 Month Change-9.71%
1 Year Change-2.94%
3 Year Changen/a
5 Year Changen/a
Change since IPO18.92%

Recent News & Updates

Shareholder Returns

STGWUS MediaUS Market
7D2.3%5.0%3.2%
1Y-2.9%-31.0%-10.2%

Return vs Industry: STGW exceeded the US Media industry which returned -31% over the past year.

Return vs Market: STGW exceeded the US Market which returned -10.2% over the past year.

Price Volatility

Is STGW's price volatile compared to industry and market?
STGW volatility
STGW Average Weekly Movement7.7%
Media Industry Average Movement8.3%
Market Average Movement7.7%
10% most volatile stocks in US Market16.9%
10% least volatile stocks in US Market3.2%

Stable Share Price: STGW is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: STGW's weekly volatility (8%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
n/a9,100- Pennhttps://www.stagwellglobal.com

Stagwell Inc. provides digital transformation, performance media and data, consumer insights and strategy, and creativity and communications services. The company operates through three segments: Integrated Agencies Network, Media Network, and Communications Network. It designs and builds digital platforms and experiences that support the delivery of content, commerce, service, and sales; creates websites, mobile applications, back-end systems, content and data management systems, and other digital environments; designs and implements technology and data strategies; and develops software and related technology products, including cookie-less data platforms for audience targeting and activation, software tools for e-commerce applications, and text messaging applications for consumer engagement.

Stagwell Fundamentals Summary

How do Stagwell's earnings and revenue compare to its market cap?
STGW fundamental statistics
Market CapUS$1.96b
Earnings (TTM)-US$2.28m
Revenue (TTM)US$2.39b

0.4x

P/S Ratio

-383.1x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
STGW income statement (TTM)
RevenueUS$2.39b
Cost of RevenueUS$1.51b
Gross ProfitUS$884.96m
Other ExpensesUS$887.24m
Earnings-US$2.28m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-0.017
Gross Margin36.96%
Net Profit Margin-0.095%
Debt/Equity Ratio152.3%

How did STGW perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is STGW undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for STGW?

Other financial metrics that can be useful for relative valuation.

STGW key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.3x
Enterprise Value/EBITDA11.4x
PEG Ration/a

Price to Sales Ratio vs Peers

How does STGW's PS Ratio compare to its peers?

STGW PS Ratio vs Peers
The above table shows the PS ratio for STGW vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average3.2x
TTGT TechTarget
7.2x12.8%US$2.1b
CRTO Criteo
0.8x2.9%US$1.8b
IAS Integral Ad Science Holding
4.4x17.5%US$1.6b
ADV Advantage Solutions
0.4x4.0%US$1.4b
STGW Stagwell
0.4x15.4%US$2.0b

Price-To-Sales vs Peers: STGW is good value based on its Price-To-Sales Ratio (0.4x) compared to the peer average (3.2x).


Price to Earnings Ratio vs Industry

How does STGW's PE Ratio compare vs other companies in the US Media Industry?

Price-To-Sales vs Industry: STGW is good value based on its Price-To-Sales Ratio (0.4x) compared to the US Media industry average (1.3x)


Price to Sales Ratio vs Fair Ratio

What is STGW's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

STGW PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.4x
Fair PS Ratio1.8x

Price-To-Sales vs Fair Ratio: STGW is good value based on its Price-To-Sales Ratio (0.4x) compared to the estimated Fair Price-To-Sales Ratio (1.8x).


Share Price vs Fair Value

What is the Fair Price of STGW when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: STGW ($6.6) is trading above our estimate of fair value ($0.51)

Significantly Below Fair Value: STGW is trading above our estimate of fair value.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


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Future Growth

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

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


15.4%

Forecasted annual revenue growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if STGW's forecast earnings growth is above the savings rate (1.9%).

Earnings vs Market: Insufficient data to determine if STGW's earnings are forecast to grow faster than the US market

High Growth Earnings: Insufficient data to determine if STGW's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: STGW's revenue (15.4% per year) is forecast to grow faster than the US market (7.9% per year).

High Growth Revenue: STGW's revenue (15.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


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Past Performance

How has Stagwell performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-14.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: STGW is currently unprofitable.

Growing Profit Margin: STGW is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: STGW is unprofitable, and losses have increased over the past 5 years at a rate of 14.2% per year.

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

Earnings vs Industry: STGW is unprofitable, making it difficult to compare its past year earnings growth to the Media industry (7.8%).


Return on Equity

High ROE: STGW has a negative Return on Equity (7.81%), as it is currently unprofitable.


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Financial Health

How is Stagwell's financial position?

Financial Health Score

0/6

Financial Health Score 0/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: STGW's short term assets ($993.2M) do not cover its short term liabilities ($1.1B).

Long Term Liabilities: STGW's short term assets ($993.2M) do not cover its long term liabilities ($2.0B).


Debt to Equity History and Analysis

Debt Level: STGW's net debt to equity ratio (142%) is considered high.

Reducing Debt: Insufficient data to determine if STGW's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: STGW's debt is not well covered by operating cash flow (3.9%).

Interest Coverage: STGW's interest payments on its debt are not well covered by EBIT (2.4x coverage).


Balance Sheet


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Dividend

What is Stagwell current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate STGW's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate STGW's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if STGW's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if STGW's dividend payments have been increasing.


Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as STGW has not reported any payouts.


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Management

How experienced are the management team and are they aligned to shareholders interests?

1.0yrs

Average management tenure


CEO

- Penn (68 yo)

no data

Tenure

US$12,033,021

Compensation

Mr. Mark J. Penn is Chairman and Chief Executive Officer at Stagwell Inc. and has been its Director since March 18, 2019. He has been the Chairman of the Board at MDC Partners Inc. since April 18, 2019 and...


CEO Compensation Analysis

Compensation vs Market: -'s total compensation ($USD12.03M) is above average for companies of similar size in the US market ($USD5.40M).

Compensation vs Earnings: Insufficient data to compare -'s compensation with company performance.


Leadership Team

Experienced Management: STGW's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Members

Experienced Board: STGW's board of directors are considered experienced (3.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 15.2%.


Top Shareholders

Company Information

Stagwell Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Stagwell Inc.
  • Ticker: STGW
  • Exchange: NasdaqGS
  • Founded: NaN
  • Industry: Advertising
  • Sector: Media
  • Implied Market Cap: US$1.957b
  • Market Cap: US$872.098m
  • Shares outstanding: 296.56m
  • Website: https://www.stagwellglobal.com

Number of Employees


Location

  • Stagwell Inc.
  • One World Trade Center
  • 65th Floor
  • New York
  • New York
  • 10007
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/14 00:00
End of Day Share Price2022/08/12 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.