Quad/Graphics, Inc. (QUAD) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Deluxe Corp.

Warner Music Group Corp.

Ennis, Inc.

Quad/Graphics, Inc.

Cimpress Plc

Leafly Holdings, Inc.

ARC Document Solutions, Inc.

CompoSecure, Inc.

Professional Diversity Network, Inc.

Travelzoo Inc.

LiveOne, Inc.

Why is Quad/Graphics, Inc. ?

High Debt company with Weak Long Term Fundamental Strength

Poor long term growth as Net Sales has grown by an annual rate of -5.45% and Operating profit at 1.32% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Capital Employed (avg) of 13.67% signifying low profitability per unit of total capital (equity and debt)

The company has declared Positive results for the last 3 consecutive quarters

NET PROFIT(9M) At USD 30.62 MM has Grown at 43.09%
ROCE(HY) Highest at -17.22%
INVENTORY TURNOVER RATIO(HY) Highest at 12.89 times

With ROE of 65.47%, it has a risky valuation with a 3.46 Price to Book Value

Over the past year, while the stock has generated a return of -22.88%, its profits have risen by 111.9% ; the PEG ratio of the company is 0.1
At the current price, the company has a high dividend yield of 425.7

Below par performance in long term as well as near term

Along with generating -22.88% returns in the last 1 year, the stock has also underperformed S&P 500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Quad/Graphics, Inc. should be less than 10%
Overall Portfolio exposure to Media & Entertainment should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Media & Entertainment)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Quad/Graphics, Inc. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Quad/Graphics, Inc.

-28.14%

0.28

56.59%

S&P 500

13.22%

0.64

20.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-5.45%

EBIT Growth (5y)

1.32%

EBIT to Interest (avg)

1.61

Debt to EBITDA (avg)

2.74

Net Debt to Equity (avg)

5.55

Sales to Capital Employed (avg)

4.50

Tax Ratio

41.67%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

60.28%

ROCE (avg)

13.67%

ROE (avg)

35.74%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

3.46

EV to EBIT

6.30

EV to EBITDA

3.60

EV to Capital Employed

1.38

EV to Sales

0.30

PEG Ratio

0.05

Dividend Yield

425.66%

ROCE (Latest)

21.86%

ROE (Latest)

65.47%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bullish

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

8What is working for the Company

NET PROFIT(9M)

At USD 30.62 MM has Grown at 43.09%

ROCE(HY)

Highest at -17.22%

INVENTORY TURNOVER RATIO(HY)

Highest at 12.89 times

RAW MATERIAL COST(Y)

Fallen by -0.41% (YoY

DIVIDEND PER SHARE(HY)

Highest at USD 8.85

-10What is not working for the Company

CASH AND EQV(HY)

Lowest at USD 14.8 MM

NET SALES(Q)

Lowest at USD 571.9 MM

OPERATING PROFIT(Q)

Lowest at USD 43.6 MM

NET PROFIT(Q)

Lowest at USD -4.7 MM

Here's what is working for Quad/Graphics, Inc.

Inventory Turnover Ratio

Highest at 12.89 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Dividend per share

Highest at USD 8.85

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Raw Material Cost

Fallen by -0.41% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Quad/Graphics, Inc.

Net Profit

At USD -4.7 MM has Fallen at -164.38%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Net Sales

Lowest at USD 571.9 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (USD MM)

Operating Profit

Lowest at USD 43.6 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (USD MM)

Net Profit

Lowest at USD -4.7 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

Cash and Eqv

Lowest at USD 14.8 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents