Stagwell, Inc. (MDCA) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

OmniAb, Inc.

Viad Corp.

The Hackett Group, Inc.

Stagwell, Inc.

Franklin Covey Co.

Vitru Ltd.

CRA International, Inc.

International Money Express, Inc.

Forrester Research, Inc.

HireRight Holdings Corp.

Tyra Biosciences, Inc.

Why is Stagwell, Inc. ?

The company is Net-Debt Free

The company is Net-Debt Free

High Debt company with Weak Long Term Fundamental Strength

OPERATING CASH FLOW(Y) Highest at USD 299.36 MM
NET PROFIT(Q) At USD 0.72 MM has Grown at 108.5%
RAW MATERIAL COST(Y) Fallen by 1.88% (YoY)

With ROCE of 6.96%, it has a fair valuation with a 1.38 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 61.13%, its profits have fallen by -44.6%

High Institutional Holdings at 47.69%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
Their stake has increased by 6.09% over the previous quarter.

Market Beating Performance

The stock has generated a return of 61.13% in the last 1 year, much higher than market (S&P 500) returns of 21.51%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Stagwell, Inc. should be less than 10%
Overall Portfolio exposure to Miscellaneous should be less than 30%

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

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

Is Stagwell, Inc. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Stagwell, Inc.

62.88%

0.63

57.65%

S&P 500

22.36%

1.63

13.19%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

18.93%

EBIT Growth (5y)

4.77%

EBIT to Interest (avg)

0.61

Debt to EBITDA (avg)

4.31

Net Debt to Equity (avg)

4.14

Sales to Capital Employed (avg)

1.45

Tax Ratio

37.61%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

41.60%

ROCE (avg)

13.12%

ROE (avg)

11.69%

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

2.03

EV to EBIT

19.90

EV to EBITDA

7.41

EV to Capital Employed

1.38

EV to Sales

0.97

PEG Ratio

Dividend Yield

ROCE (Latest)

6.96%

ROE (Latest)

3.41%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

Mildly Bullish

OBV

Bullish

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

10What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 299.36 MM

NET PROFIT(Q)

At USD 0.72 MM has Grown at 108.5%

RAW MATERIAL COST(Y)

Fallen by 1.88% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 3.38 times

PRE-TAX PROFIT(Q)

At USD -0.4 MM has Grown at 92.25%

-16What is not working for the Company

NET PROFIT(HY)

At USD -10.84 MM has Grown at -128.54%

INTEREST COVERAGE RATIO(Q)

Lowest at 248.57

OPERATING PROFIT(Q)

Lowest at USD 55.5 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 10.05 %

PRE-TAX PROFIT(Q)

Lowest at USD -9.24 MM

Here's what is working for Stagwell, Inc.

Operating Cash Flow

Highest at USD 299.36 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Net Profit

At USD 0.72 MM has Grown at 108.5%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (USD MM)

Pre-Tax Profit

At USD -0.4 MM has Grown at 92.25%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Debtors Turnover Ratio

Highest at 3.38 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by 1.88% (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 Stagwell, Inc.

Pre-Tax Profit

At USD -9.24 MM has Fallen at -77.66%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Interest Coverage Ratio

Lowest at 248.57

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at USD 55.5 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (USD MM)

Operating Profit Margin

Lowest at 10.05 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at USD -9.24 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)