Stagwell Inc
NASDAQ:STGW
Intrinsic Value
Stagwell, Inc. operates as media and public relations agency. [ Read More ]
The intrinsic value of one STGW stock under the Base Case scenario is 11.47 USD. Compared to the current market price of 6.22 USD, Stagwell Inc is Undervalued by 46%.
Valuation Backtest
Stagwell Inc
Run backtest to discover the historical profit from buying and selling STGW stocks based on their intrinsic value.
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Fundamental Analysis
Stagwell's Growth Amid 2023 Challenges
2023-Q4 Earnings Call
Stagwell Inc navigated a challenging 2023 by boosting liquidity, managing costs, and growing market share. Although tech sector restructuring and marketing budget cuts affected the industry, they executed strategic actions including a successful secondary offering and the divestiture of ConcentricLife to Accenture for $245 million, at high multiples, while swiftly replacing lost revenue. Stagwell posted $655 million in Q4 revenue and $2.53 billion for the year, with net revenue of $551 million in Q4 and $2.15 billion annually, marking sequential net revenue growth and a 17% adjusted EBITDA margin. Digital transformation businesses saw a rebound, and the company delivered strong net new business wins, leading to $360 million of adjusted EBITDA for the year. Stagwell targets organic net revenue growth of 5% to 7%, and an 11% to 25% increase in adjusted EBITDA, expecting $400 million to $450 million in 2024, aiming to convert about 50% of EBITDA to free cash flow.
Balance Sheet Decomposition
Stagwell Inc
Current Assets | 1B |
Cash & Short-Term Investments | 119.7m |
Receivables | 812.1m |
Other Current Assets | 93.3m |
Non-Current Assets | 2.7B |
PP&E | 332.1m |
Intangibles | 2.3B |
Other Non-Current Assets | 92.8m |
Current Liabilities | 1.4B |
Accounts Payable | 415m |
Accrued Liabilities | 590.7m |
Other Current Liabilities | 368.6m |
Non-Current Liabilities | 2B |
Long-Term Debt | 1.1B |
Other Non-Current Liabilities | 890.2m |
Earnings Waterfall
Stagwell Inc
Revenue
|
2.5B
USD
|
Cost of Revenue
|
-1.6B
USD
|
Gross Profit
|
906m
USD
|
Operating Expenses
|
-804.1m
USD
|
Operating Income
|
101.9m
USD
|
Other Expenses
|
-101.8m
USD
|
Net Income
|
134k
USD
|
Free Cash Flow Analysis
Stagwell Inc
What is Free Cash Flow?
STGW Profitability Score
Profitability Due Diligence
Stagwell Inc's profitability score is 43/100. The higher the profitability score, the more profitable the company is.
Score
Stagwell Inc's profitability score is 43/100. The higher the profitability score, the more profitable the company is.
STGW Solvency Score
Solvency Due Diligence
Stagwell Inc's solvency score is 20/100. The higher the solvency score, the more solvent the company is.
Score
Stagwell Inc's solvency score is 20/100. The higher the solvency score, the more solvent the company is.
Wall St
Price Targets
STGW Price Targets Summary
Stagwell Inc
According to Wall Street analysts, the average 1-year price target for STGW is 7.21 USD with a low forecast of 5.56 USD and a high forecast of 9.45 USD.
Ownership
STGW Insider Trading
Buy and sell transactions by insiders
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Shareholder Return
STGW Price
Stagwell Inc
Average Annual Return | 59.1% |
Standard Deviation of Annual Returns | 130.04% |
Max Drawdown | -69% |
Market Capitalization | 1.7B USD |
Shares Outstanding | 272 280 000 |
Percentage of Shares Shorted | 7.14% |
Company Profile
Country
Industry
Market Cap
Dividend Yield
Description
Stagwell, Inc. operates as media and public relations agency. The company is headquartered in New York City, New York and currently employs 9,100 full-time employees. The firm delivers creative performance for various brands, connecting creativity with technology. Stagwell consists of creative agencies such as 72 and Sunny, Anomaly, Doner and Forsman & Bodenfors; digital transformation firms, including Code and Theory, YML and Instrument; media agencies include Assembly, ForwardPMX and Gale, and market research firms, which includes Harris Poll and NRG. The firm's agencies also include Allison+Partners, SKDK, Hunter, Multiview, Redscout, Rhythm, Wolfgang, Yamamato, KWY Global, Kenna, Locaria, 6 Degrees, Activista, Trade X Partners, Underground Studious, Unreasonable Studious, WYEComm and Observatory.
Contact
IPO
Employees
Officers
The intrinsic value of one STGW stock under the Base Case scenario is 11.47 USD.
Compared to the current market price of 6.22 USD, Stagwell Inc is Undervalued by 46%.