-0.73 | -5.31%
QUAD/GRAPHICS INC's gross profit margin for the third quarter of its fiscal year 2011 has increased when compared to the same period a year ago. Even though sales decreased, the net income has increased. QUAD/GRAPHICS INC has weak liquidity. Currently, the Quick Ratio is 0.77 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.
During the same period, stockholders' equity ("net worth") has remained unchanged from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
| Income Statement | Q3 FY11 | Q3 FY10 |
|---|---|---|
| Net Sales ($mil) | 1109.4 | 1129.1 |
| EBITDA ($mil) | 173.0 | 151.3 |
| EBIT ($mil) | 87.9 | 67.0 |
| Net Income ($mil) | -22.4 | -232.5 |
| Balance Sheet | Q3 FY11 | Q3 FY10 |
|---|---|---|
| Cash & Equiv. ($mil) | 18.5 | 42.7 |
| Total Assets ($mil) | 4854.9 | 5055.2 |
| Total Debt ($mil) | 1674.2 | 1808.4 |
| Equity ($mil) | 1412.9 | 1404.0 |
| Profitability | Q3 FY11 | Q3 FY10 |
|---|---|---|
| Gross Profit Margin | 24.25 | 22.84 |
| EBITDA Margin | 15.59 | 13.4 |
| Operating Margin | 7.92 | 5.93 |
| Sales Turnover | 0.93 | 0.0 |
| Return on Assets | -0.28 | 0.0 |
| Return on Equity | 0.67 | 0.0 |
| Debt | Q3 FY11 | Q3 FY10 |
|---|---|---|
| Current Ratio | 1.44 | 1.49 |
| Debt/Capital | 0.54 | 0.56 |
| Interest Expense | 25.4 | 31.1 |
| Interest Coverage | 3.46 | 2.15 |
| Share Data | Q3 FY11 | Q3 FY10 |
|---|---|---|
| Shares outstanding (mil) | 46.9 | 47.07 |
| Div / share | 0.2 | 0.0 |
| EPS | -0.12 | -4.92 |
| Book value / share | 30.13 | 29.83 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 252998.0 | 215870.0 |
SELL. QUAD/GRAPHICS INC's P/E ratio indicates a significant premium compared to an average of 22.52 for the Commercial Services & Supplies industry and a significant premium compared to the S&P 500 average of 15.61. For additional comparison, its price-to-book ratio of 0.46 indicates a significant discount versus the S&P 500 average of 2.18 and a significant discount versus the industry average of 3.01. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount.
| Price/Earnings |
|
Price/Cash Flow |
| |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| QUAD 73.53 | Peers 22.52 | QUAD 1.97 | Peers 11.12 | |||||||||||||||||||||
|
Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations. QUAD is trading at a significant premium to its peers. |
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. QUAD is trading at a significant discount to its peers. |
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| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
|||||||||||||||||||||
| QUAD 6.41 | Peers 18.26 | QUAD NM | Peers 1.78 | |||||||||||||||||||||
|
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations. QUAD is trading at a significant discount to its peers. |
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. QUAD's negative PEG ratio makes this valuation measure meaningless. |
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| Price/Book |
|
Earnings Growth |
|
|||||||||||||||||||||
| QUAD 0.46 | Peers 3.01 | QUAD 103.34 | Peers 70.90 | |||||||||||||||||||||
|
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. QUAD is trading at a significant discount to its peers. |
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. QUAD is expected to have an earnings growth rate that significantly exceeds its peers. |
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| Price/Sales |
|
Sales Growth |
|
|||||||||||||||||||||
| QUAD 0.15 | Peers 1.74 | QUAD 195.00 | Peers 11.12 | |||||||||||||||||||||
|
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. QUAD is trading at a significant discount to its industry on this measurement. |
Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share. QUAD has a sales growth rate that significantly exceeds its peers. |
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