Quad/Graphics Inc

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QUAD : NYSE : Services
$28.16 -0.14 | -0.49%
Today's Range: 28.03 - 28.43
Avg. Daily Volume: 388,300
08/24/16 - 4:02 PM ET

Financial Analysis


QUAD/GRAPHICS INC's gross profit margin for the second quarter of its fiscal year 2016 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 0.75 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

At the same time, stockholders' equity ("net worth") has significantly decreased by 61.46% 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.

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Income Statement Q2 FY16 Q2 FY15
Net Sales ($mil)1032.31060.0
EBITDA ($mil)98.391.9
EBIT ($mil)20.78.5
Net Income ($mil)-7.7-45.1


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)23.344.3
Total Assets ($mil)2583.33881.2
Total Debt ($mil)1195.91480.8
Equity ($mil)395.41026.0


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin20.4719.08
EBITDA Margin9.528.66
Operating Margin2.010.8
Sales Turnover1.771.24
Return on Assets-21.89-0.77
Return on Equity-143.01-2.93
Debt Q2 FY16 Q2 FY15
Current Ratio1.181.41
Debt/Capital0.750.59
Interest Expense18.621.6
Interest Coverage1.110.39


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)50.049.6
Div / share0.30.3
EPS-0.16-0.94
Book value / share7.9120.69
Institutional Own % n/a n/a
Avg Daily Volume380844.0315835.0

Valuation


SELL. This stock’s P/E ratio is negative, making its value useless in the assessment of premium or discount valuation, only displaying that the company has negative earnings per share. Conducting a second comparison, its price-to-book ratio of 3.58 indicates a premium versus the S&P 500 average of 2.83 and a significant discount versus the industry average of 5.12. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. After reviewing these and other key valuation criteria, QUAD/GRAPHICS INC proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
QUAD NM Peers 43.88   QUAD 3.17 Peers 18.69

Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings.

QUAD's P/E is negative making this valuation measure meaningless.

 

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.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
QUAD 17.61 Peers 24.38   QUAD NA Peers 3.43

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 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.

Ratio not available.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
QUAD 3.58 Peers 5.12   QUAD -1712.30 Peers -2.83

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.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, QUAD is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
QUAD 0.31 Peers 2.27   QUAD -5.06 Peers 3.31

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.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

QUAD significantly trails its peers on the basis of sales growth

 

 

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