(STGW) Stagwell - Overview
Sector: Communication Services | Industry: Advertising Agencies | Exchange: NASDAQ (USA) | Market Cap: 1.614m USD | Total Return: 44.8% in 12m
Avg Turnover: 8.61M
EPS Trend: 28.5%
Qual. Beats: -1
Rev. Trend: 92.7%
Qual. Beats: 0
Warnings
P/E ratio 93.0
High Debt/EBITDA (5.3) with thin interest coverage (1.5)
Altman Z'' -0.14 < 1.0 - financial distress zone
Choppy
Tailwinds
Idiosyncratic Leader
Stagwell Inc. (STGW) is a global marketing and digital transformation firm that integrates creative services, media, and technology. The company operates through a diverse model encompassing consumer insights, brand strategy, and large-scale digital ecosystem implementation. Key service areas include AI-driven data solutions, omnichannel media buying, and specialized communications for reputation management and crisis response.
The company distinguishes itself from traditional advertising holding companies by prioritizing a digital-first architecture, often referred to as a challenger model designed to compete with the industrys legacy Big Five firms. This approach leverages a proprietary suite of SaaS and DaaS tools to support in-house marketing teams and streamline commerce enablement. The marketing services sector is currently undergoing a structural shift as clients increasingly reallocate budgets toward performance-based digital media and integrated technology stacks over traditional creative campaigns.
For a more granular assessment of the companys intrinsic worth, investors may find it useful to examine the valuation metrics on ValueRay.
Founded in 2015 and headquartered in New York, Stagwell expands its global footprint through a mix of organic growth and strategic acquisitions. Its service delivery models range from staff augmentation and full-stack engineering to managed services, positioning the firm as both a creative agency and a technology consultancy.
- Organic revenue growth driven by digital transformation and marketing cloud adoption
- Political advertising cycle volatility impacts high-margin advocacy and media segments
- New business wins and client retention within global blue-chip accounts
- Expansion of AI-based SaaS and DaaS offerings improves recurring revenue margins
- Macroeconomic sensitivity of corporate marketing budgets affects discretionary agency spending
| Net Income: 19.0m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.06 > 0.02 and ΔFCF/TA 3.79 > 1.0 |
| NWC/Revenue: -8.57% < 20% (prev -4.23%; Δ -4.34% < -1%) |
| CFO/TA 0.08 > 3% & CFO 324.7m > Net Income 19.0m |
| Net Debt (1.86b) to EBITDA (353.9m): 5.26 < 3 |
| Current Ratio: 0.83 > 1.5 & < 3 |
| Outstanding Shares: last quarter (250.8m) vs 12m ago -4.92% < -2% |
| Gross Margin: 34.57% > 18% (prev 0.36%; Δ 3.42k% > 0.5%) |
| Asset Turnover: 72.01% > 50% (prev 70.89%; Δ 1.12% > 0%) |
| Interest Coverage Ratio: 1.52 > 6 (EBITDA TTM 353.9m / Interest Expense TTM 96.3m) |
| A: -0.06 (Total Current Assets 1.22b - Total Current Liabilities 1.47b) / Total Assets 4.24b |
| B: 0.00 (Retained Earnings 20.1m / Total Assets 4.24b) |
| C: 0.04 (EBIT TTM 146.3m / Avg Total Assets 4.11b) |
| D: -0.00 (Book Value of Equity -6.58m / Total Liabilities 3.50b) |
| Altman-Z'' = -0.14 = B |
| DSRI: 0.74 (Receivables 727.6m/936.7m, Revenue 2.96b/2.82b) |
| GMI: 1.04 (GM 34.57% / 35.86%) |
| AQI: 1.04 (AQ_t 0.65 / AQ_t-1 0.62) |
| SGI: 1.05 (Revenue 2.96b / 2.82b) |
| TATA: -0.07 (NI 19.0m - CFO 324.7m) / TA 4.24b) |
| Beneish M = -3.22 (Cap -4..+1) = AA |
As of May 30, 2026, the stock is trading at USD 7.01 with a total of 2,182,349 shares traded.
Over the past week, the price has changed by +11.45%,
over one month by +4.78%,
over three months by +45.44% and
over the past year by +44.83%.
Stagwell has received a consensus analysts rating of 4.13. Therefore, it is recommended to buy STGW.
- StrongBuy: 4
- Buy: 1
- Hold: 3
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 8.3 | 17.7% |
P/E Trailing = 93.0
P/E Forward = 6.3816
P/S = 0.5449
P/B = 2.289
P/EG = 0.3129
Revenue TTM = 2.96b USD
EBIT TTM = 146.3m USD
EBITDA TTM = 353.9m USD
Long Term Debt = 1.44b USD (from longTermDebt, last quarter)
Short Term Debt = 54.3m USD (from shortTermDebt, last quarter)
Debt = 1.98b USD (from shortLongTermDebtTotal, last quarter) + Leases 268.1m
Net Debt = 1.86b USD (calculated: Debt 1.98b - CCE 114.9m)
Enterprise Value = 3.47b USD (1.61b + Debt 1.98b - CCE 114.9m)
Interest Coverage Ratio = 1.52 (Ebit TTM 146.3m / Interest Expense TTM 96.3m)
EV/FCF = 12.66x (Enterprise Value 3.47b / FCF TTM 274.5m)
FCF Yield = 7.90% (FCF TTM 274.5m / Enterprise Value 3.47b)
FCF Margin = 9.27% (FCF TTM 274.5m / Revenue TTM 2.96b)
Net Margin = 0.64% (Net Income TTM 19.0m / Revenue TTM 2.96b)
Gross Margin = 34.57% ((Revenue TTM 2.96b - Cost of Revenue TTM 1.94b) / Revenue TTM)
Gross Margin QoQ = 28.44% (prev 37.62%)
Tobins Q-Ratio = 0.82 (Enterprise Value 3.47b / Total Assets 4.24b)
Interest Expense / Debt = 4.88% (Interest Expense 96.3m / Debt 1.98b)
Taxrate = 21.0% (US default 21%)
NOPAT = 115.5m (EBIT 146.3m * (1 - 21.00%))
Current Ratio = 0.83 (Total Current Assets 1.22b / Total Current Liabilities 1.47b)
Debt / Equity = 2.73 (Debt 1.98b / totalStockholderEquity, last quarter 722.5m)
Debt / EBITDA = 5.26 (Net Debt 1.86b / EBITDA 353.9m)
Debt / FCF = 6.78 (Net Debt 1.86b / FCF TTM 274.5m)
Total Stockholder Equity = 754.9m (last 4 quarters mean from totalStockholderEquity)
RoA = 0.46% (Net Income 19.0m / Total Assets 4.24b)
RoE = 2.52% (Net Income TTM 19.0m / Total Stockholder Equity 754.9m)
RoCE = 6.66% (EBIT 146.3m / Capital Employed (Equity 754.9m + L.T.Debt 1.44b))
RoIC = 4.23% (NOPAT 115.5m / Invested Capital 2.73b)
WACC = 5.84% (E(1.61b)/V(3.59b) * Re(8.28%) + D(1.98b)/V(3.59b) * Rd(4.88%) * (1-Tc(0.21)))
Discount Rate = 8.28% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 20.0 | Cagr: 40.22%
[DCF] Terminal Value 77.97% ; FCFF base≈207.4m ; Y1≈237.7m ; Y5≈349.8m
[DCF] Fair Price = 13.73 (EV 5.26b - Net Debt 1.86b = Equity 3.40b / Shares 247.9m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 28.50 | EPS CAGR: 2.89% | SUE: -1.84 | # QB: -1
Revenue Correlation: 92.73 | Revenue CAGR: 6.00% | SUE: 0.06 | # QB: 0
EPS current Quarter (2026-06-30): EPS=0.19 | Chg30d=-11.43% | Revisions=-50% | Analysts=8
EPS next Quarter (2026-09-30): EPS=0.30 | Chg30d=-0.39% | Revisions=+20% | Analysts=8
EPS current Year (2026-12-31): EPS=1.05 | Chg30d=+0.61% | Revisions=+0% | GrowthEPS=+26.1% | GrowthRev=+9.9%
EPS next Year (2027-12-31): EPS=1.18 | Chg30d=+0.97% | Revisions=-20% | GrowthEPS=+12.4% | GrowthRev=+3.3%
[Analyst] Revisions Ratio: -50%