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Quad/Graphics, Inc. Class A (QUAD)
NYSE:QUAD
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Quad/Graphics
(NYSE:QUAD)
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Rating:52Neutral
Price Target:
$6.00
▼(-2.76% Downside)
Quad/Graphics faces significant financial challenges with declining revenues and high leverage, impacting its financial performance score. The technical analysis suggests a neutral to slightly bearish trend. Valuation is supported by a reasonable P/E ratio and attractive dividend yield. The earnings call provides a mixed outlook with strategic investments showing promise amidst ongoing challenges.
Positive Factors
AI Integration
The integration of AI enhances Quad's service offerings, allowing for better consumer insights and potentially increasing client engagement and satisfaction.
Revenue Mix Improvement
Diversifying revenue streams through increased focus on high-growth areas like packaging and in-store marketing strengthens Quad's market position and resilience.
Improved Free Cash Flow
Improved free cash flow enhances Quad's ability to reinvest in strategic initiatives, manage debt, and return value to shareholders, supporting long-term financial health.
Negative Factors
Declining Revenue
Continued revenue decline indicates challenges in maintaining market share and competitiveness, potentially affecting long-term growth prospects.
High Leverage
High leverage limits financial flexibility and increases risk, potentially impacting Quad's ability to invest in growth opportunities and weather economic downturns.
Adjusted EBITDA Decrease
Decreasing EBITDA reflects operational challenges and margin pressures, which could hinder Quad's profitability and ability to fund strategic initiatives.
Quad/Graphics (QUAD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$315.70M
Dividend Yield4.69%
Average Volume (3M)186.56K
Price to Earnings (P/E)15.1
Beta (1Y)1.29
Revenue Growth-9.23%
EPS GrowthN/A
CountryUS
Employees11,000
SectorIndustrials
Sector Strength72
IndustrySpecialty Business Services
Share Statistics
EPS (TTM)0.31
Shares Outstanding37,619,392
10 Day Avg. Volume146,233
30 Day Avg. Volume186,564
Financial Highlights & Ratios
PEG Ratio1.06
Price to Book (P/B)6.65
Price to Sales (P/S)0.12
P/FCF Ratio5.96
Enterprise Value/Market Cap2.71
Enterprise Value/Revenue0.34
Enterprise Value/Gross Profit1.84
Enterprise Value/Ebitda5.30
Forecast
1Y Price Target
$9.10Price Target Upside47.49% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)1.13
Revenue Forecast (FY)$2.36B
Quad/Graphics Business Overview & Revenue Model
Company DescriptionQuad/Graphics, Inc. provides marketing solutions worldwide. The company operates through United States Print and Related Services, and International segments. It offers printing services, such as retail inserts, publications, catalogs, special interest publications, journals, direct mail, directories, in-store marketing and promotion, packaging, newspapers, custom print products, and other commercial and specialty printed products; and paper procurement services. The company also provides marketing and other services, including consumer insights, audience targeting, personalization, media planning and placement, process optimization, campaign planning and creation, pre-media production, videography, photography, digital and print execution, and logistics, as well as manufactures ink. It serves blue chip companies that operate in various industries, and serve businesses and consumers comprising retailers, publishers, and direct marketers. The company was founded in 1971 and is headquartered in Sussex, Wisconsin.
How the Company Makes MoneyQuad generates revenue through a multifaceted business model that includes several key revenue streams. The company earns money primarily through its printing services, which encompass commercial printing, packaging, and direct mail services. Additionally, Quad generates income from its marketing solutions, which include digital marketing, data analytics, and creative services that help clients enhance their brand presence and reach target audiences more effectively. Significant partnerships with major companies across various sectors strengthen Quad's market position and contribute to its earnings. The company also benefits from economies of scale in its production processes and investments in technology that improve efficiency and reduce costs, ultimately driving profitability.
Quad/Graphics Earnings Call Summary
Earnings Call Date:Oct 28, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 24, 2026
Earnings Call Sentiment Neutral
The earnings call presents a mix of positive developments, such as AI integration, sales lift from In-Store Connect, and improved free cash flow, counterbalanced by challenges like declining net sales and adjusted EBITDA, as well as high postal costs. The overall sentiment leans towards cautious optimism with strategic investments showing promise amidst ongoing challenges.Q3-2025 Updates
Positive Updates
AI Integration and Data Intelligence
Quad has successfully integrated a generative AI chat feature into its Audience Builder platform, enhancing the ability of media strategists to uncover consumer insights using Cortex AI functionality from Snowflake.
In-Store Connect Success
Significant sales lift recorded for CPG campaigns using In-Store Connect, with examples like Nestle USA's 23 percentage point sales lift and PepsiCo's 25 percentage point sales lift.
Revenue Mix Improvement
Increase in targeted print offerings, with direct marketing up over 6%, packaging over 9%, and in-store up 11% year-to-date.
Positive Impact from USPS Decision
USPS announced no January price increase for market dominant mail, positively influencing client plans for 2026 media.
Improved Free Cash Flow and Shareholder Returns
Free cash flow improved by $5 million year-to-date, with $19 million returned to shareholders, including $11 million in dividends and $8 million in share repurchases.
Negative Updates
Net Sales Decline
Net sales were $588 million in Q3 2025, a decrease of 7% compared to Q3 2024, primarily due to lower paper sales and the divestiture of European operations.
Adjusted EBITDA Decrease
Adjusted EBITDA was $53 million in Q3 2025, down from $59 million in Q3 2024, with a decrease in adjusted EBITDA margin year-to-date from 8.2% to 7.9%.
High Postal Costs Impacting Catalogs
Significant postal rate increases in previous years have dampened catalog performance, with 60% increase in postal rates since 2021.
Asset Sale Challenges
Lower-than-expected proceeds from the sale of buildings in Effingham, Illinois, due to geographic location.
Company Guidance
During Quad's Third Quarter 2025 Conference Call, the company provided updated guidance for the full year 2025, narrowing ranges for several key financial metrics. Net sales for 2025 are now expected to decline by 3% to 5%, excluding the impact of the European operations divestiture. Adjusted EBITDA guidance has been refined to a range of $190 million to $200 million, while free cash flow is anticipated to be between $50 million and $60 million, with capital expenditures adjusted to $50 million to $55 million. Additionally, Quad's net debt leverage ratio is anticipated to slightly increase to approximately 1.6x by year-end. The company highlighted a strategic focus on targeted print offerings and investments in AI-powered tools, with an aim to achieve net sales growth by 2028.Quad/Graphics Financial Statement Overview
Summary
Quad/Graphics faces challenges with declining revenue and profitability margins, high leverage, and decreasing free cash flow growth. While there are some signs of improvement in net profit margin and return on equity, the overall financial health is constrained by high debt levels and operational inefficiencies.Income Statement
Quad/Graphics has experienced declining revenue over the past few years, with a negative revenue growth rate of -3.36% in the TTM. The gross profit margin has decreased from 21.70% in 2024 to 15.71% in the TTM, indicating pressure on profitability. The net profit margin has improved slightly to 0.82% in the TTM from negative figures in previous years, showing some recovery. However, the EBIT and EBITDA margins remain low, reflecting challenges in operational efficiency.Balance Sheet
The company has a high debt-to-equity ratio of 5.68 in the TTM, which suggests significant leverage and potential financial risk. Return on equity has improved to 25.67% in the TTM, indicating better utilization of equity, but the equity ratio remains low, highlighting a reliance on debt financing. Overall, the balance sheet reflects high leverage and potential vulnerability to interest rate changes.Cash Flow
Quad/Graphics' cash flow performance shows a decline in free cash flow growth by -15.08% in the TTM, which is concerning. However, the operating cash flow to net income ratio of 0.20 indicates that the company is generating cash relative to its net income. The free cash flow to net income ratio of 0.56 suggests that the company is able to convert a portion of its earnings into cash, though the declining trend in free cash flow growth is a negative indicator.| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.50B | 2.67B | 2.96B | 3.22B | 2.96B | 2.93B |
| Gross Profit | 463.30M | 480.70M | 450.80M | 460.20M | 416.30M | 416.20M |
| EBITDA | 161.30M | 121.00M | 150.60M | 213.00M | 266.10M | 150.40M |
| Net Income | 20.60M | -50.90M | -55.40M | 9.30M | 37.80M | -128.30M |
Balance Sheet | ||||||
| Total Assets | 1.27B | 1.30B | 1.51B | 1.70B | 1.89B | 1.93B |
| Cash, Cash Equivalents and Short-Term Investments | 6.20M | 29.20M | 52.90M | 25.20M | 179.90M | 55.20M |
| Total Debt | 549.30M | 464.60M | 625.30M | 713.70M | 931.60M | 1.01B |
| Total Liabilities | 1.17B | 1.25B | 1.39B | 1.53B | 1.75B | 1.84B |
| Stockholders Equity | 96.70M | 49.90M | 119.50M | 172.90M | 136.80M | 84.10M |
Cash Flow | ||||||
| Free Cash Flow | 60.80M | 55.70M | 76.80M | 94.30M | 86.50M | 129.20M |
| Operating Cash Flow | 108.80M | 112.90M | 147.60M | 154.60M | 136.50M | 190.20M |
| Investing Cash Flow | -52.50M | 12.70M | -46.40M | -60.50M | 129.40M | 9.70M |
| Financing Cash Flow | -64.60M | -149.10M | -73.60M | -248.70M | -140.90M | -223.60M |
Quad/Graphics Technical Analysis
Positive
6.17
Price Trends
5.94
Positive
6.08
Positive
5.78
Positive
Market Momentum
0.01
Positive
51.53
Neutral
65.94
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For QUAD, the sentiment is Positive. The current price of 6.17 is below the 20-day moving average (MA) of 6.27, above the 50-day MA of 5.94, and above the 200-day MA of 5.78, indicating a neutral trend. The MACD of 0.01 indicates Positive momentum. The RSI at 51.53 is Neutral, neither overbought nor oversold. The STOCH value of 65.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for QUAD.
Quad/Graphics Risk Analysis
Quad/Graphics disclosed 29 risk factors in its most recent earnings report. Quad/Graphics reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Quad/Graphics Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $2.68B | 17.09 | 9.10% | 2.20% | 4.62% | 102.72% | |
69 Neutral | $545.75M | 17.96 | 11.44% | 2.98% | -4.96% | 39.42% | |
67 Neutral | $823.18M | -82.66 | -2.36% | ― | -26.65% | -110.98% | |
64 Neutral | $972.94M | 2.71 | -24.71% | ― | -68.48% | 2198.47% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
54 Neutral | $281.43M | -11.52 | -12.34% | 4.25% | -10.51% | -247.97% | |
52 Neutral | $315.70M | 15.07 | 27.91% | 4.69% | -9.23% | ― |
* Industrials Sector Average
QUAD
Quad/Graphics
6.17
-0.08
-1.28%
ABM
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44.27
-8.01
-15.33%
CASS
Cass Information Systems
41.79
3.46
9.02%
PRSU
Pursuit Attractions and Hospitality
34.01
-5.99
-14.98%
CVEO
Civeo
24.35
0.82
3.48%
TH
Target Hospitality
8.15
-1.88
-18.74%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.