Quad/Graphics (QUAD) AI Stock Analysis

• Market Cap: $284.44M
• Dividend Yield: 5.34%
• Average Volume (3M): 230.23K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.14
• Revenue Growth: -7.00%
• EPS Growth: 71.30%
• Country: US
• Employees: 11,000
• Sector: Industrials
• Sector Strength: 89
• Industry: Specialty Business Services
• EPS (TTM): 0.20
• Shares Outstanding: 37,350,520
• 10 Day Avg. Volume: 203,658
• 30 Day Avg. Volume: 230,232
• PEG Ratio: -0.29
• Price to Book (P/B): 1.20
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 2.19
• Enterprise Value/Market Cap: 3.05
• Enterprise Value/Revenue: 0.08
• Enterprise Value/Gross Profit: 1.64
• Enterprise Value/Ebitda: 1.46
• 1Y Price Target: $9.45
• Price Target Upside: 68.15% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 51 Neutral
• Price Target: $5.50 ▼(-2.14%Downside)

Quad/Graphics faces significant financial challenges, with declining revenues and high leverage impacting stability. Technical indicators show a neutral to bearish trend. While recent strategic investments and governance changes offer some positive aspects, the overall outlook is hindered by profitability issues and economic uncertainties.

Positive Factors

Company Strategy

Quad has shifted its revenue mix towards services with favorable long-term growth prospects, including an increase in targeted print offerings and growth in Latin American operations.

Earnings

Q1/25 revenue of $629.4 million exceeded estimates, indicating better-than-expected performance.

Financial Performance

Q1/25 adjusted EPS of $0.20 doubled from the year-ago quarter, supported by lower depreciation & amortization expenses and a decline in interest expense due to debt reduction efforts.

Negative Factors

Cash Flow

Quad reported a free cash outflow of $(100.3) million for Q1/25, larger than the previous year, due to accelerated purchases of paper in advance of potential tariffs.

Market Challenges

The launch of In-Store Connect marked Quad’s entry into the large and growing Retail Media Networks space, enabling smaller store chains to compete more effectively with large national chains.

Revenue Decline

Q4/24 revenue declined -10.1% YOY to $708.4 million, driven by lower paper sales and lower print volumes, including the impact from client mix and increased gravure volume.

Quad/Graphics Business Overview & Revenue Model

Company Description

Quad/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 Money

Quad/Graphics makes money primarily through its comprehensive suite of marketing and printing services. The company generates revenue by providing integrated marketing solutions that include direct marketing, in-store marketing, packaging, and logistics services. A significant portion of its earnings comes from long-term contracts with retailers, publishers, and major corporations who rely on Quad's capabilities to produce and distribute promotional materials and publications. Additionally, Quad/Graphics monetizes its data-driven marketing services, helping clients optimize their marketing campaigns and reach target audiences effectively. Key partnerships with leading brands and strategic investments in technology and innovation also play a crucial role in enhancing its service offerings and expanding its market reach.

Quad/Graphics Financial Statement Overview

Summary

Quad/Graphics presents a challenging financial picture with declining revenue and negative net profit margins. The balance sheet indicates high financial risk due to significant leverage. Cash flow generation is a positive aspect, highlighting operational cash efficiency, but profitability issues persist.

Income Statement

Quad/Graphics shows a mixed performance in its income statement. The company has experienced a declining revenue trend with a decrease in total revenue over recent years. Gross profit margin for TTM stands at approximately 39.65%, which is relatively strong for the industry. However, net profit margins remain negative, reflecting ongoing challenges in achieving profitability. EBIT and EBITDA margins are also low, indicating operational inefficiencies. The company needs to address its cost structure and improve profitability metrics.

Balance Sheet

The balance sheet reflects significant leverage, with a debt-to-equity ratio that indicates high financial risk. TTM data shows a debt-to-equity ratio above 6.31, suggesting a heavy reliance on debt financing. Return on equity remains negative due to net losses, indicating challenges in generating returns for shareholders. The equity ratio is low at about 7%, reflecting a limited equity cushion. Overall, the balance sheet suggests a need for better capital management to enhance financial stability.

Cash Flow

Cash flow analysis highlights some strengths, with positive operating cash flow in TTM and consistent free cash flow generation. The operating cash flow to net income ratio is strong, indicating effective cash conversion from operations. However, free cash flow growth has been inconsistent, and the free cash flow to net income ratio reflects ongoing profitability challenges. The company demonstrates an ability to generate cash but must address profitability to support long-term growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.65B	2.67B	2.96B	3.22B	2.96B	2.93B
Gross Profit	529.80M	580.00M	576.50M	598.20M	570.50M	594.80M
EBITDA	143.30M	122.50M	150.60M	252.20M	245.60M	150.40M
Net Income	-17.00M	-50.90M	-55.40M	9.30M	37.80M	-106.40M
Balance Sheet
Total Assets	1.25B	1.30B	1.51B	1.70B	1.89B	1.93B
Cash, Cash Equivalents and Short-Term Investments	8.10M	29.20M	52.90M	25.20M	179.90M	55.20M
Total Debt	552.00M	464.60M	625.30M	685.10M	931.60M	1.01B
Total Liabilities	1.16B	1.25B	1.39B	1.53B	1.75B	1.84B
Stockholders Equity	87.40M	49.90M	119.50M	172.90M	136.80M	84.10M
Cash Flow
Free Cash Flow	25.50M	55.70M	76.80M	94.30M	86.50M	129.20M
Operating Cash Flow	76.10M	112.90M	147.60M	154.60M	136.50M	190.20M
Investing Cash Flow	14.50M	12.70M	-46.40M	-60.50M	129.40M	9.70M
Financing Cash Flow	-94.20M	-149.10M	-73.60M	-248.70M	-140.90M	-223.60M

Quad/Graphics Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 5.62
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For QUAD, the sentiment is Neutral. The current price of 5.62 is above the 20-day moving average (MA) of 5.52, above the 50-day MA of 5.50, and below the 200-day MA of 5.97, indicating a neutral trend. The MACD of 0.06 indicates Negative momentum. The RSI at 51.74 is Neutral, neither overbought nor oversold. The STOCH value of 74.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for QUAD.

Quad/Graphics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MEC	73 Outperform	$332.08M	15.01	9.40%	―	-8.42%	164.82%
SHYF	68 Neutral	$439.02M	972.09	0.18%	1.59%	-4.08%	―
RLGT	68 Neutral	$285.69M	17.58	8.09%	―	7.18%	186.98%
BBCP	64 Neutral	$331.42M	27.92	4.58%	―	-9.91%	-25.58%
Sector *	53 Neutral	kr678.01M	8.52	-45.18%	―	10.07%	-138.83%
QUAD	51 Neutral	$284.44M	―	-19.25%	5.34%	-7.00%	71.30%
AMBI		$261.63M	―		―	―	―

Quad/Graphics Corporate Events

Quad/Graphics Shareholders Approve Governance Changes

On May 21, 2025, Quad/Graphics, Inc. held its annual meeting of shareholders, where key decisions were made regarding the company’s governance and incentive plans. The Board of Directors was reduced from ten to nine members, and all nine directors were elected for a one-year term. Additionally, an amendment to the 2020 Omnibus Incentive Plan was approved by the shareholders, reflecting strong support for the company’s strategic initiatives.

The most recent analyst rating on (QUAD) stock is a Buy with a $8.90 price target. To see the full list of analyst forecasts on Quad/Graphics stock, see the QUAD Stock Forecast page.