Quad/Graphics (QUAD) AI Stock Analysis

• Market Cap: $329.45M
• Dividend Yield: 4.64%
• Average Volume (3M): 207.85K
• Price to Earnings (P/E): 15.8
• Beta (1Y): 1.28
• Revenue Growth: -9.23%
• EPS Growth: N/A
• Country: US
• Employees: 11,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): 0.31
• Shares Outstanding: 37,619,392
• 10 Day Avg. Volume: 267,780
• 30 Day Avg. Volume: 207,846
• PEG Ratio: 1.06
• Price to Book (P/B): 6.65
• Price to Sales (P/S): 0.12
• P/FCF Ratio: 5.96
• Enterprise Value/Market Cap: 2.59
• Enterprise Value/Revenue: 0.34
• Enterprise Value/Gross Profit: 1.84
• Enterprise Value/Ebitda: 5.30
• 1Y Price Target: $9.10
• Price Target Upside: 40.65% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 0.98
• Revenue Forecast (FY): $2.43B

• Rating: 52 Neutral
• Price Target: $6.00 ▼(-7.26% 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 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 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 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

• Technical Analysis Sentiment: Positive
• Last Price: 6.47
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 6.47 is above the 20-day moving average (MA) of 6.09, above the 50-day MA of 5.81, and above the 200-day MA of 5.72, indicating a bullish trend. The MACD of 0.23 indicates Negative momentum. The RSI at 66.44 is Neutral, neither overbought nor oversold. The STOCH value of 73.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for QUAD.

Quad/Graphics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ABM	69 Neutral	$2.58B	16.28	9.10%	2.20%	4.62%	102.72%
TH	65 Neutral	$807.22M	-82.05	-2.36%	―	-26.65%	-110.98%
PRSU	64 Neutral	$991.05M	2.79	-24.71%	―	-68.48%	2198.47%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
CASS	60 Neutral	$566.81M	18.62	11.44%	2.89%	-4.96%	39.42%
CVEO	54 Neutral	$264.50M	-10.87	-12.34%	4.35%	-10.51%	-247.97%
QUAD	52 Neutral	$329.45M	15.81	27.91%	4.64%	-9.23%	―

Quad/Graphics Corporate Events

Quad/Graphics Reports Q3 2025 Financial Results

Quad/Graphics, Inc. is a marketing experience company that specializes in solving complex marketing challenges for its clients through a comprehensive range of marketing and print services, supported by state-of-the-art technology and data-driven intelligence.

Quad/Graphics Earnings Call: Innovation Amid Challenges

Quad/Graphics, Inc. Class A Earnings Call: Balancing Innovation and Challenges

Quad/Graphics Reports Q2 2025 Results and Strategic Investments

Quad/Graphics, Inc. is a marketing experience company that specializes in solving complex marketing challenges through its comprehensive range of services, including creative, production, and media solutions across various channels. The company operates primarily in the marketing and print services industry, with a focus on integrating data-driven intelligence and state-of-the-art technology.