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Quad/Graphics, Inc. Class A (QUAD)
:QUAD
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Quad/Graphics (QUAD) AI Stock Analysis

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QUAD

Quad/Graphics

(NYSE:QUAD)

Rating:58Neutral
Price Target:
$7.00
▲(18.04% Upside)
Quad/Graphics' overall stock score is primarily influenced by financial challenges, including declining revenue and high leverage, which weigh heavily on the score. Positive technical indicators and strategic initiatives in AI and data provide some optimism, but valuation concerns and ongoing operational challenges limit the upside potential.
Positive Factors
Debt Management
Net debt declined YOY by $119.8 million, or 26%, to $350.0 million at the end of 2024, indicating improved financial health.
Financial Performance
The company's Q2/25 revenue exceeded both its own estimate and the consensus, highlighting strong performance.
Revenue Mix
Quad is experiencing a positive revenue mix shift towards services with long-term growth prospects, particularly in targeted print offerings.
Negative Factors
Cash Flow
Quad reported a free cash outflow for the first half of 2025, attributed to typical seasonal working capital changes.
Revenue Decline
Q4/24 revenue declined -10.1% YOY to $708.4 million, driven by lower paper sales and lower print volumes.

Quad/Graphics (QUAD) vs. SPDR S&P 500 ETF (SPY)

Quad/Graphics Business Overview & Revenue Model

Company DescriptionQuad/Graphics (QUAD) is a leading provider of marketing solutions, printing, and related services. Operating in the United States and internationally, Quad/Graphics serves a diverse range of clients across various sectors, including retail, publishing, healthcare, and financial services. The company offers a comprehensive suite of services designed to improve marketing performance, encompassing data-driven marketing strategies, creative services, media solutions, and a robust array of print production capabilities.
How the Company Makes MoneyQuad/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 Earnings Call Summary

Earnings Call Date:Jul 29, 2025
(Q2-2025)
|
% Change Since: 2.24%|
Next Earnings Date:Nov 04, 2025
Earnings Call Sentiment Neutral
Quad continues to innovate and expand its offerings, particularly in AI and data-driven marketing, achieving growth in targeted print and in-store solutions. However, challenges remain with declining net sales, adjusted EBITDA, and ongoing postal rate issues.
Q2-2025 Updates
Positive Updates
AI and Data Innovations
Quad launched Audience Builder 2.0, an AI-powered tool that enhances data accessibility and audience targeting, potentially increasing client ROI. The integration of AI across various marketing processes is optimizing operations and client outcomes.
In-Store Connect Expansion
Quad doubled the footprint of In-Store Connect with Save Mart Companies and partnered with Vallarta, enhancing consumer engagement and achieving a 5% to 20% product sales lift from participating brands.
Recognition and Industry Leadership
Quad featured among Ad Age’s top 25 world’s largest agency companies for the sixth consecutive year and earned a repeat spot on MM&M’s Agency 100 for excellence in healthcare marketing.
Successful New Campaigns
Quad's Betty creative agency launched a successful campaign for Natrol, achieving over 1.8 million YouTube views and 5.8 million Instagram reel views in under two months.
Positive Cash Flow Improvements
Free cash flow improved $16 million from last year, with positive contributions from reduced capital expenditures and proactive inventory management.
Targeted Print Growth
Direct mail and packaging sales saw a 7% increase, and in-store sales grew by 13%, driven by integrated marketing solutions.
Negative Updates
Decline in Net Sales
Net sales decreased by 4% in Q2 2025 compared to Q2 2024, primarily due to lower paper and logistics sales, and the divestiture of European operations.
Adjusted EBITDA Decline
Adjusted EBITDA was $43 million in Q2 2025, down from $52 million in Q2 2024, with a margin decline from 8.2% to 7.6% due to lower sales and increased investments.
Ongoing Postal Rate Challenges
Despite a 10% USPS catalog discount, rising postal rates remain a challenge, affecting client marketing expenses and overall mail volume.
Loss of a Major Client
A large grocery client was lost, affecting net sales for the first half of 2025, contributing to a 3% decline compared to the first half of 2024.
Company Guidance
During Quad's Second Quarter 2025 Conference Call, the company reaffirmed its 2025 guidance, projecting net sales to decline between 2% to 6% compared to 2024, excluding the impact of the European operations divestiture. Quad expects full-year adjusted EBITDA to range from $180 million to $220 million, with a midpoint of $200 million. The company anticipates 2025 free cash flow between $40 million and $60 million and aims to reduce the net debt leverage ratio to approximately 1.5x by the end of the year. The call highlighted Quad's strategic investments in AI and data capabilities, with the launch of Audience Builder 2.0 and the acquisition of Enru's co-mailing assets. Despite challenges from postal rate increases, Quad remains focused on optimizing postal solutions and leveraging its data stack to drive growth and efficiency.

Quad/Graphics Financial Statement Overview

Summary
Quad/Graphics faces challenges with declining revenue and negative net profit margins, indicating profitability issues. The balance sheet shows significant leverage, posing financial risks, while cash flow generation is a positive aspect highlighting operational cash efficiency.
Income Statement
55
Neutral
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
48
Neutral
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
60
Neutral
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue2.58B2.67B2.96B3.22B2.96B2.93B
Gross Profit519.00M580.00M576.50M598.20M570.50M594.80M
EBITDA135.70M122.50M150.60M252.20M245.60M150.40M
Net Income-14.30M-50.90M-55.40M9.30M37.80M-106.40M
Balance Sheet
Total Assets1.24B1.30B1.51B1.70B1.89B1.93B
Cash, Cash Equivalents and Short-Term Investments6.70M29.20M52.90M25.20M179.90M55.20M
Total Debt534.60M464.60M625.30M685.10M931.60M1.01B
Total Liabilities1.15B1.25B1.39B1.53B1.75B1.84B
Stockholders Equity87.00M49.90M119.50M172.90M136.80M84.10M
Cash Flow
Free Cash Flow71.60M55.70M76.80M94.30M86.50M129.20M
Operating Cash Flow119.60M112.90M147.60M154.60M136.50M190.20M
Investing Cash Flow-19.30M12.70M-46.40M-60.50M129.40M9.70M
Financing Cash Flow-108.20M-149.10M-73.60M-248.70M-140.90M-223.60M

Quad/Graphics Technical Analysis

Technical Analysis Sentiment
Positive
Last Price5.93
Price Trends
50DMA
5.61
Positive
100DMA
5.46
Positive
200DMA
6.07
Positive
Market Momentum
MACD
0.11
Negative
RSI
68.23
Neutral
STOCH
87.82
Negative
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 5.93 is above the 20-day moving average (MA) of 5.66, above the 50-day MA of 5.61, and below the 200-day MA of 6.07, indicating a bullish trend. The MACD of 0.11 indicates Negative momentum. The RSI at 68.23 is Neutral, neither overbought nor oversold. The STOCH value of 87.82 is Negative, 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

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
$0.0037.234.30%2.24%3.52%-67.27%
71
Outperform
$738.28M16.9411.23%-33.11%-68.55%
64
Neutral
$10.63B16.035.49%2.12%2.74%-23.62%
61
Neutral
$551.57M22.019.03%3.10%-1.70%-29.97%
61
Neutral
$818.85M2.35-42.67%-26.67%
60
Neutral
$299.49M19.41-13.15%4.21%-10.60%-201.64%
58
Neutral
$336.15M-17.22%4.38%-6.94%74.52%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
QUAD
Quad/Graphics
6.66
2.24
50.68%
ABM
ABM Industries
46.97
-4.38
-8.53%
CASS
Cass Information Systems
41.28
2.77
7.19%
PRSU
Pursuit Attractions and Hospitality
28.98
-3.85
-11.73%
CVEO
Civeo
23.86
-1.96
-7.59%
TH
Target Hospitality
7.43
-2.59
-25.85%

Quad/Graphics Corporate Events

Executive/Board ChangesShareholder MeetingsBusiness Operations and Strategy
Quad/Graphics Shareholders Approve Governance Changes
Positive
May 23, 2025

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.

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.Date of analysis: Aug 06, 2025