Education
About Us
Working with TipRanks
Follow Us
Quad/Graphics, Inc. Class A (QUAD)
NYSE:QUAD
Top Page
Quad/Graphics
(NYSE:QUAD)
Rating:58Neutral
Price Target:
$7.00
▲(9.20% Upside)
Positive Factors
Competitive Advantage
Agency solutions work often leads to substantial print revenue, as Quad's ability to execute a marketing campaign from end to end is a unique competitive differentiator in the market that is leading to new business wins.
Financial Performance
The company's Q2/25 revenue exceeded both its own estimate and the consensus, highlighting strong performance.
Growth Prospects
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 of $(100.3) million for Q1/25, larger than the previous year, due to accelerated purchases of paper in advance of potential tariffs.
Free Cash Outflow
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, including the impact from client mix and increased gravure volume.
Quad/Graphics (QUAD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$323.53M
Dividend Yield4.29%
Average Volume (3M)309.03K
Price to Earnings (P/E)―
Beta (1Y)1.13
Revenue Growth-6.94%
EPS Growth74.52%
CountryUS
Employees11,000
SectorIndustrials
Sector Strength75
IndustrySpecialty Business Services
Share Statistics
EPS (TTM)0.14
Shares Outstanding37,211,150
10 Day Avg. Volume291,725
30 Day Avg. Volume309,028
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap2.46
Enterprise Value/Revenue0.31
Enterprise Value/Gross Profit1.54
Enterprise Value/Ebitda5.87
Forecast
1Y Price Target
$9.30Price Target Upside45.09% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Quad/Graphics Business Overview & Revenue Model
Company DescriptionQuad/Graphics, Inc. (QUAD) is a leading provider of printing and related services, specializing in marketing solutions, print production, and digital services. The company operates primarily in the commercial printing sector, offering a wide range of services that include direct mail, catalog printing, packaging, and promotional materials. Quad also provides integrated marketing services to help clients enhance their brand visibility and customer engagement across various channels.
How the Company Makes MoneyQuad/Graphics generates revenue through multiple streams, primarily from its printing services, which include commercial printing, digital printing, and specialty printing. The company also earns revenue from its marketing services, which encompass strategic marketing consulting, data analytics, and digital solutions tailored to optimize clients' marketing efforts. Significant partnerships with major brands across various industries bolster its revenue, as these collaborations often lead to long-term contracts for printing and marketing services. Additionally, Quad leverages technology to streamline its operations and improve efficiency, which helps to maintain profitability in a competitive market.
Quad/Graphics Earnings Call Summary
Earnings Call Date:Jul 29, 2025
(Q2-2025)
| % Change Since: 11.87%|
Next Earnings Date:Nov 04, 2025
Earnings Call Sentiment Neutral
The earnings call presented a balanced outlook. While Quad is making significant strides in technology and integrated marketing solutions, leading to some growth in targeted print offerings and improved financial metrics, there are ongoing challenges with declining net sales, decreased adjusted EBITDA, and the impact of postal rate increases. The sentiment is cautiously optimistic but tempered by these challenges.Q2-2025 Updates
Positive Updates
AI and Data Innovations
Quad is investing in AI applications across process automation, cognitive insights, and cognitive engagement, optimizing marketing processes and enhancing client campaign outcomes. The launch of Audience Builder 2.0 enables faster and more efficient audience targeting, leading to significant improvements for clients, such as an 80% revenue increase for a direct mail campaign.
Growth in Targeted Print Offerings
Year-to-date, Quad saw a 7% increase in sales for direct mail and packaging and a 13% increase for in-store services, driven by integrated marketing solutions and innovative approaches that tie together complex marketing channels.
Recognition and Awards
Quad continues to receive industry recognition, ranking among Ad Age's top 25 world's largest agency companies and MM&M's Agency 100 for healthcare marketing expertise. Several leaders were acknowledged for driving growth across advertising, marketing, media, and tech.
Improved Financial Metrics
Free cash flow improved by $16 million compared to the previous year, driven by increased cash earnings, lower restructuring payments, and decreased capital expenditures. Adjusted diluted earnings per share increased from $0.12 to $0.14 year-over-year for the quarter.
Negative Updates
Decline in Net Sales
Net sales were $572 million in Q2 2025, a 4% decrease excluding the impact of the European operations divestiture. Year-to-date net sales decreased by 3%, primarily due to lower paper, logistics, and agency solutions sales.
Decreased Adjusted EBITDA
Adjusted EBITDA decreased from $52 million in Q2 2024 to $43 million in Q2 2025, with the margin declining from 8.2% to 7.6%. This was primarily due to lower sales and increased investments in innovative offerings.
Challenges with Postal Rate Increases
The USPS implemented an 11% postal rate increase, adding to the 50-70% increases over the past 4 years. Rising postal rates continue to challenge clients, although a 10% discount test for catalogers offers some temporary relief.
Impact of Divestitures
The divestiture of European operations impacted sales and financial performance. This divestiture contributed to a decline in net sales and adjusted EBITDA margins.
Company Guidance
During Quad's Second Quarter 2025 Conference Call, the company reaffirmed its 2025 guidance, projecting net sales to decline by 2% to 6% compared to 2024, excluding the impact from the divestiture of European operations. Adjusted EBITDA is expected to range between $180 million and $220 million, with a midpoint of $200 million, and free cash flow is anticipated to be between $40 million and $60 million. The net debt leverage ratio is projected to decrease to approximately 1.5x by the end of 2025. The company highlighted strategic investments in AI and data applications, including the launch of Audience Builder 2.0, enhancing audience targeting capabilities. Despite a 4% sales decline in Q2 2025, excluding European operations, Quad anticipates higher sequential adjusted EBITDA in the third and fourth quarters due to seasonal production peaks. The company is closely monitoring the impacts of tariffs and inflationary pressures, as well as the recent postal rate increases, which could affect print and marketing spend.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
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.55
Neutral
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.48
Neutral
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.60
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.58B | 2.67B | 2.96B | 3.22B | 2.96B | 2.93B |
| Gross Profit | 519.00M | 580.00M | 576.50M | 598.20M | 570.50M | 594.80M |
| EBITDA | 135.70M | 122.50M | 150.60M | 252.20M | 245.60M | 150.40M |
| Net Income | -14.30M | -50.90M | -55.40M | 9.30M | 37.80M | -106.40M |
Balance Sheet | ||||||
| Total Assets | 1.24B | 1.30B | 1.51B | 1.70B | 1.89B | 1.93B |
| Cash, Cash Equivalents and Short-Term Investments | 6.70M | 29.20M | 52.90M | 25.20M | 179.90M | 55.20M |
| Total Debt | 534.60M | 464.60M | 625.30M | 685.10M | 931.60M | 1.01B |
| Total Liabilities | 1.15B | 1.25B | 1.39B | 1.53B | 1.75B | 1.84B |
| Stockholders Equity | 87.00M | 49.90M | 119.50M | 172.90M | 136.80M | 84.10M |
Cash Flow | ||||||
| Free Cash Flow | 71.60M | 55.70M | 76.80M | 94.30M | 86.50M | 129.20M |
| Operating Cash Flow | 119.60M | 112.90M | 147.60M | 154.60M | 136.50M | 190.20M |
| Investing Cash Flow | -19.30M | 12.70M | -46.40M | -60.50M | 129.40M | 9.70M |
| Financing Cash Flow | -108.20M | -149.10M | -73.60M | -248.70M | -140.90M | -223.60M |
Quad/Graphics Technical Analysis
Positive
6.41
Price Trends
5.74
Positive
5.51
Positive
6.05
Positive
Market Momentum
0.18
Negative
57.95
Neutral
62.36
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 6.41 is above the 20-day moving average (MA) of 6.07, above the 50-day MA of 5.74, and above the 200-day MA of 6.05, indicating a bullish trend. The MACD of 0.18 indicates Negative momentum. The RSI at 57.95 is Neutral, neither overbought nor oversold. The STOCH value of 62.36 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
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $3.05B | 39.76 | 4.30% | 2.09% | 3.52% | -67.27% | |
70 Outperform | $885.04M | 83.05 | 2.78% | ― | -35.28% | -90.34% | |
69 Neutral | $1.03B | 3.17 | -44.30% | ― | -49.92% | 3773.09% | |
64 Neutral | $10.93B | 16.10 | 8.86% | 2.03% | 2.57% | -16.44% | |
61 Neutral | $571.33M | 23.36 | 9.03% | 2.83% | -3.57% | -6.69% | |
58 Neutral | $323.53M | ― | -17.22% | 4.29% | -6.94% | 74.52% | |
52 Neutral | $299.86M | 19.41 | -13.15% | 4.19% | -10.60% | -201.64% |
* Industrials Sector Average
Performance Comparison
QUAD
Quad/Graphics
6.41
1.92
42.76%
ABM
ABM Industries
48.89
-5.97
-10.88%
CASS
Cass Information Systems
43.23
1.91
4.62%
PRSU
Pursuit Attractions and Hospitality
36.68
2.52
7.38%
CVEO
Civeo
23.62
-4.11
-14.82%
TH
Target Hospitality
8.84
-0.73
-7.63%
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.