Quad/Graphics (QUAD) AI Stock Analysis

• Market Cap: $280.57M
• Dividend Yield: 4.72%
• Average Volume (3M): 225.63K
• Price to Earnings (P/E): 13.5
• Beta (1Y): 1.31
• 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: 304,881
• 30 Day Avg. Volume: 225,628
• 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: 3.04
• Enterprise Value/Revenue: 0.34
• Enterprise Value/Gross Profit: 1.84
• Enterprise Value/Ebitda: 5.30
• 1Y Price Target: $9.10
• Price Target Upside: 61.92% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 0.98
• Revenue Forecast (FY): $2.43B

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

Quad/Graphics' overall stock score reflects significant financial challenges, including declining revenue and high leverage. While there are strategic initiatives in place, such as AI integration and improved cash flow, the stock's technical indicators and valuation suggest moderate growth potential. The cautious optimism from the earnings call highlights both opportunities and ongoing risks.

Positive Factors

AI Integration

The integration of AI enhances Quad's service offerings, providing a competitive edge by improving consumer insights and marketing effectiveness, which can drive long-term growth.

Revenue Mix Improvement

Diversification in revenue streams through targeted print offerings strengthens Quad's market position and supports sustainable growth despite industry challenges.

Improved Free Cash Flow

Improved cash flow indicates effective capital management, enhancing financial flexibility and supporting strategic investments for future growth.

Negative Factors

Declining Revenue

The decline in revenue highlights ongoing challenges in maintaining market share and profitability, necessitating strategic adjustments to reverse the trend.

High Debt Levels

High leverage increases financial risk and limits Quad's ability to invest in growth opportunities, potentially impacting long-term stability.

Adjusted EBITDA Decrease

The decrease in adjusted EBITDA reflects operational challenges and cost pressures, which could hinder profitability and growth if not addressed.

Quad/Graphics Business Overview & Revenue Model

Company Description

Quad/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 Money

Quad/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 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: Negative
• Last Price: 5.62
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 5.62 is below the 20-day moving average (MA) of 5.69, below the 50-day MA of 6.10, and below the 200-day MA of 5.80, indicating a bearish trend. The MACD of -0.13 indicates Negative momentum. The RSI at 45.78 is Neutral, neither overbought nor oversold. The STOCH value of 36.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for QUAD.

Quad/Graphics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ABM	66 Neutral	$2.57B	22.79	6.32%	2.51%	4.27%	-24.06%
TH	64 Neutral	$639.59M	―	-2.36%	―	-26.65%	-110.98%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
CASS	60 Neutral	$517.48M	17.00	11.44%	3.26%	-4.96%	39.42%
PRSU	56 Neutral	$972.37M	2.99	-24.71%	―	-68.48%	2198.47%
CVEO	53 Neutral	$258.86M	-10.64	-12.34%	4.50%	-10.51%	-247.97%
QUAD	51 Neutral	$280.57M	13.46	27.91%	4.72%	-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.