Stagwell Inc. (STGW)
NASDAQ:STGW
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Stagwell
(NASDAQ:STGW)
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Rating:62Neutral
Price Target:
$7.50
▲(3.02% Upside)
Action:ReiteratedDate:04/01/26
The score is driven primarily by mixed fundamentals: strong cash generation and recent revenue momentum are offset by thin net profitability and meaningful leverage. Technicals add support with a clear uptrend and positive momentum. Valuation is a headwind given the high P/E and no dividend yield. Earnings-call guidance and execution initiatives (cost actions, product traction, and buybacks) are constructive and help lift the overall rating.
Positive Factors
Strong cash generation
Robust TTM operating cash flow ($361M) and sizable free cash flow ($306M) create durable internal funding for buybacks, investments and deleveraging. For a services-led business this reduces reliance on external capital and supports multi-year execution of product and cost initiatives.
Negative Factors
Elevated leverage
Material leverage limits financial flexibility and raises refinancing and interest-rate sensitivity. Even with improving equity and cash flow, meaningful deleveraging will likely require several quarters of sustained free cash flow and could constrain inorganic investment or opportunistic spending.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Robust TTM operating cash flow ($361M) and sizable free cash flow ($306M) create durable internal funding for buybacks, investments and deleveraging. For a services-led business this reduces reliance on external capital and supports multi-year execution of product and cost initiatives.
Read all positive factors
Stagwell (STGW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.69B
Dividend YieldN/A
Average Volume (3M)1.76M
Price to Earnings (P/E)37.1
Beta (1Y)0.99
Revenue Growth6.76%
EPS Growth1841.46%
CountryUS
Employees11,857
SectorCommunication Services
Sector Strength97
IndustryAdvertising Agencies
Share Statistics
EPS (TTM)0.30
Shares Outstanding253,452,560
10 Day Avg. Volume1,247,062
30 Day Avg. Volume1,762,297
Financial Highlights & Ratios
PEG Ratio0.07
Price to Book (P/B)1.39
Price to Sales (P/S)0.37
P/FCF Ratio4.36
Enterprise Value/Market Cap1.98
Enterprise Value/Revenue1.15
Enterprise Value/Gross Profit3.15
Enterprise Value/Ebitda8.83
Forecast
1Y Price Target
$8.05Price Target Upside10.58% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)1.04
Revenue Forecast (FY)$3.23B
Stagwell Business Overview & Revenue Model
Company Description
Stagwell Inc. provides digital transformation, performance media and data, consumer insights and strategy, and creativity and communications services. The company operates through three segments: Integrated Agencies Network, Media Network, and Com...
How the Company Makes Money
Stagwell makes money primarily by delivering marketing and communications services to client organizations and billing for those services through its agency network. Its revenue model is largely services-based and typically includes: (1) Fees for ...
Stagwell Earnings Call Summary
Earnings Call Date:Mar 10, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Positive
The call presented multiple operational and financial improvements — revenue growth led by Digital Transformation and Marketing Services, rapid expansion and early profitability in the Marketing Cloud, record net new business, expanded product traction (AI and partnerships), doubled free cash flow and implemented cost savings — which together point to building momentum heading into 2026. The company acknowledged near-term headwinds in Communications and the biannual campaign rotation (≈$50M EBITDA impact), modest consolidated top-line growth in 2025, a deliberate slowdown in M&A, and continued market undervaluation. On balance, the positive results, strong cash generation, clear efficiency actions, and product commercialization progress outweigh the listed challenges and position the company for stronger organic growth and margin expansion in 2026.Positive Updates
Full-Year and Quarterly Revenue Growth
Full-year revenue exceeded $2.9B and net revenue exceeded $2.4B, up 5.7% versus 2024; Q4 revenue was $807M (+2.4% YoY) and Q4 net revenue was $651M (+3.4% YoY).
Negative Updates
Communications Segment Weakness and Advocacy Headwinds
Communications underperformed in 2025 (described as a 'sore spot') due in part to advocacy being a nonelection year; segment recovery targeted via leadership changes and integration with advocacy as political spend accelerates.
Read all updates
Q4-2025 Updates
Positive
Negative
Full-Year and Quarterly Revenue Growth
Full-year revenue exceeded $2.9B and net revenue exceeded $2.4B, up 5.7% versus 2024; Q4 revenue was $807M (+2.4% YoY) and Q4 net revenue was $651M (+3.4% YoY).
Read all positive updates
Company Guidance
Stagwell guided 2026 to total net revenue growth of 8–12%, adjusted EBITDA of $475–$525 million, adjusted EPS of $0.98–$1.12 and free cash flow conversion of 50–60%; this builds off 2025 results of revenue >$2.9B, net revenue >$2.4B, Q4 revenue $807M (net revenue $651M; ex‑advocacy net revenue $609M), full‑year adjusted EBITDA $422M (17.4% margin; ex‑advocacy $377M / 16.5% margin), Q4 adjusted EBITDA $129M (19.9% margin; ex‑advocacy $114M / 18.7% margin), adjusted EPS $0.83, free cash flow $187M (~45% of adj. EBITDA), LTM net new business $476M, Marketing Cloud >$105–$110M ARR with organic growth >30–40% and Q4 adj. EBITDA margin ~10.8%; management has implemented $51M of $80–$100M cost actions (with potential incremental ~$50M upside) expected to drive ~20% EBITDA improvement, expects payroll ratio improvement to 61.9% versus 2023, net leverage to fall from 2.92x toward the mid‑2s, deferred acquisition consideration to decline to ~$40M (negligible by end of 2026), and the Board approved a $350M buyback expansion leaving roughly $400M capacity with shares outstanding reduced to ~253M.Stagwell Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
38
Negative
Cash Flow
64
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.91B | 2.84B | 2.53B | 2.69B | 1.47B |
| Gross Profit | 1.06B | 998.24M | 906.00M | 1.01B | 562.51M |
| EBITDA | 398.21M | 356.81M | 401.20M | 360.29M | 227.94M |
| Net Income | 29.10M | 2.26M | 134.00K | 19.92M | 21.04M |
Balance Sheet | |||||
| Total Assets | 4.21B | 3.91B | 3.77B | 4.00B | 4.06B |
| Cash, Cash Equivalents and Short-Term Investments | 104.54M | 131.34M | 119.74M | 220.59M | 184.01M |
| Total Debt | 1.61B | 1.66B | 1.49B | 1.56B | 1.61B |
| Total Liabilities | 3.41B | 3.12B | 2.93B | 3.03B | 3.13B |
| Stockholders Equity | 776.37M | 331.73M | 356.69M | 498.65M | 370.75M |
Cash Flow | |||||
| Free Cash Flow | 247.29M | 88.85M | 38.59M | 312.15M | 178.23M |
| Operating Cash Flow | 291.03M | 142.86M | 81.01M | 347.59M | 200.86M |
| Investing Cash Flow | -113.68M | -162.47M | 155.95M | -116.28M | 163.95M |
| Financing Cash Flow | -210.02M | 36.94M | -339.86M | -186.74M | -273.41M |
Stagwell Technical Analysis
Positive
7.28
Price Trends
5.72
Positive
5.65
Positive
5.44
Positive
Market Momentum
0.31
Negative
74.60
Negative
89.71
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For STGW, the sentiment is Positive. The current price of 7.28 is above the 20-day moving average (MA) of 6.40, above the 50-day MA of 5.72, and above the 200-day MA of 5.44, indicating a bullish trend. The MACD of 0.31 indicates Negative momentum. The RSI at 74.60 is Negative, neither overbought nor oversold. The STOCH value of 89.71 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for STGW.
Stagwell Risk Analysis
Stagwell disclosed 38 risk factors in its most recent earnings report. Stagwell 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
Stagwell Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | $990.81M | 5.65 | 13.04% | ― | 0.32% | 69.78% | |
65 Neutral | $22.08B | -299.07 | -0.85% | 3.68% | 4.13% | -7.84% | |
62 Neutral | $1.69B | 37.07 | 4.42% | ― | 6.76% | 1841.46% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
49 Neutral | $3.85B | ― | -7.54% | 9.15% | -1.89% | 90.72% |
* Communication Services Sector Average
STGW
Stagwell
7.28
2.06
39.46%
OMC
Omnicom Group
78.67
9.31
13.42%
WPP
WPP
18.28
-14.74
-44.65%
CRTO
Criteo SA
19.48
-10.12
-34.19%
Stagwell Corporate Events
Business Operations and StrategyStock BuybackFinancial Disclosures
Stagwell Expands Stock Buyback Amid AI-Driven Growth
Positive
Mar 10, 2026
Stagwell Inc., the global marketing network focused on creative performance, digital transformation and technology-led advertising solutions, reported that for the year ended Dec. 31, 2025, revenue rose 2% to $2.91 billion and net revenue increase...
Business Operations and StrategyM&A Transactions
Stagwell expands digital advertising via stock-funded asset acquisition
Positive
Feb 5, 2026
On January 30, 2026, Stagwell Inc. completed an asset purchase of a digital advertising company, paying $5.625 million of the closing consideration through the issuance of 863,624 shares of its Class A common stock. The deal structure includes two...
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.