Stagwell (STGW)
NASDAQ:STGW
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Stagwell
(NASDAQ:STGW)
Select Model
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Rating:57Neutral
Price Target:
$6.50
▲(6.91% Upside)
Action:ReiteratedDate:03/11/26
The score is primarily constrained by leveraged financials and thin net margins despite strong revenue and free-cash-flow trends. Technicals are supportive but look somewhat overextended, valuation appears rich at a ~37 P/E, and the latest earnings call/corporate actions are constructive (reiterated guidance, AI strategy, and an expanded buyback).
Positive Factors
Record Net New Business
A record LTM net new business pipeline indicates durable client demand and successful new-account wins. Large incremental contracts broaden the revenue base, improve cross-sell opportunities across agencies, and reduce concentration risk, supporting sustained top-line growth over multiple quarters.
Negative Factors
High Leverage
Elevated leverage materially constrains financial flexibility and increases interest and refinancing risk. Given operating cash flow covers a modest portion of total debt (TTM ~0.18), meaningful deleveraging will likely require multiple years of sustained FCF, limiting capital available for M&A or large strategic investments.
Read all positive and negative factors
Positive Factors
Negative Factors
Record Net New Business
A record LTM net new business pipeline indicates durable client demand and successful new-account wins. Large incremental contracts broaden the revenue base, improve cross-sell opportunities across agencies, and reduce concentration risk, supporting sustained top-line growth over multiple quarters.
Read all positive factors
Stagwell (STGW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.54B
Dividend YieldN/A
Average Volume (3M)1.87M
Price to Earnings (P/E)24.3
Beta (1Y)1.05
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. Volume1,875,539
30 Day Avg. Volume1,866,694
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 Cap1.97
Enterprise Value/Revenue1.05
Enterprise Value/Gross Profit2.86
Enterprise Value/Ebitda8.03
Forecast
1Y Price Target
$8.05Price Target Upside32.40% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)1.04
Revenue Forecast (FY)$3.24B
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:Nov 06, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Positive
The earnings call highlighted strong revenue and EBITDA growth, record net new business, and successful digital transformation efforts. The new partnership with Palantir and the surge in The Marketing Cloud revenue demonstrate a strong strategic pivot towards technology. However, the communications segment faced challenges due to reduced advocacy work and broader industry headwinds. Despite these challenges, the overall sentiment is positive, supported by cost savings initiatives, share repurchases, and strong international performance.Positive Updates
Strong Revenue and EBITDA Growth
Overall revenue reached $743 million and net revenue was $615 million, reflecting 12% and 10% increases, respectively. Ex advocacy EBITDA jumped 23% year-over-year to $103 million, achieving the highest margin in two years at 18%.
Negative Updates
Communications Segment Weakness
Communications generated $97 million in net revenue, with softness in PR reflecting broader industry headwinds due to elongated pitch cycles and slower client decisions.
Read all updates
Q3-2025 Updates
Positive
Negative
Strong Revenue and EBITDA Growth
Overall revenue reached $743 million and net revenue was $615 million, reflecting 12% and 10% increases, respectively. Ex advocacy EBITDA jumped 23% year-over-year to $103 million, achieving the highest margin in two years at 18%.
Read all positive updates
Company Guidance
During Stagwell's Third Quarter 2025 Earnings Webcast, the company reiterated its guidance for the year, projecting approximately 8% total net revenue growth, adjusted EBITDA between $410 million and $460 million, adjusted EPS ranging from $0.75 to $0.88, and a free cash flow conversion rate of 45%. The call highlighted several key metrics: their revenue for the quarter was $743 million, with a net revenue of $615 million, reflecting a 12% and 10% increase, respectively, over the previous year, excluding advocacy. Ex-advocacy EBITDA rose 23% year-over-year to $103 million, achieving an ex-advocacy margin of 18%, the highest in two years. Adjusted EPS increased by 9% to $0.24 compared to the third quarter of the previous year, and year-to-date cash flow from operations rose by $100 million. The Marketing Cloud segment reported a significant net revenue growth of 138%, led by 57% organic growth in the Harris insights suite of research products. Stagwell's strategic focus is on adopting AI technology, with a significant pivot from M&A to technology development, highlighted by a new partnership with Palantir to build an AI-enabled marketing platform.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
6.08
Price Trends
5.65
Positive
5.43
Positive
5.30
Positive
Market Momentum
0.25
Negative
58.64
Neutral
59.67
Neutral
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 6.08 is above the 20-day moving average (MA) of 5.84, above the 50-day MA of 5.65, and above the 200-day MA of 5.30, indicating a bullish trend. The MACD of 0.25 indicates Negative momentum. The RSI at 58.64 is Neutral, neither overbought nor oversold. The STOCH value of 59.67 is Neutral, 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 | $878.79M | 7.45 | 13.04% | ― | 0.32% | 69.78% | |
65 Neutral | $22.91B | -299.07 | -0.85% | 3.68% | 4.13% | -7.84% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
57 Neutral | $1.54B | 24.30 | 4.42% | ― | 6.76% | 1841.46% | |
49 Neutral | $3.33B | -16.67 | -7.54% | 9.15% | -1.89% | 90.72% |
* Communication Services Sector Average
STGW
Stagwell
6.08
0.15
2.53%
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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.