Stagwell (STGW) AI Stock Analysis

• Market Cap: $1.22B
• Dividend Yield: N/A
• Average Volume (3M): 3.61M
• Price to Earnings (P/E): 62.8
• Beta (1Y): 1.38
• Revenue Growth: 6.76%
• EPS Growth: 1841.46%
• Country: US
• Employees: 11,857
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): 0.24
• Shares Outstanding: 252,118,240
• 10 Day Avg. Volume: 8,596,202
• 30 Day Avg. Volume: 3,607,881
• PEG Ratio: 0.18
• Price to Book (P/B): 2.20
• Price to Sales (P/S): 0.26
• P/FCF Ratio: 8.21
• Enterprise Value/Market Cap: 2.61
• Enterprise Value/Revenue: 1.10
• Enterprise Value/Gross Profit: 3.03
• Enterprise Value/Ebitda: 10.77
• 1Y Price Target: $8.31
• Price Target Upside: 72.41% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): 0.78
• Revenue Forecast (FY): $2.90B

• Rating: 59 Neutral
• Price Target: $5.00 ▲(3.73% Upside)

Stagwell's overall stock score reflects a company with strong strategic initiatives and growth potential, particularly in digital transformation and international markets. However, high leverage, overvaluation, and technical weakness pose significant risks. The positive sentiment from the earnings call partially offsets these concerns, highlighting the company's strategic focus on technology and cost savings.

Positive Factors

Strategic Partnership

The partnership with Palantir positions Stagwell to leverage AI technology, enhancing its service offerings and potentially driving significant new revenue streams.

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term financial health and competitive positioning.

Marketing Cloud Expansion

Significant growth in the Marketing Cloud segment underscores Stagwell's successful digital transformation and ability to capitalize on technology-driven opportunities.

Negative Factors

High Leverage

High leverage poses a risk to financial stability, potentially limiting the company's ability to invest in growth opportunities and manage economic downturns.

Profitability Challenges

Negative profit margins indicate difficulties in operational efficiency and cost management, which could hinder long-term profitability and shareholder returns.

Cash Flow Strain

Declining free cash flow growth suggests potential liquidity issues, impacting the company's ability to fund operations and invest in strategic initiatives.

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 Communications Network. It designs and builds digital platforms and experiences that support the delivery of content, commerce, service, and sales; creates websites, mobile applications, back-end systems, content and data management systems, and other digital environments; designs and implements technology and data strategies; and develops software and related technology products, including cookie-less data platforms for audience targeting and activation, software tools for e-commerce applications, and text messaging applications for consumer engagement. The company also provides media buying and planning services; and strategic insights and guidance services that offers business content, product, communications, and media strategies. In addition, it offers strategy development, advertising creation, live events, cross platform engagement, and social media content services; and leadership, social media, executive positioning and visibility, strategic communication, public relation, and public affair services. Further, the company provides influencer marketing, brand insights, communications technology, and augmented reality services for in-house marketers, as well as tech-driven solutions. Stagwell Inc. is headquartered in New York, New York.

How the Company Makes Money

Stagwell generates revenue through a combination of service-based fees and performance-based incentives. The company primarily earns money through its various subsidiaries and agencies, which offer a wide range of services including digital marketing, media buying, creative development, and public relations. Key revenue streams include project-based fees, retainers from ongoing client relationships, and commissions on media placements. Additionally, Stagwell benefits from strategic partnerships with technology providers and platforms, which enhance its service offerings and create additional revenue opportunities through integrated marketing solutions. The company's focus on data analytics and measurement also allows it to charge premium rates for insights-driven marketing services.

Stagwell Financial Statement Overview

Summary

Stagwell's financial statements reflect moderate revenue growth but face challenges in profitability and leverage. The income statement shows positive revenue growth, but the net profit margin is negative. The balance sheet indicates high leverage with a high debt-to-equity ratio, posing risks if not managed carefully. Cash flow is stable but shows signs of strain, requiring attention to sustain growth.

Income Statement

Stagwell's income statement shows moderate growth and profitability. The TTM revenue growth rate is positive at 1.11%, indicating a slight upward trend. However, the net profit margin is negative, suggesting challenges in converting revenue into profit. The gross profit margin is stable at around 35.95%, and the EBIT and EBITDA margins are reasonable, reflecting operational efficiency. Overall, the company demonstrates growth potential but faces profitability challenges.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 2.34 in the TTM, indicating significant leverage. This poses a risk if revenue growth does not keep pace with debt obligations. The return on equity is negative, reflecting challenges in generating returns for shareholders. However, the equity ratio is stable, suggesting a balanced asset structure. The company needs to manage its leverage to improve financial stability.

Cash Flow

Cash flow analysis shows a decline in free cash flow growth at -11.97% in the TTM, indicating potential liquidity issues. However, the operating cash flow to net income ratio is positive, suggesting that operational activities are generating cash. The free cash flow to net income ratio is strong at 1.00, indicating efficient cash conversion. Overall, cash flow management is adequate but requires attention to sustain growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.89B	2.84B	2.53B	2.69B	1.47B	888.03M
Gross Profit	1.05B	998.24M	906.00M	1.01B	562.51M	316.44M
EBITDA	294.31M	356.81M	401.20M	360.29M	227.94M	124.59M
Net Income	19.68M	2.26M	134.00K	19.92M	21.04M	56.36M
Balance Sheet
Total Assets	4.26B	3.91B	3.77B	4.00B	4.06B	1.01B
Cash, Cash Equivalents and Short-Term Investments	132.24M	131.34M	119.74M	220.59M	184.01M	92.46M
Total Debt	1.81B	1.66B	1.49B	1.56B	1.61B	271.20M
Total Liabilities	3.48B	3.12B	2.93B	3.03B	3.13B	614.71M
Stockholders Equity	770.48M	331.73M	356.69M	498.65M	370.75M	358.76M
Cash Flow
Free Cash Flow	214.28M	88.85M	38.59M	306.78M	147.95M	124.09M
Operating Cash Flow	242.80M	142.86M	81.01M	348.82M	170.57M	138.08M
Investing Cash Flow	-176.75M	-162.47M	155.95M	-117.51M	141.81M	-29.02M
Financing Cash Flow	-77.97M	36.94M	-339.86M	-186.74M	-273.41M	-80.14M

Stagwell Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.82
• 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 STGW, the sentiment is Negative. The current price of 4.82 is below the 20-day moving average (MA) of 5.02, below the 50-day MA of 5.25, and below the 200-day MA of 5.42, indicating a bearish trend. The MACD of -0.10 indicates Negative momentum. The RSI at 45.29 is Neutral, neither overbought nor oversold. The STOCH value of 28.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for STGW.

Stagwell Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CRTO	78 Outperform	$1.18B	7.19	15.37%	―	0.32%	69.78%
IAS	78 Outperform	$1.72B	36.71	4.48%	―	15.51%	39.60%
OMC	75 Outperform	$14.33B	10.96	31.17%	3.77%	4.13%	-7.84%
WPP	64 Neutral	$3.82B	7.75	11.24%	11.02%	-1.89%	90.72%
IPG	63 Neutral	$9.17B	21.20	11.70%	5.18%	-5.16%	-56.06%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
STGW	59 Neutral	$1.22B	62.84	3.80%	―	6.76%	1841.46%

Stagwell Corporate Events

Stagwell Inc. Reports Strong Q3 2025 Results

Stagwell Inc. is a marketing transformation company that connects creativity with technology to drive business results for clients worldwide. The company operates in the marketing and advertising sector, with a focus on digital transformation and innovative solutions.

Stagwell Inc. Reports Strong Growth and Strategic Shifts

Stagwell Inc.’s latest earnings call painted a predominantly positive picture, with strong revenue and EBITDA growth, record net new business, and successful strides in digital transformation. The company’s strategic pivot towards technology, highlighted by a new partnership with Palantir and a surge in The Marketing Cloud revenue, underscores its forward-thinking approach. Despite challenges in the communications segment due to reduced advocacy work and broader industry headwinds, the overall sentiment remains optimistic, bolstered by cost-saving initiatives, share repurchases, and robust international performance.

Stagwell Reports Strong Q3 2025 Financial Performance

Stagwell Inc. reported a 4% year-over-year revenue growth and a 6% increase in net revenue for the third quarter of 2025, with notable growth in digital transformation and marketing services. The company achieved a net income of $25 million and an adjusted EBITDA of $115 million, reflecting strong financial performance despite a cyclical advocacy pullback. Stagwell’s partnership with Palantir highlights its leadership in AI marketing applications, and the company is focused on cost efficiency and labor management, resulting in a 19% adjusted EBITDA margin. The financial outlook for 2025 includes a projected total net revenue growth of approximately 8% and an adjusted EBITDA between $410 million and $460 million.

The most recent analyst rating on (STGW) stock is a Buy with a $6.36 price target. To see the full list of analyst forecasts on Stagwell stock, see the STGW Stock Forecast page.

Stagwell Restructures, Chief Accounting Officer Departs

Stagwell Inc. announced the departure of its Chief Accounting Officer, Vincenzo DiMaggio, effective September 19, 2025, as part of a restructuring that eliminates the stand-alone role. The company has entered into a severance agreement with DiMaggio, which includes severance payments and vesting of certain equity awards. Frank Lanuto, Executive Vice President, Finance, will assume the role of principal accounting officer, ensuring continuity in the company’s financial operations.

The most recent analyst rating on (STGW) stock is a Buy with a $6.00 price target. To see the full list of analyst forecasts on Stagwell stock, see the STGW Stock Forecast page.