📊 STGW Key Takeaways
Is Stagwell Inc (STGW) a Good Investment?
Stagwell exhibits fundamentally weak profitability with a 1.0% net margin and declining net income (-5.0% YoY) despite modest revenue growth, while carrying high leverage (1.75x D/E) and poor liquidity (0.79x current ratio). Negative diluted EPS coupled with anemic returns on equity (3.8%) and assets (0.7%) indicate shareholder value destruction, though positive free cash flow ($247.3M) provides temporary cushion.
Why Buy Stagwell Inc Stock? STGW Key Strengths
- Strong operating cash flow generation ($291.0M) supporting operations
- Positive free cash flow ($247.3M, 8.5% FCF margin) despite thin net margins
- Established market position with $2.9B revenue base in advertising services
STGW Stock Risks: Stagwell Inc Investment Risks
- Critically thin net margin of 1.0% with declining profitability trend
- High leverage (1.75x D/E) with weak interest coverage (2.7x) limiting debt servicing flexibility
- Deteriorating liquidity position (0.79x current ratio) below prudent working capital levels
- Negative diluted EPS despite positive net income indicates significant shareholder dilution
- Weak capital returns (ROE 3.8%, ROA 0.7%) signal inefficient asset deployment
Key Metrics to Watch
- Net margin expansion and operating income growth trajectory
- Debt-to-equity ratio reduction and liquidity improvement (current ratio target >1.0)
- Free cash flow sustainability relative to debt obligations and capital requirements
Stagwell Inc (STGW) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
STGW Profit Margin, ROE & Profitability Analysis
STGW vs Services Sector: How Stagwell Inc Compares
How Stagwell Inc compares to Services sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Stagwell Inc Stock Overvalued? STGW Valuation Analysis 2026
Based on fundamental analysis, Stagwell Inc shows some fundamental concerns relative to the Services sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Stagwell Inc Balance Sheet: STGW Debt, Cash & Liquidity
STGW Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Stagwell Inc's revenue has grown significantly by 98% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.00 indicates the company is currently unprofitable.
STGW Revenue Growth, EPS Growth & YoY Performance
STGW Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $711.3M | -$976.0K | $-0.01 |
| Q2 2025 | $671.2M | -$3.0M | $-0.02 |
| Q1 2025 | $651.7M | -$1.3M | $-0.01 |
| Q3 2024 | $617.6M | $653.0K | $0.00 |
| Q2 2024 | $632.3M | -$1.8M | $-0.01 |
| Q1 2024 | $622.4M | -$1.3M | $0.00 |
| Q3 2023 | $617.6M | $653.0K | $0.00 |
| Q2 2023 | $632.3M | -$4.3M | $-0.04 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Stagwell Inc Dividends, Buybacks & Capital Allocation
STGW SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Stagwell Inc (CIK: 0000876883)
📋 Recent SEC Filings
❓ Frequently Asked Questions about STGW
What is the AI rating for STGW?
Stagwell Inc (STGW) has an AI rating of SELL with 75% confidence, based on fundamental analysis of SEC EDGAR filings.
What are STGW's key strengths?
Claude: Strong operating cash flow generation ($291.0M) supporting operations. Positive free cash flow ($247.3M, 8.5% FCF margin) despite thin net margins.
What are the risks of investing in STGW?
Claude: Critically thin net margin of 1.0% with declining profitability trend. High leverage (1.75x D/E) with weak interest coverage (2.7x) limiting debt servicing flexibility.
What is STGW's revenue and growth?
Stagwell Inc reported revenue of $2.9B.
Does STGW pay dividends?
Stagwell Inc pays dividends, with $0.1M distributed to shareholders in the trailing twelve months.
Where can I find STGW SEC filings?
Official SEC filings for Stagwell Inc (CIK: 0000876883) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is STGW's EPS?
Stagwell Inc has a diluted EPS of $-3.23.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is STGW a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Stagwell Inc has a SELL rating with 75% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is STGW stock overvalued or undervalued?
Valuation metrics for STGW: ROE of 3.8% (sector avg: 16%), net margin of 1.0% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy STGW stock in 2026?
Our dual AI analysis gives Stagwell Inc a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is STGW's free cash flow?
Stagwell Inc's operating cash flow is $291.0M, with capital expenditures of $43.7M. FCF margin is 8.5%.
How does STGW compare to other Services stocks?
Vs Services sector averages: Net margin 1.0% (avg: 10%), ROE 3.8% (avg: 16%), current ratio 0.79 (avg: 1.5).
Is Stagwell Inc carrying too much debt?
STGW has a debt-to-equity ratio of 1.75x, which is above the Services sector average of 0.7x. Combined with a current ratio below 1, this warrants careful monitoring of the balance sheet.