📊 STGW Key Takeaways
Is Stagwell Inc (STGW) a Good Investment?
Stagwell is unprofitable with negative free cash flow of -$37.2M annually, burning cash operationally and unable to service $1.4B debt from operations given interest coverage of 0.2x. Minimal revenue growth of 2.4%, deteriorating liquidity (0.83x current ratio), and high leverage (2.04x debt-to-equity) create significant financial distress risk with limited sustainability.
Stagwell Inc Key Strengths (STGW)
- Generates positive operating income of $9.6M despite unprofitability
- Maintains $114.9M cash for near-term operational runway
- Established revenue base of $704.1M demonstrates operational scale
STGW Stock Risks: Stagwell Inc Investment Risks
- Negative free cash flow of -$37.2M indicates unsustainable operational cash burn
- Interest coverage ratio of 0.2x means operations cannot service $1.4B debt burden
- Current ratio of 0.83x signals imminent liquidity stress and potential covenant violations
- Operating margin of 1.4% with net losses shows structural profitability challenges
- Revenue growth of 2.4% YoY insufficient to reduce leverage or improve cash position
Key Metrics to Watch
- Operating cash flow trend - critical to return to positive territory
- Interest coverage ratio - must exceed 1.0x to demonstrate debt serviceability
- Revenue growth rate - needs acceleration above 5% to support debt load
- Current and quick ratios - must stabilize above 1.0x to avoid liquidity crisis
- Net margin - path to profitability essential for long-term viability
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 |
|---|---|---|---|
| Q1 2026 | $651.7M | -$2.9M | $-0.04 |
| 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 |
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 grade of D with 87% confidence, based on fundamental analysis of SEC EDGAR filings.
What are STGW's key strengths?
Claude: Generates positive operating income of $9.6M despite unprofitability. Maintains $114.9M cash for near-term operational runway.
What are the risks of investing in STGW?
Claude: Negative free cash flow of -$37.2M indicates unsustainable operational cash burn. Interest coverage ratio of 0.2x means operations cannot service $1.4B debt burden.
What is STGW's revenue and growth?
Stagwell Inc reported revenue of $704.1M.
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 grade reflects both perspectives for balanced insights.
What is STGW's fundamental grade?
Based on our AI fundamental analysis in May 2026, Stagwell Inc has a D grade with 87% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is STGW stock overvalued or undervalued?
Valuation metrics for STGW: ROE of -1.8% (sector avg: 16%), net margin of -1.8% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
What is STGW's AI grade for 2026?
Our dual AI analysis gives Stagwell Inc a combined D grade 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 $-26.5M, with capital expenditures of $10.7M. FCF margin is -5.3%.
How does STGW compare to other Services stocks?
Vs Services sector averages: Net margin -1.8% (avg: 10%), ROE -1.8% (avg: 16%), current ratio 0.83 (avg: 1.5).
Is Stagwell Inc carrying too much debt?
STGW has a debt-to-equity ratio of 2.04x, 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.