Quad/graphics Intrinsic Value Calculation – Is Quad/Graphics Set for a Bullish Breakout?
December 21, 2023
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QUAD/GRAPHICS ($NYSE:QUAD): Quad/Graphics is a leading provider of print and digital media solutions, offering a wide range of products and services to customers worldwide. In recent months, the company’s stock has been performing well, leading some investors to consider whether Quad/Graphics is set for a bullish breakout. In order to evaluate the potential for a bullish breakout, it is important to examine the company’s current position. Quad/Graphics has reported strong revenue and profits in recent quarters, as well as consistently increasing dividends and share buybacks.
Additionally, its services are in demand for a wide variety of customers, such as publishers, retailers, and marketers, demonstrating the durability of its business model. Given the strength of the company’s fundamentals and its overall market position, there is evidence to suggest that Quad/Graphics could be on the verge of a bullish breakout. As investors continue to pay close attention to the stock’s performance, only time will tell whether this potential breakout will materialize.
Stock Price
On Wednesday, QUAD/Graphics stock opened at $5.4, with investors wondering whether the stock is set for a bullish breakout. By the closing bell, the stock had climbed to $5.5, up 1.5% from its last closing price of 5.4. This move was a sign of potential bullishness for the stock in the coming period, indicating that investors are expecting an uptrend in share prices. The company’s recent financial performance and its other fundamentals suggest that it is in a healthy state and that a breakout in the near term could be possible. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Quad/graphics. More…
| Total Revenues | Net Income | Net Margin |
| 3.06k | -42.1 | 0.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Quad/graphics. More…
| Operations | Investing | Financing |
| 226 | -71.3 | -158 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Quad/graphics. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.57k | 1.43k | 2.78 |
Key Ratios Snapshot
Some of the financial key ratios for Quad/graphics are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -1.1% | 2.5% | 1.2% |
| FCF Margin | ROE | ROA |
| 5.1% | 14.9% | 1.4% |
Analysis – Quad/graphics Intrinsic Value Calculation
Upon analyzing GoodWhale’s financials from QUAD/GRAPHICS, our proprietary Valuation Line suggests that the fair value of QUAD/GRAPHICS share is around $4.5. However, the current stock price is traded at $5.5, which suggests an overvaluation by 22.9%. It is important to note that the market price of a stock does not necessarily reflect its true value. This discrepancy between the price and the fair value presents an opportunity for GoodWhale to make a sound investment decision. More…
Peers
It is one of the largest printing companies in the world and faces competition from several other companies in the industry, such as Toppan Inc, DATA Communications Management Corp, and Discount Print USA Inc. All of these companies aim to provide quality printing services, with a focus on efficiency, cost-effectiveness, and customer satisfaction.
– Toppan Inc ($TSE:7911)
Toppan Inc is a leading global printing and information services company. With a market cap of 628.71B as of 2023, Toppan is one of the largest companies in the world. Toppan’s return on equity (ROE) is 11.12%, demonstrating the success of the company’s strategy and management in growing their business. Toppan provides printing services for a variety of applications, including magazines, books, catalogs, and even packaging. In addition to printing services, they also offer information services such as document digitization and data analysis. Toppan is committed to providing quality services that meet the needs of its customers.
– DATA Communications Management Corp ($TSX:DCM)
DATA Communications Management Corp is an IT and communications solutions provider that offers data and voice services, cloud-based services, transmission services, and more. The company has a market capitalization of 58.16 million as of 2023, with a Return on Equity of 63.27%. This indicates that the company is performing well, as its ROE is higher than the industry average and it is generating more profits than it is investing. The company’s market cap has grown significantly over the past few years, demonstrating investor confidence in the company’s ability to generate returns.
Summary
Investors in Quad/Graphics are assessing whether a long-awaited bull market breakout is at hand. Technical analysis of the stock’s price action reveals that the stock is trending higher and has broken out from a descending trend line. The stock’s relative strength index (RSI) is also climbing, indicating that the momentum is to the upside. Furthermore, the volume has been picking up in recent days, which could indicate increasing investor interest.
However, it remains to be seen if the stock can sustain its current rally and break out further.
