Quad/Graphics, Inc. (QUAD) stock analysis

P/E against its history

Not enough price and earnings history to compare.

P/E against the industry

Needs positive earnings and enough profitable companies in the industry.

EV/EBITDA below its 5-year median

Quad/Graphics's EV/EBITDA of 9.6 is below its 5-year median of 18.8.

P/B above the industry

Quad/Graphics's price-to-book of 3.19 is above the Printing, Publishing, and Allied Industries median of 2.39.

Trading below fair value

The share price of $7.56 is below our fair value estimate of $12.83.

Margin of safety over 20%

The price is 41.1% below fair value, more than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew -9.1% a year over the last three fiscal years, short of the 10% we look for.

EPS growing 10%+ a year

Diluted EPS grew 44.2% a year over the last three fiscal years.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing slower than the industry

Revenue grew -4.9% over the last twelve months; the Printing, Publishing, and Allied Industries median is 1.1%.

Guidance issued

The latest outlook (full-year 2026 Adjusted Annual Net Sales Change, Oct 28, 2026) was issued for the first time, so it neither adds nor takes away points.

Gross margin slipping

Gross margin was 21.4% over the last twelve months, against 21.9% a year earlier.

Return on equity

Needs positive equity and five years of results.

Return on capital over 10%

Return on invested capital was 13.1%, above the 10% that usually covers the cost of capital.

Return on equity against the industry

Needs positive equity.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin against its history

Needs five years of revenue and net income.

Net margin against the industry

Needs revenue and net income.

High debt

Debt is 367% of shareholders' equity, above the 40% we consider low.

Debt falling against equity

Debt to equity fell from 1098% five years ago to 367%.

Debt not well covered by cash flow

Operating cash flow over the last twelve months equals 18.9% of total debt; we look for at least 20%.

Interest not well covered

Operating income covers interest expense 2.1 times; we look for at least 5.

Short-term assets don't cover short-term debts

Current assets are 0.97 times current liabilities.

Elevated bankruptcy risk

The Altman Z-score is 1.61; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Quad/Graphics paid dividends worth 5.0% of the share price over the last twelve months.

Yield above Treasuries

The 5.0% yield is above the 4.4% on a 1-year Treasury.

Yield in the top quarter

The top quarter of US dividend payers yield 3.8% or more; Quad/Graphics yields 5.0%.

Dividend was cut

The dividend per share fell by more than 10% at least once in the last 9 fiscal years.

Earnings cover

Needs dividends paid and net income.

Covered by free cash flow

Dividends take 49.5% of free cash flow.