Stagwell Inc. Class A Common Stock (STGW)

FairStock Score: 37/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses that earn high returns on capital and sell for less than they are worth. Stagwell is an advertising and marketing services company with 10,951 employees. Its reported record is thin. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $786.3 million but net income was negative $8.1 million. Fiscal Q1 2026, the quarter ended 2026-03-31, was also negative $13.0 million. Full-year fiscal 2025 revenue was $2.9 billion and net income $29.1 million; fiscal 2024 net income was only $2.3 million, and fiscal 2023 net income was $134,000. That is not a durable earnings record. Profit growth of -344.74% and the FairStock Lynch category of SLOW GROWER — Shrinking: profit -12.4% a year over five years, revenue 26.8% — tell me the trend is poor. The balance sheet looks stretched: debt-to-equity 2.41 and Altman Z-Score 0.50 per FairStock. Returns are weak: ROE 2.41%, ROCE 2.16%. On the positive side, trailing free cash flow is $152.0 million, a 6.8% FCF yield per FairStock, and EV/EBITDA is 9.93. But at the 2026-10-13 close of $9.13, the P/E is 152.17, P/B 3.33, and Graham Number $1.92, leaving a -375.52% margin of safety. FairStock Score 37/100. Advertising agencies can be cyclical and competitive; I see little margin of safety and no consistent earning power. I would need much better returns on capital and a lower price before calling this a sound value.

In plain English: Stagwell is an advertising and marketing services company that helps brands with digital work, media, creative projects and communications. The business is not very profitable right now: it lost money in the first two quarters of fiscal 2026 and has only tiny yearly profits. The stock price looks expensive compared with those small profits and what its books are worth, so based on the numbers this is not a clear bargain.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer