QUADQuad/Graphics, Inc.
Is the business good?
A genuinely good business: earnings fully cash-backed (1.2×) and margins widening.
Operating profit is fully backed by cash. Conversion is worsening vs a year ago.
Operating margin has widened over the past few years, the business is getting more profitable per dollar of sales.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is QUAD?
Quad/Graphics, Inc. earns 14% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 4.6 points above what the capital costs: growth creates value
- Operating margin
- 4.0%
Operating margin · Specialty Business Services median 6.8% · 12 months to Q1 2026
- Cash conversion
- 1.18×
Cash conversion · 1.95× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- −2.2%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | −1.6% |
| FY2021 | 3.1% |
| FY2022 | 1.7% |
| FY2023 | 0.87% |
| FY2024 | 0.72% |
| FY2025 | 4.0% |
Details›
- Gross margin12 months to Q1 2026
- 22%
- Operating margin12 months to Q1 2026
- 4.0%
- Free cash flow margin
- 1.9%
- Revenue, trailing twelve months
- $2.37B
- Free cash flow, trailing twelve months
- $44M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 14%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Specialty Business Services
Ranks #7 of 22 by RyuScore