STGWStagwell Inc.
Is the business good?
The checks split: earnings fully cash-backed (2.7×), but returns that lean on debt.
Mixed fundamental signals. Nine pass/fail tests of year-over-year health from the filings.
Operating profit is fully backed by cash. Conversion is worsening vs a year ago.
Positive operating leverage, operating profit is growing faster than sales, so margins widen as the business scales.
Leverage-amplified, a high assets-to-equity ratio does much of the work. ROE 3% = margin × turnover × leverage.
Unless marked, from derived.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is STGW?
Stagwell Inc. earns 5.5% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 3.5 points below what the capital costs: growth destroys value
- Operating margin
- 4.6%
Operating margin · Advertising Agencies median 5.7% · 12 months to Q2 2026
- Cash conversion
- 2.74×
Cash conversion · 3.56× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- −5.7%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | 9.4% |
| FY2021 | 3.0% |
| FY2022 | 5.9% |
| FY2023 | 3.6% |
| FY2024 | 4.7% |
| FY2025 | 5.5% |
Details›
- Gross margin12 months to Q2 2026
- 36%
- Operating margin12 months to Q2 2026
- 4.6%
- Net margin12 months to Q2 2026
- 0.53%
- Free cash flow margin
- 8.3%
- Revenue, trailing twelve months
- $3.04B
- Free cash flow, trailing twelve months
- $253M
- Net income, trailing twelve months
- $16M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 5.5%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.