Is the business good?
How good a business is STGW?
Stagwell Inc. earns 5.9% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
5.9%
Return on invested capital · cost of capital 9.0% · 3.1 points below what the capital costs: growth destroys value
- Operating margin
- 5.1%
Operating margin · Advertising Agencies median 11% · 12 months to Q1 2026
- Share count, year on year
- −4.9%
Share count, year on year · bought back, each share owns more of the company
- Gross margin
- 36%
Gross margin
| 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 Q1 2026
- 36%
- Operating margin12 months to Q1 2026
- 5.1%
- Net margin12 months to Q1 2026
- 0.64%
- Free cash flow margin
- 9.3%
- Revenue, trailing twelve months
- $2.96B
- Free cash flow, trailing twelve months
- $276M
- Net income, trailing twelve months
- $19M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 5.9%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Advertising Agencies
Ranks #9 of 9 by Smart Score