By Rob Otman
Quad Graphics stock had a great day in the market on Wednesday February 21. Shares jumped 26.21% and closed the day at $27.83. They’re now trading 4.17% below their 52-week high of $29.04.
With today’s big gain, Quad Graphics now has a market cap of $2 billion. That makes it a small cap company.
The business operates in the printing-commercial industry and employs 22,600 people. Its shares trade primarily on the New York stock exchange.
Quad Graphics has 37.86 million shares outstanding and 2.05 million traded hands for the day. That’s well above the average 30-day volume of 172,388 shares.
Over the last five years, Quad Graphics revenue is up by 0.11%. You can see this growth in annual revenue chart below…
In the last year alone, Quad Graphics revenue has dropped by -5.82%. That’s not a good sign for Quad Graphics stock owners.
We like to invest in companies that grow their sales. A growing top line is a sign of a healthy business.
For now, Quad Graphics will continue to pull in revenue. So let’s take a closer look at the company’s total financial health. And the best way to do that is by looking at its balance sheet… Quad Graphics cash comes in at only $9 million and the company’s debt is $2 billion…
Quad Graphics cash pile is smaller than its total debt. This is common for many companies. They can issue debt at a lower cost to take on new projects… but the debt to cash level is a bit high and is a concern for the business.
What is Quad Graphics Stock Worth?
To determine the value of Quad Graphics stock let’s look at a few key metrics…
Price-to-Earnings (P/E): This ratio comes in at 7.96 for Quad Graphics. That’s a reasonable level. A low P/E ratio shows that investors are expecting low earnings growth.
Price-to-Book (P/B): This ratio is a cornerstone for value investors. A lower number here indicates a better value play. And at 3.09, Quad Graphics looks reasonable… but P/B varies greatly based on the industry.
These two metrics are a great start. Quad Graphic stock is trading on the cheap… but for good reason.
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Source:: Investment You