Stock Price & Analysis

Based on the analysis of STGW's recent performance, technical indicators, and analyst sentiment, the stock presents a moderate buy opportunity with potential upside. However, be cautious of short-term volatility.

The price prediction for STGW stock in 2025 is expected to reach $6.41, driven by its aggressive M&A strategy and positive investor sentiment. The stock is currently testing resistance levels and has strong growth potential.

The S1 support level for STGW Stock is $5.92 ,The R1 resistant level for STGW Stock is $6.32.

As of the end of day on 2025-03-31, the price of STGW Stock was $6.05.

The target price for STGW Stock according to analyst rating is 8.75, with the highest price target at 10.00 and the lowest at 7.75. Analysts have a Moderate Buy rating on STGW Stock overall.

The market cap of STGW is $1.6B.

Analysis and Insights

Valuation Metrics:

Stagwell Inc. (STGW) currently has a P/E ratio of 14.07, which is slightly above the industry average, suggesting potential overvaluation. The EV/EBITDA ratio of 11.97 indicates a premium valuation compared to its peers. The P/S ratio of 6.42 is elevated, reflecting a rich valuation relative to its revenue. However, the P/B ratio of 0.83 is below 1, indicating that the stock might be undervalued from a book value perspective.

Financial Performance:

Stagwell has shown inconsistent profitability, with net income fluctuating between negative and positive values over the past year. The gross margin has remained stable at around 28-31%, while the ROE has been negative in some quarters, raising concerns about profitability. The company's revenue growth has been steady, increasing from $670 million in Q1 2024 to $788 million in Q4 2024.

Debt and Liquidity:

The debt-to-equity ratio of 159.17% indicates a high level of leverage, which could pose risks in a rising interest rate environment. However, the current ratio remains healthy at 0.83, suggesting adequate liquidity to cover short-term obligations.

Analyst Sentiment:

Analysts have mixed opinions on STGW, with one upgrade and two maintains. The average price target of $9 suggests a modest upside of around 42% from the current price of $6.21.

Market Trends:

The stock has been trading below its 200-day moving average, indicating bearish momentum. The recent price decline of 1.43% in regular market hours reflects ongoing investor concerns.

Conclusion:

While STGW's revenue growth and low P/B ratio are positive, the high P/E and EV/EBITDA ratios, combined with inconsistent profitability and significant debt, suggest the stock may be overvalued. Investors should monitor debt levels and profitability improvements before considering STGW.

Stagwell Inc. is a digital-first global marketing network. Its primary capabilities include digital transformation, performance media and data, consumer insights and strategy, and creativity and communications. Its Integrated Agencies Network segment consists of the Anomaly Alliance, Constellation, the Doner Partner Network, Code and Theory, and National Research Group. Its Brand Performance Network segment includes a unified media and data management structure with omnichannel media placement, creative media consulting, influencer, and business-to-business marketing capabilities. Its Communications Network segment includes a network that provides advocacy, strategic corporate communications, investor relations, public relations, online fundraising and other services to both corporations and political and advocacy organizations. It also specializes in offering cultural relevance, experiential, digital storytelling, branded content, multi-cultural marketing, and influencer integration.

Price Prediction for STGW Stock by 2030

Based on current trends and the company's strategic initiatives, STGW stock is predicted to reach $15 by 2030. This projection is supported by Stagwell's aggressive M&A strategy, which aims to double revenues to $5 billion, and its strong Q4 performance, where revenues exceeded expectations. The company's focus on expanding its market presence and improving operational efficiency further supports this growth outlook.

STGW has a total of 10250 employees.