Quad/Graphics, Inc. (QUAD) | Investment Case

1. Company Snapshot

1.a. Company Description

Quad/Graphics, Inc.provides marketing solutions worldwide.The company operates through United States Print and Related Services, and International segments.

It offers printing services, such as retail inserts, publications, catalogs, special interest publications, journals, direct mail, directories, in-store marketing and promotion, packaging, newspapers, custom print products, and other commercial and specialty printed products; and paper procurement services.The company also provides marketing and other services, including consumer insights, audience targeting, personalization, media planning and placement, process optimization, campaign planning and creation, pre-media production, videography, photography, digital and print execution, and logistics, as well as manufactures ink.It serves blue chip companies that operate in various industries, and serve businesses and consumers comprising retailers, publishers, and direct marketers.

The company was founded in 1971 and is headquartered in Sussex, Wisconsin.

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1.b. Last Insights on QUAD

Here is a 90-word analysis of the negative drivers behind Quad/Graphics, Inc.'s recent stock performance: Quad/Graphics, Inc.'s recent performance was negatively driven by high debt leverage, despite reducing net debt leverage to 1.6x. The company's fourth-quarter and full-year 2024 results may have missed expectations, as hinted by the introduction of 2025 guidance. Additionally, the company's efforts to advance media protection and transparency through its partnership with Adalytics may not have been enough to offset concerns around its debt levels. S&P's upgrade to 'BB-' with a stable outlook in December 2024 may have provided some relief, but debt concerns remain a key overhang.

1.c. Company Highlights

Last Price	6.04
Change Percentage	1.51%
Open	5.94
Previous Close	5.95
Market Cap ( Millions)	307
Volume	166334
Year High	8.92
Year Low	4.5
M A 50	5.75
M A 200	5.77

FCF Yield	19.81%
Dividend Yield	4.97%
ROE	25.67%
Debt / Equity	568.05%
Net Debt / EBIDTA	336.70%
Price To Book	2.97
Price Earnings Ratio	13.93
Price To FCF	5.05
Price To sales	0.12
EV / EBITDA	5.27

2. Quad's Q3 2025 Earnings: A Closer Look at the Numbers

Quad's financial performance in Q3 2025 was marked by a 7% decline in net sales to $588 million, primarily due to lower paper sales, print volumes, and logistics and agency solutions sales. However, the company's adjusted EBITDA margin improved from 8.7% to 8.9%, indicating effective cost management. The actual EPS of $0.31 beat estimates of $0.27, showcasing the company's ability to navigate challenging market conditions.

Publication Date: Nov -12

                                    📋 Highlights
                                    Net Sales Decline:
                                                Q3 2025 net sales fell 7% to $588M compared to Q3 2024, driven by lower paper sales, print volumes, and logistics revenues.
Adjusted EBITDA:
                                                Q3 2025 adjusted EBITDA was $53M, down from $59M year-over-year, with margin improving to 8.9% from 8.7%.
Free Cash Flow Guidance:
                                                Q4 2025 free cash flow expected to range between $137M–$147M, with full-year 2025 FCF projected at $50M–$60M.
Strategic AI Investments:
                                                Integrated generative AI chat into Audience Builder, enhancing data-driven audience targeting capabilities.
2025 Guidance Update:
                                                Narrowed net sales decline to 3%–5% for 2025, with adjusted EBITDA projected at $190M–$200M.

                                

Revenue Diversification and Growth Prospects

Quad's strategic investments in AI-powered tools, data and audience intelligence services, and its In-Store Connect retail media network are expected to drive revenue diversification and growth. The company's MX offering, which includes integrated solutions for creative, production, and media, is well-positioned to capitalize on the growing demand for omnichannel marketing. With the direct targeted print area performing well, Quad is poised for growth in this segment, with direct mail up year-to-date by over 6%, packaging over 9%, and in-store plus 11%.

Valuation and Dividend Yield

Quad's current valuation metrics indicate a relatively attractive profile, with a P/E Ratio of 12.96, P/B Ratio of 2.76, and Dividend Yield of 4.89%. The company's EV/EBITDA ratio stands at 5.14, suggesting a reasonable enterprise value relative to its EBITDA. Analysts estimate next year's revenue growth at -2.5%, but Quad's diversified revenue streams and strategic investments are expected to drive growth in the long term.

Cash Flow and Capital Allocation

Quad's strong cash generation has enabled the company to deepen its product offering through acquisitions, maintain low debt balances, and return $19 million of capital to shareholders year-to-date. The company's free cash flow yield stands at 21.29%, indicating a significant return on investment. With a net debt leverage ratio expected to slightly increase to 1.6x by the end of 2025, Quad remains committed to its strategic vision and is well-positioned to drive long-term growth.

3. NewsRoom

Best Income Stocks to Buy for Nov. 26

Nov -26

Source:

Quad named to the inaugural Forbes list of America's best employers for company culture

Nov -25

Source: prnewswire.com

3 Advertising & Marketing Stocks to Watch Amid Industry Woes

Nov -24

Source: zacks.com

BETTY NAMED CREATIVE AGENCY OF RECORD FOR GORILLA GLUE

Nov -19

Source: prnewswire.com

Quad to Present at the Southwest IDEAS Investor Conference on November 19

Nov -05

Source: prnewswire.com

Quad/Graphics (QUAD) Upgraded to Strong Buy: What Does It Mean for the Stock?

Nov -04

Source: zacks.com

'Tis the Season: 74% of Consumers Say In-Person Shopping is the Best Way to Spark Holiday Spirit

Oct -30

Source: prnewswire.com

Quad/Graphics, Inc. (QUAD) Q3 2025 Earnings Call Transcript

Oct -29

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.83%)

6. Segments

United States Print and Related Services

Expected Growth: 4.83%

The 4.83% growth in United States Print and Related Services from Quad/Graphics, Inc. is driven by increasing demand for omnichannel marketing solutions, growth in e-commerce packaging, and expansion in higher-margin specialty print services. Additionally, strategic acquisitions and investments in digital capabilities have enhanced Quad's competitive position, contributing to the segment's growth.

International

Expected Growth: 4.83%

Quad/Graphics, Inc.'s international segment growth of 4.83% is driven by increasing demand for print and digital marketing solutions, expansion into emerging markets, and strategic acquisitions. Additionally, the company's focus on operational efficiency and cost savings initiatives has enabled it to capitalize on growth opportunities in the international market.

7. Detailed Products

Print Production

Quad/Graphics provides high-quality print production services, including offset printing, digital printing, and large-format printing, to help clients produce a wide range of printed materials such as catalogs, brochures, and direct mail pieces.

Digital Media

Quad/Graphics offers digital media services, including email marketing, mobile marketing, and online advertising, to help clients reach their target audience through digital channels.

Packaging Solutions

Quad/Graphics provides innovative packaging solutions, including folding cartons, corrugated boxes, and labels, to help clients protect and showcase their products.

Logistics and Fulfillment

Quad/Graphics offers logistics and fulfillment services, including warehousing, shipping, and inventory management, to help clients manage their supply chain efficiently.

Data-Driven Marketing

Quad/Graphics provides data-driven marketing services, including data analytics, customer profiling, and personalized marketing, to help clients target their audience more effectively.

8. Quad/Graphics, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Quad/Graphics, Inc. is medium due to the availability of digital media and online platforms that can replace traditional printing services.

Bargaining Power Of Customers

The bargaining power of customers is high due to the large number of customers and the ease of switching to competitors.

Bargaining Power Of Suppliers

The bargaining power of suppliers is low due to the availability of multiple suppliers and the company's large scale of operations.

Threat Of New Entrants

The threat of new entrants is low due to the high capital requirements and regulatory barriers to entry in the printing industry.

Intensity Of Rivalry

The intensity of rivalry is high due to the competitive nature of the printing industry and the presence of several large players.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	81.94%
Debt Cost	7.92%
Equity Weight	18.06%
Equity Cost	12.32%
WACC	8.71%
Leverage	453.64%

11. Quality Control: Quad/Graphics, Inc. passed 1 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Network-1 Technologies

A-Score: 5.6/10

Value: 7.6

Growth: 0.7

Quality: 3.7

Yield: 9.0

Momentum: 8.5

Volatility: 4.0

1-Year Total Return ->

Viad

A-Score: 5.3/10

Value: 9.0

Growth: 4.9

Quality: 6.1

Yield: 0.0

Momentum: 6.5

Volatility: 5.3

1-Year Total Return ->

QuadGraphics

A-Score: 4.5/10

Value: 8.3

Growth: 1.8

Quality: 2.4

Yield: 5.0

Momentum: 6.5

Volatility: 2.7

1-Year Total Return ->

Odyssey Marine Exploration

A-Score: 3.8/10

Value: 6.0

Growth: 5.2

Quality: 6.1

Yield: 0.0

Momentum: 5.0

Volatility: 0.3

1-Year Total Return ->

Spire Global

A-Score: 3.7/10

Value: 6.6

Growth: 4.6

Quality: 3.0

Yield: 0.0

Momentum: 7.0

Volatility: 1.3

1-Year Total Return ->

SPAR Group

A-Score: 3.0/10

Value: 9.4

Growth: 1.3

Quality: 3.7

Yield: 0.0

Momentum: 0.0

Volatility: 3.3

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

-3.88%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

8.71%

Quad/Graphics, Inc. - US7473011093

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on QUAD

1.c. Company Highlights

Lower Quality

Lower Growth

Higher Yield

Earnings Beats

Revenues Beats

Revenues Miss

Cheaper

More Volatile

Earnings Miss

2. Quad's Q3 2025 Earnings: A Closer Look at the Numbers

Revenue Diversification and Growth Prospects

Valuation and Dividend Yield

Cash Flow and Capital Allocation

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.83%)

6. Segments

United States Print and Related Services

Expected Growth: 4.83%

International

Expected Growth: 4.83%

7. Detailed Products

Print Production

Digital Media

Packaging Solutions

Logistics and Fulfillment

Data-Driven Marketing

8. Quad/Graphics, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Quad/Graphics, Inc. passed 1 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

6.04$

Current Price

6.04$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA