| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 74 | 129.9x | 17.8x | Top tier | |
Growth | 63 | 6.4% | 7.1% | Around median | |
Quality | 60 | 4.4% | 4.5% | Around median | |
Safety | 50 | 5.1x | 2.6x | Around median | |
Capital Return | 85 | — | 2.12% | Top tier | |
Momentum | 94 | 63.4% | 2.9% | Top tier | |
Sentiment | 40 | 5 | 3 | Bottom tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Stagwell Inc. (STGW) operates as a technology-driven marketing and communications services group, combining creativity, digital transformation, public relations, media buying, and enterprise marketing products. Its business is divided into five operating segments; in Q2 fiscal 2026, net revenue was approximately $243 million for Marketing Services, approximately $155 million for Media & Commerce, approximately $112 million for Communications, approximately $107 million for Digital Transformation, and approximately $27 million for Marketing Cloud. The company is also seeking to add recurring technology revenue through products such as The Machine, SATS, The Media Machine, and Stagwell Curate, while marketing services continue to represent the largest part of the mix.
In Q2 fiscal 2026, revenue increased 11% to approximately $786 million, while net revenue grew 6% to $632 million, with organic revenue growth of 10% and organic net revenue growth of 5%, the strongest rates in six quarters. Adjusted EBITDA rose 15% to $108.7 million, and its margin expanded 143 basis points to 17.2%, while adjusted earnings per share increased 39% to $0.25. In contrast, EDGAR data show revenue of $786.3 million and gross profit of $269.2 million, equivalent to a gross margin of approximately 34.2%, with an accounting net loss of $8.1 million.
On a trailing twelve-month basis in fiscal 2026, Stagwell recorded revenue of approximately $3.0 billion, gross profit of approximately $1.1 billion, and net income of $16.2 million. This reveals an important gap between the strong improvement in adjusted EBITDA and adjusted earnings per share and limited accounting profitability, as net income remains small relative to revenue. Digital Transformation and Communications were the main growth drivers in Q2 fiscal 2026, with organic net revenue growth of 18% and 12%, respectively, while Marketing Services grew only 0.5% and Media & Commerce grew 1%.
Automated analysis for informational purposes only — not investment advice.
The analyst consensus rates STGW a “Buy,” with an average target of $8, while the highest and lowest targets both stand at $8; this target is below the 52-week range high of $9.55 and above its low of $4.29. No stated price-to-earnings ratio is available, which is consistent with limited trailing twelve-month net income of $16.2 million compared with revenue of $3.0 billion, so a significant portion of the company's valuation depends on adjusted earnings, margin expansion, and successful conversion into cash flow. Raising adjusted earnings per share guidance to $1.03–$1.17 supports the positive view, but management explained that share repurchases were a major reason for the increase, requiring the effect of the lower share count to be separated from the underlying operational improvement.
Figures in the text are as of 2026-09-01; the live price is shown at the top of the page.
Stagwell's revenue increased 11% to approximately $786 million, and net revenue grew 6% to $632 million in Q2 fiscal 2026. Digital Transformation led the performance, with organic net revenue growth of 18% to $107 million and a margin of 30%, while Communications grew 12% to $112 million. Cost control helped increase adjusted EBITDA by 15% to $108.7 million and expand its margin by 143 basis points to 17.2%. However, EDGAR data recorded an accounting net loss of $8.1 million for the same period.
Stagwell integrates artificial intelligence into products such as The Machine, SATS, The Media Machine, and Stagwell Curate, while SATS was built on Palantir Foundry. During the first half of fiscal 2026, the company recorded $16 million in contracted enterprise technology revenue, with an opportunity pipeline exceeding an additional $16 million and an initial bookings target of $25 million. Management reported on the July 30, 2026 call that approximately 75% of programming is now completed using an agentic approach. Payroll, cash, and expense automation is also targeted to save more than 25,000 productive hours per month.
The company expects net revenue growth of 8%–12% and adjusted EBITDA of between $475 million and $525 million in fiscal 2026. It also targets free cash flow conversion equal to 50%–60% of adjusted EBITDA, with the expected cash flow improvement depending on seasonality and the strength of communications activity in the second half. Management raised the adjusted earnings per share range to $1.03–$1.17, explaining that share repurchases completed during the first half were a major reason for the increase. It also expects net revenue to accelerate to double-digit growth in the second half, led by Digital Transformation and Communications.
Net new business reached $171 million in Q2 fiscal 2026, the highest level in the company's history and 45% above the comparable quarter. New or expanded assignments included IBM, Adobe, Visit California, Hershey, Mondelez, Heineken, Haier Europe, Allwyn, Navy Federal Credit Union, and Allegiant Airlines. Management expects the cumulative opportunity pipeline at year-end to be approximately 30% higher than the prior year. However, some assignments require time to begin and scale, so the company expects the impact of several wins to become more evident in fiscal 2027.
Operating cash flow reached $63.7 million during the first half of fiscal 2026, up $9 million, or 16%, from the comparable period. At the end of Q2, net leverage was 3.04 times, and the amount drawn on the credit facility reached $360 million, with $374 million of unused borrowing capacity. Management is targeting an end to fiscal 2026 with net leverage in the mid-2-times range and also expects deferred acquisition consideration to decline from approximately $57 million to a minimal level by year-end. Achieving these targets depends on strong second-half cash flow alongside balancing share repurchases, capital expenditure, and acquisitions.
Stagwell repurchased approximately 5.9 million shares at an average of $6.22 per share during Q2 fiscal 2026. During the entire first half, it purchased 14.4 million shares for $88 million at an average of $6.10, reducing shares outstanding by 6.4% year over year to 244.4 million shares. The lower share count, alongside EBITDA growth, helped increase adjusted earnings per share by 39% to $0.25 in the quarter. Management also confirmed that repurchase activity was a major factor behind raising adjusted earnings per share guidance for fiscal 2026 to $1.03–$1.17.
