Stagwell Inc. — Earnings Quality Grade F
STGW · Communication Services
Major red flags
Screening Summary
Management Signals
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 92 days, change +0 days YoY
AR growth 2.7% vs revenue growth 2.4%
Revenue 2.4%, CFFO 103.7%. Cash follows revenue
Expense Quality
No material inventory
CapEx growth 106.0% is >2x revenue growth 2.4%
SG&A/Gross Profit = 68.9%. Normal
Gross margin 36.5%, change +1.4pp. Stable
Cash Flow Quality
CFFO far exceeds NI (ratio 10.0x). Non-cash charges depressing profits
FCF $0.2B, FCF/NI = 6.18
Accruals ratio = -6.2%. Low accruals
Cash $0.1B covers only 7% of debt $1.6B
Balance Sheet Health
Goodwill+Intangibles $2.4B = 320% of equity. Over 50%
Interest coverage = 1.7x (<2x). Financial stress
Other assets grew 27.7% vs revenue 2.4%
Write-offs normal
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change 2% YoY. Normal
Manipulation Score
M-Score = -2.74 (< -2.22). Unlikely manipulator
Portfolio monitoring
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Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25