Quad Graphics currently holds roughly 13.3
M in cash with 154.6
M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 0.25.
We provide trade recommendations to complement the recent
expert consensus on Quad Graphics. Our dynamic recommendation engine exercises a multidimensional algorithm to analyze the firm's potential to grow using all technical and fundamental data available at the time.
Investing in Quad Graphics, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding Quad Graphics along with other instruments in the same portfolio. Using conventional
technical analysis and
fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Sophisticated investors, who have witnessed
many market ups and downs, anticipate that the market will even out over time. This tendency of Quad Graphics' price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Quad Graphics. Your research has to be compared to or analyzed against Quad Graphics' peers to derive any actionable benefits. When done correctly, Quad Graphics' competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in Quad Graphics.
How important is Quad Graphics's Liquidity
Quad Graphics
financial leverage refers to using borrowed capital as a funding source to finance Quad Graphics ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Quad Graphics financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Quad Graphics' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Quad Graphics' financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between Quad Graphics's total debt and its cash.
Quad Graphics Gross Profit
Quad Graphics Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Quad Graphics previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Quad Graphics Gross Profit growth over the last 10 years. Please check Quad Graphics'
gross profit and other
fundamental indicators for more details.
Quad Graphics Correlation with Peers
Investors in Quad can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Quad Graphics. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Quad Graphics and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Quad is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with
your current brokerage. Please check
volatility of Quad for more details
Breaking down Quad Graphics Indicators
Quad Graphics appears to be relatively risky, given 3 months investment horizon.
Quad Graphics maintains Sharpe Ratio (i.e., Efficiency) of 0.18, which implies the firm had 0.18% of return per unit of risk over the last 3 months. Our standpoint towards forecasting the volatility of a stock is to use all available market data together with stock-specific
technical indicators that cannot be
diversified away. By analyzing
Quad Graphics technical indicators you can presently evaluate if the expected return of 0.68% is justified by implied risk. Please evaluate Quad Graphics' Semi Deviation of 2.73,
risk adjusted performance of 0.1681, and Coefficient Of Variation of 573.25 to confirm if our risk estimates are consistent with your expectations.
Can Quad Graphics build up on the latest surge?
The potential upside is down to 7.32 as of today. Quad Graphics shows above-average downside volatility for the selected time horizon. We advise investors to inspect Quad Graphics further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Quad Graphics future alpha. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Quad Graphics' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Quad Graphics' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.
Our Takeaway on Quad Graphics Investment
Although some firms under the specialty business services industry are still a bit expensive, Quad Graphics may offer a potential longer-term growth to shareholders. To conclude, as of the 25th of February 2023, our research shows that Quad Graphics is a rather relatively risky investment opportunity with a
below average probability of distress in the next two years. From a slightly different view, the entity currently appears to be
overvalued. Our up-to-date 90 days buy-hold-sell advice on the firm is
Strong Hold.
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Ellen Johnson is a Member of Macroaxis Editorial Board. Ellen covers public companies in North America, focusing primarily on valuation and volatility. Six years of experience in predictive investment analytics and risk management.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of Quad Graphics. Please refer to our
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