Stagwell Inc (STGW) AI Stock Analysis

Stagwell Inc specializes in digital transformation, performance media, data analytics, consumer insights, and creative communications services across various industries. The company is organized into three distinct segments: Integrated Agencies Network, Media Network, and Communications Network. Its Integrated Agencies Network delivers technology and data strategies alongside software solutions, including cookie-less data platforms and mobile applications. The Media Network focuses on strategic media buying and planning services to optimize business content and media strategies. Stagwell also provides advertising creation, live event management, cross-platform engagement, and social media content development.

Stagwell grew revenue from $1.47B in FY2021 to $2.69B in FY2022, an 82.9% increase, before revenue fell 6.0% to $2.53B in FY2023. Revenue recovered by 12.4% to $2.84B in FY2024 and rose another 2.4% to $2.91B in FY2025, achieving a 5-year revenue CAGR of 26.8% from FY2020 to FY2025. Operating margins reached 5.5% in FY2025, generating net income of $29.1M, up from $2.3M in FY2024 and $134,000 in FY2023. For the latest quarter ending June 30, 2026, quarterly revenue increased 11.2% year-over-year and quarterly earnings grew 65.1%, lifting trailing twelve month revenue to $3.04B with an operating margin of 2.6%.

As of June 30, 2026, Stagwell held $109.5M in cash and short-term investments alongside total debt of $1.71B, resulting in net debt of $1.60B. The company recorded shareholders' equity of $669.4M, a debt-to-equity ratio of 2.55, and a current ratio of 0.81. In FY2025, operations generated $291.0M in operating cash flow and $247.3M in free cash flow. Capital allocation in FY2025 included $43.7M for capital expenditures and $134.3M directed toward share buybacks.

Stagwell trades at a trailing P/E of 179.6x and a forward P/E of 6.0x, compared to medians of 16.2x and 14.1x for its US-listed Communication Services peers. Its EV to EBITDA stands at 9.5x against the peer median of 10.0x, and its price-to-sales ratio is 0.7x compared to the peer median of 0.8x. Over the past year, the stock returned 75.0%, outperforming the 16.8% gain for the S&P 500. Over the past five years, the stock gained 3.6%, trailing the 83.0% return of the S&P 500.

Wall Street analysts hold 6 Strong Buy, 1 Buy, and 1 Hold ratings on the stock. The mean price target is $10.71, representing an upside of 19.3% from the last close of $8.98 on October 16, 2026. For the fiscal year ending December 31, 2026, consensus estimates project EPS of $1.11, an increase of 33.3%, on revenue of $3.24B. Stagwell has exceeded EPS expectations in 3 of the last 4 quarters, and its next earnings date is October 29, 2026.

This page is an AI-written research summary of Stagwell Inc (STGW). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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