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Stagwell (Stagwell) Operating Income : $113 Mil (TTM As of Mar. 2024)


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What is Stagwell Operating Income?

Stagwell's Operating Income for the three months ended in Mar. 2024 was $27 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2024 was $113 Mil.

Warning Sign:

Stagwell Inc has recorded a loss in operating income at least once over the past 3 years.

Operating Margin % is calculated as Operating Income divided by its Revenue. Stagwell's Operating Income for the three months ended in Mar. 2024 was $27 Mil. Stagwell's Revenue for the three months ended in Mar. 2024 was $670 Mil. Therefore, Stagwell's Operating Margin % for the quarter that ended in Mar. 2024 was 4.08%.

Stagwell's 5-Year average Growth Rate for Operating Margin % was 0.00% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Stagwell's annualized ROC % for the quarter that ended in Mar. 2024 was -3.10%. Stagwell's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2024 was 27.44%.


Stagwell Operating Income Historical Data

The historical data trend for Stagwell's Operating Income can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Stagwell Operating Income Chart

Stagwell Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23
Operating Income
40.70 83.74 60.97 281.41 101.92

Stagwell Quarterly Data
Dec19 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Operating Income Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 16.23 31.82 33.74 20.12 27.35

Stagwell Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Mar. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $113 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Stagwell  (NAS:STGW) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Stagwell's annualized ROC % for the quarter that ended in Mar. 2024 is calculated as:

ROC % (Q: Mar. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2023 ) + Invested Capital (Q: Mar. 2024 ))/ count )
=109.416 * ( 1 - 189.52% )/( (3176.507 + 3141.502)/ 2 )
=-97.9492032/3159.0045
=-3.10 %

where

Invested Capital(Q: Dec. 2023 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=3767.047 - 939.803 - ( 119.737 - max(0, 1374.329 - 1025.066+119.737))
=3176.507

Invested Capital(Q: Mar. 2024 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=3815.119 - 902.479 - ( 129.824 - max(0, 1333.909 - 1105.047+129.824))
=3141.502

Note: The Operating Income data used here is four times the quarterly (Mar. 2024) data.

2. Joel Greenblatt's definition of Return on Capital:

Stagwell's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2024 is calculated as:

ROC (Joel Greenblatt) %(Q: Mar. 2024 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2023  Q: Mar. 2024
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=89.316/( ( (332.103 + max(-517.198, 0)) + (318.924 + max(-406.368, 0)) )/ 2 )
=89.316/( ( 332.103 + 318.924 )/ 2 )
=89.316/325.5135
=27.44 %

where Working Capital is:

Working Capital(Q: Dec. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(697.178 + 0 + 94.054) - (939.803 + 368.627 + 0)
=-517.198

Working Capital(Q: Mar. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(744.287 + 0 + 119.215) - (902.479 + 367.391 + 0)
=-406.368

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2024) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Stagwell's Operating Margin % for the quarter that ended in Mar. 2024 is calculated as:

Operating Margin %=Operating Income (Q: Mar. 2024 )/Revenue (Q: Mar. 2024 )
=27.354/670.059
=4.08 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.


Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Stagwell Operating Income Related Terms

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Stagwell (Stagwell) Business Description

Traded in Other Exchanges
Address
One World Trade Center, Floor 65, New York, NY, USA, 10007
Stagwell Inc is the challenger holding company built to transform marketing. It delivers scaled creative performance for the world's most ambitious brands, connecting culture-moving creativity with leading-edge technology to harmonize the art and science of marketing. The company's segments include Integrated Agencies Network; Brand Performance Network; Communications Network and other. It generates maximum revenue from the Integrated Agencies Network segment. Geographically, it derives a majority of its revenue from the United States.
Executives
Peter Mcelligott officer: General Counsel ONE WORLD TRADE CENTER, FLOOR 65, NEW YORK NY 10007
Jay Leveton officer: President 1808 EYE STREET, NW, EIGHTH FLOOR, C/O STAGWELL INC., WASHINGTON DC DC 20006
Vincenzo Dimaggio officer: SVP, Chief Accounting Officer 330 HUDSON STREET, 10TH FLOOR, NEW YORK NY 10013
Alpinvest Partners B.v. 10 percent owner JACHTHAVENWEG 118, AMSTERDAM P7 1081 KJ
Alpinvest Ga Secondary C.v. 10 percent owner C/O ALPINVEST PARTNERS B.V., JACHTHAVENWEG 118, AMSTERDAM P7 1081 KJ
Aj Secondary C.v. 10 percent owner C/O ALPINVEST PARTNERS B.V., JACHTHAVENWEG 118, AMSTERDAM P7 1081 KJ
Alpinvest Partners Us Secondary Investments 2016 I C.v. 10 percent owner C/O ALPINVEST PARTNERS B.V., JACHTHAVENWEG 118, AMSTERDAM P7 1081 KJ
Alpinvest Pep Secondary 2017 C.v. 10 percent owner C/O ALPINVEST PARTNERS B.V., JACHTHAVENWEG 118, AMSTERDAM P7 1081 KJ
Alpinvest Secondaries Fund Vi C.v. 10 percent owner C/O ALPINVEST PARTNERS B.V., JACHTHAVENWEG 118, AMSTERDAM P7 1081 KJ
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Ag Secondary C.v. 10 percent owner C/O ALPINVEST PARTNERS B.V., JACHTHAVENWEG 118, AMSTERDAM P7 1081 KJ
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Apss Secondary C.v. 10 percent owner C/O ALPINVEST PARTNERS B.V., JACHTHAVENWEG 118, AMSTERDAM P7 1081 KJ
Goldman Sachs Group Inc 10 percent owner 200 WEST STREET, NEW YORK NY 10282