STGW

The GAAP optics are ugly and that is exactly why STGW is cheap: 1.0% net margin, 3.8% ROE and a ~60x trailing P/E on $29.1M of net income make it look barely viable. But the cash tells a different story. Operating cash flow doubled to $291M (+103.7%), and against just $43.7M of capex that leaves roughly $247M of free cash — about a 14% free-cash-flow yield on the $1.76B market cap, or under ~7x P/FCF. The gap between thin net income and fat cash flow is largely $171M of depreciation & amortization, much of it non-cash amortization of intangibles from Stagwell's roll-up of acquired Brands. Operating income (+19.5% to $159M) and equity (+128.6% to $758M) are also moving the right way, so the underlying franchise is healthier than the bottom line implies.

Management is voting with the balance sheet. FY2025 buybacks were $134M (+24%), the Board just authorized a $350M increase to a now-$725M repurchase program running to 2029, and on March 11, 2026 it repurchased 6.2M shares at $6.17 — below today's $6.96. At 0.6x P/S with a buyer-of-last-resort shrinking the 253M share count, the setup rewards patient holders if cash generation holds. The small Wavelength tuck-in ($10.2M) shows the acquisitive playbook continues but is no longer bet-the-company sized.