Should You Remain Invested in Quad/Graphics (QUAD) For an Attractive Long-Term Value?

Miller Value Partners, an investment management company, released its “Deep Value Strategy” fourth-quarter 2022 investor letter. A copy of the same can be downloaded here. In the fourth quarter, the Deep Value Strategy was up 34%, compared to a 13.49% gain for the S&P 1500 Value Index. Investment in Value and cyclical stocks favored the strategy in the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2022.

Miller Value Deep Value Strategy highlighted stocks Quad/Graphics, Inc. (NYSE:QUAD) in the Q4 2022 investor letter. Headquartered in Sussex, Wisconsin, Quad/Graphics, Inc. (NYSE:QUAD) is a marketing solutions provider. On February 2, 2023, Quad/Graphics, Inc. (NYSE:QUAD) stock closed at $4.6600 per share. One-month return of Quad/Graphics, Inc. (NYSE:QUAD) was 2.64%, and its shares gained 6.39% of their value over the last 52 weeks. Quad/Graphics, Inc. (NYSE:QUAD) has a market capitalization of $245.521 million.

Miller Value Deep Value Strategy made the following comment about Quad/Graphics, Inc. (NYSE:QUAD) in its Q4 2022 investor letter:

“The two largest positive contributors were Nabors Industries (NBR) and Quad/Graphics, Inc. (NYSE:QUAD), holdings that were up more than 50% net of fees. Quad Graphics has a large integrated marketing solutions platform that we think remains underappreciated by the marketplace. The company is benefitting from ongoing new business wins and price increases that could lead to free cash flow more than $200M over the next 5 quarters, close to the company’s current market capitalization. With a $3B revenue base and EBITDA margins below normalized levels we see an opportunity for the company to further grow free cash flow per share over the coming years. Further de-levering of the balance sheet and ongoing share repurchase at less than 3x normalized EV/EBITDA have the potential to create very attractive long-term value for shareholders.”

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Quad/Graphics, Inc. (NYSE:QUAD) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 7 hedge fund portfolios held Quad/Graphics, Inc. (NYSE:QUAD) at the end of the third quarter which was 8 in the previous quarter.

We discussed Quad/Graphics, Inc. (NYSE:QUAD)  in another article and shared Miller Value Partners’ views on the company. In addition, please check out our hedge fund investor letters Q4 2022 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.