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Straker Translations Ltd.
(Sydney:STG)
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Rating:40Underperform
Price Target:
AU$0.25
▼(-29.43% Downside)
Action:Downgraded
Date:04/25/26
The score is mainly weighed down by weak financial performance—declining revenue and deeply negative profitability—despite some resilience in operating and free cash flow and a low-debt balance sheet. Technicals add modest pressure with a negative trend (below key moving averages and negative MACD), while valuation is constrained by loss-driven negative P/E and no dividend support.
Positive Factors
High gross margin
A 66.95% gross margin indicates durable unit economics and pricing power in core translation services and technology. High gross margin cushions the business against demand swings, supports reinvestment in product and tech, and helps preserve cash generation as revenue normalizes.
Negative Factors
Declining revenue trend
A multi-year revenue decline of this magnitude signals structural challenges in market demand, client retention or competitive positioning. Shrinking top line reduces operating leverage, pressures fixed-cost absorption, and makes sustainable margin recovery and scale investments harder.
Read all positive and negative factors
Positive Factors
Negative Factors
High gross margin
A 66.95% gross margin indicates durable unit economics and pricing power in core translation services and technology. High gross margin cushions the business against demand swings, supports reinvestment in product and tech, and helps preserve cash generation as revenue normalizes.
Read all positive factors
Straker Translations Ltd. (STG) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$14.80M
Dividend YieldN/A
Average Volume (3M)119.96K
Price to Earnings (P/E)―
Beta (1Y)1.62
Revenue Growth-13.52%
EPS Growth7.82%
CountryAU
Employees170
SectorIndustrials
Sector Strength72
IndustrySpecialty Business Services
Share Statistics
EPS (TTM)-0.09
Shares Outstanding64,339,300
10 Day Avg. Volume35,520
30 Day Avg. Volume119,963
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)1.36
Price to Sales (P/S)0.73
P/FCF Ratio9.96
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)-0.01
Revenue Forecast (FY)AU$39.20M
Straker Translations Ltd. Business Overview & Revenue Model
Company Description
Straker Limited, operating alongside its subsidiaries, delivers a comprehensive range of language translation solutions across major global regions, including Asia Pacific, Europe, the Middle East, Africa, and North America. At its core, the compa...
How the Company Makes Money
STG primarily makes money by selling translation and localization services to business customers. Revenue is typically generated when clients pay for translating content (e.g., documents, marketing materials, websites, product information) and for...
Straker Translations Ltd. Financial Statement Overview
Summary
Income Statement
40
Negative
Balance Sheet
55
Neutral
Cash Flow
35
Negative
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 37.68M | 40.77M | 45.88M | 54.13M | 51.96M | 28.75M |
| Gross Profit | 25.10M | 27.30M | 29.28M | 30.88M | 22.47M | 12.59M |
| EBITDA | 685.64K | -4.55M | 3.87M | -3.77M | -4.08M | -1.97M |
| Net Income | -5.54M | -9.23M | -2.01M | -2.58M | -5.49M | -5.53M |
Balance Sheet | ||||||
| Total Assets | 26.15M | 30.36M | 43.04M | 52.63M | 57.95M | 42.10M |
| Cash, Cash Equivalents and Short-Term Investments | 7.58M | 11.74M | 11.16M | 11.68M | 14.01M | 6.60M |
| Total Debt | 383.74K | 660.67K | 1.11M | 1.37M | 4.00M | 8.61M |
| Total Liabilities | 5.89M | 8.41M | 12.03M | 17.08M | 19.81M | 23.66M |
| Stockholders Equity | 20.26M | 21.96M | 31.01M | 35.55M | 38.15M | 18.45M |
Cash Flow | ||||||
| Free Cash Flow | -883.98K | 3.00M | 2.19M | -805.45K | -5.39M | -2.32M |
| Operating Cash Flow | -751.16K | 3.08M | 4.63M | 1.30M | -2.86M | -713.41K |
| Investing Cash Flow | -2.30M | -2.04M | -2.49M | -2.16M | -4.27M | -8.30M |
| Financing Cash Flow | -665.35K | -624.34K | -2.40M | -2.10M | 14.03M | 5.17M |
Straker Translations Ltd. Technical Analysis
Negative
0.35
Price Trends
0.23
Negative
0.25
Negative
0.30
Negative
Market Momentum
>-0.01
Negative
38.40
Neutral
85.71
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:STG, the sentiment is Negative. The current price of 0.35 is above the 20-day moving average (MA) of 0.23, above the 50-day MA of 0.23, and above the 200-day MA of 0.30, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 38.40 is Neutral, neither overbought nor oversold. The STOCH value of 85.71 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:STG.
Straker Translations Ltd. Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | AU$957.85M | 11.61 | 12.36% | 9.32% | 0.59% | 19.69% | |
68 Neutral | AU$448.16M | 10.00 | 20.21% | 6.47% | -4.85% | 5.75% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
40 Underperform | AU$14.80M | -2.67 | -26.25% | ― | -13.52% | 7.82% |
* Industrials Sector Average
AU:STG
Straker Translations Ltd.
0.23
-0.16
-41.03%
AU:IGL
IVE Group Ltd.
2.90
0.04
1.58%
AU:IPH
IPH Ltd.
3.60
-0.67
-15.75%
Straker Translations Ltd. Corporate Events
Straker appoints new company secretary to oversee ASX compliance
Jul 9, 2026
Straker Limited has announced a change in its corporate governance, with David Ingram resigning as Company Secretary and Yushra Haniff appointed to the role effective immediately. Haniff will also be responsible for communications with the ASX on ...
Straker Limited Options Lapse Clarifies Capital Structure
Jul 5, 2026
Straker Limited has announced the cessation of 142,850 options under the security code STGAB, which expired on June 30, 2026 without being exercised or converted. The lapse of these options slightly reduces the pool of potential dilutive securitie...
Straker Group CFO resigns as board takes interim control of finances
Jun 29, 2026
Straker Group has announced the resignation of Chief Financial Officer David Ingram, who will complete active service on 10 July 2026 and remain on leave until his employment ends on 26 September 2026. The board has stepped in to oversee financial...
Straker Director Helen Foley Steps Down, Final Interests Disclosed
Jun 3, 2026
Straker Limited has announced that director Helen Foley has ceased to be a member of its board as of 4 June 2026. According to the final director’s interest notice filed with the ASX, Foley holds 18,233 ordinary shares in the company and has...
ASX Suspends Trading in Straker Limited for Late Periodic Report
May 31, 2026
Straker Limited, a provider of translation and language services listed on the ASX under the ticker STG, focuses on delivering technology-driven solutions to clients in need of multilingual content. Its market presence on the exchange positions th...
Straker delays FY2026 results after suspected fraud at U.S. unit
May 28, 2026
Straker Limited has delayed the release of its audited results for the financial year ended 31 March 2026, previously expected by 29 May, after uncovering a significant suspected fraud at its U.S. subsidiary involving a team member. The company an...
Straker Shares Reinstated to ASX Trading After Update on U.S. Transaction Anomalies
May 27, 2026
Straker Limited has had its securities reinstated to quotation on the ASX after the company released an announcement providing a further update on its investigation into transaction anomalies involving bank accounts of its U.S. subsidiary, Straker...
Straker Probes Fraud-Related Anomalies at U.S. Subsidiary While Operations Continue Normally
May 27, 2026
Straker Limited has disclosed ongoing investigations into transaction anomalies linked to fraud involving bank accounts at its U.S. subsidiary, Straker Translations Inc. The company is cooperating with U.S. law enforcement authorities as they prob...
Straker Halts ASX Trading Amid Probe Into Suspected US$3m Fraud at U.S. Unit
May 26, 2026
Straker Limited has requested an immediate voluntary suspension of trading in its ordinary shares on the ASX under Listing Rule 17.2 while it investigates significant transaction anomalies at its U.S. subsidiary, Straker Translations Inc. The susp...
Straker Shares Halted on ASX Amid Probe Into U.S. Bank Transaction Anomalies
May 22, 2026
Straker Limited has requested and been granted a trading halt in its ASX-listed shares pending an announcement regarding an investigation into transaction anomalies identified in its U.S. bank accounts. The halt, which will remain in place until t...
Straker to Release FY26 Results and Host Investor Webinar
May 11, 2026
Straker Limited plans to release its FY26 annual results for the period ending 31 March 2026 on 29 May 2026, underscoring its ongoing transparency to investors as it reports on performance in its AI-driven language services business. Following the...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.