tiprankstipranks
Trending News
More News >
Straker Translations Ltd. (AU:STG)
ASX:STG
Australian Market

Straker Translations Ltd. (STG) AI Stock Analysis

Compare
6 Followers

Top Page

AU

Straker Translations Ltd.

(Sydney:STG)

Rating:44Neutral
Price Target:
AU$0.50
▲(16.28%Upside)
Straker Translations Ltd. has a challenging financial position marked by declining revenue and negative profitability. Despite a strong gross profit margin, operational inefficiencies are evident. The technical analysis shows a mixed outlook with a neutral RSI and negative MACD, while valuation metrics are unfavorable due to a negative P/E ratio and lack of dividend yield. These factors combined result in a relatively low overall stock score.

Straker Translations Ltd. (STG) vs. iShares MSCI Australia ETF (EWA)

Straker Translations Ltd. Business Overview & Revenue Model

Company DescriptionStraker Translations Ltd. (STG) is a leading provider in the translation and localization industry, offering comprehensive language services to businesses across various sectors. The company's core services include document translation, website localization, and multimedia translation solutions, utilizing advanced technology to streamline the translation process and ensure high-quality outcomes for its clients.
How the Company Makes MoneyStraker Translations Ltd. primarily generates revenue through its language translation services, which are offered to a diverse range of industries such as legal, medical, technical, and e-commerce. The company employs a combination of human translators and proprietary artificial intelligence technology to deliver efficient and accurate translations. Key revenue streams include project-based translation assignments, subscription-based services for ongoing translation needs, and partnerships with businesses requiring continuous localization support. Straker Translations also benefits from strategic partnerships with technology providers, enhancing its service offerings and expanding its market reach.

Straker Translations Ltd. Financial Statement Overview

Summary
Straker Translations Ltd. faces significant financial challenges, with declining revenue and persistent net losses impacting profitability metrics. Despite a strong gross profit margin, the company's negative net profit and EBIT margins highlight operational inefficiencies. The balance sheet reflects a stable, albeit decreasing, equity position, with low leverage. While cash flow generation from operations shows some resilience, the company needs to address profitability issues to improve its overall financial health.
Income Statement
40
Negative
Straker Translations Ltd. has experienced declining revenue and profitability over recent years. The company's revenue decreased from $54.13M in 2023 to $40.77M in 2025, indicating a negative growth trend. Gross profit margin for 2025 was 66.95%, which is relatively strong, but the net profit margin was negative at -22.64%, reflecting significant operational challenges. EBIT and EBITDA margins were also negative, at -32.08% and -11.16%, respectively, highlighting ongoing struggles with profitability.
Balance Sheet
55
Neutral
The balance sheet shows a stable equity position with stockholders' equity of $21.96M as of 2025, although it decreased from the previous year. The equity ratio stands at 72.33%, indicating a strong equity base relative to total assets. However, the debt-to-equity ratio is low at 0.03, which is generally positive, but the declining equity base is a concern. Return on equity is negative due to ongoing net losses, emphasizing the need for improved profitability.
Cash Flow
35
Negative
Operating cash flow has been positive at $3.08M in 2025, showing some ability to generate cash from operations despite net losses. Free cash flow improved to $3.00M, up from $2.19M in the previous year, reflecting better management of capital expenditures. However, the free cash flow to net income ratio remains distorted due to persistent net losses, and the operating cash flow to net income ratio is challenging due to negative net income.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue40.77M45.88M54.13M52.69M29.25M
Gross Profit27.30M29.28M30.88M22.47M12.59M
EBITDA-4.55M3.87M3.82M1.06M-1.09M
Net Income-9.23M-2.01M-2.51M-5.57M-5.62M
Balance Sheet
Total Assets30.36M43.04M52.63M57.95M42.10M
Cash, Cash Equivalents and Short-Term Investments11.74M11.16M11.68M14.01M6.60M
Total Debt660.67K1.11M1.37M1.75M8.61M
Total Liabilities8.41M12.03M17.08M19.81M23.66M
Stockholders Equity21.96M31.01M35.55M38.15M18.45M
Cash Flow
Free Cash Flow3.00M2.19M-805.45K-5.39M-2.32M
Operating Cash Flow3.08M4.68M1.30M-2.86M-713.41K
Investing Cash Flow-2.04M-2.49M-2.11M-4.34M-8.30M
Financing Cash Flow-624.34K-2.40M-2.04M14.86M5.67M

Straker Translations Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.43
Price Trends
50DMA
0.47
Negative
100DMA
0.49
Negative
200DMA
0.49
Negative
Market Momentum
MACD
-0.01
Negative
RSI
46.13
Neutral
STOCH
30.86
Neutral
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 0.43 is above the 20-day moving average (MA) of 0.40, below the 50-day MA of 0.47, and below the 200-day MA of 0.49, indicating a bearish trend. The MACD of -0.01 indicates Negative momentum. The RSI at 46.13 is Neutral, neither overbought nor oversold. The STOCH value of 30.86 is Neutral, 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

Overall Rating
UnderperformOutperform
Sector (71)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
71
Outperform
¥252.71B13.078.49%3.07%6.30%13.10%
AUFLN
58
Neutral
$112.73M-3.57%-4.37%-550.00%
AUFLN
58
Neutral
$112.73M-3.57%-4.37%-550.00%
AUSTG
44
Neutral
AU$27.67M-34.93%-11.90%-374.59%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:STG
Straker Translations Ltd.
0.40
-0.08
-16.67%
AU:FLN
Freelancer
0.24
0.05
30.56%
AU:FLN
Freelancer
0.24
0.05
30.56%

Straker Translations Ltd. Corporate Events

Straker Translations Ltd. Pioneers AI Data Revolution
Jun 25, 2025

Straker Translations Ltd. is positioning itself at the forefront of the AI revolution by addressing the critical need for high-quality, structured data to improve AI model accuracy and productivity. With few profitable AI companies listed on the ASX, Straker’s approach of integrating AI processes into its operations presents significant opportunities for growth and value creation in the industry.

The most recent analyst rating on (AU:STG) stock is a Hold with a A$0.52 price target. To see the full list of analyst forecasts on Straker Translations Ltd. stock, see the AU:STG Stock Forecast page.

Straker CEO to Present at Gold Coast Investment Showcase
Jun 24, 2025

Straker Limited announced that its CEO, Grant Straker, will present at the Gold Coast Investment Showcase on June 25, 2025. This event provides an opportunity for Straker to exhibit its capabilities in AI-powered language solutions, potentially enhancing its industry positioning and engagement with stakeholders. The presentation will also be accessible online for those unable to attend in person.

The most recent analyst rating on (AU:STG) stock is a Hold with a A$0.38 price target. To see the full list of analyst forecasts on Straker Translations Ltd. stock, see the AU:STG Stock Forecast page.

Straker Translations Director Acquires Additional Shares
Jun 15, 2025

Straker Translations Ltd. announced a change in the director’s interest, with Grant Straker acquiring an additional 21,893 ordinary shares through an on-market trade. This change reflects a strategic move by the director, potentially indicating confidence in the company’s future prospects and aligning interests with shareholders.

The most recent analyst rating on (AU:STG) stock is a Hold with a A$0.38 price target. To see the full list of analyst forecasts on Straker Translations Ltd. stock, see the AU:STG Stock Forecast page.

Straker Integrates with n8n to Enhance AI-Powered Translation Services
Jun 3, 2025

Straker Limited has announced a strategic integration with n8n, an AI automation platform, to launch the Straker Verify node. This integration addresses the challenge of maintaining translation quality and compliance in AI-driven content creation and localization. It allows n8n users to automate translations, receive real-time quality scores, and route content for human review, enhancing global content delivery with linguistic accuracy and regulatory compliance. This partnership positions Straker at the forefront of AI content verification, particularly benefiting regulated sectors such as finance, healthcare, and legal, and supports the company’s strategy to expand its reach and grow high-margin recurring revenue.

The most recent analyst rating on (AU:STG) stock is a Hold with a A$0.38 price target. To see the full list of analyst forecasts on Straker Translations Ltd. stock, see the AU:STG Stock Forecast page.

Straker Translations Ltd. Releases 2025 Corporate Governance Statement
May 26, 2025

Straker Translations Ltd. has released its Corporate Governance Statement for the year ended 31 March 2025, highlighting its commitment to high standards of corporate governance. The statement outlines the company’s adherence to the ASX Corporate Governance Principles and Recommendations, detailing both compliance and areas of non-compliance, along with plans to address these gaps. This commitment to governance is expected to enhance Straker’s operational efficiency and strategic direction, potentially impacting its industry positioning positively.

The most recent analyst rating on (AU:STG) stock is a Hold with a A$0.38 price target. To see the full list of analyst forecasts on Straker Translations Ltd. stock, see the AU:STG Stock Forecast page.

Straker Translations Unveils FY25 Strategic Overview
May 26, 2025

Straker Translations Ltd. presented its financial year 2025 overview, emphasizing its commitment to integrating human insight with artificial intelligence to boost productivity. The presentation, intended for general information, highlights the company’s strategic direction and its potential impact on operational efficiency, though it cautions that actual results may differ due to external uncertainties.

The most recent analyst rating on (AU:STG) stock is a Hold with a A$0.38 price target. To see the full list of analyst forecasts on Straker Translations Ltd. stock, see the AU:STG Stock Forecast page.

Straker Translations Achieves Record EBITDA in FY25
May 26, 2025

Straker Translations Ltd reported its FY25 financial results with a record EBITDA and revenue at the top end of its guidance range. The company achieved a gross margin of 67% and maintained a debt-free status with a growing cash balance. Despite a decline in legacy language services revenue, Straker saw significant growth in its managed services and subscription segments, supported by new AI-driven initiatives. The company continues to focus on transitioning to higher-margin, recurring revenue sources, which is expected to positively impact future financial performance.

The most recent analyst rating on (AU:STG) stock is a Hold with a A$0.38 price target. To see the full list of analyst forecasts on Straker Translations Ltd. stock, see the AU:STG Stock Forecast page.

Straker Translations Reports Increased Losses Amid Revenue Decline
May 26, 2025

Straker Translations Ltd. reported a 10.3% decrease in revenues to NZ$44.863 million and a significant increase in net loss by 364% to NZ$10.158 million for the year ending March 31, 2025. The company did not declare any dividends for the period, and its UK subsidiary was dissolved. The results indicate financial challenges, impacting its market position and stakeholder confidence.

The most recent analyst rating on (AU:STG) stock is a Hold with a A$0.38 price target. To see the full list of analyst forecasts on Straker Translations Ltd. stock, see the AU:STG Stock Forecast page.

Straker Faces Revenue Impact as Nike Ends Contract
May 26, 2025

Straker Limited announced that Nike will not renew its legacy services agreement with the company, which will conclude on December 15, 2025. This decision is expected to negatively impact Straker’s FY26 revenue by NZ$0.48 million and adjusted EBITDA by NZ$0.29 million, as revenue from Nike represented approximately 3.3% of Straker’s revenue for FY25.

The most recent analyst rating on (AU:STG) stock is a Hold with a A$0.38 price target. To see the full list of analyst forecasts on Straker Translations Ltd. stock, see the AU:STG Stock Forecast page.

Straker Translations Appoints New Director Helen Foley
Apr 30, 2025

Straker Translations Ltd. has announced the appointment of Helen Foley as a director, effective May 1, 2025. Foley holds 18,233 ordinary shares in the company, indicating her vested interest in Straker’s future. This appointment is expected to strengthen the company’s leadership team, potentially impacting its strategic direction and market positioning.

Straker Limited to Announce FY25 Results with Investor Webinar
Apr 23, 2025

Straker Limited will announce its full year results for the financial year ending 31 March 2025 on 27 May 2025, followed by a live Zoom webinar hosted by the management team. This announcement highlights Straker’s commitment to transparency and engagement with stakeholders, potentially impacting its market positioning and investor relations.

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.Date of analysis: Jul 08, 2025