Straker Translations Ltd. (STG) AI Stock Analysis

• Market Cap: AU$30.88M
• Dividend Yield: N/A
• Average Volume (3M): 119.96K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.57
• Revenue Growth: -11.90%
• EPS Growth: -374.59%
• Country: AU
• Employees: 170
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): -0.07
• Shares Outstanding: 64,339,300
• 10 Day Avg. Volume: 35,520
• 30 Day Avg. Volume: 119,963
• PEG Ratio: >-0.01
• Price to Book (P/B): 1.36
• Price to Sales (P/S): 0.73
• P/FCF Ratio: 9.96
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: AU$0.38
• Price Target Upside: 5.56% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: AU$0.50 ▲(38.89% Upside)

Straker Translations Ltd. is facing significant financial challenges, with declining revenue and persistent net losses impacting its financial performance. The technical analysis shows mixed signals, with some short-term recovery but a bearish long-term trend. The valuation is unattractive due to a negative P/E ratio and no dividend yield. These factors combine to result in a low overall stock score.

Straker Translations Ltd. Business Overview & Revenue Model

Company Description

Straker Translations Limited, together with its subsidiaries, engages in the provision of translation services in Asia Pacific, Europe, the Middle East, Africa, and North America. The company operates AI-POWERED RAY, a suite of customizable AI and automation translation tools that creates a first draft translation and matching the customer's content with one or more of the approximately 10,000 crowd-sourced human translators for refinement. It offers subtitling, dubbing, access, and multimedia content services. The company also provides immigration, legal, and ECFMG translation services; birth, death, and marriage certificates translation services; and passports, visa, medical, personal and private docs, drivers license, police and legal documents, academic records and transcripts, insurance, and other document translation services, as well as API translation solutions. In addition, it offers onsite, online, conference, consecutive, simultaneous, court, telephone, sight, and medical interpreting services. Straker Translations Limited was incorporated in 1999 and is headquartered in Auckland, New Zealand.

How the Company Makes Money

Straker Translations generates revenue primarily through its translation and localization services. The company operates on a project-based pricing model, where clients are charged based on the volume of content translated, the complexity of the project, and the required turnaround time. Key revenue streams include direct sales to corporate clients, partnerships with technology companies that integrate Straker's services into their platforms, and subscription-based offerings for ongoing translation needs. Straker also benefits from strategic partnerships with other technology firms that enhance its service capabilities and broaden its market reach, contributing to a steady flow of income.

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

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

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

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.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	40.93M	40.77M	45.88M	54.13M	51.96M	28.75M
Gross Profit	27.41M	27.30M	29.28M	30.88M	22.47M	12.59M
EBITDA	-376.20K	-4.55M	3.87M	-3.77M	-4.08M	-1.97M
Net Income	-9.27M	-9.23M	-2.01M	-2.58M	-5.49M	-5.53M
Balance Sheet
Total Assets	30.36M	30.36M	43.04M	52.63M	57.95M	42.10M
Cash, Cash Equivalents and Short-Term Investments	11.74M	11.74M	11.16M	11.68M	14.01M	6.60M
Total Debt	660.67K	660.67K	1.11M	1.37M	4.00M	8.61M
Total Liabilities	8.41M	8.41M	12.03M	17.08M	19.81M	23.66M
Stockholders Equity	21.96M	21.96M	31.01M	35.55M	38.15M	18.45M
Cash Flow
Free Cash Flow	3.00M	3.00M	2.19M	-805.45K	-5.39M	-2.32M
Operating Cash Flow	3.08M	3.08M	4.63M	1.30M	-2.86M	-713.41K
Investing Cash Flow	-2.03M	-2.04M	-2.49M	-2.16M	-4.27M	-8.30M
Financing Cash Flow	-623.33K	-624.34K	-2.40M	-2.10M	14.03M	5.17M

Straker Translations Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.36
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 0.36 is below the 20-day moving average (MA) of 0.40, above the 50-day MA of 0.35, and below the 200-day MA of 0.43, indicating a neutral trend. The MACD of 0.01 indicates Positive momentum. The RSI at 43.92 is Neutral, neither overbought nor oversold. The STOCH value of 4.55 is Positive, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
FLN	55 Neutral	AU$101.46M	47.87	8.77%	―	3.81%	―
STG	46 Neutral	AU$30.88M	-3.34	-34.93%	―	-11.90%	-374.59%

Straker Translations Ltd. Corporate Events

Straker Limited Showcases AI Translation Innovations at Investor Meeting

Straker Limited announced that CEO Grant Straker will present at the Coffee Microcaps Morning Meeting, highlighting the company’s AI technology and its potential impact on the market. The announcement underscores Straker’s strategic positioning in the AI translation industry and hints at significant developments, such as a $28M partnership with IBM, which could enhance its market standing and operational capabilities.

The most recent analyst rating on (AU:STG) stock is a Hold with a A$0.50 price target. To see the full list of analyst forecasts on Straker Translations Ltd. stock, see the AU:STG Stock Forecast page.

Straker Expands Partnership with IBM, Enhancing AI Integration

Straker Limited has announced the renewal and expansion of its strategic partnership with IBM, extending their agreement for three years with an option for an additional year. This renewal, valued at approximately NZ$28 million, reinforces Straker’s relationship with IBM and includes a focus on deploying AI-driven solutions across IBM’s global operations. The partnership has expanded beyond localization services, with Straker now part of the IBM Ecosystem Partner network, and includes joint development of small language models using IBM’s watsonx AI technology and Straker’s Tiri platform. This collaboration not only enhances Straker’s AI-driven revenue model but also strengthens its position in the enterprise AI market.

The most recent analyst rating on (AU:STG) stock is a Hold with a A$0.50 price target. To see the full list of analyst forecasts on Straker Translations Ltd. stock, see the AU:STG Stock Forecast page.

Clime Investment Management Sells Stake in Straker Ltd

Clime Investment Management Limited and its subsidiary, Clime Asset Management Pty Limited, have ceased to be substantial holders in Straker Ltd as of October 23, 2025. This change occurred through the sale of 404,960 shares on the market, reducing their voting influence in the company. The divestment may impact Straker Ltd’s shareholder composition and could influence market perceptions of the company’s valuation or strategic direction.

The most recent analyst rating on (AU:STG) stock is a Hold with a A$0.50 price target. To see the full list of analyst forecasts on Straker Translations Ltd. stock, see the AU:STG Stock Forecast page.

Straker Limited Announces Cessation of 25,000 Securities

Straker Limited has announced the cessation of 25,000 securities due to the expiry of options or other convertible securities without exercise or conversion as of September 30, 2025. This announcement may impact the company’s capital structure and could have implications for its market positioning and stakeholders.

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 Secures Major Translation Services Agreement

Straker Limited has secured a translation services agreement with a global enterprise customer, marking a significant win for the company. The announcement emphasizes that the identity of the counterparty is not material to the stock price, and all relevant information about the contract’s impact has been disclosed. This agreement underscores Straker’s industry positioning as a leader in innovative language services and highlights its potential to enhance operations and stakeholder value.

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 Secures Major Enterprise Agreement

Straker Translations Ltd. has secured a significant two-year agreement with a leading global enterprise customer to provide translation and related services, including machine translation revision and desktop publishing. This partnership, valued at approximately USD $1.4 million annually, represents a strategic milestone for Straker, aligning with its vision to unify its platforms into a single AI-driven ecosystem, and highlights its capability to meet high-volume and quality demands of enterprise clients.

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 Announces Director’s Interest Change

Straker Translations Ltd. has announced a change in the director’s interest, specifically for Grant Straker, who has acquired additional ESOP options. This change, approved at the 2025 Annual Meeting, reflects an increase in direct and indirect holdings, potentially impacting the company’s governance and stakeholder confidence.

The most recent analyst rating on (AU:STG) stock is a Hold with a A$0.50 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. Announces Key Resolutions at 2025 Annual Meeting

Straker Translations Ltd. held its 2025 Annual Meeting, where shareholders approved several key resolutions, including the appointment of Helen Foley as Director, the re-election of Steven Bayliss as Director, and the issuance of options to directors and related parties. These decisions reflect the company’s ongoing efforts to strengthen its leadership team and align its strategic direction, potentially impacting its market positioning and stakeholder interests.

The most recent analyst rating on (AU:STG) stock is a Hold with a A$0.50 price target. To see the full list of analyst forecasts on Straker Translations Ltd. stock, see the AU:STG Stock Forecast page.

Straker Translations Highlights AI-Driven Growth Amid Revenue Decline

Straker Translations Ltd. reported a 10% decline in revenue for FY25 but achieved a record gross margin of 67% and an adjusted EBITDA of $4.8 million, highlighting strong cost control and a shift towards high-margin AI-driven revenue. The company maintains a robust cash position with $12.9 million and no debt, allowing continued investment in AI product offerings without raising equity. Despite industry concerns about AI disintermediating translation services, Straker emphasizes the transformative role of AI in enhancing human expertise, as evidenced by their strategic partnership with IBM.

The most recent analyst rating on (AU:STG) stock is a Hold with a A$0.50 price target. To see the full list of analyst forecasts on Straker Translations Ltd. stock, see the AU:STG Stock Forecast page.

Straker Limited Announces Board Changes with New Appointment

Straker Limited announced the appointment of Ron Heinz as a Non-Executive Director, effective 1 September 2025, bringing his extensive experience in the technology sector and investment expertise to the company. This change follows the resignation of Stephen Donovan, who has been a pivotal figure in Straker’s growth and development, as the company positions itself to capitalize on emerging opportunities in AI data verification.

The most recent analyst rating on (AU:STG) stock is a Hold with a A$0.50 price target. To see the full list of analyst forecasts on Straker Translations Ltd. stock, see the AU:STG Stock Forecast page.