Straker Translations Ltd. (STG) AI Stock Analysis

• Market Cap: AU$25.74M
• Dividend Yield: N/A
• Average Volume (3M): 129.97K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.10
• Revenue Growth: -8.96%
• EPS Growth: -18.83%
• Country: AU
• Employees: 170
• Sector: Industrials
• Sector Strength: 87
• Industry: Specialty Business Services
• EPS (TTM): -0.07
• Shares Outstanding: 64,339,300
• 10 Day Avg. Volume: 43,724
• 30 Day Avg. Volume: 129,966
• PEG Ratio: 0.38
• Price to Book (P/B): 1.48
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -65.25
• 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$0.52
• Price Target Upside: 20.93% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 55 Neutral
• Price Target: ―

Straker Translations Ltd. shows mixed signals with profitability and valuation challenges. Despite a stable balance sheet and improved cash flow management, declining revenues and negative net income impact the financial performance. Technical indicators are more favorable, showing short-term bullish momentum. However, a negative P/E ratio and lack of dividend yield are significant valuation concerns.

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 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 profitability challenges with declining revenues and negative net income, impacting the income statement negatively. The balance sheet remains stable with low leverage, but the company struggles to generate positive equity returns. Improved cash flow management is a positive sign, yet overall financial health needs strengthening to ensure sustainable growth and profitability.

Income Statement

Straker Translations Ltd. shows a declining revenue trend with total revenue decreasing from the previous year. The company has a negative EBIT and net income, indicating profitability challenges. The gross profit margin has decreased slightly, suggesting increasing costs or pricing pressures.

Balance Sheet

The company maintains a strong equity base with a low debt-to-equity ratio. The equity ratio is solid, indicating a stable financial structure. However, the company has been facing challenges in generating positive returns as reflected in the negative ROE.

Cash Flow

Straker Translations has improved its operating cash flow significantly compared to the previous year. The free cash flow has turned positive, indicating better cash management. However, volatility in free cash flow growth and prior negative cash flows highlight potential liquidity risks.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
43.35M	45.88M	54.13M	52.69M	29.25M	26.35M
	Gross Profit
29.08M	29.28M	30.88M	22.47M	12.59M	12.15M
	EBIT
-7.80M	-4.90M	-5.42M	-6.07M	-4.11M	-3.42M
	EBITDA
-117.75K	3.87M	3.82M	1.06M	-1.09M	-1.12M
	Net Income Common Stockholders
-6.06M	-2.01M	-2.51M	-5.57M	-5.62M	-2.40M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
10.98M	11.16M	11.68M	14.01M	6.60M	10.88M
	Total Assets
36.90M	43.04M	52.63M	57.95M	42.10M	32.28M
	Total Debt
817.79K	1.11M	1.37M	1.75M	8.61M	1.10M
	Net Debt
-10.16M	-10.04M	-10.31M	-12.27M	2.01M	-9.77M
	Total Liabilities
9.79M	12.03M	17.08M	19.81M	23.66M	9.55M
	Stockholders Equity
27.11M	31.01M	35.55M	38.15M	18.45M	22.73M
Cash Flow		Free Cash Flow
2.79M	2.19M	-805.45K	-5.39M	-2.32M	-2.89M
	Operating Cash Flow
2.85M	4.68M	1.30M	-2.86M	-713.41K	-1.52M
	Investing Cash Flow
-1.97M	-2.49M	-2.11M	-4.34M	-8.30M	-3.46M
	Financing Cash Flow
-2.42M	-2.40M	-2.04M	14.86M	5.67M	-2.09M

Straker Translations Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.43
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 below the 20-day moving average (MA) of 0.47, below the 50-day MA of 0.50, and below the 200-day MA of 0.49, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 38.02 is Neutral, neither overbought nor oversold. The STOCH value of 57.14 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	66 Neutral	$4.51B	12.22	5.40%	3.63%	4.14%	-12.01%
STG	55 Neutral	AU$25.74M	―	-34.93%	―	-8.96%	-18.83%
AUDGF		$400.31M	188.46	1.98%	―	―	―
KX2		€127.24M	34.39	-1.37%	―	―	―
RUL	73 Outperform	AU$702.14M	104.75	11.59%	―	9.76%	-28.92%
BVS	71 Outperform	AU$1.06B	14.20	57.04%	2.82%	18.63%	―

Straker Translations Ltd. Corporate Events

Straker Translations Appoints New Director Helen Foley

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

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.

Straker Translations Announces Director’s Change in Securities Interest

Straker Translations Ltd. announced a change in the interests of its director, Stephen Donovan, who disposed of 8,333 Employee Share Options, resulting in a decrease in his holdings of LTI ESOP options. This change reflects an adjustment in the director’s investment portfolio, which may influence stakeholder perceptions of the company’s governance and strategic direction.

Straker Limited Announces Change in Director’s Interest

Straker Limited has announced a change in the director’s interest notice, specifically regarding Grant Straker’s holdings. The change involves the expiry of 99,990 ESOP Options, reducing his direct holdings in these options, while his indirect holdings remain unchanged. This update is part of the company’s regulatory compliance and provides transparency to stakeholders about the director’s financial interests.

Straker Translations Ltd. Showcases Strong Financial Performance and AI-Driven Growth

Straker Translations Ltd. has announced its financial performance and strategic outlook at the ASX Small Caps Conference. The company reported a strong liquidity position with $12M cash in the bank and a low leverage ratio. With a market cap of $34M and an enterprise value of $22M, Straker is profitable and cash flow positive, boasting a 67% gross margin. The company has guided for revenue between $43-45M for FY25 and continues to invest in R&D with an annual investment of $7M. These financial metrics and strategic investments highlight Straker’s robust growth trajectory and its commitment to innovation in the AI-driven translation market.