Straker Translations Ltd. (AU:STG)
ASX:STG
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Straker Translations Ltd.
(Sydney:STG)
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Rating:40Underperform
Price Target:
AU$0.29
▼(-18.57% Downside)
Action:DowngradedDate: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 material pricing power and a scalable delivery model (software plus linguists). That structural margin cushion supports potential recovery to profitability as revenue stabilizes, helping absorb SG&A and investment while preserving long-term unit economics.
Negative Factors
Declining Revenue Trend
Sustained revenue decline undermines scale advantages and weakens the leverage of fixed costs. Over several quarters this compresses operating leverage, reduces bargaining power, and makes it harder to restore margins and fund growth initiatives without structural changes to sales or product strategy.
Read all positive and negative factors
Positive Factors
Negative Factors
High Gross Margin
A 66.95% gross margin indicates material pricing power and a scalable delivery model (software plus linguists). That structural margin cushion supports potential recovery to profitability as revenue stabilizes, helping absorb SG&A and investment while preserving long-term unit economics.
Read all positive factors
Straker Translations Ltd. (STG) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$18.66M
Dividend YieldN/A
Average Volume (3M)119.96K
Price to Earnings (P/E)―
Beta (1Y)2.12
Revenue Growth-13.52%
EPS Growth7.82%
CountryAU
Employees170
SectorIndustrials
Sector Strength72
IndustrySpecialty Business Services
Share Statistics
EPS (TTM)-0.02
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 Target
AU$0.32Price Target Upside-8.57% Downside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)-0.01
Revenue Forecast (FY)AU$39.20M
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...
How the Company Makes Money
STG makes money by charging customers for language translation and localization work delivered through its platform and service operations. Its revenue model typically includes (1) fees for translation/localization services, where customers pay pe...
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
Positive
0.35
Price Trends
0.32
Positive
0.33
Positive
0.36
Negative
Market Momentum
<0.01
Negative
58.78
Neutral
70.77
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:STG, the sentiment is Positive. The current price of 0.35 is above the 20-day moving average (MA) of 0.30, above the 50-day MA of 0.32, and below the 200-day MA of 0.36, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 58.78 is Neutral, neither overbought nor oversold. The STOCH value of 70.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:STG.
Straker Translations Ltd. Peers Comparison
UnderperformOutperform
Sector (63)
AU:STG
Straker Translations Ltd.
0.28
-0.24
-46.15%
AU:FLN
Freelancer
0.17
-0.05
-22.73%
Straker Translations Ltd. Corporate Events
Straker Limited Updates Market on Director Grant Straker’s ESOP Option Expiry
Apr 6, 2026
Straker Limited has disclosed a change in the interests of director Grant Straker, detailing the expiry of a portion of his Employee Share Option Plan (ESOP) options. Following the expiry, his direct ESOP holdings decreased from 1,155,210 to 1,055...
Straker Limited Options Lapse, Simplifying Capital Structure
Apr 6, 2026
Straker Limited has announced the cessation of 306,640 options, identified under the ASX security code STGAB, which expired on March 31, 2026 without being exercised or converted. The expiry of these options reduces the company’s pool of pot...
Straker Installs Co-CEOs as Founder Moves to AI-Focused Board Role
Mar 3, 2026
Straker Ltd has announced a major leadership transition as it pursues an AI-first growth strategy in the global translation services market. Founder and long-time CEO Grant Straker will step down from his executive role on 20 March 2026, moving to...
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.