Strip Tinning Holdings plc (STG) AI Stock Analysis

• Market Cap: £4.10M
• Dividend Yield: N/A
• Average Volume (3M): 5.33K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.93
• Revenue Growth: -11.86%
• EPS Growth: -16.21%
• Country: UK
• Employees: 137
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): -0.08
• Shares Outstanding: 18,225,088
• 10 Day Avg. Volume: 2,329
• 30 Day Avg. Volume: 5,335
• PEG Ratio: >-0.01
• Price to Book (P/B): 3.19
• Price to Sales (P/S): 0.77
• P/FCF Ratio: -1.73
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 40 Underperform
• Price Target: 21.50p ▼(-10.42% Downside)

The score is primarily constrained by weak financial performance (declining revenue, losses, higher leverage, and negative free cash flow). Technicals add additional caution with price below key moving averages and a negative MACD, while valuation is also pressured by a negative P/E and no dividend yield data.

Positive Factors

Gross margin resilience

A 33.1% gross margin indicates the core product economics are solid even amid revenue pressure. That structural margin provides a realistic path to restore operating profitability if volumes stabilize and SG&A is controlled, supporting durable recovery potential.

Liquidity cushion

Having some cash reserves provides runway to fund restructuring, working capital or operational pivots without immediate refinancing. While declining, this liquidity offers short-to-medium term flexibility to execute strategic fixes that affect long-term viability.

Lean operating base

A relatively small workforce can mean lower fixed overhead and greater agility to implement cost reductions or reorganize operations. This structural lean footprint can accelerate margin recovery and make scaling up or down less costly over the next several quarters.

Negative Factors

Revenue decline

Sustained revenue decline materially reduces operating leverage and market positioning. Over multiple quarters this erodes scale benefits, makes fixed-cost absorption harder, and raises the bar for returning to profitable growth absent clear demand or market-share recovery.

Negative cash generation

Persistent negative free cash flow and weak operating cash conversion show core operations fail to fund themselves. This structural cash shortfall constrains reinvestment, heightens reliance on external financing, and limits ability to sustain turnaround investments long term.

High and rising leverage

A sharp jump in leverage and low equity ratio raise refinancing and interest-service risk. With weak earnings and cash flow, higher debt materially reduces strategic flexibility, increases default vulnerability, and may force deleveraging steps that impair long-term growth prospects.

Strip Tinning Holdings plc Business Overview & Revenue Model

Company Description

Strip Tinning Holdings plc manufactures and supplies flexible electrical connectors for heating and antennae systems embedded within automotive glazing and to the connection of the cells within electric vehicle (EV) battery packs in the United Kingdom and internationally. It provides windshield soldering connectors and heating materials, including FPC connectors, flat foil connectors, solder busbars, adhesive busbars, preformed busbars, and heating wires; back-lite soldering connectors comprising solder bridge connectors, crimp contact connectors, and round wire connectors with capacitors and coils; and ST flex products, such as battery electronics, lighting and heating products, smart glass products, and antennas. The company was founded in 1957 and is headquartered in Birmingham, the United Kingdom.

How the Company Makes Money

Strip Tinning Holdings generates revenue primarily through the sale of its manufactured products, which include precision metal strips and components. The company operates a business model that emphasizes long-term contracts and relationships with key clients in sectors such as automotive and aerospace, which often require consistent supply and high-quality standards. Additionally, STG benefits from value-added services such as custom engineering solutions and technical support, which help to enhance customer loyalty and expand its market presence. Partnerships with major manufacturers and suppliers also play a crucial role in its revenue generation, allowing STG to secure bulk orders and optimize production efficiencies.

Strip Tinning Holdings plc Financial Statement Overview

Summary

Financial statements indicate meaningful stress: revenues declined (~16.6% from 2023 to 2024), profitability is negative (net profit and EBIT losses), leverage rose sharply (debt-to-equity up to 2.78 with a lower equity ratio of 18.8%), and cash generation is weak with negative free cash flow and unfavorable operating cash flow metrics.

Income Statement

Strip Tinning Holdings plc has faced declining revenues over recent years, with a significant drop of approximately 16.6% from 2023 to 2024. The company exhibits negative profitability, with a gross profit margin of 33.1% in 2024, but negative net profit and EBIT margins due to substantial losses. This suggests challenges in cost management and operational efficiency.

Balance Sheet

The company's balance sheet shows a high debt-to-equity ratio, increasing from 0.50 in 2023 to 2.78 in 2024, indicating rising leverage and financial risk. The equity ratio dropped significantly to 18.8% in 2024, reflecting a decrease in financial stability. However, the company retains some liquidity, albeit declining, with cash reserves shrinking over time.

Cash Flow

Cash flow analysis reveals a worsening situation, with negative free cash flow in recent years. Operating cash flow to net income ratio is negative, indicating that core operations are not generating sufficient cash. The free cash flow to net income ratio also remains negative, underscoring liquidity issues and potential cash constraints.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.78M	9.03M	10.83M	10.23M	11.15M	8.55M
Gross Profit	3.29M	2.99M	3.31M	499.00K	3.28M	3.53M
EBITDA	-2.02M	-3.10M	-176.00K	-4.53M	8.00K	1.27M
Net Income	-3.54M	-4.70M	-771.00K	-4.92M	-825.00K	218.00K
Balance Sheet
Total Assets	10.36M	11.65M	11.27M	12.46M	12.20M	10.20M
Cash, Cash Equivalents and Short-Term Investments	84.00K	512.00K	343.00K	1.29M	337.00K	1.23M
Total Debt	6.08M	6.08M	2.91M	2.72M	3.05M	2.91M
Total Liabilities	9.53M	9.47M	5.48M	6.03M	7.96M	5.10M
Stockholders Equity	836.00K	2.19M	5.80M	6.42M	4.24M	5.10M
Cash Flow
Free Cash Flow	-495.00K	-4.03M	-652.00K	-5.18M	-398.00K	-55.00K
Operating Cash Flow	477.00K	-2.35M	1.00M	-4.18M	1.07M	1.30M
Investing Cash Flow	-1.86M	-1.61M	-1.65M	-981.00K	-1.47M	-1.35M
Financing Cash Flow	-448.00K	4.13M	-297.00K	6.11M	-495.00K	-30.00K

Strip Tinning Holdings plc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 24.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:STG, the sentiment is Negative. The current price of 24 is above the 20-day moving average (MA) of 23.02, below the 50-day MA of 24.25, and above the 200-day MA of 23.72, indicating a bearish trend. The MACD of -0.62 indicates Negative momentum. The RSI at 45.62 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:STG.

Strip Tinning Holdings plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TRT	65 Neutral	£11.03M	7.62	22.19%	―	32.78%	-8.69%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
CTA	61 Neutral	£18.77M	2.91	30.82%	―	-18.51%	-13.40%
AUTG	52 Neutral	£5.19M	-5.14	-11.13%	―	-15.55%	-25.85%
CAR	49 Neutral	£40.67M	20.63	―	―	-7.27%	―
SCE	47 Neutral	£20.18M	-0.99	-131.18%	―	34.87%	77.15%
STG	40 Underperform	£4.10M	-1.16	-139.52%	―	-11.86%	-16.21%