Stg (STG) AI Stock Analysis

• Market Cap: 289.95M
• Dividend Yield: 5.28%
• Average Volume (3M): 5.37K
• Price to Earnings (P/E): 10.9
• Beta (1Y): 0.11
• Revenue Growth: 12.03%
• EPS Growth: 35.37%
• Country: IL
• Employees: 63
• Sector: Services
• Sector Strength: N/A
• Industry: Technology Distributors
• EPS (TTM): N/A
• Shares Outstanding: 4,789,394
• 10 Day Avg. Volume: 2,374
• 30 Day Avg. Volume: 5,373
• PEG Ratio: 1.04
• Price to Book (P/B): 1.28
• Price to Sales (P/S): 1.05
• P/FCF Ratio: 7.72
• 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: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 75 Outperform
• Price Target: 6,945.00 ▲(18.94% Upside)

Stg's overall stock score reflects its strong financial performance and attractive valuation. The company's robust profitability and low leverage are significant strengths. While technical indicators show mixed signals, the stock's undervaluation and high dividend yield provide a compelling investment case.

Stg Business Overview & Revenue Model

Company Description

Stg (STG) is a technology-driven company specializing in data analytics, artificial intelligence, and cloud solutions. With a focus on delivering innovative software products and services, the company operates primarily in the information technology sector, catering to a diverse clientele that includes enterprises across various industries. STG's core offerings include data management, predictive analytics, and customized cloud solutions designed to enhance operational efficiency and drive business growth.

How the Company Makes Money

Stg generates revenue through a multi-faceted business model that includes software licensing, subscription services, and consulting engagements. The company offers its proprietary software products under a licensing model, allowing clients to pay for the right to use the software on a per-user or enterprise basis. Additionally, STG provides subscription-based services that enable customers to access cloud-based solutions and ongoing updates. Consulting services, which involve tailored data analytics and implementation support, represent another significant revenue stream. Partnerships with major technology providers and collaborations with industry leaders also contribute to STG's earnings by expanding its market reach and enhancing its service offerings.

Stg Financial Statement Overview

Summary

Stg exhibits a strong financial performance with consistent revenue growth, robust profitability, and a solid capital structure. The income statement is particularly strong, while the balance sheet shows low leverage and effective use of equity. However, the decline in free cash flow growth is a point of concern.

Income Statement

Stg has demonstrated consistent revenue growth over the years, with a notable 3.54% increase in the latest year. The company maintains strong profitability metrics, with a gross profit margin of 31.93% and a net profit margin of 11.86%. EBIT and EBITDA margins are also healthy at 14.95% and 15.91%, respectively, indicating efficient operations and cost management. Overall, the income statement reflects a robust financial performance with positive growth trends.

Balance Sheet

The balance sheet of Stg shows a solid financial position with a low debt-to-equity ratio of 0.07, indicating low leverage and financial risk. The return on equity is strong at 14.45%, reflecting effective use of shareholders' equity to generate profits. The equity ratio stands at 74.57%, suggesting a stable capital structure. However, the slight increase in total debt over the years warrants monitoring.

Cash Flow

Stg's cash flow statement reveals a mixed picture. While the operating cash flow to net income ratio is healthy at 0.61, indicating good cash generation relative to net income, the free cash flow growth rate has declined by 20.43% in the latest year. The free cash flow to net income ratio is nearly 1, suggesting that the company is generating sufficient free cash flow to cover its net income. Overall, cash flow management appears stable but with room for improvement in free cash flow growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	194.69M	179.94M	170.73M	142.75M	98.49M	113.42M
Gross Profit	65.71M	57.45M	54.42M	38.70M	28.81M	27.58M
EBITDA	36.58M	28.64M	27.09M	14.10M	9.18M	9.23M
Net Income	21.46M	21.34M	18.40M	16.89M	6.01M	5.33M
Balance Sheet
Total Assets	198.87M	198.03M	184.15M	157.87M	129.50M	111.75M
Cash, Cash Equivalents and Short-Term Investments	71.56M	72.97M	55.03M	29.91M	17.44M	9.50M
Total Debt	9.45M	10.96M	14.91M	21.31M	14.08M	7.16M
Total Liabilities	46.77M	49.70M	57.46M	59.77M	48.17M	36.25M
Stockholders Equity	149.86M	147.70M	126.06M	98.29M	80.71M	74.57M
Cash Flow
Free Cash Flow	22.75M	24.43M	25.14M	4.08M	8.17M	-5.12M
Operating Cash Flow	22.95M	24.53M	25.55M	4.66M	9.21M	-3.29M
Investing Cash Flow	-1.91M	-1.63M	-3.11M	1.48M	-6.90M	-871.00K
Financing Cash Flow	-13.04M	-5.00M	2.56M	6.85M	5.20M	5.78M

Stg Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 5839.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:STG, the sentiment is Neutral. The current price of 5839 is below the 20-day moving average (MA) of 6393.75, below the 50-day MA of 6041.48, and above the 200-day MA of 5411.26, indicating a neutral trend. The MACD of -56.89 indicates Positive momentum. The RSI at 33.25 is Neutral, neither overbought nor oversold. The STOCH value of 6.34 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IL:STG.

Stg Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
STG	75 Outperform	289.95M	10.91	―	5.28%	12.03%	35.37%
LUDN	67 Neutral	159.16M	6.82	―	7.53%	-10.73%	-12.78%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%