Stran & Company (SWAG) AI Stock Analysis

• Market Cap: $28.72M
• Dividend Yield: N/A
• Average Volume (3M): 27.74K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.95
• Revenue Growth: 17.04%
• EPS Growth: -2188.42%
• Country: US
• Employees: 153
• Sector: Communication Services
• Sector Strength: 82
• Industry: Advertising Agencies
• EPS (TTM): -0.02
• Shares Outstanding: 18,528,442
• 10 Day Avg. Volume: 22,631
• 30 Day Avg. Volume: 27,740
• PEG Ratio: -0.47
• Price to Book (P/B): 0.83
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -5.21
• Enterprise Value/Market Cap: 0.80
• Enterprise Value/Revenue: 0.08
• Enterprise Value/Gross Profit: 0.80
• Enterprise Value/Ebitda: -3.05
• 1Y Price Target: $1.50
• Price Target Upside: -3.23% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 60 Neutral
• Price Target: $1.50 ▼(-3.23%Downside)

Stran & Company shows potential with robust revenue growth and positive technical indicators. However, profitability concerns and cash flow challenges weigh heavily on the stock's appeal. Positive corporate events and earnings call insights provide some optimism, but the valuation remains a significant issue.

Stran & Company Business Overview & Revenue Model

Company Description

Stran & Company, Inc. provides branding solutions. The Company offers promotional products, warehousing, fulfillment, distribution, print, direct mail, custom packaging, tradeshow displays, and program management solutions. Stran serves customers in the United States and Canada.

How the Company Makes Money

Stran & Company generates revenue primarily through the sale of promotional products and branded merchandise. The company engages in creating custom marketing solutions for businesses, which involves sourcing, designing, and delivering promotional items that align with client branding goals. Revenue streams include direct sales of these promotional products to corporate clients, who use them for marketing campaigns, employee incentives, and customer loyalty programs. Additionally, Stran & Company benefits from long-term partnerships with its clients, contributing to consistent revenue generation. The company's expertise in developing comprehensive marketing strategies ensures a steady demand for its services, thus playing a significant role in its financial performance.

Stran & Company Financial Statement Overview

Summary

Stran & Company shows potential through strong revenue growth. However, persistent profitability and cash flow issues raise concerns. The balance sheet remains a strong point due to low leverage and a substantial equity base. Yet, the company must address its operational inefficiencies and improve cash flow generation to ensure financial sustainability.

Income Statement

Stran & Company has experienced revenue growth in recent years, increasing from $37.75M in 2020 to $92.52M in TTM (Trailing-Twelve-Months). However, profitability remains a concern as the company has consistently reported net losses, with a net profit margin of -4.37% in TTM. Gross profit margins have been relatively stable, reaching 31% in TTM. Negative EBIT and EBITDA margins indicate inefficiencies in operations. Overall, while revenue growth is promising, the lack of profitability undermines the income statement's strength.

Balance Sheet

The company maintains a healthy balance sheet with a low debt-to-equity ratio of 0.04, indicating minimal leverage. Stockholders' equity constitutes a significant 60% of total assets, reflecting a strong equity base. However, the company has seen declining equity levels over time. The presence of a substantial cash balance supports financial flexibility. Overall, the balance sheet is robust, with low leverage and adequate equity, but declining equity levels may pose a concern.

Cash Flow

Stran & Company faces challenges in generating positive cash flows, as indicated by negative operating and free cash flows in the TTM period. The free cash flow to net income ratio is negative, highlighting cash flow deficiencies relative to net losses. Although there was a positive free cash flow in 2024, the company's cash flow position has deteriorated since. The cash flow situation indicates potential liquidity challenges, requiring attention to improve operational cash generation.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	82.65M	76.00M	58.95M	39.70M	37.75M
Gross Profit	25.81M	24.85M	16.57M	11.84M	11.48M
EBITDA	-4.07M	314.00K	-780.30K	8.83K	1.71M
Net Income	-4.14M	-385.00K	-778.44K	235.24K	1.03M
Balance Sheet
Total Assets	55.15M	49.04M	56.63M	51.20M	13.30M
Cash, Cash Equivalents and Short-Term Investments	18.21M	18.45M	25.03M	32.23M	647.24K
Total Debt	798.00K	1.33M	947.04K	1.26M	4.09M
Total Liabilities	23.51M	13.39M	17.26M	9.59M	11.68M
Stockholders Equity	31.64M	35.65M	39.36M	41.61M	1.63M
Cash Flow
Free Cash Flow	2.16M	-3.55M	-4.10M	-6.22M	-2.17M
Operating Cash Flow	2.76M	-2.55M	-2.41M	-5.83M	-1.99M
Investing Cash Flow	-533.00K	-3.74M	-11.65M	-388.95K	-176.47K
Financing Cash Flow	-928.00K	-909.00K	-2.91M	37.80M	375.01K

Stran & Company Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.55
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SWAG, the sentiment is Neutral. The current price of 1.55 is above the 20-day moving average (MA) of 1.45, above the 50-day MA of 1.35, and above the 200-day MA of 1.11, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 47.88 is Neutral, neither overbought nor oversold. The STOCH value of 41.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SWAG.

Stran & Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CHR	76 Outperform	$23.15M	0.78	8.88%	―	-3.37%	-23.21%
Sector *	62 Neutral	$42.18B	-1.51	-12.07%	2.79%	2.09%	-71.01%
SWAG	60 Neutral	$28.72M	―	-12.15%	―	17.04%	-2188.42%
ACCS	60 Neutral	$46.75M	―	-36.83%	―	-18.22%	-773.82%
HHS	47 Neutral	$25.11M	―	-147.49%	―	-4.46%	-3053.30%
FLNT	45 Neutral	$50.85M	―	-123.16%	―	-15.07%	33.40%
DRCT	41 Neutral	$10.23M	―	-320.07%	―	-69.54%	-19665.56%

Stran & Company Corporate Events

Stran & Company Appoints Brian M. Posner to Board

On July 8, 2025, Stran & Company appointed Brian M. Posner to its Board of Directors, filling a vacancy left by recent resignations. Posner, who brings extensive financial leadership experience, was also named Chairman of the Audit Committee. His appointment is expected to enhance the company’s financial oversight as it continues its growth strategy. Posner’s background includes serving as CFO for multiple public companies and contributing to significant revenue growth at electroCore. His expertise is anticipated to support Stran’s mission and governance framework.

Stran & Company Appoints New Board Members

On June 17 and 18, 2025, directors Travis McCourt, Ashley L. Marshall, and Alejandro Tani resigned from Stran & Company‘s board, with no disagreements cited. On June 20, 2025, Mark Charles Adams and Sarah L. Cummins were elected to the board, filling two vacancies. Adams and Cummins were appointed to key committee roles and granted compensation packages including cash payments and stock options. These changes are part of Stran’s strategic move to enhance growth and shareholder value, following the amicable departure of the previous directors.

Stran & Company Achieves #12 on PPAI 100 List

On May 29, 2025, Stran & Company announced its achievement of the #12 ranking on the 2025 PPAI 100 list of top promotional product distributors, as recognized by the Promotional Products Association International. This significant jump of eight spots from the previous year highlights Stran’s exceptional growth, innovation, and industry impact, particularly in a challenging market. The recognition underscores the company’s disciplined execution and strategic vision, with notable achievements in organic growth and the successful launch of its NetSuite ERP system, enhancing automation and scalability.