Stran & Company (SWAG) AI Stock Analysis

• Market Cap: $26.98M
• Dividend Yield: N/A
• Average Volume (3M): 38.63K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.89
• Revenue Growth: 17.04%
• EPS Growth: -2188.42%
• Country: US
• Employees: 153
• Sector: Communication Services
• Sector Strength: 90
• Industry: Advertising Agencies
• EPS (TTM): -0.02
• Shares Outstanding: 18,608,408
• 10 Day Avg. Volume: 42,630
• 30 Day Avg. Volume: 38,625
• PEG Ratio: -0.46
• Price to Book (P/B): 0.81
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -5.06
• Enterprise Value/Market Cap: 0.83
• Enterprise Value/Revenue: 0.08
• Enterprise Value/Gross Profit: 0.78
• Enterprise Value/Ebitda: -2.95
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 55 Neutral
• Price Target: $1.50 ▲(3.45%Upside)

Stran & Company's overall stock score is primarily driven by strong revenue growth and positive technical indicators. However, persistent profitability issues and unattractive valuation metrics pose significant risks. The company's efforts to improve operational efficiency and manage global trade dynamics offer some optimism for future performance.

Stran & Company Business Overview & Revenue Model

Company Description

Stran & Company, Inc. (SWAG) is a provider of outsourced marketing solutions with a focus on promotional products, branded merchandise, and related services. The company operates in sectors such as consumer goods, technology, financial services, and healthcare. Stran & Company assists its clients in enhancing brand awareness, fostering customer loyalty, and driving sales growth through customized marketing strategies and solutions.

How the Company Makes Money

Stran & Company generates revenue primarily through the sale of promotional products and branded merchandise. The company's revenue streams include product sales to corporate clients, fees for marketing services, and commissions from managing client marketing programs. Additionally, Stran & Company benefits from strategic partnerships with manufacturers and suppliers, enabling them to offer a wide range of customized products and services. The company's ability to capture market share in diverse industries and maintain strong client relationships contributes significantly to its earnings.

Stran & Company Financial Statement Overview

Summary

Stran & Company has experienced strong revenue growth, but persistent profitability and cash flow challenges undermine financial performance. The balance sheet is robust with low leverage and a substantial equity base, yet declining equity levels and cash flow issues raise concerns about 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	92.52M	82.65M	76.00M	58.95M	39.70M	37.75M
Gross Profit	28.68M	25.81M	24.85M	16.57M	11.84M	11.48M
EBITDA	-3.94M	-4.07M	314.00K	-780.30K	8.83K	1.71M
Net Income	-4.04M	-4.14M	-385.00K	-778.44K	235.24K	1.03M
Balance Sheet
Total Assets	49.15M	55.15M	49.04M	56.63M	51.20M	13.30M
Cash, Cash Equivalents and Short-Term Investments	20.87M	18.21M	18.45M	25.03M	32.23M	647.24K
Total Debt	938.10K	798.00K	1.33M	947.04K	1.26M	4.09M
Total Liabilities	10.45M	23.51M	13.39M	17.26M	9.59M	11.68M
Stockholders Equity	38.70M	31.64M	35.65M	39.36M	41.61M	1.63M
Cash Flow
Free Cash Flow	-5.00M	2.16M	-3.55M	-4.10M	-6.22M	-2.17M
Operating Cash Flow	-5.19M	2.76M	-2.55M	-2.41M	-5.83M	-1.99M
Investing Cash Flow	526.28K	-533.00K	-3.74M	-11.65M	-388.95K	-176.47K
Financing Cash Flow	-908.00K	-928.00K	-909.00K	-2.91M	37.80M	375.01K

Stran & Company Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.45
• 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 Positive. The current price of 1.45 is above the 20-day moving average (MA) of 1.43, above the 50-day MA of 1.24, and above the 200-day MA of 1.09, indicating a bullish trend. The MACD of 0.07 indicates Positive momentum. The RSI at 56.81 is Neutral, neither overbought nor oversold. The STOCH value of 20.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SWAG.

Stran & Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CHR	74 Outperform	$17.22M	0.67	8.88%	―	-3.37%	-23.21%
ACCS	60 Neutral	$46.83M	―	-36.83%	―	-18.22%	-773.82%
SWAG	55 Neutral	$26.98M	―	-12.15%	―	17.04%	-2188.42%
Sector *	55 Neutral	HK$64.86B	-1.42	-1.91%	7.25%	-4.22%	-14.17%
HHS	45 Neutral	$28.72M	―	-147.49%	―	-4.46%	-3053.30%
DRCT	44 Neutral	$10.59M	―	-320.07%	―	-69.54%	-19665.56%
FLNT	41 Neutral	$42.37M	―	-123.16%	―	-15.07%	33.40%

Stran & Company Corporate Events

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.

Stran & Company Reports 2024 Financial Results

Stran & Company announced its financial results for the fiscal year ending December 31, 2024, reporting an 8.8% increase in sales to $82.7 million and a gross profit of $25.8 million. The company completed a re-audit of its 2023 and 2022 financial statements, which was crucial for aligning with a premier audit partner and restoring investor trust. The acquisition of Gander Group significantly contributed to sales growth, adding $9.9 million and expanding Stran’s presence in the hospitality and entertainment sectors. Despite a net loss of $4.1 million due to increased operating expenses, Stran secured new contracts across various industries and deepened existing enterprise relationships, setting a strong foundation for future growth. The company aims to surpass $100 million in annual sales in 2025 by focusing on organic growth and expanding into high-value verticals.