Stran & Company (SWAG) AI Stock Analysis

• Market Cap: $23.07M
• Dividend Yield: N/A
• Average Volume (3M): 22.18K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.93
• Revenue Growth: 17.04%
• EPS Growth: -2188.42%
• Country: US
• Employees: 153
• Sector: Communication Services
• Sector Strength: 83
• Industry: Advertising Agencies
• EPS (TTM): -0.02
• Shares Outstanding: 18,608,408
• 10 Day Avg. Volume: 21,693
• 30 Day Avg. Volume: 22,175
• PEG Ratio: -0.42
• Price to Book (P/B): 0.74
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -4.65
• Enterprise Value/Market Cap: 0.88
• Enterprise Value/Revenue: 0.07
• Enterprise Value/Gross Profit: 0.71
• Enterprise Value/Ebitda: -2.55
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

SWAG demonstrates potential through robust revenue growth and positive technical indicators. However, profitability and cash flow issues pose significant risks. The company's strategic growth initiatives and efforts to mitigate global trade challenges are promising, yet the negative valuation metrics and ongoing financial challenges demand caution.

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'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 exhibits strong revenue growth, but ongoing profitability and cash flow issues are concerning. The balance sheet is robust with low leverage and a significant equity base, though declining equity is worrisome. Improving operational efficiency and cash flow is crucial for 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
	EBIT
-4.76M	-4.89M	-1.27M	-1.51M	-437.88K	1.49M
	EBITDA
-4.32M	-4.07M	314.00K	-780.30K	8.83K	1.71M
	Net Income Common Stockholders
-4.04M	-4.14M	-385.00K	-778.44K	235.24K	1.03M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
4.24M	18.21M	18.45M	25.03M	32.23M	647.24K
	Total Assets
52.16M	55.15M	49.04M	56.63M	51.20M	13.30M
	Total Debt
1.23M	798.00K	1.33M	947.04K	1.26M	4.09M
	Net Debt
-3.01M	-8.56M	-6.66M	-14.31M	-30.97M	3.44M
	Total Liabilities
1.65M	23.51M	13.39M	17.26M	9.59M	11.68M
	Stockholders Equity
31.27M	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: 1.24
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 1.24 is above the 20-day moving average (MA) of 1.09, above the 50-day MA of 1.03, and above the 200-day MA of 1.07, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 64.34 is Neutral, neither overbought nor oversold. The STOCH value of 85.04 is Negative, 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	71 Outperform	$17.34M	0.59	8.88%	―	-3.37%	-23.21%
Sector *	60 Neutral	$14.09B	6.90	-3.35%	3.68%	2.44%	-36.27%
SWAG	56 Neutral	$23.07M	―	-12.15%	―	17.04%	-2188.42%
ACCS	54 Neutral	$34.92M	―	-36.83%	―	-18.22%	-773.82%
HHS	46 Neutral	$34.76M	―	-147.49%	―	-4.46%	-3053.30%
FLNT	41 Neutral	$43.83M	―	-123.16%	―	-15.07%	33.40%
DRCT	40 Underperform	$10.12M	―	-320.07%	―	-69.54%	-19665.56%

Stran & Company Corporate Events

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.

Spark’s Take on SWAG Stock

According to Spark, TipRanks’ AI Analyst, SWAG is a Neutral.

Stran & Company’s overall score is driven by strong revenue growth but hampered by profitability and cash flow issues. The technical indicators suggest a bearish sentiment, and the valuation metrics reflect current unprofitability. While the acquisition of Gander Group and financial restatements indicate growth potential, compliance challenges with Nasdaq present risks. These factors collectively result in a moderate score, highlighting the need for strategic improvements.

To see Spark’s full report on SWAG stock, click here.