Stack Capital Group (STCK) AI Stock Analysis

• Market Cap: C$258.11M
• Dividend Yield: N/A
• Average Volume (3M): 14.02K
• Price to Earnings (P/E): 5.2
• Beta (1Y): 0.62
• Revenue Growth: 550.81%
• EPS Growth: N/A
• Country: CA
• Employees: N/A
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 0.19
• Shares Outstanding: 13,236,416
• 10 Day Avg. Volume: 21,685
• 30 Day Avg. Volume: 14,015
• PEG Ratio: -0.01
• Price to Book (P/B): 0.79
• Price to Sales (P/S): 89.13
• P/FCF Ratio: -3.94
• 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: C$19.00
• Price Target Upside: -2.56% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: C$21.00 ▲(7.69% Upside)

The score is driven primarily by solid financial positioning (debt-free balance sheet and a 2024 profit rebound), but is held back by persistent negative operating/free cash flow and weak core revenue economics. Support comes from constructive technical trend signals, attractive low P/E valuation, and positive corporate actions (buyback and capital raise).

Positive Factors

Debt-free balance sheet

A debt-free balance sheet with about $130.5M equity provides durable solvency and financial flexibility. This reduces refinancing and interest-rate risks, supports multi-quarter funding of investments or restructuring, and gives management optionality to pursue strategic deals or shore up operations during cash outflows.

Profitability rebound

The swing to roughly $16M net income and ~12.3% ROE in 2024 shows the firm can generate meaningful profits from its investment portfolio. Sustained positive earnings and EBIT/EBITDA provide internal capital for selective reinvestment, supporting long-term value creation if management preserves disciplined allocation.

Active capital management

Management’s twin actions — an NCIB buyback and a $35M private placement — indicate proactive capital stewardship and access to private capital. This combination both returns value to shareholders and bolsters liquidity, which is a durable structural advantage for funding investments or buffering cash burn periods.

Negative Factors

Persistent negative cash flow

Repeated operating and free cash flow deficits, culminating in a -$26.3M outflow in 2024, signal weak cash conversion from core activities. Reliance on equity or asset disposals to fund operations is a structural vulnerability that can limit reinvestment, constrain distributions, and increase funding risk in tighter markets.

Weak core revenue and margins

Declining, modest revenue and three consecutive years of negative gross profit point to weak underlying economics in the core business. If core income generation remains poor, profitable years may depend on one-off or valuation gains rather than durable operating margin improvements, limiting predictability of earnings.

Earnings volatility / reliance on non-operating gains

Material swings in ROE and dependence on non-operating or fair-value gains reduce earnings reliability. This volatility complicates forecasting and capital-allocation decisions, making it harder to assess sustainable return generation and increasing the risk that profits could reverse if valuation or one-off gains dissipate.

Stack Capital Group Business Overview & Revenue Model

Company Description

Stack Capital Group Inc. operates as an investment holding company. It invests in equity, debt, and/or other securities of growth-to-late-stage private businesses. The company was incorporated in 2021 and is headquartered in Toronto, Canada.

How the Company Makes Money

Stack Capital Group, Inc. generates revenue primarily through the appreciation of its investment portfolio. The company invests in private companies with the potential for significant growth and seeks to realize returns through eventual exits, such as initial public offerings (IPOs) or acquisitions. Additionally, Stack Capital may earn income from dividends or interest from its investments, as well as management fees from managing investment vehicles or partnerships. The company's earnings are influenced by its ability to identify high-growth opportunities, execute successful investments, and market conditions that affect the valuation and liquidity of its portfolio holdings.

Stack Capital Group Financial Statement Overview

Summary

Balance sheet strength is a major positive (no debt and sizable equity base), and profitability rebounded sharply in 2024. However, persistent negative operating/free cash flow and declining, modest revenue with negative gross profit in recent years limit the score.

Income Statement

Profitability improved sharply in 2024, with net income swinging to a strong profit (about $16.0M) from losses in 2022–2023, and EBIT/EBITDA turning solidly positive. However, revenue has been modest and declining (down ~3.6% in 2024 after a slight decline in 2023), and gross profit has been negative in 2022–2024, indicating weak core revenue economics and heavier reliance on non-operating or fair-value-type gains to drive bottom-line results.

Balance Sheet

The balance sheet is conservatively positioned with no debt reported across all periods and a sizable equity base (about $130.5M in 2024). Total assets closely track equity, suggesting low financial leverage and good solvency. The key drawback is earnings volatility: return on equity was negative in 2021–2023 before rebounding to ~12.3% in 2024, which reduces confidence in the consistency of returns despite the strong capital position.

Cash Flow

Cash generation is a clear weak spot: operating cash flow and free cash flow were negative every year shown, including a large outflow in 2024 (about -$26.3M) after a smaller outflow in 2023 (about -$5.0M). While free cash flow improved versus 2022, the business still has not demonstrated consistent cash conversion, creating reliance on the balance sheet/liquidity to fund operations and investments during periods of cash burn.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	787.33K	1.16M	1.37M	826.49K	222.93K
Gross Profit	-5.99M	-1.03M	-336.49K	-999.83K	1.52M
EBITDA	34.38M	8.16M	-2.58M	-4.42M	67.07K
Net Income	34.31M	15.99M	-4.22M	-848.71K	-577.27K
Balance Sheet
Total Assets	157.16M	132.24M	97.10M	102.43M	102.99M
Cash, Cash Equivalents and Short-Term Investments	5.33M	11.26M	25.07M	29.89M	76.34M
Total Debt	0.00	0.00	0.00	0.00	0.00
Total Liabilities	4.82M	1.72M	351.30K	370.81K	622.50K
Stockholders Equity	152.35M	130.52M	96.75M	102.06M	102.36M
Cash Flow
Free Cash Flow	-20.90M	-26.32M	-4.97M	-44.51M	-26.64M
Operating Cash Flow	-20.90M	-26.32M	-4.97M	-44.51M	-26.64M
Investing Cash Flow	0.00	0.00	0.00	0.00	-55.46K
Financing Cash Flow	14.57M	15.08M	-1.31M	-477.57K	102.94M

Stack Capital Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 19.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:STCK, the sentiment is Positive. The current price of 19.5 is above the 20-day moving average (MA) of 17.80, above the 50-day MA of 15.68, and above the 200-day MA of 13.42, indicating a bullish trend. The MACD of 1.09 indicates Negative momentum. The RSI at 61.20 is Neutral, neither overbought nor oversold. The STOCH value of 62.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:STCK.

Stack Capital Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SEC	74 Outperform	C$936.45M	5.35	9.11%	―	22.33%	-25.06%
STCK	71 Outperform	C$258.11M	5.23	26.60%	―	550.81%	―
GCG	69 Neutral	C$1.66B	8.87	13.82%	2.29%	58.88%	82.03%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
QRC	67 Neutral	C$691.16M	4.06	36.24%	2.20%	-1.35%	496.34%
CVG	57 Neutral	C$1.01B	304.80	0.32%	0.14%	-44.78%	-95.84%
WED	49 Neutral	C$855.58M	-10.57	-6.98%	―	333.02%	-196.36%

Stack Capital Group Corporate Events

Stack Capital Invests US$5 Million in Advanced Nuclear Firm X-energy

Stack Capital Group Inc. has invested US$5 million in X-energy Reactor Company, an advanced nuclear technology firm developing next-generation small modular reactors and proprietary nuclear fuel solutions. X-energy, backed by significant private capital and substantial U.S. Department of Energy funding, is positioning itself as a leader in carbon-free baseload power with products such as its Xe-100 small modular reactor, XENITH micro reactor, and TRISO-X fuel, supported by strategic relationships with major industrial and energy players including Amazon, Dow, Energy Northwest, Ontario Power Generation, and Centrica. Stack Capital views the investment as a cornerstone bet on the energy infrastructure needed to support accelerating demand from AI, electrification, and industrial decarbonization, underscoring a broader shift toward advanced nuclear as a key pillar of long-term climate and energy strategy.

The most recent analyst rating on (TSE:STCK) stock is a Buy with a C$19.50 price target. To see the full list of analyst forecasts on Stack Capital Group stock, see the TSE:STCK Stock Forecast page.

Stack Capital Announces Share Buyback Program to Enhance Value

Stack Capital Group Inc. has announced a normal course issuer bid (NCIB) approved by the Toronto Stock Exchange, allowing the company to repurchase up to 1,095,780 common shares, which is 10% of its public float, over the next 12 months. This move is driven by the company’s belief that its shares are undervalued, and it aims to enhance shareholder value by purchasing shares at market prices for cancellation. The company has also implemented an automatic share purchase plan to facilitate these purchases even during blackout periods, ensuring flexibility and adherence to regulatory requirements.

The most recent analyst rating on (TSE:STCK) stock is a Buy with a C$15.75 price target. To see the full list of analyst forecasts on Stack Capital Group stock, see the TSE:STCK Stock Forecast page.

Stack Capital Reports Q3-2025 Results, Highlights Strategic Investments

Stack Capital Group Inc. reported its Q3-2025 financial results, highlighting a stable book value per share and a strengthened capital position through a $35 million private placement. The company made significant investments in technology firms like OpenAI and Databricks, reflecting its focus on AI and quantum computing. Portfolio companies such as SpaceX and Canva saw notable valuation increases, indicating strong performance in aerospace and design sectors. These developments underscore Stack Capital’s strategic positioning in high-growth industries, potentially enhancing its market influence and stakeholder value.

The most recent analyst rating on (TSE:STCK) stock is a Buy with a C$15.00 price target. To see the full list of analyst forecasts on Stack Capital Group stock, see the TSE:STCK Stock Forecast page.