Stack Capital Group (STCK) AI Stock Analysis

• Market Cap: C$128.78M
• Dividend Yield: N/A
• Average Volume (3M): 18.02K
• Price to Earnings (P/E): 10.3
• Beta (1Y): 0.80
• Revenue Growth: -19.24%
• EPS Growth: N/A
• Country: CA
• Employees: N/A
• Sector: Financial
• Sector Strength: 85
• Industry: Asset Management
• EPS (TTM): -0.24
• Shares Outstanding: 10,687,524
• 10 Day Avg. Volume: 27,618
• 30 Day Avg. Volume: 18,022
• PEG Ratio: <0.01
• Price to Book (P/B): 0.78
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -4.47
• 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$13.83
• Price Target Upside: 14.77% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 61 Neutral
• Price Target: ―

Stack Capital Group, Inc. presents a balanced investment profile with strengths in a solid balance sheet and strategic growth investments. However, challenges in operational efficiency and cash flow management are notable risks. The stock's attractive valuation could appeal to value investors, but technical indicators suggest caution due to potential downward pressure.

Positive Factors

Defensive Credentials

The stock has shown notable resilience during market selloffs, indicating its defensive credentials.

Investment Strategy

The company's strategy of investing in late series preferred shares provides downside protection, as these shares often have favorable terms in cases of liquidation or asset sales.

Valuation

Shield AI experienced an uptick in valuations (+32% quarter-over-quarter) after its latest financing round, raising US$240M at a US$5.3B valuation.

Negative Factors

Interest Income

Interest income during the period was $114.9k due to lower cash balances.

Net Asset Value

The company reported Q1/25 with the NAV falling by -1.9% to $12.06/share, mainly due to the US$2.4M write down of CoreWeave at the end of the quarter.

Write Down

The NAV fell by -1.9% to $12.06/share, mainly due to the US$2.4M write down of CoreWeave at the end of the quarter.

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

Stack Capital Group, Inc. has a solid balance sheet with no debt and high equity, indicating financial stability. However, the income statement reflects operational challenges with negative gross profits and fluctuating revenue growth. The cash flow statement reveals negative operating cash flow, suggesting cash management issues. Overall, financial stability is offset by operational inefficiencies.

Income Statement

The income statement shows a significant improvement in net income, moving from a loss in previous years to a substantial profit in the most recent year. However, the company exhibits negative gross profit margins and fluctuating revenue growth, indicating instability in generating consistent revenue and controlling costs.

Balance Sheet

The balance sheet is strong with no debt and high equity, leading to a favorable equity ratio. This demonstrates financial stability and low leverage risk. The company's assets have grown, reflecting positive capital management. However, the negative gross profit remains a concern for operational efficiency.

Cash Flow

Operating cash flow is negative, indicating challenges in generating cash from core operations despite the positive net income. Free cash flow is also negative, suggesting potential cash constraints. This reflects a need for improved cash management and operational efficiency.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement		Total Revenue
1.16M	687.44K	826.49K	222.93K
	Gross Profit
-1.03M	-1.02M	-999.83K	1.52M
	EBIT
0.00	-2.42M	-7.98M	-618.86K
	EBITDA
8.16M	-2.51M	-4.42M	67.07K
	Net Income Common Stockholders
15.99M	-4.22M	-848.71K	-577.27K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
11.26M	96.93M	29.89M	76.34M
	Total Assets
132.24M	97.10M	102.43M	102.99M
	Total Debt
0.00	0.00	0.00	0.00
	Net Debt
-11.26M	-25.07M	-29.89M	-76.34M
	Total Liabilities
1.72M	351.30K	370.81K	622.50K
	Stockholders Equity
130.52M	96.75M	102.06M	102.36M
Cash Flow		Free Cash Flow
-26.32M	-4.97M	-44.51M	-26.64M
	Operating Cash Flow
-26.32M	-4.97M	-44.51M	-26.64M
	Investing Cash Flow
0.00	0.00	0.00	-55.46K
	Financing Cash Flow
15.08M	-1.31M	-477.57K	102.94M

Stack Capital Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 12.05
• 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 12.05 is above the 20-day moving average (MA) of 11.56, above the 50-day MA of 10.78, and above the 200-day MA of 10.80, indicating a bullish trend. The MACD of 0.48 indicates Negative momentum. The RSI at 61.83 is Neutral, neither overbought nor oversold. The STOCH value of 37.25 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
Sector *	64 Neutral	$12.79B	9.72	7.54%	16971.00%	12.07%	-7.53%
STCK	61 Neutral	C$128.78M	10.31	10.47%	―	-19.24%	―
ASXSF		$7.22M	4.41	17.93%	―	―	―
GMPXF		$84.97M	―	-0.71%	―	―	―
LPC	74 Outperform	C$77.76M	23.20	25.24%	2.39%	24.60%	66.30%
TINY	59 Neutral	C$196.79M	―	-24.11%	―	-2.40%	-489.21%
IDK	46 Neutral	C$9.06M	―	-24.56%	―	-137.64%	-173.29%

Stack Capital Group Corporate Events

Stack Capital Announces TSX Listing of Warrants

Stack Capital Group Inc. announced that the Toronto Stock Exchange has approved the listing of 757,948 common share purchase warrants, previously issued on a private placement basis. These warrants, which will be available for trading under the symbol ‘STCK.WT.A’, allow holders to acquire common shares at an exercise price of $11.00 until October 30, 2027. This listing enhances Stack Capital’s market presence and provides additional liquidity options for investors.

Stack Capital Group Inc. Announces Robust 2024 Financial Results

Stack Capital Group Inc. reported a significant increase in its Book Value per Share to $12.29 as of December 31, 2024, marking an 11.2% rise from the previous quarter. The company has made strategic investments in high-profile companies like SpaceX, Canva, and CoreWeave, which have seen substantial valuation increases, indicating strong growth potential and positioning Stack Capital favorably within the investment sector.

Stack Capital Group Invests $10 Million in AI Infrastructure Leader CoreWeave

Stack Capital Group Inc. has invested $10 million USD in CoreWeave, a leading cloud-based AI infrastructure company known for its GPU-accelerated data centers that offer high-performance computing capabilities at significant cost savings. This investment positions Stack Capital to benefit from CoreWeave’s expansion in the AI infrastructure market, which is experiencing growing demand globally, especially with CoreWeave’s recent IPO filing and partnerships with major AI enterprises like Microsoft and Nvidia.