Stack Capital Group (STCK) AI Stock Analysis

• Market Cap: C$258.27M
• Dividend Yield: N/A
• Average Volume (3M): 14.02K
• Price to Earnings (P/E): 4.7
• Beta (1Y): 0.43
• Revenue Growth: 550.81%
• EPS Growth: N/A
• Country: CA
• Employees: N/A
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 1.19
• Shares Outstanding: 13,183,916
• 10 Day Avg. Volume: 21,685
• 30 Day Avg. Volume: 14,015
• PEG Ratio: 0.05
• Price to Book (P/B): 0.90
• Price to Sales (P/S): 10.98
• P/FCF Ratio: -6.30
• 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$22.00
• Price Target Upside: 13.11% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): -0.32
• Revenue Forecast (FY): C$14.66M

• Rating: 71 Outperform
• Price Target: C$21.50 ▲(10.54% Upside)
• Action: Reiterated Date: 03/07/26
• Date: Action: Reiterated 03/07/26

The score is driven by strong technical momentum and a low P/E valuation. These positives are tempered by financial-performance risks, especially persistently negative operating/free cash flow and signs that recent profitability may be volatile and investment-gain driven despite a debt-free balance sheet.

Positive Factors

Balance sheet strength

A debt-free balance sheet with rising equity provides durable financial flexibility: it reduces solvency risk, enables opportunistic deployment into new investments or follow-on positions without needing external financing, and helps the firm weather market drawdowns while preserving optionality.

Revenue & EPS growth

Very large reported revenue and EPS growth indicate the company's portfolio strategy has recently generated substantial realizations or performance upside. Sustained ability to source and exit high-growth investments would expand capital for reinvestment and strengthen long-term capacity to compound returns.

Investment-focused business model

A business model centered on originating, acquiring and holding growth-company positions provides structural upside via active portfolio management and strategic flexibility across private and public markets, enabling the firm to capture value from multiple stages of company growth over time.

Negative Factors

Persistent negative cash flow

Consistent negative operating and free cash flow signals that reported profits are not converting to cash, limiting internal funding for operations or new investments, increasing reliance on asset sales or external capital, and weakening the durability of reported earnings.

Earnings quality concerns

High reported profitability concentrated in investment gains rather than recurring fee-based revenue creates earnings volatility and reduces predictability of future cash flows; this makes durable margin planning and long-term forecasting more uncertain for investors and management.

Historical result volatility

A history of multi-year losses followed by sharp rebounds indicates returns depend heavily on market valuation cycles and one-off realizations, raising the risk that negative swings can reoccur and impair capital preservation and steady compound growth for shareholders.

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 (no debt, rising equity) supports a higher score, but earnings quality is a concern: profits rebounded sharply yet appear volatile and potentially driven by non-core investment gains, while operating cash flow and free cash flow remain negative across all periods.

Income Statement

Results have improved sharply, with revenue surging in 2025 (annual) and profitability turning very strong after losses in 2021–2023. 2024–2025 show exceptionally high profit levels relative to revenue, suggesting earnings are being driven heavily by investment gains or other non-core items rather than steady fee-based revenue. Gross profitability has also been volatile (negative in multiple years), which lowers confidence in the durability of margins despite the recent rebound.

Balance Sheet

The balance sheet is a clear strength: the company carries no debt across all periods provided, and equity has grown meaningfully by 2025 (annual), indicating improved net worth and financial flexibility. Returns on equity are solid in 2024–2025 after being negative in prior years, reflecting the earnings turnaround. The main drawback is that past losses (2021–2023) show that asset values and results can swing materially, which is typical for an investment-oriented business.

Cash Flow

Cash generation is weak: operating cash flow and free cash flow are negative in every year shown, including 2025 (annual), even while net income is strongly positive in 2024–2025. This gap implies profits are not translating into cash (potentially due to unrealized gains, working-capital swings, or investment timing), which increases earnings-quality risk. While free cash flow improved versus the prior year in some periods, the persistent cash burn remains a key concern.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	16.49M	1.16M	1.37M	826.49K	222.93K
Gross Profit	16.49M	-1.03M	-336.49K	-999.83K	1.52M
EBITDA	40.29M	8.16M	-2.58M	-4.42M	67.07K
Net Income	38.36M	15.99M	-4.22M	-848.71K	-577.27K
Balance Sheet
Total Assets	211.00M	132.24M	97.10M	102.43M	102.99M
Cash, Cash Equivalents and Short-Term Investments	17.26M	11.26M	25.07M	29.89M	76.34M
Total Debt	0.00	0.00	0.00	0.00	0.00
Total Liabilities	9.62M	1.72M	351.30K	370.81K	622.50K
Stockholders Equity	201.39M	130.52M	96.75M	102.06M	102.36M
Cash Flow
Free Cash Flow	-28.73M	-26.32M	-4.97M	-44.51M	-26.64M
Operating Cash Flow	-28.73M	-26.32M	-4.97M	-44.51M	-26.64M
Investing Cash Flow	0.00	0.00	0.00	0.00	-55.46K
Financing Cash Flow	31.59M	15.08M	-1.31M	-477.57K	102.94M

Stack Capital Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 19.45
• 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 19.45 is above the 20-day moving average (MA) of 18.83, above the 50-day MA of 17.79, and above the 200-day MA of 14.24, indicating a bullish trend. The MACD of 0.38 indicates Negative momentum. The RSI at 58.78 is Neutral, neither overbought nor oversold. The STOCH value of 74.88 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$836.74M	1.28	9.11%	―	22.33%	-25.06%
STCK	71 Outperform	C$258.27M	4.72	26.60%	―	550.81%	―
CVG	71 Outperform	C$996.99M	2.39	0.32%	0.14%	-44.78%	-95.84%
GCG	69 Neutral	C$1.66B	5.53	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$801.42M	1.64	36.24%	2.20%	-1.35%	496.34%
WED	49 Neutral	C$784.48M	-14.81	-6.98%	―	333.02%	-196.36%

Stack Capital Group Corporate Events

Stack Capital Book Value Jumps as Private Tech Bets Gain Momentum

Stack Capital Group reported a 24.9% increase in book value per share to $15.35 for 2025, lifting total book value to $202 million on the back of strong performance in its core holdings and disciplined capital deployment. Management also executed a normal course issuer bid, repurchasing shares at a discount to book value, signaling confidence in the company’s intrinsic worth and enhancing per-share metrics for existing investors.

The portfolio benefited from major valuation uplifts and financings at key investments including SpaceX, OpenAI and Databricks, while new capital was deployed into Crusoe Energy and X-Energy to deepen exposure to AI-focused infrastructure and next-generation nuclear technology. Additional liquidity was realized through the sale of Newfront following its acquisition and Varo’s sizeable funding round, positioning Stack Capital to capitalize on an active private markets environment that could see increased monetizations and potential public listings in 2026.

The most recent analyst rating on (TSE:STCK) stock is a Buy with a C$21.50 price target. To see the full list of analyst forecasts on Stack Capital Group stock, see the TSE:STCK Stock Forecast page.

Stack Capital 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.