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Stack Capital Group, Inc. (TSE:STCK)
TSX:STCK
Canadian Market

Stack Capital Group (STCK) AI Stock Analysis

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Stack Capital Group

(TSX:STCK)

Rating:61Neutral
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 (STCK) vs. iShares MSCI Canada ETF (EWC)

Stack Capital Group Business Overview & Revenue Model

Company DescriptionStack 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 MoneyStack 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
45
Neutral
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
75
Positive
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
50
Neutral
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 2024Dec 2023Dec 2022Dec 2021
Income StatementTotal Revenue
1.16M687.44K826.49K222.93K
Gross Profit
-1.03M-1.02M-999.83K1.52M
EBIT
0.00-2.42M-7.98M-618.86K
EBITDA
8.16M-2.51M-4.42M67.07K
Net Income Common Stockholders
15.99M-4.22M-848.71K-577.27K
Balance SheetCash, Cash Equivalents and Short-Term Investments
11.26M96.93M29.89M76.34M
Total Assets
132.24M97.10M102.43M102.99M
Total Debt
0.000.000.000.00
Net Debt
-11.26M-25.07M-29.89M-76.34M
Total Liabilities
1.72M351.30K370.81K622.50K
Stockholders Equity
130.52M96.75M102.06M102.36M
Cash FlowFree Cash Flow
-26.32M-4.97M-44.51M-26.64M
Operating Cash Flow
-26.32M-4.97M-44.51M-26.64M
Investing Cash Flow
0.000.000.00-55.46K
Financing Cash Flow
15.08M-1.31M-477.57K102.94M

Stack Capital Group Technical Analysis

Technical Analysis Sentiment
Positive
Last Price12.05
Price Trends
50DMA
10.78
Positive
100DMA
11.09
Positive
200DMA
10.80
Positive
Market Momentum
MACD
0.48
Negative
RSI
61.83
Neutral
STOCH
37.25
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

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
64
Neutral
$12.79B9.727.54%16971.00%12.07%-7.53%
61
Neutral
C$128.78M10.3110.47%-19.24%
$7.22M4.4117.93%
$84.97M-0.71%
TSLPC
74
Outperform
C$77.76M23.2025.24%2.39%24.60%66.30%
59
Neutral
C$196.79M-24.11%-2.40%-489.21%
TSIDK
46
Neutral
C$9.06M-24.56%-137.64%-173.29%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:STCK
Stack Capital Group
12.45
2.43
24.25%
ASXSF
Elysee Development
0.25
0.04
19.05%
GMPXF
RF Capital Group
6.10
0.48
8.54%
TSE:IDK
ThreeD Capital
0.14
-0.15
-51.72%
TSE:LPC
Lorne Park Capital
1.42
0.13
10.08%
TSE:TINY
WeCommerce Holdings Ltd. Class A
0.83
-1.78
-68.20%

Stack Capital Group Corporate Events

Delistings and Listing ChangesPrivate Placements and Financing
Stack Capital Announces TSX Listing of Warrants
Positive
Mar 19, 2025

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.

Business Operations and StrategyFinancial Disclosures
Stack Capital Group Inc. Announces Robust 2024 Financial Results
Positive
Mar 12, 2025

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.

Private Placements and FinancingBusiness Operations and Strategy
Stack Capital Group Invests $10 Million in AI Infrastructure Leader CoreWeave
Positive
Mar 5, 2025

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.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.