Straker Translations (ASX:STG) - Share price, News & Analysis

STG fundamental analysis
Snowflake Score
Valuation	1/6
Future Growth	1/6
Past Performance	0/6
Financial Health	6/6
Dividends	0/6

STG Stock Overview

Straker Translations Limited, together with its subsidiaries, engages in the provision of translation services in Asia Pacific, Europe, the Middle East, Africa, and North America.

Rewards

Revenue is forecast to grow 11.22% per year

Risk Analysis

Currently unprofitable and not forecast to become profitable over the next 3 years

Does not have a meaningful market cap (A$73M)

Straker Translations Competitors

AVADA Group

ASX:AVD

AU$54.6m

Ai-Media Technologies

ASX:AIM

AU$59.5m

AMA Group

ASX:AMA

AU$191.9m

BSA

ASX:BSA

AU$35.4m

Price History & Performance

Summary of all time highs, changes and price drops for Straker Translations
Historical stock prices
Current Share Price	AU$1.08
52 Week High	AU$1.96
52 Week Low	AU$0.98
Beta	1.84
1 Month Change	-6.52%
3 Month Change	-24.03%
1 Year Change	-45.01%
3 Year Change	-47.82%
5 Year Change	n/a
Change since IPO	-37.14%

Shareholder Returns

	STG	AU Commercial Services	AU Market
7D	5.4%	2.4%	-0.7%
1Y	-45.0%	-5.5%	-10.8%

Return vs Industry: STG underperformed the Australian Commercial Services industry which returned -5.2% over the past year.

Return vs Market: STG underperformed the Australian Market which returned -10.5% over the past year.

Price Volatility

Is STG's price volatile compared to industry and market?
STG volatility
STG Average Weekly Movement	6.8%
Commercial Services Industry Average Movement	8.5%
Market Average Movement	10.1%
10% most volatile stocks in AU Market	16.8%
10% least volatile stocks in AU Market	4.5%

Stable Share Price: STG is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: STG's weekly volatility (7%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1999	273	Grant Straker	https://www.strakertranslations.com

Straker Translations Limited, together with its subsidiaries, engages in the provision of translation services in Asia Pacific, Europe, the Middle East, Africa, and North America. The company operates AI-POWERED RAY, a suite of customizable AI and automation translation tools that creates a first draft translation and matching the customer’s content with one or more of the approximately 10,000 crowd-sourced human translators for refinement. It offers subtitling, dubbing, access, and multimedia content services.

Straker Translations Fundamentals Summary

How do Straker Translations's earnings and revenue compare to its market cap?
STG fundamental statistics
Market Cap	NZ$80.45m
Earnings (TTM)	-NZ$5.91m
Revenue (TTM)	NZ$55.90m

1.4x

P/S Ratio

-13.6x

P/E Ratio

Is STG overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
STG income statement (TTM)
Revenue	NZ$55.90m
Cost of Revenue	NZ$25.52m
Gross Profit	NZ$30.38m
Other Expenses	NZ$36.29m
Earnings	-NZ$5.91m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	-0.087
Gross Margin	54.35%
Net Profit Margin	-10.58%
Debt/Equity Ratio	0%

How did STG perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is STG undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for STG?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for STG. This is calculated by dividing STG's market cap by their current preferred multiple.
What is STG's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	NZ$80.45m

STG key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1.2x
Enterprise Value/EBITDA	-16.3x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does STG's PS Ratio compare to its peers?

STG PS Ratio vs Peers

The above table shows the PS ratio for STG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PS	Estimated Growth	Market Cap
Peer Average	0.5x
AVD AVADA Group	0.5x	11.0%	AU$54.6m
AIM Ai-Media Technologies	1.1x	14.5%	AU$59.5m
AMA AMA Group	0.2x	9.2%	AU$191.9m
BSA BSA	0.08x	n/a	AU$35.4m
STG Straker Translations	1.4x	11.2%	AU$72.9m

Forward PS

Price-To-Sales vs Peers: STG is expensive based on its Price-To-Sales Ratio (1.4x) compared to the peer average (0.5x).

Price to Earnings Ratio vs Industry

How does STG's PE Ratio compare vs other companies in the AU Commercial Services Industry?

Price-To-Sales vs Industry: STG is good value based on its Price-To-Sales Ratio (1.4x) compared to the Australian Commercial Services industry average (1.5x)

Price to Sales Ratio vs Fair Ratio

What is STG's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

STG PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	1.4x
Fair PS Ratio	1.2x

Price-To-Sales vs Fair Ratio: STG is expensive based on its Price-To-Sales Ratio (1.4x) compared to the estimated Fair Price-To-Sales Ratio (1.2x).

Share Price vs Fair Value

What is the Fair Price of STG when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: Insufficient data to calculate STG's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate STG's fair value for valuation analysis.

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate STG's PEG Ratio to determine if it is good value.

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Future Growth

How is Straker Translations forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

Future Growth Score

1/6

Future Growth Score 1/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

64.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: STG is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: STG is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: STG is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: STG's revenue (11.2% per year) is forecast to grow faster than the Australian market (5.2% per year).

High Growth Revenue: STG's revenue (11.2% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: STG is forecast to be unprofitable in 3 years.

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Past Performance

How has Straker Translations performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-31.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: STG is currently unprofitable.

Growing Profit Margin: STG is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: STG is unprofitable, and losses have increased over the past 5 years at a rate of 31.8% per year.

Accelerating Growth: Unable to compare STG's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: STG is unprofitable, making it difficult to compare its past year earnings growth to the Commercial Services industry (3.7%).

Return on Equity

High ROE: STG has a negative Return on Equity (-14.35%), as it is currently unprofitable.

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Financial Health

How is Straker Translations's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Stable Cash Runway
Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: STG's short term assets (NZ$29.2M) exceed its short term liabilities (NZ$17.5M).

Long Term Liabilities: STG's short term assets (NZ$29.2M) exceed its long term liabilities (NZ$3.9M).

Debt to Equity History and Analysis

Debt Level: STG is debt free.

Reducing Debt: STG had no debt 5 years ago.

Balance Sheet

Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: STG has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: STG has sufficient cash runway for 2.4 years if free cash flow continues to reduce at historical rates of 21.2% each year.

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Dividend

What is Straker Translations's current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate STG's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate STG's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if STG's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if STG's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as STG has not reported any payouts.

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Management

How experienced are the management team and are they aligned to shareholders interests?

9.5yrs

Average management tenure

CEO

Grant Straker

no data

Tenure

NZ$449,000

Compensation

Mr. Grant Straker co-founded Straker Translations Limited in 1999 and also serves as its Chief Executive Officer and Director and was appointed to the board on December 21, 1999. He has wide-ranging experi...

CEO Compensation Analysis

Compensation vs Market: Grant's total compensation ($USD278.67K) is about average for companies of similar size in the Australian market ($USD282.25K).

Compensation vs Earnings: Grant's compensation has increased whilst the company is unprofitable.

Leadership Team

Experienced Management: STG's management team is seasoned and experienced (9.5 years average tenure).

Board Members

Experienced Board: STG's board of directors are considered experienced (7.8 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/07/05 00:00
End of Day Share Price	2022/07/05 00:00
Earnings	2022/03/31
Annual Earnings	2022/03/31