Stran & Company (SWAG) AI Stock Analysis

• Market Cap: $17.49M
• Dividend Yield: N/A
• Average Volume (3M): 12.24K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.92
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 118
• Sector: Communication Services
• Sector Strength: 76
• Industry: Advertising Agencies
• EPS (TTM): -0.17
• Shares Outstanding: 18,608,408
• 10 Day Avg. Volume: 8,224
• 30 Day Avg. Volume: 12,237
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.24
• Price to Cash Flow (P/CF): -1.70
• P/FCF Ratio: 0.00
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Stran & Company's overall score is driven by strong revenue growth but hampered by profitability and cash flow issues. The technical indicators suggest a bearish sentiment, and the valuation metrics reflect current unprofitability. While the acquisition of Gander Group and financial restatements indicate growth potential, compliance challenges with Nasdaq present risks. These factors collectively result in a moderate score, highlighting the need for strategic improvements.

Stran & Company Business Overview & Revenue Model

Company Description

Stran & Company, Inc. (SWAG) is a leader in the promotional products industry, focusing on creating custom marketing solutions and brand engagement strategies. The company operates primarily in the marketing and advertising sector, offering a wide range of products such as promotional merchandise, branded apparel, and custom packaging. Stran & Company is known for its ability to design and execute comprehensive marketing campaigns, catering to businesses of all sizes across various industries.

How the Company Makes Money

Stran & Company makes money primarily through the sale and distribution of promotional products and related services. The company's revenue streams include direct sales of customized promotional items, which are often part of larger marketing and brand awareness campaigns. Stran & Company also generates income from its value-added services, such as creative design, warehousing, and fulfillment solutions, which support clients' marketing efforts. Additionally, significant partnerships with manufacturers and suppliers enable the company to offer competitive pricing and a diverse product range, further enhancing its revenue generation capabilities.

Stran & Company Financial Statement Overview

Summary

Stran & Company demonstrates robust revenue growth, but profitability and cash flow issues persist. The balance sheet is strong, with low leverage and a solid equity base, but operational challenges continue to impact cash flow and profitability. These factors suggest a need for improved cost management and cash flow efficiency to leverage growth into sustainable profits.

Income Statement

The company has shown impressive revenue growth, with a 28.7% increase in 2023 compared to 2022. Despite this, profitability remains an issue, as evidenced by the negative EBIT and low net profit margin of 0.05%. The EBITDA margin, though positive at 0.47%, indicates challenges in operating profitability.

Balance Sheet

The balance sheet reflects a strong equity position with an equity ratio of 64.2%. The debt-to-equity ratio is low at 0.03, indicating minimal leverage, which suggests financial stability. However, the ROE is only 0.09%, pointing to underutilization of equity in generating profits.

Cash Flow

Cash flow analysis reveals a negative free cash flow in 2023, suggesting cash management challenges. The operating cash flow to net income ratio is negative, indicating operational cash deficits. However, the free cash flow to net income ratio of -152.9% reflects significant cash outflows beyond earnings.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
60.18M	76.00M	58.95M	39.70M	37.75M	30.32M
	Gross Profit
20.16M	24.85M	16.57M	11.84M	11.48M	8.96M
	EBIT
-2.21M	-1.27M	-1.51M	-437.88K	1.49M	811.02K
	EBITDA
-1.75M	314.00K	-780.30K	8.83K	1.71M	768.13K
	Net Income Common Stockholders
-2.18M	-385.00K	-778.44K	235.24K	1.03M	389.86K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
25.03M	18.45M	25.03M	32.23M	647.24K	2.44M
	Total Assets
56.63M	49.04M	56.63M	51.20M	13.30M	12.10M
	Total Debt
947.04K	1.33M	947.04K	1.26M	4.09M	3.81M
	Net Debt
-14.31M	-6.66M	-14.31M	-30.97M	3.44M	1.37M
	Total Liabilities
17.26M	13.39M	17.26M	9.59M	11.68M	11.51M
	Stockholders Equity
39.36M	35.65M	39.36M	41.61M	1.63M	598.57K
Cash Flow		Free Cash Flow
1.28M	-3.55M	-4.10M	-6.22M	-2.17M	754.78K
	Operating Cash Flow
1.43M	-2.55M	-2.41M	-5.83M	-1.99M	872.66K
	Investing Cash Flow
1.84M	-3.74M	-11.65M	-388.95K	-176.47K	-117.88K
	Financing Cash Flow
-1.12M	-909.00K	-2.91M	37.80M	375.01K	-326.44K

Stran & Company Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.94
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SWAG, the sentiment is Negative. The current price of 0.94 is below the 20-day moving average (MA) of 0.96, below the 50-day MA of 1.03, and below the 200-day MA of 1.09, indicating a bearish trend. The MACD of -0.01 indicates Negative momentum. The RSI at 48.64 is Neutral, neither overbought nor oversold. The STOCH value of 43.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SWAG.

Stran & Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HALO	79 Outperform	$7.38B	17.41	198.42%	―	22.44%	63.47%
SIFY	65 Neutral	$289.61M	―	0.20%	―	12.76%	―
Sector *	58 Neutral	$24.96B	3.11	-10.53%	4.28%	2.32%	-43.03%
SPCB	56 Neutral	$19.71M	―	9.92%	―	―	―
SWAG	55 Neutral	$17.49M	―	-8.70%	―	―	―
CMCM	53 Neutral	$113.40M	―	-24.55%	―	―	―
PRPO	40 Underperform	$7.93M	―	-32.35%	―	21.95%	39.43%

Stran & Company Corporate Events

Stran & Company Reports Financial Restatement and Growth

On January 22, 2025, Stran & Company announced the restatement of its financial results for fiscal years 2022 and 2023. The company’s sales increased significantly, driven by acquisitions and higher client spending, with a notable increase in gross profit. Additionally, Stran acquired Gander Group in November 2024, enhancing its position in the casino continuity and loyalty sector, and secured key contracts with major clients in 2024. These developments strengthen Stran’s market presence and are expected to contribute to its long-term growth.

Stran & Company Faces Nasdaq Compliance Challenge

Stran & Company has received a notification from Nasdaq due to delayed filing of its quarterly financial report, risking non-compliance with listing rules. The company has until December 6, 2024, to submit an updated compliance plan, although there’s no assurance it will be accepted. This situation does not immediately affect the stock’s listing, as Stran works to regain compliance swiftly.