The company reported a 10.53% year-over-year revenue decline, though it managed to sustain a 12.91% net margin through potential shifts toward higher-margin automation services.
| Metric | Jun'24 | Jun'23 | Jun'22 |
|---|
| Sales/Revenue | 18.92M | 21.15M | 8.13M |
| Revenue Growth % | -10.53% | 160.1% | - |
| Cost of Goods Sold | 13.25M | 14.39M | 5.19M |
| COGS % of Revenue | 70.01% | 68.03% | 63.89% |
| Gross Profit | 5.67M | 6.76M | 2.94M |
| Gross Margin % | 29.99% | 31.97% | 36.11% |
| Gross Profit Growth % | -16.08% | 130.29% | - |
| Operating Expenses | 2.87M | 3.13M | 1.25M |
| OpEx % of Revenue | 15.2% | 14.8% | 15.35% |
| Selling, General & Admin | 1.2M | 1.76M | 830.55K |
| SG&A % of Revenue | 6.33% | 8.31% | 10.22% |
| Research & Development | 1.68M | 1.37M | 417.33K |
| R&D % of Revenue | 8.87% | 6.49% | 5.13% |
| Other Operating Expenses | 0 | 0 | 0 |
| Operating Income | 2.8M | 3.63M | 1.69M |
| Operating Margin % | 14.79% | 17.18% | 20.76% |
| Operating Income Growth % | -22.95% | 115.19% | - |
| EBITDA | 3.16M | 4M | 1.9M |
| EBITDA Margin % | 16.72% | 18.9% | 23.37% |
| EBITDA Growth % | -20.88% | 110.35% | - |
| D&A (Non-Cash Add-back) | 363.88K | 365.05K | 212.35K |
| EBIT | 2.84M | 4.23M | 1.92M |
| Net Interest Income | -126.37K | -52.35K | -3.04K |
| Interest Income | 0 | 0 | 0 |
| Interest Expense | 126.37K | 52.35K | 3.04K |
| Other Income/Expense | -80.73K | 543.24K | 229.43K |
| Pretax Income | 2.72M | 4.18M | 1.92M |
| Pretax Margin % | 14.37% | 19.75% | 23.58% |
| Income Tax | 276.19K | 715.04K | 233K |
| Effective Tax Rate % | 10.16% | 17.12% | 12.15% |
| Net Income | 2.44M | 3.46M | 1.64M |
| Net Margin % | 12.91% | 16.36% | 20.12% |
| Net Income Growth % | -29.44% | 111.52% | - |
| Net Income (Continuing) | 2.44M | 3.46M | 1.68M |
| Discontinued Operations | 0 | 0 | -48.36K |
| Minority Interest | 0 | 0 | 0 |
| EPS (Diluted) | 0.22 | 0.31 | 0.15 |
| EPS Growth % | -29.03% | 106.67% | - |
| EPS (Basic) | 0.22 | 0.31 | 0.15 |
| Diluted Shares Outstanding | 11.25M | 11.25M | 11.25M |
| Basic Shares Outstanding | 11.25M | 11.25M | 11.25M |
| Dividend Payout Ratio | - | - | - |
Liquidity and concentration risk
As reported in recent financial filings, STAK experienced a 10.53% year-over-year revenue decline, suggesting that the company's specialized maintenance equipment segment is struggling to maintain volume against the backdrop of fluctuating capital expenditure cycles within the Chinese state-owned oil and gas sector.
The double-digit revenue contraction indicates that the firm's reliance on mature onshore oilfield maintenance may be hitting a ceiling or facing increased competitive pressure. Investors should monitor whether this decline reflects a structural loss of market share or merely the lumpy, project-based nature of equipment deliveries to state-owned entities.
Based on reported figures, STAK maintains a 12.91% net margin, which appears surprisingly robust given the recent 10.53% revenue decline, potentially signaling effective cost management or a favorable shift toward higher-margin automation services within the company's overall product mix.
The 30% gross margin suggests an assembly-heavy business model that is sensitive to raw material costs like steel. The ability to preserve net profitability during a period of declining sales warrants further investigation into whether non-operating items or government subsidies are providing a temporary cushion to the bottom line.
According to operational data, STAK's cost structure is heavily weighted toward variable inputs such as heavy-duty truck chassis, which leaves the company's 14.79% operating margin vulnerable to supply chain volatility and inflationary pressures in the Chinese industrial manufacturing sector.
The lean corporate structure appears to be a double-edged sword, providing efficiency during growth but limiting the company's ability to absorb fixed costs when revenue trends downward. Management's expense discipline will be tested as they attempt to balance R&D requirements with the need to maintain profitability in a shrinking revenue environment.
As indicated by the company's financial snapshot, the extremely low cash position of $658,154 relative to $18.9M in revenue suggests a precarious liquidity profile that may limit the firm's ability to fund future growth or weather prolonged downturns in oilfield maintenance demand.
Short-sellers would likely focus on the high geographic concentration in China and the potential for extended payment cycles from SOE-linked customers to further strain working capital. The lack of significant cash reserves may force the company to seek dilutive financing, which would fundamentally alter the current capital structure.
Quick answers to the most common questions about buying STAK stock.
For fiscal year 2023, STAK Inc. Ordinary Shares (STAK) reported total revenue of $18.9M. This represents a 132.7% increase compared to $8.1M in 2021.
STAK Inc. Ordinary Shares (STAK) is profitable, generating $2.4M in net income for the fiscal year ending 2023 with a net profit margin of 12.9%.
STAK Inc. Ordinary Shares (STAK) reported an operating income of $2.8M, resulting in an operating profit margin of 14.8%. This margin reflects the operational efficiency of the business before interest and taxes.
STAK Inc. Ordinary Shares (STAK) generated $5.7M in gross profit for the year, representing a gross profit margin of 30.0%. This demonstrates the company's core pricing power and production efficiency.