1. Investment Snapshot
2. Thesis
3. Valuation & Price Target
4. Business & Product Moat
5. People & Governance
6. Market & Macro
7. Financial Quality
8. Risk Register
9. Prediction Market
10. 𝕏 Posts
Discussion
1. Investment Snapshot
2. Thesis
3. Valuation & Price Target
4. Business & Product Moat
5. People & Governance
6. Market & Macro
7. Financial Quality
8. Risk Register
9. Prediction Market
10. 𝕏 Posts
Discussion
1. Investment Snapshot
2. Valuation
Discussion
Symbol
STRN
Event Date
2021-11-09
Sector
Communication Services
Subsector
Media
Offer Range
—
Shares Offered
4.34M
14.99M
$62.2M
28.9%
Implied Upside vs Midpoint
Description
We are an outsourced marketing solutions provider, working closely with our customers to develop sophisticated marketing programs that leverage our promotional products and loyalty incentive expertise. It is our mission to develop long term relationships with our customers, enabling them to connect with both their customers and employees in order to build lasting brand loyalty. We purchase products and branding through various third-party manufacturers and decorators and resell the finished goods to customers. In addition to selling branded products, we offer our clients: . custom sourcing capabilities; . a flexible and customizable e-commerce solution for . promoting branded merchandise and other promotional products; . managing promotional loyalty and incentives, print collateral, and event assets; . order and inventory management; and . designing and hosting online retail popup shops, fixed public retail online stores, and online business-to business service offerings; . creative and merchandising services; . warehousing/fulfillment and distribution; . print-on-demand, kitting, and point of sale displays; and . loyalty and incentive programs. These valuable services, as well as the deep level of commitment we have to the business operations of our customers, have resulted in a strong and stable position within the industry. We specialize in managing complex promotional marketing programs to help recognize the value of promotional products and branded merchandise as a tool to drive awareness, build brands and impact sales. This form of advertising is very powerful and impactful and particularly effective at building brand loyalty because it typically uses products that are considered useful and appreciated by recipients and are retained and used or seen repeatedly, repeating the imprinted message many times without adding cost to the advertiser. We have built the tools, processes, relationships and the blueprint to maximize the potential of these products and deliver the most value to our customers. For over 25 years we have grown into a leader in the promotional products industry, ranking 18th overall and tied for 7th fastest-growing in the United States on Print+Promo’s 2020 Top 50 Distributors list, and 32nd from over 40,000 businesses based on ASI’s Counselor magazine 2021 Top 40 Distributors list. Since our first year of operations in 1995, our annual revenues have gradually grown from approximately $240,000 to over $37.7 million in 2020, a compound annual growth rate of approximately 22%, and between 2017 and 2020, our revenues grew at a compound annual growth rate of approximately 24%. During 2017 through 2020, we had consistent gross margins of approximately 30%, and processed over 25,000 customer orders per year. Our 2019 and 2020 revenues and gross margins include non-recurring revenues representing 16.54% and 27.12% of our overall revenues for 2019 and 2020, respectively, as a subcontractor for the 2020 U.S. Census. The customer that engaged us in this regard will not renew their engagement with us due to the U.S. Census only occurring once every ten years. As a result, these non-recurring revenue increases are not expected to recur in fiscal year 2021 or beyond and do not represent our long-term growth expectations. As of June 30, 2021, we had total assets of $14.1 million with total shareholder equity of $1.2 million. We serve a highly diversified customer base across many industry verticals including pharmaceutical and healthcare, manufacturing, technology, finance, construction and consumer goods. Many of our customers are household names and include some of the largest corporations in the world. Our sales declined 19.8% year-over-year in the first six months of 2021 compared to the first six months of 2020, which we believe was due to the completion of the U.S. Census program in 2020, market saturation of personal protective equipment in 2021, a lack of in-person events, and businesses still not being fully reopened in 2021 as a result of the COVID-19 pandemic. Nevertheless, we expect that by the fourth quarter of 2021 pent-up demand from more widespread immunity to the COVID-19 virus and societal reopening will help compensate for lower sales during the first two quarters of 2021. Our headquarters are located at Quincy, Massachusetts, with remote offices located in Fairfield, Connecticut and Warsaw, Indiana. In addition, we have sales representatives in 12 additional locations across the United States and a network of service providers in the United States and abroad, including factories, decorators, printers, logistics firms, and warehouses. Our company was incorporated in the State of Massachusetts on November 17, 1995 under the name “Strän & Company, Inc.” We also use the registered trade name “Stran Promotional Solutions”. On September 26, 2020, we acquired certain assets including the customer account managers and customer base of the Wildman Imprints division (“Wildman Imprints”) of Wildman Business Group, LLC (“WBG”). On May 24, 2021, we changed our state of incorporation to the State of Nevada by merging into Stran & Company, Inc., a Nevada corporation, and changed the spelling of our name to “Stran & Company, Inc.” --- Our principal executive offices are located at 2 Heritage Drive, Suite 600, Quincy, MA 02171 and our telephone number is 800-833-3309. We maintain a website at www.stran.com.
Stran & Company, Inc. annual income statement and balance sheet, FY 2022 to FY 2025, as reported in SEC filings.
| Metric | FY 2022 | FY 2023 | FY 2024 | FY 2025 |
|---|---|---|---|---|
| Revenue | $59.0M | — | $82.7M | $116M |
| Gross profit | $16.6M | — | $25.8M | $34.2M |
| Operating income | ($1.5M) | — | ($4.9M) | ($2.0M) |
| Net income | ($778K) | — | ($4.1M) | ($747K) |
| Metric | FY 2022 | FY 2023 | FY 2024 | FY 2025 |
|---|---|---|---|---|
| Total assets | $56.6M | — | $55.1M | $49.3M |
| Total liabilities | — | — | $23.5M | $18.8M |
| Total equity | $39.4M | $35.6M | $31.6M | $30.5M |
| Cash & equivalents | $15.3M | $8.1M | $9.4M | $6.8M |