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1. Company Snapshot

1.a. Company Description

Software Acquisition Group Inc.III does not have significant operations.It focuses on effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or similar business combination with one or more businesses.


It intends to focus its search on software companies.The company was incorporated in 2021 and is based in Las Vegas, Nevada.

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1.b. Last Insights on SWAG

Here is a 90-word analysis of the positive drivers behind Software Acquisition Group Inc. III's recent performance: Stran & Company's recent performance has been driven by strong revenue growth, with a 7.8% increase in revenue for the nine months ended September 30, 2024, and a 17.8% growth in preliminary unaudited revenue for the fourth quarter 2024. The acquisition of strategic assets of Gander Group has complemented and improved operations, securing significant contracts with leading customers. The company has also reported restated financial results for fiscal years 2022 and 2023, providing transparency and clarity on its financial position.

1.c. Company Highlights

2. Stran & Company Delivers Mixed Results with a Focus on Future Growth

Stran & Company reported its fiscal year 2024 results, highlighting an 8.8% year-over-year revenue increase to $82.7 million. However, the company incurred a net loss of $4.1 million, reflecting higher operating expenses and acquisition-related costs. The gross profit margin stood at 31.2%, with the SLS segment contributing $2.1 million. The EPS came in at $0.03, slightly below analyst estimates of $0.04.

Publication Date: May -04

📋 Highlights
  • Revenue Growth: Increased by 8.8% to $82.7 million.
  • Gross Profit: $25.8 million with a 31.2% gross margin.
  • Acquisition Contribution: Gander Group added $9.9 million in revenue.
  • Operating Expenses: Rose by 17.6% to $30.7 million.
  • Cash Position: $18.2 million with no long-term debt.

Strategic Initiatives and Operational Efficiency

The acquisition of Gander Group in August 2024 was a key strategic move, contributing $9.9 million in revenue and forming the SLS segment. Andy Shape emphasized the successful launch of NetSuite ERP, expected to enhance operational efficiency and scalability. The company also secured several multi-year contracts across various sectors, showcasing its platform's versatility.

Valuation and Financial Position

With a P/S ratio of 0.24, the company appears undervalued. Stran & Company maintains a strong cash position of $18.2 million and no long-term debt, providing financial flexibility. However, the negative ROE and ROIC raise concerns. The company plans to resume share buybacks, signaling confidence in its growth prospects.

Future Outlook and Risks

Management aims to focus on expense management and margin expansion in 2025. While the diversified customer base and new ERP system are positives, the lower margins in SLS and macroeconomic challenges pose risks. The company remains optimistic, leveraging its investments to drive future growth.

3. NewsRoom

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Stran & Company Launches Client-Branded Online Gifting Platform; First Deployment Begins with One of the World's Largest Audit, Tax, and Advisory Firms

Dec -05

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Stran & Company Promotes Jack Audibert to Chief Strategy Officer and Chief Compliance Officer

Nov -28

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Stran & Company, Inc. (SWAG) Q3 2025 Earnings Call Transcript

Nov -13

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Stran & Company Reports 29.0% Increase in Sales to $26.0 Million for the Third Quarter of 2025

Nov -12

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Head to Head Comparison: Stran & Company, Inc. (NASDAQ:SWAG) vs. CMG Holdings Group (OTCMKTS:CMGO)

Oct -30

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Stran & Company, Inc. (SWAG) Q2 2025 Earnings Conference Call Transcript

Aug -13

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Stran & Company to Announce Second Quarter 2025 Financial Results and Business Update Conference Call

Aug -01

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Stran & Company Transforms Board of Directors with New Directors

Jun -23

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (15.40%)

6. Segments

Outsourced Marketing Solutions

Expected Growth: 15.4%

Growing demand for outsourced marketing solutions among software companies, driven by the need for cost-effective and specialized marketing expertise, is expected to fuel growth. The increasing adoption of digital marketing strategies and the need for data-driven marketing approaches will further propel the market.

7. Detailed Products

Cybersecurity Solutions

Software Acquisition Group Inc. III offers a range of cybersecurity solutions to protect businesses from cyber threats. These solutions include threat detection, incident response, and penetration testing.

Cloud Services

Software Acquisition Group Inc. III provides cloud services, including infrastructure as a service (IaaS), platform as a service (PaaS), and software as a service (SaaS). These services enable businesses to scale and deploy applications quickly and efficiently.

Data Analytics

Software Acquisition Group Inc. III offers data analytics solutions to help businesses make data-driven decisions. These solutions include data visualization, machine learning, and predictive analytics.

IT Consulting

Software Acquisition Group Inc. III provides IT consulting services to help businesses optimize their IT infrastructure and operations. These services include IT strategy, architecture, and implementation.

Software Development

Software Acquisition Group Inc. III offers custom software development services to help businesses build bespoke applications. These services include design, development, testing, and deployment.

8. Software Acquisition Group Inc. III's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Software Acquisition Group Inc. III is medium, as there are some alternatives available, but they are not very attractive to customers.

Bargaining Power Of Customers

The bargaining power of customers for Software Acquisition Group Inc. III is low, as customers have limited options and the company has a strong brand presence.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Software Acquisition Group Inc. III is high, as the company relies heavily on a few key suppliers for critical components.

Threat Of New Entrants

The threat of new entrants for Software Acquisition Group Inc. III is low, as the company has a strong brand presence and high barriers to entry.

Intensity Of Rivalry

The intensity of rivalry for Software Acquisition Group Inc. III is medium, as there are several competitors in the market, but the company has a strong market position.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 3.24%
Debt Cost 3.95%
Equity Weight 96.76%
Equity Cost 15.14%
WACC 14.78%
Leverage 3.35%

11. Quality Control: Software Acquisition Group Inc. III passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Tompkins Financial

A-Score: 6.2/10

Value: 6.1

Growth: 4.4

Quality: 6.3

Yield: 8.0

Momentum: 6.0

Volatility: 6.7

1-Year Total Return ->

Stock-Card
Citizens Financial Services

A-Score: 6.0/10

Value: 7.0

Growth: 5.1

Quality: 5.5

Yield: 7.0

Momentum: 6.5

Volatility: 4.7

1-Year Total Return ->

Stock-Card
Metals Acquisition

A-Score: 4.9/10

Value: 5.5

Growth: 6.6

Quality: 3.7

Yield: 5.0

Momentum: 3.5

Volatility: 5.3

1-Year Total Return ->

Stock-Card
Software AG III

A-Score: 4.7/10

Value: 9.2

Growth: 4.3

Quality: 4.2

Yield: 0.0

Momentum: 8.5

Volatility: 2.0

1-Year Total Return ->

Stock-Card
Greene County Bancorp

A-Score: 4.6/10

Value: 5.4

Growth: 6.6

Quality: 6.8

Yield: 3.0

Momentum: 1.0

Volatility: 5.0

1-Year Total Return ->

Stock-Card
AIB Acquisition

A-Score: 4.2/10

Value: 6.2

Growth: 3.2

Quality: 6.5

Yield: 0.0

Momentum: 2.5

Volatility: 6.7

1-Year Total Return ->

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

1.95$

Current Price

1.95$

Potential

-0.00%

Expected Cash-Flows