STG International Ltd

Capital Structure and Liquidity STG International maintains a strong liquidity position, with a current ratio of 4.21, indicating a robust ability to meet short-term obligations. The company holds cash and equivalents of ILS 75.3 million, significantly exceeding its total liabilities of ILS 50.9 million. The debt-to-equity ratio is 0.05, reflecting a conservative capital structure with minimal leverage. ### Profitability and Returns The company's return on equity (ROE) is 7.41%, and its return on assets (ROA) is 5.54%, both of which are in line with the industry's typical performance metrics. Operating income of ILS 24.6 million and net income of ILS 11.2 million suggest a healthy margin profile, although the gross profit margin of 30% (ILS 54.7 million on ILS 183.6 million revenue) indicates moderate cost control. ### Segments and Geographic Exposure The company operates through several subsidiaries, including STG Electronic, STG Technologies, and Startronics, but does not disclose segment-specific revenue figures. Its primary geographic exposure is to Israel, with U.S.-based manufacturing partners, and it serves clients in the civil and security industries. ### Growth Trajectory While no explicit growth projections are provided, the company's free cash flow of ILS 0.998 million and operating cash flow of ILS 32.38 million suggest a stable cash-generating business. Capital expenditures of ILS -2.815 million indicate a focus on maintaining rather than expanding operations. ### Risk Factors and Dilution Potential The risk assessment indicates low liquidity and dilution risk, with no immediate filing-based flags detected. The company's low debt levels and strong cash position reduce financial risk exposure. No dilution sources were identified in recent filings, and the probability of near-term dilution is low. ### Recent Events No recent filings or transcripts were identified that would indicate material changes in the company's operations or financial position.