Stacks are used for many things by compilers. Function arguments are pushed onto a stack, then popped off the stack by the called function. Return addresses are pushed onto a stack, then popped off as the functions return.
Having a function call itself can generate a stack overflow, if there is no way to terminate the call. However, this is generally a run-time issue, not a compile-time issue.
Without seeing your code, there is no way to guess what the problem is. Can you post it?
437 lines of code may be a lot of code, or it might not. It all depends on what the code is doing.