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Starco Brands
(OTC:STCB)
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Rating:41Neutral
Price Target:
$0.03
▼(-20.00% Downside)
Action:Reiterated
Date:06/05/26
The score is primarily constrained by weak financial performance: persistent losses, negative operating/free cash flow, and elevated leverage. Technical indicators add modest pressure with a slightly weak near-term trend and negative MACD. Valuation provides limited offset because the negative P/E is driven by unprofitability and no dividend yield is available.
Positive Factors
Branded CPG business model
Starco operates a classic branded CPG model—incubating and acquiring consumer brands and selling via retail/distribution. This durable model supports repeat revenue, multi-channel distribution leverage, and scale benefits from successful brand roll-ups over months to years.
Negative Factors
Persistent unprofitability
The company has persisted with deep net losses (approx -62% margin) across recent periods, showing it has not yet converted revenue or gross profit into sustained operating earnings. This structural profitability gap pressures returns and makes long-term self-funding difficult.
Read all positive and negative factors
Positive Factors
Negative Factors
Branded CPG business model
Starco operates a classic branded CPG model—incubating and acquiring consumer brands and selling via retail/distribution. This durable model supports repeat revenue, multi-channel distribution leverage, and scale benefits from successful brand roll-ups over months to years.
Read all positive factors
Starco Brands (STCB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$25.88M
Dividend YieldN/A
Average Volume (3M)18.10K
Price to Earnings (P/E)―
Beta (1Y)1.26
Revenue Growth-28.07%
EPS Growth-71.19%
CountryUS
Employees29
SectorConsumer Defensive
Sector Strength42
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)-0.03
Shares Outstanding784,192,000
10 Day Avg. Volume23,745
30 Day Avg. Volume18,101
Financial Highlights & Ratios
PEG Ratio-1.41
Price to Book (P/B)6.15
Price to Sales (P/S)0.78
P/FCF Ratio-31.03
Enterprise Value/Market Cap1.32
Enterprise Value/Revenue0.90
Enterprise Value/Gross Profit2.56
Enterprise Value/Ebitda-4.48
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Starco Brands Business Overview & Revenue Model
Company Description
Starco Brands, Inc. focuses on the distribution of consumer products, reaching customers across the United States through both traditional retail outlets and online platforms. Its extensive portfolio spans numerous categories, such as household cl...
How the Company Makes Money
Starco Brands primarily makes money by selling consumer products under its brand portfolio, generating revenue from product sales (typically recognized when goods are delivered to customers) through retail and other distribution channels. Key reve...
Starco Brands Earnings Call Summary
Earnings Call Date:Nov 14, 2024
(Q3-2024)
| % Change Since: |
Next Earnings Date:Aug 19, 2026
Earnings Call Sentiment Neutral
The earnings call presents a mixed picture with notable achievements in cost optimization and brand growth, particularly for Winona and Soylent, but is offset by significant revenue and profit declines, especially in the Whipshots segment. The sentiment is balanced with both promising strategies for future growth and current challenges in revenue generation.Positive Updates
Positive Adjusted EBITDA and Margin Improvement
Achieved positive adjusted EBITDA, driven by cost management and new distribution gains, along with sequential margin improvement.
Negative Updates
Decrease in Net Revenue
Reported net revenue for Q3 2024 was $15.5 million, down from $17.7 million in Q3 2023, driven by targeted e-commerce sales reductions and lower retail volumes.
Read all updates
Q3-2024 Updates
Positive
Negative
Positive Adjusted EBITDA and Margin Improvement
Achieved positive adjusted EBITDA, driven by cost management and new distribution gains, along with sequential margin improvement.
Read all positive updates
Company Guidance
During the third quarter 2024 earnings call for Starco Brands, CEO and Interim CFO Ross Sklar provided detailed insights into the company's operational and financial performance. The quarter was marked by achieving positive adjusted EBITDA and sequential margin improvement, driven by cost management and new distribution gains. The company identified $3 million in cost optimization opportunities, contributing to enhanced capital availability. Notable metrics included a net revenue of $15.5 million, a gross profit of $6.4 million, and an adjusted EBITDA of $0.7 million. Key brand performances were highlighted, such as Winona Popcorn Spray, which achieved over 60% growth year-over-year and 10% market share with only 30% ACV. The Whipshots brand expanded its retail footprint with a partnership with Kroger, securing 1,257 distribution points. Meanwhile, the Art of Sport brand launched into retail with its protein powder now available at Fred’s stores owned by Kroger, and further expansion plans are set for 2025. Soylent showed a 15% cost savings and maintained a 23.6% market share in the meal replacement category with a strong return on ad spend of 4.5x. Starco Brands concluded the quarter with $1.6 million in cash and $13.2 million in inventory, positioning itself for accelerated strategic growth and market penetration in 2025.Starco Brands Financial Statement Overview
Summary
Income Statement
22
Negative
Balance Sheet
38
Negative
Cash Flow
28
Negative
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 40.48M | 58.67M | 65.21M | 7.81M | 673.33K |
| Gross Profit | 8.46M | 20.86M | 11.88M | 7.04M | 387.49K |
| EBITDA | -4.48M | -14.39M | -42.74M | 1.06M | -3.50K |
| Net Income | -20.93M | -17.65M | -46.19M | 809.97K | -2.28M |
Balance Sheet | |||||
| Total Assets | 35.86M | 59.72M | 83.35M | 41.19M | 1.36M |
| Cash, Cash Equivalents and Short-Term Investments | 1.82M | 1.21M | 1.76M | 1.48M | 338.86K |
| Total Debt | 8.57M | 6.72M | 8.39M | 3.74M | 1.53M |
| Total Liabilities | 21.66M | 32.49M | 57.67M | 8.33M | 4.11M |
| Stockholders Equity | 5.12M | 18.40M | 17.16M | 32.77M | -2.67M |
Cash Flow | |||||
| Free Cash Flow | -1.01M | 1.90M | 313.55K | 377.78K | -1.86M |
| Operating Cash Flow | -900.77K | 2.22M | 686.66K | 377.78K | -1.84M |
| Investing Cash Flow | -132.95K | -439.32K | -230.01K | -1.46M | -115.64K |
| Financing Cash Flow | 1.64M | -2.33M | -175.80K | 2.22M | 1.52M |
Starco Brands Technical Analysis
Positive
0.04
Price Trends
0.04
Negative
0.03
Positive
0.03
Positive
Market Momentum
>-0.01
Positive
50.47
Neutral
7.84
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For STCB, the sentiment is Positive. The current price of 0.04 is above the 20-day moving average (MA) of 0.03, above the 50-day MA of 0.04, and above the 200-day MA of 0.03, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 50.47 is Neutral, neither overbought nor oversold. The STOCH value of 7.84 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for STCB.
Starco Brands Risk Analysis
Starco Brands disclosed 27 risk factors in its most recent earnings report. Starco Brands reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 1 New Risks
1.
An impairment in the carrying value of goodwill, trade names and other long-lived assets could negatively affect our consolidated results of operations and net worth. Q4, 2023
Starco Brands Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
63 Neutral | $463.37M | 15.62 | 12.66% | ― | -3.69% | ― | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
57 Neutral | $83.56M | 100.92 | 2.11% | ― | 7.82% | -64.59% | |
52 Neutral | $83.43M | -102.57 | -1.07% | 1.33% | 5.55% | -120.30% | |
46 Neutral | $46.40M | -3.76 | 196.02% | ― | -95.28% | 18.96% | |
41 Neutral | $25.88M | -1.02 | 14.93% | ― | -28.07% | -71.19% |
* Consumer Defensive Sector Average
STCB
Starco Brands
0.03
<0.01
22.22%
FSI
Flexible Solutions International
6.25
0.71
12.82%
NTIC
Northern Technologies International
8.63
0.38
4.62%
ALTO
Alto Ingredients
5.56
4.32
348.39%
LOOP
Loop Industries
0.90
-0.30
-24.75%
CNEY
CN Energy Group
0.46
-2.24
-82.93%
Starco Brands Corporate Events
Executive/Board Changes
Starco Brands Announces Director Resignation Amid Stable Governance
Neutral
Apr 29, 2026
On April 25, 2026, Starco Brands director Bharat Vasan notified the company’s board that he would resign from the Board of Directors, effective April 27, 2026. The company stated that Vasan’s departure did not stem from any disagreemen...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.