Want to see STCB full AI Analyst Report?
Starco Brands (STCB) AI Stock Analysis
Starco Brands
(Other OTC:STCB)
STCB scores at the low end of the range, driven primarily by a high-risk financial profile: three consecutive periods of revenue decline, deep ongoing losses, a nearly depleted equity base with leverage at roughly 2.6 times, and a return to negative operating and free cash flow. Technicals reinforce the caution, with the price trading below all major moving averages and a negative MACD, though a near-oversold RSI suggests potential short-term stabilization. Valuation provides no cushion given negative earnings and no dividend. The modest positives — recovering gross margin, low capital intensity, and a manageable absolute debt balance — are not yet enough to offset the turnaround and liquidity risks.
Starco Brands (STCB) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $21.96M
- Dividend Yield
- ―
- Average Volume (3M)
- 80.54K
- Price to Earnings (P/E)
- -0.9
- Beta (1Y)
- 1.72
- Revenue Growth
- -27.39%
- EPS Growth
- -1245.45%
- Country
- US
- Employees
- 26
- Sector
- Consumer Defensive
- Sector Strength
- 62
- Industry
- Advertising Agencies
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 clean...
Starco Brands Earnings Call Summary
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.
Q3-2024 Updates
Positive Updates
Negative 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
Financials are weak across the board. Revenue has contracted for three straight periods from its 2023 peak of about $65.2 million to roughly $34.9 million on a trailing-twelve-month basis, while losses remain deep with a TTM net loss near $23.2 million and a net margin around -66%. Shareholders' equity has collapsed from about $18.4 million in 2024 to just $3.3 million, pushing debt-to-equity to roughly 2.6 times and leaving almost no cushion against further losses. Operating and free cash flow have swung back to negative after a brief positive stretch in 2024. Partial offsets include a rebound in gross margin to about 30%, a modest absolute debt balance of roughly $8.8 million, and minimal capital spending that keeps the cash burn small relative to reported losses.
Income Statement
14Very NegativeBalance Sheet
18Very NegativeCash Flow
22Negative| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 34.92M | 40.48M | 58.67M | 65.21M | 7.81M | 673.33K |
| Gross Profit | 10.51M | 8.46M | 20.86M | 11.88M | 7.04M | 387.49K |
| EBITDA | -7.67M | -16.72M | -13.53M | -42.74M | 1.06M | -3,500 |
| Net Income | -23.19M | -20.93M | -17.65M | -46.19M | 809.97K | -2.28M |
Balance Sheet | ||||||
| Total Assets | 34.14M | 35.86M | 59.72M | 83.35M | 41.19M | 1.36M |
| Cash, Cash Equivalents and Short-Term Investments | 901.13K | 1.82M | 1.21M | 1.76M | 1.48M | 338.86K |
| Total Debt | 8.75M | 8.57M | 6.72M | 8.39M | 3.74M | 1.53M |
| Total Liabilities | 21.77M | 21.66M | 32.49M | 57.67M | 8.33M | 4.11M |
| Stockholders Equity | 3.35M | 5.12M | 18.40M | 17.16M | 32.77M | -2.67M |
Cash Flow | ||||||
| Free Cash Flow | -825.95K | -1.01M | 1.90M | 313.55K | 377.78K | -1.86M |
| Operating Cash Flow | -808.96K | -900.77K | 2.22M | 686.66K | 377.78K | -1.84M |
| Investing Cash Flow | -1,999 | -132.95K | -439.32K | -230.01K | -1.46M | -115.64K |
| Financing Cash Flow | 802.46K | 1.64M | -2.33M | -175.80K | 2.22M | 1.52M |
Starco Brands Technical Analysis
Price Trends
Market Momentum
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 0.03 is above the 20-day moving average (MA) of 0.03, below the 50-day MA of 0.03, and below the 200-day MA of 0.03, indicating a neutral trend. The MACD of 0.00 indicates Negative momentum. The RSI at 54.63 is Neutral, neither overbought nor oversold. The STOCH value of 100.00 is Negative, 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.
Latest Risks Added
1 New RiskStarco Brands Peers Comparison
Overall Rating
ALTO64Neutral
FSI52Neutral
NTIC50Neutral
LOOP43Neutral- STCB38Underperform
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| ALTO | 64Neutral | $283.13M | 5.13 | 21.15% | ― | 1.09% | ― |
| Sector * | 62Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% |
| FSI | 52Neutral | $78.69M | -25.18 | -8.12% | ― | -4.66% | -201.32% |
| NTIC | 50Neutral | $71.51M | -58.24 | -1.60% | 0.53% | 7.70% | -139.19% |
| LOOP | 43Neutral | $12.69M | -1.15 | 158.94% | ― | -94.98% | -1.55% |
| STCB | 38Underperform | $21.94M | -0.92 | -248.42% | ― | -27.39% | -1245.45% |
* Consumer Defensive Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| STCB | Starco Brands | 0.03 | 0.01 | 22.73% | |
| FSI | Flexible Solutions International | 6.17 | -2.67 | -30.20% | |
| NTIC | Northern Technologies International | 7.49 | -0.72 | -8.77% | |
| ALTO | Alto Ingredients, Inc. | 3.50 | 2.37 | 209.73% | |
| LOOP | Loop Industries | 0.28 | -1.30 | -82.09% | |
| CNEY | Cn Energy Group Inc | 0.45 | -1.38 | -75.55% |
Starco Brands Corporate Events
Starco Brands Announces Material Definitive Agreement Disclosure
NeutralStarco Brands issued a disclosure referencing prior statements, but the provided text is fragmentary and lacks substantive details on operations, financial performance, or strategic initiatives.With no specific dates, metrics, or transactional inform...
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.
Date of analysis: Oct 28, 2026