Star Combo Pharma Ltd. (S66) AI Stock Analysis

• Market Cap: AU$32.40M
• Dividend Yield: 1.54%
• Average Volume (3M): 6.77K
• Price to Earnings (P/E): 6.2
• Beta (1Y): -0.26
• Revenue Growth: 6.89%
• EPS Growth: 607.27%
• Country: AU
• Employees: N/A
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Household & Personal Products
• EPS (TTM): 0.04
• Shares Outstanding: 135,002,980
• 10 Day Avg. Volume: 4,300
• 30 Day Avg. Volume: 6,768
• PEG Ratio: 0.01
• Price to Book (P/B): 0.63
• Price to Sales (P/S): 0.86
• P/FCF Ratio: 2.08
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: AU$0.25 ▼(-0.40% Downside)

The score is driven primarily by solid financial performance—especially strong cash generation and low leverage—despite weaker revenue growth and a negative EBIT margin. Valuation is supportive with a low P/E and dividend yield. Technically, the uptrend is clear, but overbought signals (high RSI/Stoch) temper the score due to elevated pullback risk.

Positive Factors

Strong cash generation

Exceptional free cash flow growth and a 2.04 operating-cash-to-net-income ratio indicate the company converts earnings into cash efficiently. Durable cash generation supports capex, R&D, dividends and M&A, reducing refinancing risk and enabling strategic investments over the medium term.

Conservative balance sheet

Very low leverage and a healthy capital structure provide financial flexibility to withstand shocks and fund growth without heavy borrowing. Improved ROE shows capital is being used more effectively, supporting sustainable shareholder returns and lower bankruptcy risk over time.

Improving profitability metrics

Rising gross and net margins reflect better cost control and pricing power within its product mix. If sustained, these margin improvements underpin stronger free cash flow and reinvestment capacity, improving long-term resilience versus peers in the health and wellness sector.

Negative Factors

Revenue contraction

A decline in top-line revenue signals demand headwinds or loss of market share, which limits the company's ability to scale fixed-cost-covered operations. Persisting revenue weakness can erode margin leverage and constrain investment in R&D, distribution and marketing over months ahead.

Negative EBIT margin

A negative EBIT margin means core operations are not profitable before non-operating items and tax. This raises concerns about the sustainability of earnings and suggests structural cost or pricing issues that must be fixed to deliver reliable long-term operating profit.

Earnings quality risk

Material net income improvement despite a negative EBIT implies profits may be driven by non-operating items or one-offs. This creates earnings-quality risk: if non-recurring factors reverse, reported profitability and future cash flows could decline, undermining durable earnings expectations.

Star Combo Pharma Ltd. Business Overview & Revenue Model

Company Description

Star Combo Pharma Limited engages in the manufacturing and distribution of health food products and nutritional supplements in Australia and China. The company operates in two segments, Star Combo and Austoyou Retail. It develops, manufactures, markets, and sells natural health supplements and skin care products. The company provides its products through e-commerce platform to Chinese health product consumers; and two retail stores in Sydney. Star Combo Pharma Limited was founded in 2004 and is based in Smithfield, Australia.

How the Company Makes Money

Star Combo Pharma generates revenue primarily through the sale of its healthcare products, which include both prescription and over-the-counter medications, as well as dietary supplements. The company leverages a multi-channel distribution strategy, selling its products through pharmacies, health food stores, and online platforms. Key revenue streams include direct sales to consumers and partnerships with healthcare professionals and retail distributors. Additionally, the company may engage in collaborations or partnerships with other firms for product development and distribution, which can also contribute to its earnings. Factors such as market demand for health products, regulatory approvals, and the effectiveness of its marketing strategies significantly influence its financial performance.

Star Combo Pharma Ltd. Financial Statement Overview

Summary

Overall financials are solid: strong cash flow quality (operating cash flow to net income 2.04) and sharp free cash flow growth (178.51%) support resilience. Balance sheet risk is low (debt-to-equity 0.10) with improved ROE (13.78%). Offsetting this, revenue contracted (-6.34%) and the EBIT margin remains negative, indicating operational efficiency challenges.

Income Statement

Star Combo Pharma Ltd. has shown a mixed performance in its income statement. The company experienced a decline in revenue growth rate by 6.34% in the latest year, indicating a contraction in sales. However, the gross profit margin improved to 22.55%, reflecting better cost management. The net profit margin also increased significantly to 18.87%, driven by a substantial rise in net income. Despite these improvements, the EBIT margin remains negative, suggesting challenges in operational efficiency.

Balance Sheet

The balance sheet of Star Combo Pharma Ltd. reflects a stable financial position with a low debt-to-equity ratio of 0.10, indicating conservative leverage. The return on equity improved to 13.78%, showcasing enhanced profitability for shareholders. The equity ratio stands at a healthy level, suggesting a strong capital structure. Overall, the balance sheet indicates financial stability with a low risk of financial distress.

Cash Flow

The cash flow statement shows a robust improvement with a free cash flow growth rate of 178.51%, highlighting strong cash generation capabilities. The operating cash flow to net income ratio is 2.04, indicating efficient cash conversion from earnings. The free cash flow to net income ratio is close to 1, suggesting that the company is effectively converting its profits into cash. These metrics reflect a solid cash flow position, supporting future growth and investment opportunities.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	27.81M	27.81M	26.02M	24.70M	22.88M	26.72M
Gross Profit	6.27M	6.27M	5.44M	4.66M	5.61M	4.61M
EBITDA	6.64M	6.64M	2.79M	-2.53M	-126.71K	-6.40M
Net Income	5.25M	5.25M	747.33K	-4.00M	-696.35K	-7.88M
Balance Sheet
Total Assets	48.45M	48.45M	42.82M	42.23M	43.44M	43.32M
Cash, Cash Equivalents and Short-Term Investments	18.11M	18.11M	7.36M	9.49M	10.39M	17.32M
Total Debt	3.93M	3.93M	4.03M	4.19M	4.12M	3.30M
Total Liabilities	10.19M	10.19M	9.30M	8.97M	8.04M	7.13M
Stockholders Equity	38.08M	38.08M	33.32M	33.09M	35.41M	36.19M
Cash Flow
Free Cash Flow	11.55M	11.55M	-1.76M	-851.83K	-7.21M	-6.93M
Operating Cash Flow	11.94M	11.94M	-316.45K	1.88M	87.11K	331.53K
Investing Cash Flow	-9.72M	-9.72M	-136.79K	-3.23M	-3.24M	-7.53M
Financing Cash Flow	-795.12K	-795.12K	-370.93K	-53.44K	-169.08K	-2.08M

Star Combo Pharma Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.25
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:S66, the sentiment is Positive. The current price of 0.25 is above the 20-day moving average (MA) of 0.24, above the 50-day MA of 0.23, and above the 200-day MA of 0.19, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 51.85 is Neutral, neither overbought nor oversold. The STOCH value of 62.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:S66.

Star Combo Pharma Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
S66	71 Outperform	AU$32.40M	6.17	14.70%	1.54%	6.89%	607.27%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
NC6	48 Neutral	AU$23.18M	-10.44	-1651.76%	―	-100.00%	2.86%
ZNO	46 Neutral	AU$29.65M	-7.23	-77.92%	―	17.41%	67.94%
SKN	45 Neutral	AU$12.00M	―	―	―	12.92%	34.21%
LDX	42 Neutral	AU$170.38M	-13.35	-111.23%	―	12.96%	40.81%

Star Combo Pharma Ltd. Corporate Events

Star Combo Pharma Ltd 2025 AGM Results: Resolutions Passed with Strong Support

Star Combo Pharma Ltd announced the results of its 2025 Annual General Meeting, where shareholders approved the adoption of the Remuneration Report and the re-election of Ms. Wei Han as a director. These resolutions were carried with overwhelming support, indicating strong shareholder confidence in the company’s leadership and strategic direction. This outcome is likely to reinforce Star Combo’s stability and continued growth in the health and beauty industry.

The most recent analyst rating on (AU:S66) stock is a Buy with a A$0.50 price target. To see the full list of analyst forecasts on Star Combo Pharma Ltd. stock, see the AU:S66 Stock Forecast page.

Star Combo Pharma’s Strategic Growth Highlighted at 2025 AGM

Star Combo Pharma Ltd’s CEO Su Zhang presented at the 2025 Annual General Meeting, highlighting the company’s ongoing commitment to expanding its operations and maintaining strong relationships with business partners, customers, and employees. The presentation underscores the company’s strategic focus on growth within the health supplement industry, leveraging its established distribution networks and adherence to high manufacturing standards.

The most recent analyst rating on (AU:S66) stock is a Buy with a A$0.50 price target. To see the full list of analyst forecasts on Star Combo Pharma Ltd. stock, see the AU:S66 Stock Forecast page.