Star Combo Pharma Ltd. (S66) AI Stock Analysis

• Market Cap: AU$28.35M
• Dividend Yield: 1.54%
• Average Volume (3M): 6.77K
• Price to Earnings (P/E): 21.2
• Beta (1Y): -0.36
• 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): <0.01
• 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: 66 Neutral
• Price Target: AU$0.22 ▼(-13.60% Downside)
• Action: Downgraded Date: 02/27/26
• Date: Action: Downgraded 02/27/26

The score is driven primarily by solid financial performance (strong cash generation and low leverage), supported by favorable valuation (low P/E and a dividend). These positives are tempered by weak technical signals, with the price below key moving averages and bearish momentum indicators.

Positive Factors

Strong free cash flow generation

Very strong free cash flow growth and a 2.04 operating-cash-to-net-income ratio indicate the company consistently converts earnings into cash. This durable cash generation supports reinvestment, dividend capacity, and resilience through demand cycles over the next 2–6 months.

Conservative balance sheet / low leverage

A low debt-to-equity ratio and healthier equity ratio reduce financial distress risk and preserve strategic optionality. With improved ROE, the capital structure supports funded growth, M&A flexibility, and downside protection, remaining relevant across multiple quarters.

Improved gross and net margins

Notable improvement in gross and net margins signals better cost control or mix improvements that have translated to profitability. Sustained margin gains materially enhance cash flows and shareholder returns if operational issues driving EBIT are addressed.

Negative Factors

Declining revenue

A recurring decline in revenue undermines the sustainability of margin improvements and cash generation. Persistent top-line contraction can signal market share loss, weakening demand, or distribution challenges that limit durable earnings growth and reinvestment capacity.

Negative EBIT margin

A negative EBIT margin shows the core business isn't achieving operating profitability, implying ongoing structural cost or scale issues. This reduces the durability of reported net income and constrains cash available for strategic initiatives absent corrective action.

Earnings quality concerns

Net income gains despite negative operating results suggest reliance on non-operating items, one-offs, or tax effects. Such earnings composition raises questions on sustainability of profits and may reverse, weakening long-term cash flow and investor confidence.

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

Solid overall fundamentals supported by strong cash flow (free cash flow growth 178.51% and operating cash flow to net income 2.04) and a conservative balance sheet (debt-to-equity 0.10). Offsetting this, revenue declined (growth rate -6.34%) and the EBIT margin remains negative, indicating ongoing operating 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	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	23.84M	27.81M	26.02M	24.70M	22.88M	26.72M
Gross Profit	5.42M	6.27M	5.44M	4.66M	5.61M	4.61M
EBITDA	6.69M	6.64M	2.79M	-2.53M	-126.71K	-6.40M
Net Income	5.39M	5.25M	747.33K	-4.00M	-696.35K	-7.88M
Balance Sheet
Total Assets	46.99M	48.45M	42.82M	42.23M	43.44M	43.32M
Cash, Cash Equivalents and Short-Term Investments	18.18M	18.11M	7.36M	9.49M	10.39M	17.32M
Total Debt	8.29M	3.93M	4.03M	4.19M	4.12M	3.30M
Total Liabilities	8.30M	10.19M	9.30M	8.97M	8.04M	7.13M
Stockholders Equity	38.54M	38.08M	33.32M	33.09M	35.41M	36.19M
Cash Flow
Free Cash Flow	254.05K	11.55M	-1.76M	-851.83K	-7.21M	-6.93M
Operating Cash Flow	602.90K	11.94M	-316.45K	1.88M	87.11K	331.53K
Investing Cash Flow	-1.26M	-9.72M	-136.79K	-3.23M	-3.24M	-7.53M
Financing Cash Flow	-626.09K	-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: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• 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 0.20, above the 50-day MA of 0.23, and above the 200-day MA of 0.20, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 50.61 is Neutral, neither overbought nor oversold. The STOCH value of 60.00 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	66 Neutral	AU$28.35M	21.25	14.70%	1.54%	6.89%	607.27%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
LDX	49 Neutral	AU$218.13M	-7.39	-111.23%	―	12.96%	40.81%
NC6	47 Neutral	AU$22.85M	-2.45	-1651.76%	―	-100.00%	2.86%
SKN	45 Neutral	AU$18.00M	-0.26	―	―	12.92%	34.21%
ZNO	44 Neutral	AU$23.97M	-7.05	-77.92%	―	17.41%	67.94%

Star Combo Pharma Ltd. Corporate Events

Star Combo Pharma Files 2025 Half-Year Appendix 4D Report

Star Combo Pharma Ltd. has released its Appendix 4D half-year report for the six months ended 31 December 2025, covering the group’s financial statements, directors’ report, and auditor reviews. The publication of this statutory report provides investors and stakeholders with updated visibility on the company’s interim financial performance and governance, although detailed operational or earnings information is not disclosed in the brief release excerpt provided.

The most recent analyst rating on (AU:S66) stock is a Buy with a A$0.23 price target. To see the full list of analyst forecasts on Star Combo Pharma Ltd. stock, see the AU:S66 Stock Forecast page.