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Starco Brands Inc (STCB)
OTHER OTC:STCB
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Starco Brands
(OTC:STCB)
Rating:47Neutral
Price Target:
$0.00
▼(-100.00% Downside)
Starco Brands (STCB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$27.15M
Dividend YieldN/A
Average Volume (3M)183.66K
Price to Earnings (P/E)―
Beta (1Y)0.64
Revenue Growth-26.82%
EPS Growth97.89%
CountryUS
Employees29
SectorConsumer Defensive
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)>-0.01
Shares Outstanding784,192,000
10 Day Avg. Volume160,822
30 Day Avg. Volume183,657
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.31
Enterprise Value/Revenue0.72
Enterprise Value/Gross Profit2.36
Enterprise Value/Ebitda14.16
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering0
Starco Brands Business Overview & Revenue Model
Company DescriptionStarco Brands (STCB) is an innovative company focused on creating and marketing consumer products across various sectors, primarily in the beverage and consumer goods industries. The company is known for its commitment to sustainability and high-quality ingredients, offering a range of products that resonate with health-conscious consumers. Starco Brands leverages cutting-edge technology and design to bring unique products to market, enhancing the consumer experience while promoting a healthier lifestyle.
How the Company Makes MoneyStarco Brands generates revenue through a multi-faceted business model that includes direct sales of its branded products, partnerships with retailers, and licensing agreements. The company's key revenue streams come from the sale of its flagship products, which include beverages and health-focused consumer goods. Additionally, Starco Brands collaborates with distributors and retailers to expand its market reach, often utilizing innovative marketing strategies to drive consumer engagement and sales. Significant partnerships with major retailers and a focus on direct-to-consumer channels also contribute to its earnings, allowing the company to tap into diverse market segments and maximize its revenue potential.
Starco Brands Earnings Call Summary
Earnings Call Date:Aug 14, 2025
(Q3-2024)
| % Change Since: 0.00%|
Next Earnings Date:Nov 12, 2025
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.Q3-2024 Updates
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.
Cost Optimization Success
Identified and removed approximately $3 million of cost optimization opportunities through headcount efficiencies, streamlined marketing spend, and refinement of logistics footprint.
Winona Popcorn Spray Growth
Winona Popcorn Spray showed over 60% growth year-over-year through the third quarter and achieved 10% market share with only 30% ACV.
Soylent Cost Savings and Market Share
Achieved approximately 15% in cost savings, or $1.5 million annually, and maintained a strong 23.6% market share of the meal replacement category with Amazon.
Skylar Subscription Growth
Skylar's Scent Club serves nearly 10,000 monthly subscribers with a CAC of roughly $30 and a gross LTV of 3.30, indicating strong potential for cash generation.
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.
Decline in Gross Profit
Gross profit for Q3 2024 was $6.4 million compared to $7.7 million in Q3 2023, with gross margin down year-over-year from 44% to 41%, driven by unfavorable product mix.
Net Loss Increase
Reported unadjusted net loss for Q3 2024 was $6.3 million compared to net income of $2.3 million in Q3 2023, primarily due to a non-cash charge for the fair value share adjustment.
Whipshots Sales Decline
Lower Whipshots sales due to inventory destocking challenges, impacting overall segment revenue and profitability.
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
Starco Brands faces financial instability with declining revenues and persistent net losses impacting profitability. Despite manageable debt levels, the negative trend in stockholders' equity and the need for consistent cash flow management are concerning. Positive free cash flow provides a silver lining, but operational efficiency improvements are essential.Income Statement
Starco Brands shows significant volatility in its income statement. The TTM data reveals a gross profit margin of 32.55%, indicating some efficiency in cost management, but the net profit margin is negative due to substantial net losses. The revenue trajectory is concerning, with a notable decline from the previous year. Negative EBIT and EBITDA margins also reflect ongoing operational challenges.35
Negative
Balance Sheet
The balance sheet highlights moderate financial leverage with a debt-to-equity ratio of 0.31 in TTM, which is acceptable but shows room for improvement in capital structure. The equity ratio stands at 35.60%, suggesting a fair proportion of assets are financed by equity. However, the negative trend in stockholders' equity could pose risks if not addressed.45
Neutral
Cash Flow
Cash flow analysis indicates some positive trends with a TTM free cash flow of $1.78 million, showing resilience in cash generation. The operating cash flow to net income ratio suggests a stronger cash position relative to net income losses. However, fluctuations in free cash flow highlight the need for consistent cash flow management.50
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 49.48M | 58.67M | 65.21M | 7.81M | 673.33K | 1.37M |
| Gross Profit | 15.12M | 20.86M | 11.88M | 7.04M | 387.49K | 1.18M |
| EBITDA | 2.52M | -14.39M | -42.74M | 1.06M | -2.29M | 610.76K |
| Net Income | -1.60M | -17.65M | -46.19M | 809.97K | -2.28M | 543.29K |
Balance Sheet | ||||||
| Total Assets | 57.53M | 59.72M | 83.35M | 41.19M | 1.36M | 842.26K |
| Cash, Cash Equivalents and Short-Term Investments | 909.63K | 1.21M | 1.76M | 1.48M | 338.86K | 773.32K |
| Total Debt | 7.48M | 6.72M | 8.39M | 3.74M | 1.53M | 546.99K |
| Total Liabilities | 23.67M | 32.49M | 57.67M | 8.33M | 4.11M | 1.10M |
| Stockholders Equity | 24.94M | 18.40M | 17.16M | 32.77M | -2.67M | -254.17K |
Cash Flow | ||||||
| Free Cash Flow | 809.28K | 1.90M | 313.55K | 377.78K | -1.86M | 665.77K |
| Operating Cash Flow | 1.23M | 2.22M | 686.66K | 377.78K | -1.84M | 665.77K |
| Investing Cash Flow | -488.23K | -439.32K | -230.01K | -1.46M | -115.64K | 0.00 |
| Financing Cash Flow | -1.84M | -2.33M | -175.80K | 2.22M | 1.52M | 102.80K |
Starco Brands Technical Analysis
Positive
0.04
Price Trends
0.03
Positive
0.04
Positive
0.05
Negative
Market Momentum
>-0.01
Positive
53.55
Neutral
43.33
Neutral
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 0.04, above the 50-day MA of 0.03, and below the 200-day MA of 0.05, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 53.55 is Neutral, neither overbought nor oversold. The STOCH value of 43.33 is Neutral, 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 0 New Risks
Starco Brands Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $99.48M | 34.29 | 8.06% | ― | -1.52% | 6.38% | |
63 Neutral | $20.78B | 14.42 | -3.73% | 3.12% | 2.73% | -10.04% | |
54 Neutral | $73.96M | ― | -406.97% | ― | 8400.76% | 31.02% | |
52 Neutral | $24.39M | ― | -119.89% | ― | 36.89% | 91.74% | |
48 Neutral | $9.56M | ― | -17.63% | ― | -15.26% | 73.10% | |
47 Neutral | $27.15M | ― | -7.25% | ― | -26.82% | 97.89% |
* Consumer Defensive Sector Average
Performance Comparison
STCB
Starco Brands
0.04
-0.05
-55.56%
FSI
Flexible Solutions International
8.00
5.20
185.71%
GURE
Gulf Resources
0.72
-0.42
-36.84%
SNES
SenesTech
4.60
-0.21
-4.37%
LOOP
Loop Industries
1.48
0.08
5.71%
Starco Brands Corporate Events
M&A TransactionsBusiness Operations and Strategy
Starco Brands Announces Intent to Acquire The Starco Group
Positive
Jul 29, 2025
On July 29, 2025, Starco Brands announced a non-binding Letter of Intent to acquire The Starco Group, a contract manufacturer, to form a vertically integrated consumer products platform. This strategic move is expected to enhance revenue scale and margin efficiencies, benefiting Starco’s existing brands through vertical integration and expanded supply chain control. The transaction, anticipated to close in Q4 2025, marks a significant milestone in Starco’s growth strategy by integrating manufacturing capabilities and unlocking new revenue streams.
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.