Starco Brands (STCB) AI Stock Analysis

• Market Cap: $17.72M
• Dividend Yield: N/A
• Average Volume (3M): 18.10K
• Price to Earnings (P/E): 4.3
• Beta (1Y): 0.66
• Revenue Growth: -30.26%
• EPS Growth: N/A
• Country: US
• Employees: 29
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Chemicals - Specialty
• EPS (TTM): >-0.01
• Shares Outstanding: 784,192,000
• 10 Day Avg. Volume: 23,745
• 30 Day Avg. Volume: 18,101
• PEG Ratio: 0.03
• Price to Book (P/B): 2.12
• Price to Sales (P/S): 0.67
• P/FCF Ratio: 20.51
• Enterprise Value/Market Cap: 1.16
• Enterprise Value/Revenue: 0.46
• Enterprise Value/Gross Profit: 1.32
• Enterprise Value/Ebitda: 2.78
• 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: 46 Neutral
• Price Target: $0.03 ▼(-37.50% Downside)

The score is weighed down primarily by weak financial performance (negative profitability and concerning cash flow trends) and bearish technical signals (below major moving averages with negative MACD). Valuation offers some support via a low P/E, but recent corporate events remain mixed due to refinancing needs alongside default-related disclosures.

Positive Factors

Diversified branded consumer portfolio

A diversified portfolio across food, personal care and household goods with proprietary formulations supports durable revenue channels and pricing power. Multiple end markets and brand-led positioning reduce exposure to a single category, aiding resilience across economic cycles.

Moderate leverage with improved ROE

A moderate debt profile combined with materially improved ROE indicates better capital efficiency and some financial flexibility. This structural improvement supports the company's ability to fund operations and investments without immediately resorting to dilutive financing.

Refinancing extends maturities and boosts liquidity

The bridge term loan restructures near-term obligations and adds working capital, materially changing capital structure and extending debt maturities. This reduces short-term default pressure and provides runway to stabilize operations over the coming quarters.

Negative Factors

Negative profitability and declining revenue

Sustained negative net margins and shrinking top-line create a structural challenge for profitability. Even with positive gross margin, continued negative operating margins indicate persistent cost or scale issues that impair the company's ability to generate sustainable earnings and fund growth.

Weak cash generation trends

Declining free cash flow growth and weak conversion of net income into operating cash constrain reinvestment capacity and heighten refinancing risk. Over months, poor cash generation limits ability to support marketing, R&D, or replenishing inventory during demand recovery.

Forbearance amendment acknowledging defaults

An amended forbearance that formally recognizes events of default signals material covenant breaches and elevated credit risk. Reliance on forbearance is a structural vulnerability that can impair access to capital and negotiating leverage with lenders over the medium term.

Starco Brands Business Overview & Revenue Model

Company Description

Starco Brands, Inc. markets consumer products through retail and online in the United States. It offers products in various categories, including household cleaning, DIY/Hardware, paints, coatings and adhesives, household, hair care, disinfectants, automotive, motorcycle, arts and crafts, personal care cosmetics, personal care FDA, sun care, food, cooking oils, beverages and spirits, and wine. The company was formerly known as Insynergy Products, Inc. and changed its name to Starco Brands, Inc. in September 2017. Starco Brands, Inc. was incorporated in 2010 and is based in Santa Monica, California.

How the Company Makes Money

Starco Brands generates revenue through multiple channels, primarily by selling its branded products through retail partnerships, e-commerce platforms, and direct-to-consumer sales. The company focuses on building a portfolio of innovative brands that can command premium pricing due to their unique value propositions. Key revenue streams include product sales in supermarkets, specialty stores, and online marketplaces. Additionally, strategic partnerships with distributors and retailers help expand market access and increase sales volume. The company may also engage in licensing agreements or collaborations that further enhance its brand visibility and drive revenue growth.

Starco Brands Financial Statement Overview

Summary

Income statement weakness (negative net margin, declining TTM revenue growth, and still-negative EBIT/EBITDA margins) and pressured cash flow (declining free cash flow growth and low operating cash flow to net income) outweigh the moderately stable balance sheet (moderate leverage and improved ROE).

Income Statement

Starco Brands has experienced significant volatility in its income statement metrics. The company shows a negative net profit margin and declining revenue growth rate in the TTM period, indicating challenges in profitability and growth. However, the gross profit margin remains positive, suggesting some operational efficiency. The EBIT and EBITDA margins have improved from previous periods but remain negative, highlighting ongoing profitability issues.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio, indicating a balanced approach to leverage. The return on equity has improved significantly in the TTM period, reflecting better utilization of equity. However, the equity ratio is not provided, which limits a full assessment of asset financing. Overall, the balance sheet reflects moderate financial stability with some room for improvement.

Cash Flow

Cash flow metrics reveal a decline in free cash flow growth, indicating potential liquidity challenges. The operating cash flow to net income ratio is low, suggesting limited cash generation relative to net income. The free cash flow to net income ratio is relatively healthy, but the negative growth trend is concerning. Overall, cash flow management appears to be an area needing attention.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	44.91M	58.67M	65.21M	7.81M	673.33K	1.37M
Gross Profit	15.55M	20.86M	11.88M	7.04M	387.49K	1.18M
EBITDA	7.38M	-14.39M	-42.74M	1.06M	-3.50K	610.76K
Net Income	3.30M	-17.65M	-46.19M	809.97K	-2.28M	543.29K
Balance Sheet
Total Assets	57.45M	59.72M	83.35M	41.19M	1.36M	842.26K
Cash, Cash Equivalents and Short-Term Investments	1.47M	1.21M	1.76M	1.48M	338.86K	773.32K
Total Debt	4.23M	6.72M	8.39M	3.74M	1.53M	546.99K
Total Liabilities	24.17M	32.49M	57.67M	8.33M	4.11M	1.10M
Stockholders Equity	24.30M	18.40M	17.16M	32.77M	-2.67M	-254.17K
Cash Flow
Free Cash Flow	254.76K	1.90M	313.55K	377.78K	-1.86M	665.77K
Operating Cash Flow	520.71K	2.22M	686.66K	377.78K	-1.84M	665.77K
Investing Cash Flow	-285.95K	-439.32K	-230.01K	-1.46M	-115.64K	0.00
Financing Cash Flow	-384.44K	-2.33M	-175.80K	2.22M	1.52M	102.80K

Starco Brands Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.04
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For STCB, the sentiment is Negative. The current price of 0.04 is above the 20-day moving average (MA) of 0.03, above the 50-day MA of 0.03, and above the 200-day MA of 0.03, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 39.66 is Neutral, neither overbought nor oversold. The STOCH value of 4.92 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for STCB.

Starco Brands Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
FSI	61 Neutral	$73.24M	39.68	5.08%	―	0.18%	-54.25%
ALTO	59 Neutral	$193.36M	-3.58	-20.64%	―	-8.00%	-35.86%
NTIC	57 Neutral	$86.00M	-268.84	0.02%	1.33%	-0.97%	-99.67%
LOOP	48 Neutral	$58.49M	-21.57	―	―	11013.00%	39.85%
STCB	46 Neutral	$17.72M	4.31	-7.25%	―	-30.26%	―

Starco Brands Corporate Events

Starco Brands Secures Insider Bridge Loan to Refinance Debt

On December 22, 2025, Starco Brands, Inc. entered into a Bridge Term Loan Promissory Note with The Starco Group, Inc., wholly owned by Starco’s CEO Ross Sklar, establishing a bridge term loan facility of up to $5 million, with an initial disbursement of $4.5 million and up to $500,000 in delayed drawdowns available through December 31, 2026. The company is using the proceeds primarily to pay off existing indebtedness, including fully retiring its loan with Gibraltar Business Capital, and to enhance working capital, with the new facility carrying a floating interest rate tied to the prime rate plus a margin, interest-only payments beginning January 1, 2026, principal amortization from January 1, 2027 through 2030, and standard prepayment, default, and acceleration provisions that collectively reshape Starco’s capital structure and extend its debt maturities.

The most recent analyst rating on (STCB) stock is a Hold with a $0.04 price target. To see the full list of analyst forecasts on Starco Brands stock, see the STCB Stock Forecast page.

Starco Brands Amends Forbearance Agreement Amid Default

On November 24, 2025, Starco Brands, Inc. and its subsidiaries entered into an amendment to the Forbearance Agreement with Gibraltar Business Capital, LLC. This amendment acknowledges ongoing events of default and allows the lender to refrain from exercising remedies related to these defaults until December 31, 2025, under specified conditions, without waiving any rights or remedies.