Star Holdings (STHO) AI Stock Analysis

• Market Cap: $98.06M
• Dividend Yield: N/A
• Average Volume (3M): 44.75K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.67
• Revenue Growth: -3.22%
• EPS Growth: -280.23%
• Country: US
• Employees: 74
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): 0.14
• Shares Outstanding: 12,735,503
• 10 Day Avg. Volume: 46,580
• 30 Day Avg. Volume: 44,753
• PEG Ratio: 0.03
• Price to Book (P/B): 0.40
• Price to Sales (P/S): 1.46
• P/FCF Ratio: -1.93
• Enterprise Value/Market Cap: 3.32
• Enterprise Value/Revenue: 3.88
• Enterprise Value/Gross Profit: -16.95
• Enterprise Value/Ebitda: -2.51
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 48 Neutral
• Price Target: $7.50 ▼(-3.72% Downside)

Star Holdings faces significant financial challenges, with declining revenues and negative cash flows being the most impactful factors. The technical analysis shows neutral indicators, while the valuation is poor due to a negative P/E ratio. However, the recent appointment of a new President is a positive development that may improve future prospects.

Positive Factors

Leadership Change

The new President's expertise in real estate investment management is expected to enhance operational efficiency and strategic direction, potentially improving Star Holdings' market position.

Manageable Leverage

A relatively low debt-to-equity ratio suggests that Star Holdings has manageable leverage, providing some financial stability and flexibility in capital allocation.

Diversified Revenue Streams

Diversified revenue sources across sectors like real estate and technology provide resilience against sector-specific downturns, supporting long-term growth potential.

Negative Factors

Declining Revenues

A significant decline in revenue indicates challenges in maintaining market share and competitiveness, potentially impacting long-term profitability and growth.

Negative Cash Flow

Persistent negative cash flow highlights difficulties in generating sufficient operational cash, which may constrain future investments and financial flexibility.

Operational Inefficiencies

Negative margins reflect operational inefficiencies, suggesting that cost management and revenue generation need improvement to achieve sustainable profitability.

Star Holdings Business Overview & Revenue Model

Company Description

Star Holdings (STHO) is a diversified investment company focused on acquiring and managing a portfolio of high-quality assets across various sectors, including real estate, technology, and consumer goods. The company aims to enhance shareholder value by leveraging its expertise in strategic investments and operational efficiency, with a core mission to deliver sustainable growth and attractive returns through its diversified holdings.

How the Company Makes Money

Star Holdings generates revenue primarily through capital appreciation and income from its investment portfolio. Key revenue streams include rental income from real estate properties, dividends from equity investments, and returns from strategic partnerships with technology firms. The company also engages in asset management services for third-party investors, charging management fees that contribute to its earnings. Additionally, any significant joint ventures or collaborations with established brands in the consumer goods sector further enhance its revenue potential. The overall financial health of Star Holdings is bolstered by its strategic asset allocation and market timing, allowing it to capitalize on emerging trends and opportunities.

Star Holdings Financial Statement Overview

Summary

Star Holdings is experiencing financial difficulties, with declining revenues, persistent losses, and negative cash flows. The company struggles with profitability and cash generation, posing risks to financial stability.

Income Statement

Star Holdings has faced significant challenges in profitability, as evidenced by consistently negative net income and declining gross profit margins. The company’s revenue decreased by 12.2% from 2023 to 2024, indicating a negative growth trajectory. Additionally, both EBIT and EBITDA margins are negative, reflecting operational inefficiencies.

Balance Sheet

The balance sheet shows a moderate level of stability with a debt-to-equity ratio of 0.63 in 2024, which is relatively low, suggesting manageable leverage. However, the equity ratio has decreased over the years, indicating a decline in the proportion of assets financed by equity. Return on equity remains negative due to ongoing losses.

Cash Flow

Cash flow analysis reveals negative free cash flow growth, with free cash flow worsening from -$32.77 million in 2023 to -$67.22 million in 2024. The operating cash flow to net income ratio is negative, highlighting cash flow challenges. The company's ability to generate cash from operations is concerning, as operating cash flow remains negative.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022
Income Statement
Total Revenue	84.01M	88.86M	101.17M	96.11M
Gross Profit	-19.23M	-25.57M	-28.94M	-17.23M
EBITDA	-129.84M	-68.28M	-168.75M	10.64M
Net Income	-147.67M	-86.75M	-196.36M	-36.35M
Balance Sheet
Total Assets	595.86M	608.65M	669.20M	1.01B
Cash, Cash Equivalents and Short-Term Investments	40.59M	34.96M	50.66M	4.23M
Total Debt	260.02M	218.44M	194.43M	2.01M
Total Liabilities	302.20M	263.66M	235.36M	33.10M
Stockholders Equity	275.43M	324.34M	411.55M	971.54M
Cash Flow
Free Cash Flow	-76.73M	-67.22M	-32.77M	-49.84M
Operating Cash Flow	-10.52M	-31.29M	-18.72M	-27.36M
Investing Cash Flow	-34.47M	306.00K	186.02M	236.06M
Financing Cash Flow	46.23M	15.81M	-114.06M	-218.31M

Star Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.79
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For STHO, the sentiment is Positive. The current price of 7.79 is above the 20-day moving average (MA) of 7.66, above the 50-day MA of 7.58, and above the 200-day MA of 7.63, indicating a bullish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 55.34 is Neutral, neither overbought nor oversold. The STOCH value of 30.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for STHO.

Star Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
DOUG	58 Neutral	$219.38M	-3.53	-41.11%	―	6.62%	30.94%
ASPS	50 Neutral	$73.88M	-3.51	―	―	7.80%	83.33%
FTHM	50 Neutral	$35.31M	-1.35	-43.75%	―	32.78%	36.50%
STHO	48 Neutral	$98.06M	-0.69	-42.01%	―	-3.22%	-280.23%
OPAD	44 Neutral	$50.87M	-0.71	-104.99%	―	-36.25%	11.92%

Star Holdings Corporate Events

Star Holdings Appoints Michael Trachtenberg as President

On December 1, 2025, Safehold Inc., the external manager of Star Holdings, announced the appointment of Michael Trachtenberg as President of both Safehold Inc. and Star Holdings. Mr. Trachtenberg has a strong background in real estate investment management, having served in various roles at Lubert-Adler, including President and Managing Partner, before becoming a consultant in February 2025. His appointment is expected to bring significant expertise to Star Holdings, potentially impacting its operations and industry positioning positively.