Star Holdings (STHO) AI Stock Analysis

• Market Cap: $104.57M
• Dividend Yield: N/A
• Average Volume (3M): 44.75K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.71
• Revenue Growth: -3.22%
• EPS Growth: -280.23%
• Country: US
• Employees: 74
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): -1.50
• Shares Outstanding: 12,088,770
• 10 Day Avg. Volume: 46,580
• 30 Day Avg. Volume: 44,753
• PEG Ratio: 0.07
• Price to Book (P/B): 0.43
• Price to Sales (P/S): 0.98
• P/FCF Ratio: -9.25
• Enterprise Value/Market Cap: 3.17
• Enterprise Value/Revenue: 4.02
• Enterprise Value/Gross Profit: -754.78
• Enterprise Value/Ebitda: -7.03
• 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: 49 Neutral
• Price Target: $8.00 ▼(-2.32% Downside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is held back primarily by continued net losses and persistent negative cash flow, despite meaningful balance sheet de-risking from eliminating debt. Technical signals are mostly neutral and valuation is difficult to justify on earnings given the negative P/E, keeping the overall outlook cautious.

Positive Factors

Debt elimination and stronger leverage

Eliminating total debt materially lowers financial risk and recurring interest obligations, increasing flexibility to fund operations or invest. With zero debt the company faces fewer liquidity constraints, reducing insolvency risk and enabling strategic choices over the next several quarters.

Top-line rebound / demand resilience

A roughly 31% revenue rebound in 2025 indicates the business can recover demand and monetize its asset base. Sustained revenue growth helps absorb fixed costs and is a necessary precursor to converting operating improvements into lasting profitability and margin recovery.

Experienced leadership addition

Appointment of an experienced real estate investment manager as President strengthens governance and operational expertise. Improved leadership can enhance asset management, capital allocation and execution of strategic initiatives, supporting multi-quarter operational improvements and partnerships.

Negative Factors

Persistent negative operating and free cash flow

Operating and free cash flow remain negative annually (improved to about -$11.7M in 2025 from -$31.3M in 2024), forcing reliance on asset sales or financing. Ongoing cash burn limits reinvestment capacity, increases funding risk, and constrains the firm’s ability to sustain growth or recover margins.

Large recurring net losses and weak margins

Significant net losses and a deeply negative net margin erode shareholder equity and undermine return on capital. Continued losses impede the firm's ability to self-fund operations or strategic investments, and mean profitability remains a structural issue until margins are materially improved.

Shrinking asset base / potential impairments

A declining asset base over several years suggests disposals, impairments, or shrinking scale, which reduces future income-generating capacity. Structural asset shrinkage can limit revenue upside, signal past write-downs, and constrain the firm's long-term ability to rebuild stable earnings.

Star Holdings Business Overview & Revenue Model

Company Description

Star Holdings engages in the non-ground lease related commercial real estate businesses in the United States. Its portfolio primarily comprises interest in the Asbury Park Waterfront and Magnolia Green residential development projects; and commercial real estate properties and loans that are marketed for sale or monetized. The company is based in New York, New York.

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

Mixed financial profile: revenue rebounded strongly in 2025 and the balance sheet de-risked materially with debt reduced to $0. However, profitability remains weak with ongoing large net losses and persistent negative operating/free cash flow, which limits financial flexibility despite improved leverage.

Income Statement

Revenue rebounded in 2025 (up ~31% year over year) after a small decline in 2024, showing demand can recover. However, profitability remains weak: net losses persist every year shown, and 2025 still posted a large loss (~$70.8M) with a deeply negative net margin (~-64%). While operating results improved meaningfully versus 2023–2024 (EBIT turned positive in 2025), EBITDA remained sharply negative, signaling earnings quality and recurring operating profitability are still not stabilized.

Balance Sheet

Balance sheet strength improved materially in 2025 with total debt reduced to $0 from ~$218M in 2024, which significantly lowers financial risk. Equity remains sizable (~$266M in 2025), providing a cushion. The key weakness is that losses continue to erode shareholder value (return on equity remains deeply negative), and total assets have trended down from 2022–2025, suggesting shrinking asset base and/or write-downs over time.

Cash Flow

Cash generation is a clear pressure point: operating cash flow and free cash flow are negative in every year shown. There was improvement in 2025 versus 2024 (operating cash burn narrowed to about -$11.7M from about -$31.3M), but free cash flow still remains negative and deteriorated sharply versus 2024 on a growth basis. Persistent cash burn alongside ongoing losses increases reliance on asset sales, financing, or further balance sheet actions to fund operations.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022
Income Statement
Total Revenue	110.14M	88.86M	101.17M	96.11M
Gross Profit	21.28M	-25.57M	-28.94M	-17.23M
EBITDA	-47.22M	-68.28M	-168.75M	10.64M
Net Income	-64.25M	-86.75M	-196.36M	-36.35M
Balance Sheet
Total Assets	570.20M	608.65M	669.20M	1.01B
Cash, Cash Equivalents and Short-Term Investments	50.08M	34.96M	50.66M	4.23M
Total Debt	269.99M	218.44M	194.43M	2.01M
Total Liabilities	304.33M	263.66M	235.36M	33.10M
Stockholders Equity	251.77M	324.34M	411.55M	971.54M
Cash Flow
Free Cash Flow	-11.66M	-67.22M	-32.77M	-49.84M
Operating Cash Flow	-11.66M	-31.29M	-18.72M	-27.36M
Investing Cash Flow	-1.54M	306.00K	186.02M	236.06M
Financing Cash Flow	34.83M	15.81M	-114.06M	-218.31M

Star Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8.19
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 8.19 is above the 20-day moving average (MA) of 8.13, above the 50-day MA of 8.16, and above the 200-day MA of 7.82, indicating a bullish trend. The MACD of 0.13 indicates Negative momentum. The RSI at 64.30 is Neutral, neither overbought nor oversold. The STOCH value of 85.93 is Negative, 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%
OPAD	55 Neutral	$36.82M	-0.57	-108.03%	―	-36.25%	11.92%
DOUG	54 Neutral	$196.29M	-3.19	-41.11%	―	6.62%	30.94%
FTHM	51 Neutral	$31.52M	-1.24	-43.75%	―	32.78%	36.50%
STHO	49 Neutral	$104.57M	-1.79	-42.01%	―	-3.22%	-280.23%
ASPS	45 Neutral	$77.83M	-4.46	―	―	7.80%	83.33%

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.

The most recent analyst rating on (STHO) stock is a Sell with a $7.00 price target. To see the full list of analyst forecasts on Star Holdings stock, see the STHO Stock Forecast page.