Star Holdings (STHO) AI Stock Analysis

• Market Cap: $110.44M
• Dividend Yield: N/A
• Average Volume (3M): 51.30K
• Price to Earnings (P/E): 1.4
• Beta (1Y): 0.83
• Revenue Growth: -13.95%
• EPS Growth: 37.24%
• Country: US
• Employees: 74
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): -2.95
• Shares Outstanding: 13,290,018
• 10 Day Avg. Volume: 53,868
• 30 Day Avg. Volume: 51,302
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 2.95
• Enterprise Value/Revenue: 2.91
• Enterprise Value/Gross Profit: -108.43
• Enterprise Value/Ebitda: 15.51
• 1Y Price Target: $7.50
• Price Target Upside: -9.75% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 46 Neutral
• Price Target: $7.50 ▼(-9.75% Downside)

Star Holdings faces significant financial challenges, with declining revenues and negative cash flows being the most impactful factors. Technical analysis shows a lack of strong momentum, and valuation metrics are unattractive due to ongoing losses. While corporate governance is strong, it does not offset the financial and operational difficulties.

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 through multiple streams, including rental income from its real estate holdings, which consists of both residential and commercial properties. The company also earns money by investing in technology ventures that focus on energy-efficient solutions, receiving returns from equity stakes in these startups. Additionally, revenue is generated from renewable energy projects, where the company either sells electricity produced or benefits from government incentives and subsidies aimed at promoting green energy. Strategic partnerships with local and international firms enhance its market reach and operational efficiencies, contributing significantly to its earnings.

Star Holdings Financial Statement Overview

Summary

Star Holdings is experiencing financial difficulties, with declining revenues, persistent losses, and negative cash flows. While leverage is not excessively high, the company struggles with profitability and cash generation. The negative trends in revenue and equity ratios pose risks to financial stability and require strategic intervention to improve operational efficiency and financial health.

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	111.91M	88.86M	123.05M	133.57M
Gross Profit	-3.00M	-25.57M	-9.24M	-17.23M
EBITDA	21.01M	-77.03M	-168.75M	-61.21M
Net Income	-58.01M	-86.75M	-196.36M	-36.35M
Balance Sheet
Total Assets	589.92M	608.65M	669.20M	1.01B
Cash, Cash Equivalents and Short-Term Investments	44.20M	34.96M	50.66M	4.23M
Total Debt	246.26M	218.44M	194.43M	2.01M
Total Liabilities	293.97M	263.66M	235.36M	33.10M
Stockholders Equity	295.95M	324.34M	411.55M	971.54M
Cash Flow
Free Cash Flow	-48.97M	-67.22M	-32.77M	-49.84M
Operating Cash Flow	-19.62M	-31.29M	-18.72M	-27.36M
Investing Cash Flow	-21.61M	306.00K	186.02M	236.06M
Financing Cash Flow	39.52M	15.81M	-114.06M	-218.31M

Star Holdings Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 8.31
• 50DMA: Positive
• 100DMA: Positive
• 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 Neutral. The current price of 8.31 is below the 20-day moving average (MA) of 8.67, above the 50-day MA of 8.10, and above the 200-day MA of 8.13, indicating a neutral trend. The MACD of 0.19 indicates Positive momentum. The RSI at 45.11 is Neutral, neither overbought nor oversold. The STOCH value of 26.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for STHO.

Star Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OPAD	60 Neutral	155.67M	-2.47	-130.44%	―	-30.44%	15.55%
ASPS	50 Neutral	123.27M	-2.60	0.00%	―	12.92%	66.51%
LODE	49 Neutral	158.14M	-1.33	-61.77%	―	58.56%	-482.56%
RFL	48 Neutral	50.55M	-1.55	0.00%	―	35.56%	21.87%
STHO	46 Neutral	$110.44M	1.44	-18.83%	―	-13.95%	37.24%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%