Star Holdings (STHO) AI Stock Analysis

• Market Cap: $99.59M
• Dividend Yield: N/A
• Average Volume (3M): 44.75K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.69
• 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: 3.25
• Enterprise Value/Revenue: 3.85
• Enterprise Value/Gross Profit: -16.82
• Enterprise Value/Ebitda: -2.49
• 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)

The score is held back primarily by weak financial performance (ongoing losses, negative gross profit, and continued cash burn with rising leverage). Technicals are supportive with strong trend/momentum, but overbought indicators add near-term risk. Valuation is constrained by negative earnings, and the leadership appointment is a modest positive but secondary to the fundamentals.

Positive Factors

Diversified investment model

A diversified investment model spreads risk across sectors and revenue types (rental income, dividends, management fees). This structural diversification helps stabilize cash flows over time, gives flexibility to reallocate capital to higher-return areas, and supports durable growth optionality.

Sizable asset base and positive equity

A sizable asset base and positive equity provide a financial cushion that supports operations and investment even amid losses. This balance sheet depth enables orderly asset monetization, strategic capital allocation, and resilience to short‑term shocks, underpinning multi‑month operational flexibility.

Experienced leadership appointment

Installing a leader with deep real estate investment management experience can strengthen strategic execution, deal sourcing, and portfolio optimization. Improved governance and operational discipline from seasoned management can materially boost long‑term asset performance and value realization.

Negative Factors

Persistent negative operating and free cash flow

Sustained negative operating and free cash flow erodes liquidity and forces reliance on financing, asset sales, or parent support. Over months this constrains reinvestment, increases funding costs, and raises execution risk for growth initiatives and portfolio maintenance.

Ongoing net losses and negative gross profit

Material and persistent net losses with negative gross profit indicate underlying revenue/ cost structure issues. This undermines sustainable profitability, limits ability to self‑fund growth, and pressures margins until structural revenue improvements or cost fixes are delivered.

Rising leverage and deeply negative ROE

Rising leverage paired with deeply negative ROE reduces financial flexibility and magnifies downside risk. Higher debt increases fixed obligations and the need for cash generation; prolonged negative returns can force asset sales or equity raises, diluting long‑term shareholder value.

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

Weak fundamentals: revenue declined in the TTM (-4.7%), profitability is poor with sizable net losses (TTM net income -$147.7M) and negative gross profit across periods, and cash generation is pressured with negative operating cash flow (TTM -$10.5M) and materially negative free cash flow (TTM -$76.7M). The balance sheet is not distressed (positive equity), but leverage has been rising (D/E up to 0.83 TTM) and ROE is deeply negative, elevating risk.

Income Statement

TTM (Trailing-Twelve-Months) revenue declined (-4.7%) after modestly negative growth in 2024, and profitability remains weak with sizable net losses (TTM net income -$147.7M; 2024 -$86.8M; 2023 -$196.4M). Gross profit is negative across all periods provided, indicating persistent cost/expense pressure relative to revenue. While losses narrowed versus 2023, the business is still far from consistent profitability and earnings quality remains a key concern.

Balance Sheet

Leverage is moderate for the profile, with debt-to-equity rising from 0.47 (2023) to 0.67 (2024) and 0.83 in TTM (Trailing-Twelve-Months), reflecting a weaker capital cushion over time. Equity remains positive ($275.4M TTM) and assets are sizable ($595.9M TTM), but returns to shareholders are meaningfully negative (TTM return on equity -17.0%; 2024 -26.7%; 2023 -47.7%), driven by continuing net losses. The balance sheet is not distressed on leverage alone, but worsening leverage and negative returns elevate risk.

Cash Flow

Cash generation is pressured: operating cash flow is negative in every period (TTM -$10.5M; 2024 -$31.3M; 2023 -$18.7M; 2022 -$27.4M), and free cash flow is also consistently negative (TTM -$76.7M). Free cash flow deteriorated in TTM (growth -12.0%) and remains a funding headwind, suggesting reliance on asset sales, additional financing, or balance sheet flexibility to support operations and investment needs. Although losses are large, negative operating cash flow reinforces the view that core cash profitability has not yet stabilized.

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For STHO, the sentiment is Negative. The current price of 8.19 is below the 20-day moving average (MA) of 8.42, above the 50-day MA of 7.98, and above the 200-day MA of 7.68, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 41.14 is Neutral, neither overbought nor oversold. The STOCH value of 11.80 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	54 Neutral	$239.81M	-3.86	-41.11%	―	6.62%	30.94%
FTHM	51 Neutral	$34.33M	-1.31	-43.75%	―	32.78%	36.50%
STHO	49 Neutral	$99.59M	-0.71	-42.01%	―	-3.22%	-280.23%
OPAD	49 Neutral	$48.15M	-0.53	-104.99%	―	-36.25%	11.92%
ASPS	45 Neutral	$59.04M	-2.80	―	―	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.