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Starco Brands Inc (STCB)
OTHER OTC:STCB
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Starco Brands
(OTC:STCB)
42Neutral
Starco Brands (STCB) vs. S&P 500 (SPY)
Market Cap
$27.84M
Dividend YieldN/A
Average Volume (3M)46.94K
Price to Earnings (P/E)―
Beta (1Y)0.84
Revenue Growth30.02%
EPS Growth-1128.87%
CountryUS
Employees36
SectorBasic Materials
Sector Strength63
IndustryConsumer Products - Foods
Share Statistics
EPS (TTM)-0.12
Shares Outstanding647,431,700
10 Day Avg. Volume59,751
30 Day Avg. Volume46,942
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.43
Price to Cash Flow (P/CF)17.70
P/FCF Ratio36.90
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Starco Brands Business Overview & Revenue Model
Company DescriptionStarco Brands (STCB) is an innovative consumer goods company that operates in the household, personal care, and food and beverage sectors. The company is known for developing and commercializing new and unique products that aim to disrupt traditional market segments. Starco Brands focuses on creating high-demand consumer products that feature novel attributes and cater to modern consumer trends.
How the Company Makes MoneyStarco Brands makes money primarily through the sales of its consumer products across various retail channels. The company generates revenue by partnering with retailers, distributors, and direct-to-consumer platforms to ensure wide availability of its products. Starco Brands often collaborates with strategic partners to enhance product development and marketing efforts, which contributes to increased market penetration and sales growth. Additionally, the company may engage in licensing agreements, allowing other manufacturers to produce and sell its branded products, thereby creating additional revenue streams.
Starco Brands Financial Statement Overview
Summary
Starco Brands shows a mixed financial picture. Revenue growth is significant, but profitability is concerning due to ongoing losses. The balance sheet is strained by high liabilities and debt levels, posing financial risks. Cash flows are inconsistent, highlighting operational challenges.Income Statement
Starco Brands has seen significant revenue growth from 2019 to the TTM (Trailing-Twelve-Months) period, although with fluctuations. However, the company is experiencing negative EBIT and net income margins, indicating operational and profitability challenges. The TTM data shows a worsening net loss, affecting net profit margins adversely.30
Negative
Balance Sheet
The balance sheet reveals a high debt-to-equity ratio due to low equity, which poses a financial risk. The company's equity has been positive recently but remains volatile. Despite increased total assets over time, liabilities are significantly high, impacting financial stability.40
Negative
Cash Flow
Cash flow analysis indicates inconsistent free cash flow growth with recent negative trends. The operating cash flow to net income ratio shows some improvement, but the negative net income remains a concern. The company struggles with maintaining positive free cash flow relative to net income.45
Neutral
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 2.45M | 65.21M | 7.81M | 673.33K | 1.37M | 240.29K | Gross Profit |
| 2.02M | 11.88M | 7.04M | 387.49K | 1.18M | 56.96K | EBIT |
| -1.91M | -15.62M | 1.15M | -2.29M | 527.13K | -147.78K | EBITDA |
| -2.13M | -42.74M | 1.06M | -2.29M | 610.76K | -69.48K | Net Income Common Stockholders |
| -1.91M | -46.19M | 809.97K | -2.28M | 543.29K | -172.58K |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 721.00 | 1.76M | 1.48M | 338.86K | 773.32K | 4.75K | Total Assets |
| 47.70K | 83.35M | 41.19M | 1.36M | 842.26K | 146.49K | Total Debt |
| 400.08K | 8.39M | 3.74M | 1.53M | 546.99K | 533.93K | Net Debt |
| 399.36K | 6.63M | 2.26M | 1.19M | -226.33K | 529.17K | Total Liabilities |
| 898.79K | 57.67M | 8.33M | 4.11M | 1.10M | 1.09M | Stockholders Equity |
| -851.10K | 17.16M | 32.77M | -2.67M | -254.17K | -944.26K |
| Cash Flow | Free Cash Flow | ||||
| -1.98M | 313.55K | 377.78K | -1.86M | 665.77K | -43.38K | Operating Cash Flow |
| -1.96M | 686.66K | 377.78K | -1.84M | 665.77K | -43.38K | Investing Cash Flow |
| -115.64K | -230.01K | -1.46M | -115.64K | 0.00 | 0.00 | Financing Cash Flow |
| 2.06M | -175.80K | 2.22M | 1.52M | 102.80K | 47.41K |
Starco Brands Technical Analysis
Negative
0.04
Price Trends
0.06
Negative
0.07
Negative
0.08
Negative
Market Momentum
>-0.01
Positive
39.37
Neutral
6.06
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 below the 20-day moving average (MA) of 0.05, below the 50-day MA of 0.06, and below the 200-day MA of 0.08, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 39.37 is Neutral, neither overbought nor oversold. The STOCH value of 6.06 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for STCB.
Starco Brands Risk Analysis
Starco Brands disclosed 27 risk factors in its most recent earnings report. Starco Brands reported the most risks in the “Production” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Starco Brands Peers Comparison
Overall Rating
UnderperformOutperform
Sector (46)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $305.54B | 29.03 | 41.86% | 2.71% | 1.96% | -0.45% | |
76 Outperform | $53.75B | 37.22 | 21.27% | ― | 4.94% | -4.13% | |
74 Outperform | $6.54B | 62.91 | 12.54% | ― | 2.85% | -43.53% | |
69 Neutral | $3.94B | 21.24 | 40.81% | ― | 0.34% | 9.48% | |
46 Neutral | $2.64B | -3.89 | -29.36% | 3.33% | 2.89% | -29.66% | |
42 Neutral | $27.84M | ― | -174.09% | ― | 30.02% | -1128.87% | |
36 Underperform | $58.94M | ― | 71.20% | ― | -16.95% | 26.58% |
* Basic Materials Sector Average
Performance Comparison
STCB
Starco Brands
0.04
-0.08
-66.67%
KO
Coca-Cola
71.04
11.73
19.78%
MNST
Monster Beverage
55.23
-5.62
-9.24%
FIZZ
National Beverage
42.12
-2.48
-5.56%
REED
Reed's
1.30
-0.26
-16.67%
CELH
Celsius Holdings
27.83
-68.28
-71.04%
Starco Brands Earnings Call Summary
Earnings Call Date: Nov 14, 2024 | % Change Since: -55.56% | Next Earnings Date: Apr 2, 2025
Earnings Call Sentiment Neutral
The earnings call presents a mixed picture with notable achievements in cost optimization and brand growth, particularly for Winona and Soylent, but is offset by significant revenue and profit declines, especially in the Whipshots segment. The sentiment is balanced with both promising strategies for future growth and current challenges in revenue generation.Highlights
Positive Adjusted EBITDA and Margin Improvement
Achieved positive adjusted EBITDA, driven by cost management and new distribution gains, along with sequential margin improvement.
Cost Optimization Success
Identified and removed approximately $3 million of cost optimization opportunities through headcount efficiencies, streamlined marketing spend, and refinement of logistics footprint.
Winona Popcorn Spray Growth
Winona Popcorn Spray showed over 60% growth year-over-year through the third quarter and achieved 10% market share with only 30% ACV.
Soylent Cost Savings and Market Share
Achieved approximately 15% in cost savings, or $1.5 million annually, and maintained a strong 23.6% market share of the meal replacement category with Amazon.
Skylar Subscription Growth
Skylar's Scent Club serves nearly 10,000 monthly subscribers with a CAC of roughly $30 and a gross LTV of 3.30, indicating strong potential for cash generation.
Lowlights
Decrease in Net Revenue
Reported net revenue for Q3 2024 was $15.5 million, down from $17.7 million in Q3 2023, driven by targeted e-commerce sales reductions and lower retail volumes.
Decline in Gross Profit
Gross profit for Q3 2024 was $6.4 million compared to $7.7 million in Q3 2023, with gross margin down year-over-year from 44% to 41%, driven by unfavorable product mix.
Net Loss Increase
Reported unadjusted net loss for Q3 2024 was $6.3 million compared to net income of $2.3 million in Q3 2023, primarily due to a non-cash charge for the fair value share adjustment.
Whipshots Sales Decline
Lower Whipshots sales due to inventory destocking challenges, impacting overall segment revenue and profitability.
Company Guidance
During the third quarter 2024 earnings call for Starco Brands, CEO and Interim CFO Ross Sklar provided detailed insights into the company's operational and financial performance. The quarter was marked by achieving positive adjusted EBITDA and sequential margin improvement, driven by cost management and new distribution gains. The company identified $3 million in cost optimization opportunities, contributing to enhanced capital availability. Notable metrics included a net revenue of $15.5 million, a gross profit of $6.4 million, and an adjusted EBITDA of $0.7 million. Key brand performances were highlighted, such as Winona Popcorn Spray, which achieved over 60% growth year-over-year and 10% market share with only 30% ACV. The Whipshots brand expanded its retail footprint with a partnership with Kroger, securing 1,257 distribution points. Meanwhile, the Art of Sport brand launched into retail with its protein powder now available at Fred’s stores owned by Kroger, and further expansion plans are set for 2025. Soylent showed a 15% cost savings and maintained a 23.6% market share in the meal replacement category with a strong return on ad spend of 4.5x. Starco Brands concluded the quarter with $1.6 million in cash and $13.2 million in inventory, positioning itself for accelerated strategic growth and market penetration in 2025.Starco Brands Corporate Events
Executive/Board Changes
Starco Brands Announces Leadership Changes in Finance Team
Neutral
Nov 12, 2024
Starco Brands, Inc. sees a leadership shuffle as Kevin Zaccardi steps down from his role as Interim-CFO to explore new opportunities, while Ross Sklar, the current CEO and President, takes on the additional role of acting Interim-CFO. This change, effective November 8, 2024, comes with the board’s unanimous support and without any underlying disputes, ensuring continuity and stability in the company’s financial leadership.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.