📊 STCB Key Takeaways
Is Starco Brands, Inc. (STCB) a Good Investment?
Starco Brands is in acute financial distress with unsustainable losses ($20.9M net loss on $31.1M revenue), negative cash burn (-$900.8K OCF), and critical liquidity constraints (0.90x current ratio). With minimal cash of $1.8M and zero revenue growth, the company faces imminent solvency risk without significant operational restructuring or capital infusion.
Starco Brands, Inc. Key Strengths (STCB)
- Gross margin of 50.4% indicates core business pricing power
- Moderate debt-to-equity ratio of 0.68x shows leverage is not at crisis level
- Established revenue base of $31.1M demonstrates market presence
STCB Stock Risks: Starco Brands, Inc. Investment Risks
- Critical liquidity crisis: current ratio of 0.90x and quick ratio of 0.56x unable to cover short-term obligations
- Severe cash burn: negative operating cash flow of $900.8K with only $1.8M cash (~2 year runway)
- Catastrophic profitability: net margin of -67.4% and operating margin of -60.5% indicate business model is broken
- Zero revenue growth (0% YoY) with no path to profitability from expansion
- Razor-thin equity of $5.1M provides minimal cushion for losses or dilutive financing
- No insider buying activity in 90 days signals lack of management confidence
Key Metrics to Watch
- Operating Cash Flow - trajectory critical for bankruptcy risk assessment
- Cash Balance and Burn Rate - determines runway before distressed financing or default
- Operating Expenses as % of Revenue - key to understanding if restructuring is occurring
- Revenue Growth Rate - essential inflection point for viability
- Debt Refinancing Activity - will indicate lender/creditor confidence
Starco Brands, Inc. (STCB) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
STCB Profit Margin, ROE & Profitability Analysis
STCB vs Services Sector: How Starco Brands, Inc. Compares
How Starco Brands, Inc. compares to Services sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Starco Brands, Inc. Stock Overvalued? STCB Valuation Analysis 2026
Based on fundamental analysis, Starco Brands, Inc. shows some fundamental concerns relative to the Services sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Starco Brands, Inc. Balance Sheet: STCB Debt, Cash & Liquidity
STCB Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Starco Brands, Inc.'s revenue has grown significantly by 735% over the 5-year period, indicating strong business expansion. The most recent EPS of $-0.03 indicates the company is currently unprofitable.
STCB Revenue Growth, EPS Growth & YoY Performance
STCB Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q2 2024 | $15.6M | -$6.0M | $-0.01 |
| Q1 2024 | $11.1M | -$1.7M | $0.00 |
| Q3 2023 | $1.7M | $32.8K | $0.00 |
| Q2 2023 | $1.2M | $142.4K | $0.00 |
| Q1 2023 | $923.3K | $40.9K | $0.00 |
| Q3 2022 | $109.5K | $32.8K | $0.00 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Starco Brands, Inc. Dividends, Buybacks & Capital Allocation
STCB SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Starco Brands, Inc. (CIK: 0001539850)
📋 Recent SEC Filings
❓ Frequently Asked Questions about STCB
What is the AI rating for STCB?
Starco Brands, Inc. (STCB) has an AI grade of D with 95% confidence, based on fundamental analysis of SEC EDGAR filings.
What are STCB's key strengths?
Claude: Gross margin of 50.4% indicates core business pricing power. Moderate debt-to-equity ratio of 0.68x shows leverage is not at crisis level.
What are the risks of investing in STCB?
Claude: Critical liquidity crisis: current ratio of 0.90x and quick ratio of 0.56x unable to cover short-term obligations. Severe cash burn: negative operating cash flow of $900.8K with only $1.8M cash (~2 year runway).
What is STCB's revenue and growth?
Starco Brands, Inc. reported revenue of $31.1M.
Does STCB pay dividends?
Starco Brands, Inc. does not currently pay dividends.
Where can I find STCB SEC filings?
Official SEC filings for Starco Brands, Inc. (CIK: 0001539850) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is STCB's EPS?
Starco Brands, Inc. has a diluted EPS of $-0.03.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is STCB's fundamental grade?
Based on our AI fundamental analysis in May 2026, Starco Brands, Inc. has a D grade with 95% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is STCB stock overvalued or undervalued?
Valuation metrics for STCB: ROE of -408.9% (sector avg: 16%), net margin of -67.4% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
What is STCB's AI grade for 2026?
Our dual AI analysis gives Starco Brands, Inc. a combined D grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is STCB's free cash flow?
Starco Brands, Inc.'s operating cash flow is $-900.8K, with capital expenditures of $113.0K. FCF margin is -3.3%.
How does STCB compare to other Services stocks?
Vs Services sector averages: Net margin -67.4% (avg: 10%), ROE -408.9% (avg: 16%), current ratio 0.90 (avg: 1.5).