Investment Thesis
Star Holdings exhibits severe financial distress with operating losses of $70.7M against $20.9M revenue (−337.8% operating margin) and negative operating cash flow of −$8.4M. The company cannot service $207M debt from operations (−7.0x interest coverage) and is burning cash despite declining revenue.
Strengths
- EPS improved 24.7% YoY indicating some operational progress toward break-even
- Moderate debt-to-equity ratio of 0.87x relative to peer sector risks
- $46.4M cash provides near-term liquidity runway for restructuring
Risks
- Operating losses of $70.7M are 3.4x annual revenue—core business fundamentally unprofitable
- Negative interest coverage (−7.0x) means debt service cannot be funded from operations
- Negative operating cash flow of −$8.4M shows ongoing cash burn with no path visible
- Revenue declining 2.8% YoY with deteriorating operational metrics
- Debt burden of $207M unsustainable relative to negative earnings and cash flow
Key Metrics to Watch
- Operating income path to profitability and timeline for positive EBIT
- Operating cash flow trend—acceleration or stabilization of cash burn rate
- Revenue stabilization and gross margin recovery by segment
- Debt restructuring announcements or refinancing activity
Financial Metrics
Revenue
20.9M
Net Income
-10.3M
EPS (Diluted)
$-0.85
Free Cash Flow
-8.4M
Total Assets
480.4M
Cash
46.4M
Profitability Ratios
Gross Margin
N/A
Operating Margin
-337.8%
Net Margin
-49.0%
ROE
-4.3%
ROA
-2.1%
FCF Margin
-40.1%
Balance Sheet & Liquidity
Current Ratio
N/A
Quick Ratio
N/A
Debt/Equity
0.87x
Debt/Assets
50.0%
Interest Coverage
-7.01x
Long-term Debt
207.0M
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-05-13T09:26:53.116839 |
Data as of: 2026-03-31 |
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