Star Holdings (NASDAQ: STHO)

Sector: Real Estate Industry: Real Estate Services CIK: 0001953366
Market Cap 108.70 Mn
P/B 0.43
P/E -1.69
P/S 0.99
ROIC (Qtr) 2.26
Div Yield % 0.00
Rev 1y % (Qtr) -22.60
Total Debt (Qtr) 268.72 Mn
Debt/Equity (Qtr) 1.07
Add ratio to table...

About

Star Holdings, Inc. (STHO) is a real estate investment company operating in the competitive landscape of the real estate industry. The company's primary business activities involve cash flow generation through active asset management and sales of its existing loans, operating properties, and land and development properties. Star Holdings' portfolio consists of two main segments: the Development Portfolio and the Monetizing Portfolio. The Development Portfolio includes the Asbury Park Waterfront investment, featuring residential condominium units,...

Read more

Investment thesis

Bull case

  • Cash position of 50.08M fully covers payables of 35.61M by 1.41x, showing strong vendor relationship management.

Bear case

  • Free cash flow of (19.89M) provides weak coverage of capital expenditures of 8.23M, with a -2.42 ratio suggesting additional external financing needs for growth initiatives.
  • Operating cash flow of (11.66M) provides minimal -431.78x coverage of tax expenses of 27000, suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Operating earnings of (45.85M) show weak coverage of depreciation charges of 5.21M, with a -8.79 ratio indicating high capital intensity and potential reinvestment needs.
  • Free cash flow of (19.89M) represents just -0.46x of debt issuance 42.94M, suggesting concerning reliance on leverage rather than internal cash generation for growth.
  • Operating cash flow of (11.66M) barely covers operating expenses of 5.22M with a -2.23 ratio, suggesting thin operational efficiency margins and limited flexibility.

Peer comparison

Companies in the Real Estate Services
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 CBRE Cbre Group, Inc. 42.12 Bn 36.40 1.04 9.99 Bn
2 BEKE KE Holdings Inc. 19.37 Bn 39.77 1.33 2.96 Bn
3 CSGP Costar Group, Inc. 18.57 Bn 914.80 6.08 1.18 Bn
4 JLL Jones Lang Lasalle Inc 13.60 Bn 21.53 0.54 3.48 Bn
5 FSV FirstService Corp 7.02 Bn 48.37 1.28 1.38 Bn
6 CIGI Colliers International Group Inc. 5.59 Bn 54.27 1.01 2.29 Bn
7 COMP Compass, Inc. 5.18 Bn -91.82 0.78 0.48 Bn
8 OPEN Opendoor Technologies Inc. 3.12 Bn -9.84 0.66 1.79 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.57 1.18
EV to Cash from Ops. EV/CFO -28.08 -6.57
EV to Debt EV to Debt 1.22 5.19
EV to EBIT EV/EBIT -7.14 4.86
EV to EBITDA EV/EBITDA 19.10 13.56
EV to Free Cash Flow [EV/FCF] EV/FCF -16.46 -11.14
EV to Market Cap EV to Market Cap 3.01 7.70
EV to Revenue EV/Rev 2.97 3.49
Price to Book Value [P/B] P/B 0.43 1.76
Price to Earnings [P/E] P/E -1.69 40.59
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 0.36
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 -7.05
Dividend per Basic Share Div per Share (Qtr) 0.00 0.22
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 0.46
Interest Coverage Int. cover (Qtr) -2.50 -2.20
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -231.35 -12,527.01
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 43.26 24.62
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 1.26
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 35.39 10.86
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 455.09 33.08
EBIT Growth (1y) % EBIT 1y % (Qtr) 35.42 19.37
EBT Growth (1y) % EBT 1y % (Qtr) 25.97 28.48
EPS Growth (1y) % EPS 1y % (Qtr) 24.73 29.29
FCF Growth (1y) % FCF 1y % (Qtr) 20.54 67.74
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 93.84 33.25
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.19 1.44
Cash Payout Ratio Cash Payout (Qtr) 0.00 -0.01
Cash Ratio Cash Ratio 0.00 1.45
Current Ratio Current Ratio 0.00 2.16
Debt to Equity Ratio Debt/Equity (Qtr) 1.07 -0.07
Interest Cover Ratio Int Coverage (Qtr) -2.50 -2.20
Times Interest Earned Times Interest Earned (Qtr) -2.50 -2.20
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -36.90 -120.34
EBIT Margin % EBIT Margin % (Qtr) -41.63 -135.17
EBT Margin % EBT Margin % (Qtr) -58.31 -142.98
Gross Margin % Gross Margin % (Qtr) 28.80 32.99
Net Profit Margin % Net Margin % (Qtr) -58.30 -138.31