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Verdict
Quantitative factor alignment verified for current market regime.
Quant Score
Rank
#4780
Positioning
Market Dominance
Services
Business Services
$0
Xiaohua Liu
Star Fashion is a content marketing solutions services provider with a mission to offer high-quality diversified services. Our principal office is 12F, No.611, Sishui Road, Huli District, Xiamen, China. Our agent for service of process in the United States is Cogency Global Inc., located at 122 East 42nd Street, 18th Floor, New York, NY.
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X-AXIS: EV/EBITDA (LOWER = CHEAPER) | Y-AXIS: ROE (HIGHER = ELITE) | RED CIRCLE = STFS ANALYSIS TARGET
| Stock | Rating | Score▼ | Quality | Value | Momentum | P/E | EV/EBITDA | ROE | ROA | Gross Mgn | Op Mgn | Net Mgn | Rev Growth | Div Yield | D/E | Mkt Cap | AUDIT |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
$YALA Yalla Group Ltd | 75 | 89 | 99 | 80 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$GRVY GRAVITY Co., Ltd. | 75 | 82 | 96 | 71 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$ISSC INNOVATIVE SOLUTIONS & SUPPORT INC | 73 | 81 | 88 | 94 | 25.0x | 14.1x | 17.1% | 10.3% | 35.5% | 14.6% | 10.1% | 105.2% | 0.0% | 41.0x | $244M | VS | |
$AER AerCap Holdings N.V. | 72 | 60 | 87 | 84 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$HCSG HEALTHCARE SERVICES GROUP INC | 72 | 74 | 88 | 88 | 7.1x | 6.1x | 28.9% | 20.8% | 20.8% | 9.9% | 9.3% | 8.5% | 0.0% | 1.0x | $1.2B | VS | |
$LQDT LIQUIDITY SERVICES INC | 72 | 90 | 88 | 68 | 24.9x | 14.3x | 14.1% | 8.3% | 45.7% | 8.5% | 6.2% | 28.1% | 0.0% | 0.0x | $736M | VS | |
$TRTNpA Triton International Ltd | 71 | 70 | 89 | 70 | - | 1.7x | 0.0% | - | 97.4% | 58.0% | 37.4% | - | 8.8% | 264.0x | $2.5B | VS | |
$EDU New Oriental Education & Technology Group Inc. | 71 | 83 | 52 | 77 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$NTES NetEase, Inc. | 71 | 88 | 93 | 68 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$UTI UNIVERSAL TECHNICAL INSTITUTE INC | 70 | 86 | 86 | 72 | 43.2x | 16.0x | 15.3% | 5.8% | 100.0% | 6.9% | 5.2% | 15.1% | 0.0% | 24.0x | $1.8B | VS | |
$STFS Star Fashion Culture Holdings Ltd | 25 | 26 | 2 | 2 | - | - | -1139.6% | -599.2% | 5.7% | -107.4% | -108.3% | - | - | 9.0x | $0 | ||
| SECTOR BENCH | - | - | - | - | - | 23.7x | 11.7x | 5.7% | 2.4% | 64.6% | 4.5% | 2.8% | 8.6% | 0.0% | 0.3x | - | REF |
Star Fashion Culture Holdings Ltd (STFS) receives a "Avoid" rating with a composite score of 24.8/100. It ranks #4780 out of 7,333 stocks in our coverage universe and carries a 1-star rating. Ratings are driven by a 6-factor quantitative model measuring quality, value, momentum, investment, stability, and short interest.
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Lagging peers — losers tend to keep underperforming
Expensive relative to fundamentals — limited margin of safety
Weak fundamentals — higher risk of value trap
High volatility — wider range of outcomes increases timing risk
Aggressive spending — empire-building risk, dilutive growth
Below-average composite — caution warranted
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Relative valuation derived from Services sector benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Re-calculated daily.
No analyst ratings for STFS.
View All Ratings| Factor | Global | Sector | Tilt |
|---|---|---|---|
| PROFITABILITY | 26 | 11 | +15ALPHA |
| MOMENTUM | 2 | 1 | +1NEUTRAL |
| VALUATION | 2 | 2 | 0NEUTRAL |
| INVESTMENT | 31 | 39 | -8DRAG |
| STABILITY | 32 | 24 | +8ALPHA |
| SHORT INT | 52 | 60 | -8DRAG |
Global = full universe. Sector = relative to industry peers. Positive tilt indicates idiosyncratic strength.
ROIC -2691.0% vs WACC 9.0% (spread -2699.9%)
GM 6% vs sector 65%, OM -107% vs sector 5%
Capital turnover 31.72x
Rev growth N/A, 2yr history
Interest coverage N/A
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation and elite competitive moats.
Profit generated per dollar of shareholder equity
Efficiency of asset utilization
Pricing power and cost efficiency
Core business profitability
Bottom-line profitability
The Quality factor evaluates the persistence and magnitude of realized cash flows. Companies with scores >70 exhibit superior pricing power and structural financial resilience through diverse economic regimes.
Our uncertainty rating tracks the predictability of future cash flows and potential for permanent capital loss. Moderate visibility with standard industry cyclicality.
We rate Star Fashion Culture Holdings Ltd (STFS) as Avoid with a composite score of 24.8/100 at a current price of $0.09. The stock falls in the bottom quintile, and the multi-factor weakness suggests a high probability of continued underperformance.
Star Fashion Culture Holdings Ltd holds a top-quartile position (#0 of 50) within the Services sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 24.8/100 places it at rank #4780 in our full universe.
No Moat
High
Poor
Fair Value
Stable competitive position in a defensive sector.
Weak momentum suggests persistent institutional selling pressure.
Below-average quality raises earnings sustainability concerns.
Vulnerability to macroeconomic shocks and interest rate volatility.
Star Fashion Culture Holdings Ltd represents a avoid based on multi-factor quantitative performance.
Our quantitative model flags Star Fashion Culture Holdings Ltd with an Avoid rating, assigning a composite score of 24.8/100 and 1 out of 5 stars. Ranked #4780 of 7,333 stocks, STFS falls in the bottom tier across key factors. Historically, stocks with this profile have faced elevated risk of underperformance and capital loss.
STFS's quality score of 26/100 is below average, suggesting challenges with profitability or capital efficiency. The company reports a return on equity of -1139.6% (sector avg: 5.7%), gross margins of 5.7% (sector avg: 64.6%), net margins of -108.3% (sector avg: 2.8%). Investors should examine whether management is actively addressing these weaknesses or if they reflect structural industry headwinds.
STFS registers a value score of just 2/100, suggesting the stock trades at a significant premium to its fundamental metrics. Key valuation metrics include a P/B ratio of 0.60x. High-premium valuations like this require strong future execution to avoid multiple compression, and downside risk is elevated if growth disappoints.
Star Fashion Culture Holdings Ltd's investment score of 31/100 suggests limited reinvestment activity. Key growth metrics include a return on assets of -599.2% (sector: 2.4%). While this can be positive for mature, cash-generative businesses returning capital to shareholders, it may also signal a lack of growth opportunities or management conservatism.
Star Fashion Culture Holdings Ltd is experiencing notably weak momentum with a score of just 2/100. The stock has underperformed its peers and is trending below major moving averages. Revenue growth data is not currently available, while a beta of 0.34 reflects its sensitivity to broader market moves. While deep momentum weakness can occasionally present value opportunities, it often reflects deteriorating fundamentals or structural headwinds that may persist.
STFS's stability score of 32/100 signals elevated volatility and/or leverage concerns. Key stability metrics include a beta of 0.34 and a debt-to-equity ratio of 9.00x (sector avg: 0.3x). Investors should be prepared for wider-than-average price swings and consider position sizing accordingly to manage portfolio risk.
The short interest score of 52/100 for STFS suggests somewhat elevated bearish positioning by institutional traders. Specific risk factors include elevated leverage (D/E: 9.00x), micro-cap liquidity risk. With a $0 market cap (micro-cap), Star Fashion Culture Holdings Ltd may experience above-average volatility. Investors should consider whether the short thesis has merit or if it creates a potential short-squeeze opportunity.
Star Fashion Culture Holdings Ltd is a micro-cap company in the Services sector, ranked #0 of 50 in its sector (100th percentile) and #4780 of 7,333 overall (35th percentile). Key comparisons include ROE of -1139.6% trailing the 5.7% sector median and operating margins of -107.4% below the 4.5% sector average. This top-quartile standing reflects exceptional competitive strength relative to Services peers.
While STFS currently exhibits a AVOID profile, superior opportunities exist within the SERVICES sector. Our model identifies several "Strong Buy" candidates with higher quality scores and more attractive valuations among direct industry competitors.
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Improvement in Value (2) would have the largest impact on the composite score.
ROE 19954% BELOW SECTOR MEDIAN
Gross Margin 91% BELOW SECTOR MEDIAN
Op. Margin 2486% BELOW SECTOR MEDIAN
Above 50MA
37.18%
Net New Highs
+51081
XIAMEN, Oct. 21, 2025 (GLOBE NEWSWIRE) -- STAR FASHION CULTURE HOLDINGS LIMITED (NASDAQ: STFS) (the “Company” or “STFS”) today announced that on October 6, 2025, STAR FASHION CULTURE HOLDINGS LIMITED (the “Company”) received a letter from the Listing Qualifications staff of The Nasdaq Stock Market (“Nasdaq”) notifying the Company that based on the closing bid price of the Company for the period from August 20, 2025 to October 3, 2025, the Company no longer meets the continued listing requirement
While some investors are already well versed in financial metrics (hat tip), this article is for those who would like...

Star Fashion Culture Holdings Limited, a content marketing solutions services provider, has announced the closing of its $8.6 million initial public offering on the NASDAQ Capital Market under the ticker symbol 'STFS'.