Hudson Global (STRR) AI Stock Analysis

• Market Cap: $38.15M
• Dividend Yield: N/A
• Average Volume (3M): 35.09K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.76
• Revenue Growth: 42.94%
• EPS Growth: 50.97%
• Country: US
• Employees: 194
• Sector: Industrials
• Sector Strength: 72
• Industry: Medical - Diagnostics & Research
• EPS (TTM): 0.02
• Shares Outstanding: 3,499,626
• 10 Day Avg. Volume: 14,352
• 30 Day Avg. Volume: 35,091
• PEG Ratio: -0.02
• Price to Book (P/B): 1.02
• Price to Sales (P/S): 0.77
• P/FCF Ratio: -5.11
• Enterprise Value/Market Cap: 0.24
• Enterprise Value/Revenue: 0.08
• Enterprise Value/Gross Profit: 0.20
• Enterprise Value/Ebitda: 3.99
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: $2.00 ▼(-80.51% Downside)

Star Equity Holdings' overall score is driven by strong earnings call results and positive corporate events, particularly the merger with Hudson Global. However, ongoing profitability challenges and a negative P/E ratio weigh on the score. Technical indicators show a positive short-term trend, but valuation concerns persist.

Positive Factors

Revenue Growth

The significant revenue growth indicates strong market demand and effective business strategies, enhancing long-term financial stability.

Merger with Hudson Global

The merger is expected to enhance market position, revenue diversity, and profitability, strengthening the company's competitive edge.

Improved Gross Margin

Improved gross margins reflect operational efficiency and better cost management, supporting sustainable profitability.

Negative Factors

Profitability Challenges

Ongoing profitability issues can hinder reinvestment and growth, posing risks to long-term financial health.

Cash Flow Challenges

Negative cash flow from operations indicates liquidity issues, potentially affecting the company's ability to fund operations and growth.

Increased SG&A Expenses

Rising SG&A expenses can pressure margins and reduce profitability, challenging cost management efforts.

Hudson Global Business Overview & Revenue Model

Company Description

Star Equity Holdings, Inc. provides healthcare solutions in the United States and internationally. It operates through four segments: Diagnostic Services, Diagnostic Imaging, Construction, and Investments. It offers imaging services primarily to cardiologists, internal medicine physicians, and family practice doctors; and imaging systems, including nuclear cardiac and general purpose nuclear imaging systems to physician offices and hospitals. The company also develops, sells, and maintains solid-state gamma cameras; and provides camera maintenance contract services. In addition, it manufactures modular housing units, structural wall panels, permanent wood foundation systems, and other engineered wood products; supplies general contractors with building materials; holds real estate assets; and manages investments. The company was formerly known as Digirad Corporation and changed its name to Star Equity Holdings, Inc. in December 2020. Star Equity Holdings, Inc. was founded in 1985 and is headquartered in Old Greenwich, Connecticut.

How the Company Makes Money

Star Equity Holdings generates revenue through a combination of asset management, investment income, and operational revenues from its subsidiary companies. Key revenue streams include the management of healthcare-related businesses, where the company earns fees and a percentage of profits. Additionally, the company derives income from real estate investments and development projects, which provide rental income and capital appreciation. Strategic partnerships with other firms in the healthcare and technology sectors also contribute to revenue, allowing for collaborative projects and shared resources that enhance earnings potential.

Hudson Global Financial Statement Overview

Summary

Star Equity Holdings shows potential for revenue growth with a 17.89% increase, but profitability remains a challenge with negative net profit margins. The balance sheet indicates moderate leverage and a stable equity position, while cash flow improvements are noted but still require attention.

Income Statement

Star Equity Holdings has shown a positive revenue growth rate of 17.89% in the TTM, indicating potential growth prospects. However, the company struggles with profitability, as evidenced by negative net profit and EBIT margins. The gross profit margin has improved to 24.71% in the TTM, but the net profit margin remains negative at -3.19%, highlighting ongoing challenges in achieving profitability.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.37 in the TTM, indicating a relatively moderate leverage level compared to previous years. However, the return on equity is negative at -3.66%, reflecting challenges in generating returns for shareholders. The equity ratio stands at 61.13%, suggesting a stable capital structure with a significant portion of assets financed by equity.

Cash Flow

Star Equity Holdings has shown some improvement in free cash flow growth at 10.43% in the TTM, but the operating cash flow remains negative, indicating cash flow challenges. The free cash flow to net income ratio is high at 2.79, suggesting that the company is generating more free cash flow relative to its net income, which could be a positive sign if sustained.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	113.52M	53.36M	161.34M	112.15M	106.56M	78.16M
Gross Profit	46.44M	11.05M	80.27M	25.88M	15.24M	13.99M
EBITDA	2.29M	-4.81M	2.85M	-9.00K	-3.03M	6.15M
Net Income	-6.08M	-10.44M	2.20M	-5.25M	-2.98M	-6.46M
Balance Sheet
Total Assets	117.14M	52.58M	60.96M	67.94M	61.24M	89.46M
Cash, Cash Equivalents and Short-Term Investments	19.30M	17.01M	22.61M	27.12M	21.71M	3.23M
Total Debt	22.99M	1.06M	1.43M	1.94M	2.48M	27.97M
Total Liabilities	49.37M	12.15M	12.40M	22.15M	21.93M	49.53M
Stockholders Equity	67.77M	40.43M	48.55M	45.79M	39.32M	39.93M
Cash Flow
Free Cash Flow	-9.52M	-8.04M	2.00M	-5.05M	-7.24M	-6.45M
Operating Cash Flow	-5.37M	-5.18M	2.70M	-3.86M	-6.45M	-4.95M
Investing Cash Flow	2.10M	-12.04M	16.18M	-5.09M	17.80M	-1.33M
Financing Cash Flow	523.00K	3.91M	-3.07M	8.94M	-9.97M	8.06M

Hudson Global Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 10.26
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For STRR, the sentiment is Positive. The current price of 10.26 is above the 20-day moving average (MA) of 10.25, below the 50-day MA of 10.82, and above the 200-day MA of 9.89, indicating a neutral trend. The MACD of -0.17 indicates Negative momentum. The RSI at 48.22 is Neutral, neither overbought nor oversold. The STOCH value of 55.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for STRR.

Hudson Global Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
STRR	56 Neutral	$38.15M	-8.39	-8.66%	―	42.94%	50.97%
DHX	50 Neutral	$90.74M	-9.17	-12.89%	―	-9.13%	-1032.39%
BGSF	49 Neutral	$49.62M	―	-14.43%	45.15%	-36.79%	-507.05%
JOB	47 Neutral	$20.38M	-0.56	-53.10%	―	-15.53%	-67.84%
IPDN	42 Neutral	$9.32M	―	-78.12%	―	-7.26%	-1.37%
NIXX	34 Underperform	$22.90M	―	-213.28%	―	6913.31%	72.35%

Hudson Global Corporate Events

Star Equity Holdings Completes Merger with Hudson Global

On August 22, 2025, Star Equity Holdings completed its merger with Hudson Global, resulting in a larger, diversified holding company. Following the merger, Star’s stock was delisted from Nasdaq, and Hudson Global’s stock continued trading under its existing symbols. The merger is expected to enhance the combined company’s market position, revenue diversity, and profitability, with potential inclusion in the Russell 2000 index. The merger has been structured to leverage Hudson Global’s net operating losses and is anticipated to have no material impact on clients, employees, or brand names of the operating businesses.

Star Equity Holdings Approves Merger with Hudson Subsidiary

On August 21, 2025, Star Equity Holdings, Inc. held a special meeting where stockholders approved a merger with HSON Merger Sub, Inc., a subsidiary of Hudson Global, Inc. The merger, effective August 22, 2025, will result in Star continuing as a wholly owned subsidiary under the name ‘Star Operating Companies, Inc.’ This strategic move, supported by a majority vote, aligns with the interests of key stakeholders, including Jeffrey Eberwein, who holds significant positions in both Hudson and Star.

Star Equity Completes Merger with Hudson Global

On May 21, 2025, Star Equity Holdings, Inc. entered into a merger agreement with Hudson Global, Inc., under which Star will merge with a subsidiary of Hudson, becoming a wholly owned subsidiary of Hudson. On August 14, 2025, Hudson appointed Computershare Trust Company as the Exchange Agent to manage the distribution of shares and cash payments for fractional shares to Star’s stockholders, following the merger’s completion.

Star Equity Announces Partial Cash Dividend Declaration

On August 8, 2025, Star Equity Holdings announced a partial cash dividend of $0.225 per share for its 10% Series A Cumulative Perpetual Preferred Stock, with a record date of August 21, 2025, and payment on September 10, 2025. Additionally, Star Equity Holdings is set to merge with Hudson Global, Inc., with Star stockholders receiving Hudson common and preferred stock in exchange for their shares, marking a significant step in the company’s strategic operations and potentially impacting its market positioning.

Star Equity Holdings Announces Merger with Hudson Global

On May 21, 2025, Star Equity Holdings, Inc. entered into a merger agreement with Hudson Global, Inc., where Star will merge with a wholly owned subsidiary of Hudson, becoming a wholly owned subsidiary itself. The merger will result in the conversion of Star’s common and preferred stock into Hudson’s stock, and the transaction is set to be taxable for U.S. federal income tax purposes. A special meeting for Star stockholders to approve the merger is scheduled for August 21, 2025, and the SEC has declared the registration statement effective, allowing Star to disseminate the proxy statement to its stockholders.