Star Equity Holdings (STRR) AI Stock Analysis

• Market Cap: $6.77M
• Dividend Yield: N/A
• Average Volume (3M): 12.97K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.60
• Revenue Growth: 34.33%
• EPS Growth: -153.90%
• Country: US
• Employees: 194
• Sector: Healthcare
• Sector Strength: 42
• Industry: Medical - Diagnostics & Research
• EPS (TTM): -0.37
• Shares Outstanding: 3,225,545
• 10 Day Avg. Volume: 21,507
• 30 Day Avg. Volume: 12,966
• PEG Ratio: 0.04
• Price to Book (P/B): 0.11
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.21
• Enterprise Value/Market Cap: 3.92
• Enterprise Value/Revenue: 0.13
• Enterprise Value/Gross Profit: 2.11
• Enterprise Value/Ebitda: -1.01
• 1Y Price Target: $5.00
• Price Target Upside: 138.10% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 52 Neutral
• Price Target: $2.00 ▼(-4.76%Downside)

Star Equity Holdings' overall score is driven by financial challenges, particularly in profitability and cash flow. The merger and strategic initiatives offer potential upside, while technical and valuation factors remain neutral to slightly negative.

Positive Factors

Acquisitions

STRR acquired oilfield services company ADT, which contributes to revenue and diversifies the business.

Backlog Growth

A strong 62% quarter-over-quarter increase in backlog and gross profit margin above our estimate.

Valuation

STRR is currently trading at an attractive EV/EBITDA multiple of 6.3x, suggesting potential value for investors.

Negative Factors

Cost Management

Lower revenue forecasts and higher corporate costs reduce the 2025 EBITDA estimate.

Revenue and EBITDA Forecast

STRR reported 1Q25 results with revenue and EBITDA below our forecast due to modular construction delays.

Star Equity Holdings Business Overview & Revenue Model

Company Description

Star Equity Holdings, Inc. (STRR) is a diversified holding company that operates through its subsidiaries in various sectors, primarily focusing on healthcare and construction. The company is engaged in providing diagnostic imaging services and products as well as construction services, including roofing and solar installation. Star Equity Holdings aims to offer high-quality, cost-effective solutions to its clients by leveraging its expertise and resources across its business segments.

How the Company Makes Money

Star Equity Holdings generates revenue through its two primary business segments: Healthcare and Construction. In the Healthcare segment, the company makes money by offering diagnostic imaging services and products, including mobile imaging services to healthcare providers, which are billed either directly to the facilities or through insurance reimbursements. The Construction segment contributes to revenue by providing roofing and solar installation services, where earnings are derived from project contracts and customer payments. The company may also benefit from partnerships with healthcare facilities and construction firms, enhancing its service offerings and expanding its customer base.

Star Equity Holdings Financial Statement Overview

Summary

Star Equity Holdings faces significant profitability and cash flow challenges, despite a modest revenue growth trend. The balance sheet is relatively stable, but the company's inability to generate profits and positive cash flows is a major concern going forward.

Income Statement

Star Equity Holdings' revenue showed a positive growth trajectory, with a 7.13% increase in the latest TTM period. However, profitability is a significant concern. The company reported negative EBIT and EBITDA margins, indicating operational challenges. The net profit margin is also negative, suggesting the company is unable to convert sales into profits effectively.

Balance Sheet

The balance sheet reflects a moderate risk profile, with a debt-to-equity ratio of 0.37, indicating a conservative leverage approach. However, the return on equity is negative, pointing to inefficiencies in generating returns for shareholders. The equity ratio of 63.02% suggests a solid equity base relative to total assets, but profitability remains a concern.

Cash Flow

Cash flow analysis reveals a concerning trend, with negative free cash flow indicating cash burn. The operating cash flow to net income ratio is negative, reflecting poor cash generation against reported losses. Although there is a slight improvement in free cash flow growth, the overall cash flow position remains strained.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	53.36M	45.78M	112.15M	106.56M	78.16M
Gross Profit	11.05M	11.93M	25.88M	15.24M	13.99M
EBITDA	-4.81M	-1.69M	-9.00K	-3.03M	6.15M
Net Income	-10.44M	25.13M	-5.25M	-2.98M	-6.46M
Balance Sheet
Total Assets	83.05M	75.50M	73.30M	68.05M	88.29M
Cash, Cash Equivalents and Short-Term Investments	7.37M	23.16M	7.87M	4.58M	3.26M
Total Debt	20.08M	3.61M	5.44M	18.71M	28.91M
Total Liabilities	28.71M	10.20M	31.55M	32.31M	48.36M
Stockholders Equity	54.34M	65.30M	41.76M	35.74M	39.93M
Cash Flow
Free Cash Flow	-8.04M	2.00M	-5.05M	-7.24M	-6.45M
Operating Cash Flow	-5.18M	2.70M	-3.86M	-6.45M	-4.95M
Investing Cash Flow	-12.04M	16.18M	-5.09M	17.80M	-1.33M
Financing Cash Flow	3.91M	-3.07M	8.94M	-9.97M	8.06M

Star Equity Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.10
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• 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 2.1 is above the 20-day moving average (MA) of 2.01, above the 50-day MA of 2.08, and below the 200-day MA of 2.46, indicating a neutral trend. The MACD of 0.01 indicates Negative momentum. The RSI at 56.03 is Neutral, neither overbought nor oversold. The STOCH value of 73.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for STRR.

Star Equity Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PRPO	67 Neutral	$22.23M	―	-25.29%	―	26.67%	44.02%
INBS	61 Neutral	$11.13M	―	-126.34%	―	3.87%	91.76%
STRR	52 Neutral	$6.77M	―	-15.34%	―	34.33%	-153.90%
Sector *	52 Neutral	$7.65B	0.16	-63.14%	2.08%	16.38%	0.82%
BIAF	50 Neutral	$9.51M	―	-290.85%	―	78.40%	22.41%
APDN	42 Neutral	$2.62M	―	-141.39%	―	-58.46%	47.98%

Star Equity Holdings Corporate Events

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.

The most recent analyst rating on (STRR) stock is a Buy with a $8.00 price target. To see the full list of analyst forecasts on Star Equity Holdings stock, see the STRR Stock Forecast page.

Star Equity Holdings Announces Merger with Hudson Global

On May 21, 2025, Star Equity Holdings, Inc. and Hudson Global, Inc. announced a definitive merger agreement where Star will merge with a wholly owned subsidiary of Hudson. The merger aims to create a larger multi-sector holding company, NewCo, with pro-forma annualized revenues of $210 million, enhancing growth potential and shareholder value. The merger, pending regulatory and shareholder approvals, is expected to close in the second half of 2025. It will result in Hudson shareholders owning approximately 79% of NewCo, while Star shareholders will own about 21%. The merger is anticipated to bring cost savings, revenue diversification, and improved market capitalization, benefiting both companies’ shareholders.

The most recent analyst rating on (STRR) stock is a Buy with a $8.00 price target. To see the full list of analyst forecasts on Star Equity Holdings stock, see the STRR Stock Forecast page.

Star Equity Holdings Declares Cash Dividend for Preferred Stock

On May 20, 2025, Star Equity Holdings, Inc. announced a cash dividend of $0.25 per share for its 10% Series A Cumulative Perpetual Preferred Stock, with a record date of June 1, 2025, and a payment date of June 10, 2025. This dividend declaration reflects the company’s commitment to providing returns to its preferred stockholders and may impact its financial strategy and liquidity, considering its need to manage debt and pursue growth opportunities.

The most recent analyst rating on (STRR) stock is a Buy with a $8.00 price target. To see the full list of analyst forecasts on Star Equity Holdings stock, see the STRR Stock Forecast page.