One-glance verdict
Within fair range
$8.41 our estimate vs market $10.06
Wall Street consensus: $17.33 (106.1% higher than our fair-value estimate)
20% above our estimate
Fundamentals snapshot
Star Equity Holdings, Inc.
STRR · NMS · Industrials · Staffing & Employment Services
Current price
$10.06
52-week range
$8.95 - $11.99
Market cap
$37.12M
Balance sheet
Distressed
-14.18x Concerning
Net debt $17.10M. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
2 Risks
2 rewards · 2 risks
- Reward Revenue grew 21.8% last year.
- Reward Free cash flow was positive in 4/10 years.
- Risk Return on equity was -18.2% last year — the company lost money on shareholders' equity.
- Risk Operating margin compressed from 4.6% to -2.5% over 3 years.
What this company does
Star Equity Holdings, Inc.
Star Equity Holdings is a company that owns several different businesses, including one that makes building materials, another that helps companies hire workers, and a third that provides tools for the oil and gas industry. Because its income comes from these very different fields, a downturn in one area may be balanced out by success in another. This structure helps spread out the company's financial risk instead of relying on just one market.
How the company got here
Star Equity Holdings started its life as a global staffing company called Hudson Global, Inc. [1, 4]. A major turning point came in August 2025 when it merged with another company, Star Operating Companies, to create a more varied business. [3, 10] Shortly after, in September 2025, the newly combined company changed its name to Star Equity Holdings to reflect its new, broader strategy. [1, 5] This move transformed it from a focused staffing firm into a diversified holding company, which is a parent company that owns a variety of different businesses.
What it actually does
Think of Star Equity Holdings as a company that owns a collection of other, smaller companies in completely different fields. [1, 4] It's a diversified holding company, meaning it doesn't make just one product but instead manages a portfolio of businesses. [13] Its main goal is to acquire and grow these various businesses to build long-term value for its investors. [13] The company operates in industries ranging from construction and hiring to energy and investments.
Building Solutions
This part of the company manufactures and sells specialized building materials for homes and commercial buildings. [4] It produces things like modular buildings (sections of a building made in a factory and assembled on-site), structural wall panels, and heavy-duty wood products like glue-laminated timber used for beams and columns. [2, 9] Customers are typically in the residential, commercial, and industrial construction markets. [4] This segment is one of the company's core operational pillars.
Business Services
This is the company's staffing and recruitment arm, a carryover from its time as Hudson Global. [2] It helps medium-to-large companies find and hire employees, offering services like recruitment process outsourcing (RPO), where it manages a client's entire hiring process. [4, 6] Essentially, other businesses pay Star Equity to handle the complex and time-consuming task of finding the right talent. [8] This segment has historically been a major contributor to the company's overall revenue (the total money earned from sales). [6]
Energy Services
This division makes, sells, and rents specialized equipment used for drilling deep into the ground. [4, 9] Its customers are companies in the oil and gas, geothermal, mining, and water well industries. [8] The tools it provides are critical for well construction and directional drilling (a technique for drilling non-vertical wells). [4] This business provides a focused revenue stream tied to the energy and natural resources sectors.
Investments
This segment acts like the company's internal investment manager. It handles the real estate that the company owns itself. [4, 9] It also manages a portfolio of investments in various other companies, both private and publicly traded. [4, 8] This part of the business aims to grow the company's wealth not just by selling products or services, but by making smart financial investments.
What management is betting on now
The company's leadership is focused on growing by acquiring other businesses, a strategy similar to that of a private equity firm (a company that invests in or buys other companies). [7, 13] Their goal is to build a diverse collection of businesses with strong fundamentals (a measure of a company's financial health) and potential for long-term growth. [1, 5] This includes making 'bolt-on' acquisitions (buying smaller companies that complement their existing businesses) to expand their current divisions. [7] Management has also initiated stock buybacks (when a company purchases its own shares from the market), signaling they believe the company's stock is undervalued. [8]
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$1.25M
FY2024 Q4
$2.02M
FY2025 Q1
$-808.00K
FY2025 Q2
$102.00K
FY2025 Q3
$-3.35M
FY2025 Q4
$-4.90M
FY2026 Q1
$-2.69M
FY2026 Q2
$-3.23M
Revenue
$54.94M
Net income
$-1.85M
Diluted EPS
-0.50
Operating cash flow
$-1.73M
Free cash flow
$-3.23M
Fetching…
Sources
Revenue
$50.06M
Net income
$-3.79M
Diluted EPS
-1.01
Operating cash flow
$-1.40M
Free cash flow
$-2.69M
Fetching…
Sources
Revenue
$56.79M
Net income
$-1.71M
Diluted EPS
-0.49
Operating cash flow
$-3.85M
Free cash flow
$-4.90M
Fetching…
Sources
Revenue
$47.96M
Net income
$-1.76M
Diluted EPS
-0.54
Operating cash flow
$-2.74M
Free cash flow
$-3.35M
Fetching…
Sources
Revenue
$35.54M
Net income
$-688.00K
Diluted EPS
-0.23
Operating cash flow
$139.00K
Free cash flow
$102.00K
Fetching…
Sources
Revenue
$31.87M
Net income
$-1.76M
Diluted EPS
-0.59
Operating cash flow
$-802.00K
Free cash flow
$-808.00K
Fetching…
Sources
Revenue
$33.60M
Net income
$-585.00K
Diluted EPS
-0.21
Operating cash flow
$2.02M
Free cash flow
$2.02M
Fetching…
Sources
Revenue
$36.85M
Net income
$-846.00K
Diluted EPS
-0.28
Operating cash flow
$1.25M
Free cash flow
$1.25M
Fetching…
Sources
Is it cheap or expensive?
Fair value $8.41 vs current price $10.06
Wall Street consensus is the average analyst price target: $17.33 (106.1% higher than our fair-value estimate).
Our most-likely fair value is $8.41 a share — about 16.4% away from today's price of $10.06, so the stock currently looks fairly priced.
Is it drowning in debt?
Distressed
Net debt $17.1M. Interest coverage -14.2x.
Net debt
$17.10M
Interest coverage
-14.18x
Star Equity Holdings, Inc.'s profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 3 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Distressed
Worse cushion
Baseline
Better cushion
STRR
BASELINE
Star Equity Holdings, Inc.
Total debt $28.20M Interest coverage -14.18x This is the baseline the peer rows are being compared against.
Total debt $3.50M Interest coverage -9.94x Neither company has much profit cushion over interest right now.
Total debt $608.00K Interest coverage -2.07x Neither company has much profit cushion over interest right now.
Total debt $141.14M Interest coverage 1.26x This peer still has a real interest-payment cushion, while STRR does not.
Total debt $19.46M Interest coverage 0.79x This peer still has a real interest-payment cushion, while STRR does not.
Total debt $0.00 Interest coverage 22.66x This peer still has a real interest-payment cushion, while STRR does not.
What you should know
The case for and against STRR
2 Rewards
2 Risks
Rewards
-
Revenue grew 21.8% last year.
-
Free cash flow was positive in 4/10 years.
Risks
-
Return on equity was -18.2% last year — the company lost money on shareholders' equity.
-
Operating margin compressed from 4.6% to -2.5% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
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Forward P/E
8.56x
P/B
0.62x
P/S
0.18x
EV/EBITDA
-25.81x
PEG ratio
0.19x
Profitability
How much profit each dollar creates
Gross margin
8.2%
Operating margin
-2.5%
Net margin
-4.3%
ROE
-18.2%
ROA
-4.2%
Health
Liquidity and balance-sheet strength
Debt / equity
0.47x
Current ratio
1.96x
Quick ratio
1.56x
Total debt
$28.20M
Total cash
$11.10M
Growth
How the business has been compounding
Revenue TTM
$209.75M
Revenue 5Y CAGR
0.4%
EPS TTM
-2.79
EPS 5Y CAGR
—
Cash flow
How much cash the business throws off
Operating CF TTM
$-9.71M
Free CF TTM
$-8.96M
FCF margin
-4.3%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
2016-06-10