Star Equity Holdings, Inc. (STRR)
Star Equity Holdings, Inc. operates in healthcare solutions and construction, with a focus on diagnostic services and modular construction. The company aims to deliver value through its diversified business segments and strategic investments.
Company Overview
Star Equity Holdings: A diversified play in healthcare and construction, offering diagnostic services, imaging systems, and modular building solutions, presenting a unique opportunity for investors seeking exposure to multiple growth sectors with a small-cap value proposition.
Investment Thesis
Star Equity Holdings presents a compelling investment opportunity due to its diversified business model and potential for growth in both the healthcare and construction sectors. The company's focus on diagnostic services and imaging systems addresses the increasing demand for accessible and efficient healthcare solutions. The construction segment benefits from the growing trend towards modular construction, offering faster and more cost-effective building solutions. With a market cap of $0.03 billion, STRR offers significant upside potential if it can successfully execute its growth strategy. Key value drivers include expanding its diagnostic service offerings, increasing sales of its imaging systems, and capitalizing on the demand for modular construction. The company's low beta of 0.57 suggests lower volatility compared to the overall market, making it an attractive option for risk-averse investors. Successful execution of these strategies could lead to significant revenue growth and improved profitability in the coming years.
Key Highlights
- Market Cap of $0.03 billion indicates a small-cap company with potential for high growth.
- Gross Margin of 40.9% demonstrates strong pricing power and efficient cost management.
- Beta of 0.57 suggests lower volatility compared to the broader market, appealing to risk-averse investors.
- Operates in four segments: Diagnostic Services, Diagnostic Imaging, Construction, and Investments, providing diversification.
- Profit Margin of -5.4% indicates an opportunity for improvement through operational efficiencies and revenue growth.
Competitors
Strengths
- Diversified revenue streams across healthcare and construction.
- Proprietary technology in diagnostic imaging.
- Established manufacturing capabilities for modular construction.
- Experienced management team.
Weaknesses
- Small market capitalization limits access to capital.
- Negative profit margin indicates operational challenges.
- Limited brand recognition compared to larger competitors.
- Dependence on economic conditions in healthcare and construction sectors.
Catalysts
- Ongoing: Expansion of diagnostic service offerings to new geographic areas.
- Ongoing: Increased sales of imaging systems to hospitals and physician offices.
- Ongoing: Growth in the modular construction market driving demand for manufactured units.
- Upcoming: Potential acquisitions of complementary businesses in healthcare or construction.
- Upcoming: Real estate asset optimization projects unlocking additional capital.
Risks
- Potential: Economic downturn impacting demand for healthcare services and construction materials.
- Potential: Increased competition in diagnostic imaging and modular construction markets.
- Potential: Regulatory changes affecting healthcare reimbursement or construction standards.
- Ongoing: Operational challenges in achieving profitability and managing costs.
- Ongoing: Dependence on key personnel and ability to retain talent.
Growth Opportunities
- Expansion of Diagnostic Services: The increasing demand for diagnostic services, driven by an aging population and rising healthcare awareness, presents a significant growth opportunity. Star Equity Holdings can expand its network of diagnostic centers and broaden its service offerings to capture a larger share of this market. The market for diagnostic services is projected to reach $134 billion by 2027, offering substantial revenue potential. Timeline: Ongoing.
- Increased Sales of Imaging Systems: The growing need for advanced medical imaging technologies in hospitals and physician offices creates a strong demand for Star Equity Holdings' imaging systems. By focusing on product innovation and strategic partnerships, the company can increase its sales and market share. The global medical imaging market is expected to reach $46 billion by 2028, providing a significant growth runway. Timeline: Ongoing.
- Penetration of Modular Construction Market: The rising popularity of modular construction, driven by its cost-effectiveness and speed, offers a significant growth opportunity for Star Equity Holdings' construction segment. By expanding its manufacturing capacity and strengthening its distribution network, the company can capitalize on this trend. The modular construction market is projected to reach $157 billion by 2023, presenting a substantial growth opportunity. Timeline: Ongoing.
- Strategic Acquisitions: Star Equity Holdings can pursue strategic acquisitions of complementary businesses in the healthcare and construction sectors to expand its product offerings, geographic reach, and market share. By carefully selecting acquisition targets and integrating them effectively, the company can accelerate its growth and enhance its competitive position. The timeline for potential acquisitions is dependent on market conditions and available opportunities. Timeline: Ongoing.
- Real Estate Asset Optimization: The company holds real estate assets that can be optimized through strategic sales or development projects. By unlocking the value of these assets, Star Equity Holdings can generate additional capital to invest in its core businesses and enhance shareholder value. The timeline for real estate optimization projects will vary depending on specific property characteristics and market conditions. Timeline: Ongoing.
Opportunities
- Expansion into new geographic markets.
- Strategic acquisitions to broaden product offerings.
- Increased adoption of modular construction techniques.
- Growing demand for diagnostic imaging services.
Threats
- Intense competition in healthcare and construction industries.
- Regulatory changes in healthcare and construction.
- Economic downturn impacting demand for products and services.
- Technological obsolescence in diagnostic imaging.
Competitive Advantages
- Diversified business model reduces reliance on any single market segment.
- Established relationships with healthcare providers and construction companies.
- Proprietary technology in solid-state gamma cameras.
- Manufacturing capabilities for modular housing units.
About
Star Equity Holdings, Inc., founded in 1985 and headquartered in Old Greenwich, Connecticut, has evolved into a diversified holding company with a strategic focus on healthcare and construction. Originally known as Digirad Corporation, the company rebranded in December 2020 to reflect its broader scope of operations. The Diagnostic Services segment provides imaging services primarily to cardiologists, internal medicine physicians, and family practice doctors. The Diagnostic Imaging segment develops, sells, and maintains solid-state gamma cameras, offering camera maintenance contract services and imaging systems, including nuclear cardiac and general purpose nuclear imaging systems to physician offices and hospitals. The Construction segment manufactures modular housing units, structural wall panels, permanent wood foundation systems, and other engineered wood products, supplying general contractors with building materials. Additionally, Star Equity Holdings manages investments and holds real estate assets. This diversified approach aims to capitalize on synergies between its segments and create long-term shareholder value. The company's strategic vision involves acquiring and growing businesses within these sectors, leveraging its expertise and infrastructure to enhance operational efficiency and market reach.
What They Do
- Provides diagnostic imaging services to healthcare providers.
- Develops, sells, and maintains solid-state gamma cameras.
- Offers camera maintenance contract services.
- Manufactures modular housing units.
- Produces structural wall panels and permanent wood foundation systems.
- Supplies general contractors with building materials.
- Holds real estate assets.
- Manages investments.
Business Model
- Generates revenue from diagnostic imaging service fees.
- Sells diagnostic imaging systems to hospitals and physician offices.
- Earns revenue from maintenance contracts on imaging equipment.
- Generates revenue from the sale of modular housing units and construction materials.
Industry Context
Star Equity Holdings operates within the healthcare and construction industries, both experiencing significant growth and transformation. The medical diagnostics and research sector is driven by increasing demand for early disease detection and personalized medicine. The construction industry is witnessing a shift towards modular construction techniques, offering faster and more cost-effective building solutions. Competitors like BDSX, BIAF, DYAI, ECOR, and ELUT operate in specific niches within these broader industries. Star Equity Holdings differentiates itself through its diversified business model, addressing multiple segments within these sectors. The company's ability to leverage synergies between its healthcare and construction segments positions it for sustained growth and market leadership.
Key Customers
- Cardiologists
- Internal medicine physicians
- Family practice doctors
- Hospitals
- General contractors
Financials
Recent Quarterly Results
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $48M | -$2M | $-0.54 |
| Q2 2025 | $36M | $-688,000 | $-0.21 |
| Q1 2025 | $13M | -$1M | $-0.37 |
| Q4 2024 | $17M | -$2M | $-0.78 |
Source: Company filings
Chart & Info
Price Chart
Star Equity Holdings, Inc. (STRR) stock price: $10.93 (+0.26, +2.40%)
Why Bull
- •Recent insider buying suggests confidence in the company's future performance, indicating that key stakeholders believe in its potential.
- •Community sentiment over the past month has shifted positively, with many investors expressing optimism about upcoming projects.
- •Market perception has been buoyed by recent announcements of strategic partnerships, which could enhance growth opportunities.
- •The company has shown resilience in adapting to market changes, which has garnered respect among investors looking for stability.
Why Bear
- •Some analysts remain cautious due to ongoing concerns about the overall economic environment, which could impact performance.
- •There is a notable bearish sentiment in parts of the community, driven by uncertainty regarding the company's long-term strategy.
- •Recent discussions highlight skepticism about the sustainability of recent growth, with some questioning the viability of its business model.
- •Insider selling activity has raised eyebrows, leading to concerns about potential red flags within the management team.
Latest News
-
Earnings Scheduled For November 13, 2025
benzinga · Nov 13, 2025
-
Earnings Scheduled For August 13, 2025
benzinga · Aug 13, 2025
-
Earnings Scheduled For May 14, 2025
benzinga · May 14, 2025
-
48 Biggest Movers From Yesterday
benzinga · Jan 21, 2022
Technical Analysis
Rationale
AI-generated technical analysis for STRR including trend direction, momentum, and pattern recognition.
What to Watch
Key support and resistance levels, volume signals, and upcoming events.
Risk Management
Position sizing, stop-loss levels, and risk-reward assessment.
Community
Discussion
Share your analysis and discuss Star Equity Holdings, Inc. (STRR) with other investors. Log in to post.
Sentiment
Community sentiment and discussion activity for STRR.
Make a Prediction
Set your price target for Star Equity Holdings, Inc. (STRR), choose a timeframe, and track your prediction accuracy.
Current price: $10.93
Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for STRR.
Price Targets
Wall Street price target analysis for STRR.
Insider Flow (30d)
MoonshotScore
Score Factors
-
Revenue Growth 2/100
Revenue declined -13.2% YoY, signaling shrinking demand or market headwinds.
-
Gross Margin 3/100
Gross margin of 9.4% is below average, suggesting thin margins and potential pricing pressure.
-
Operating Leverage 4/100
Limited operating leverage due to slower revenue growth, keeping profit scaling constrained.
-
Cash Runway 5/100
Cash position data is currently unavailable for this company.
-
R&D Intensity 5/100
R&D spending data is currently unavailable for this company.
-
Insider Activity 6/100
No significant insider buying or selling recently, which is neutral for the stock outlook.
-
Short Interest 5/100
Float and volume data unavailable for liquidity analysis.
-
Price Momentum 0/100
No bullish technical signals detected. The stock lacks upward price momentum currently.
-
News Sentiment 5/100
No sentiment data available
What does this score mean?
The MoonshotScore rates STRR's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Competitors & Peers
Frequently Asked Questions
What does Star Equity Holdings, Inc. do?
Star Equity Holdings, Inc. is a diversified holding company operating in the healthcare and construction sectors. The company provides diagnostic imaging services, develops and sells imaging systems, manufactures modular housing units and construction materials, holds real estate assets, and manages investments. Its business model focuses on generating revenue through service fees, product sales, and asset management. The company aims to capitalize on synergies between its segments and create long-term shareholder value. Star Equity Holdings targets healthcare providers and construction companies as its primary customer base.
Is STRR stock a good buy?
STRR stock presents a speculative investment opportunity with potential for high growth, but also carries significant risks. The company's diversified business model and exposure to growing markets like diagnostic imaging and modular construction are positive factors. However, the negative profit margin and small market capitalization raise concerns about financial stability and access to capital. Investors should carefully consider their risk tolerance and conduct thorough due diligence before investing in STRR. Monitoring the company's progress in improving profitability and expanding its market share is crucial.
What are the main risks for STRR?
The main risks for Star Equity Holdings include economic downturns impacting demand for healthcare services and construction materials, increased competition in its target markets, regulatory changes affecting healthcare reimbursement or construction standards, operational challenges in achieving profitability and managing costs, and dependence on key personnel. The company's small market capitalization also limits its access to capital and increases its vulnerability to market volatility. Successfully mitigating these risks is essential for Star Equity Holdings to achieve its growth objectives and deliver shareholder value.
Is STRR a good stock to buy?
Whether STRR is a good investment depends on your financial goals, risk tolerance, and investment horizon. Review the Investment Thesis, SWOT analysis, and Risk sections on this page. Always do your own research and consult a financial advisor before investing.
What is the STRR MoonshotScore?
MoonshotScore is our proprietary AI-powered rating system that evaluates stocks based on growth potential, financial health, market momentum, and risk factors. It helps investors quickly identify high-potential opportunities. Check the MoonshotScore badge on this page for the current rating.
How often is STRR data updated?
Stock prices are updated in real-time during market hours (9:30 AM - 4:00 PM ET). Company fundamentals, analyst ratings, and AI insights are refreshed daily. News is updated continuously throughout the day.
What are the growth catalysts for STRR?
Growth catalysts vary by company and may include new product launches, market expansion, earnings surprises, partnerships, or industry tailwinds. Check the Catalysts section on this page for specific drivers relevant to Star Equity Holdings, Inc..
Who are STRR's main competitors?
Star Equity Holdings, Inc.'s competitors depend on its industry and market segments. Check the Competitors section on this page for a list of direct competitors and how STRR compares.
What do analysts say about STRR?
Analyst ratings and price targets for STRR are aggregated from multiple sources. Check the Analyst Consensus tab for buy/hold/sell ratings and the current consensus price target.
What is STRR's market cap?
Market capitalization reflects the total market value of STRR's outstanding shares. Check the Key Statistics section at the top of this page for the current market cap and other key financial metrics.
How has STRR stock performed recently?
Check the Chart & Info tab for STRR's recent price action, including daily, weekly, and monthly performance charts with technical indicators.
What are the risks of investing in STRR?
Every stock carries risk. Check the Risks and Weaknesses sections on this page for STRR-specific risk factors. Consider macroeconomic conditions, industry trends, and company-specific challenges.
Are insiders buying or selling STRR?
Insider activity can signal management confidence. Check the Insider Flow tab for recent insider buys, sells, and exercise transactions for STRR.
Is STRR a good stock for beginners?
Star Equity Holdings, Inc. (STRR) can be suitable for beginner investors depending on several factors. Look at the MoonshotScore on this page for an overall AI-powered assessment of growth potential and risk. Beginners should also check the company's market cap (larger companies tend to be less volatile), gross margin (higher margins mean stronger business fundamentals), and cash position (healthy cash reduces bankruptcy risk). Always start with a small position size and never invest money you cannot afford to lose.
How risky is STRR for first-time investors?
Every stock carries risk, including Star Equity Holdings, Inc. (STRR). First-time investors should review the Risk Factors section on this page for company-specific risks. Key risk indicators include price volatility (check the chart for daily swings), insider selling activity (see Insider Flow tab), and cash runway (see MoonshotScore breakdown). A diversified portfolio with an index fund like the S&P 500 as a core holding is generally recommended before adding individual stocks like STRR.
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Data provided for informational purposes only.
- Financial data is based on publicly available information and may be subject to change.
- Forward-looking statements are based on current expectations and are subject to risks and uncertainties.