MeritValue

Star Equity Holdings, Inc.

STRRdata completeness 100%17 fiscal years on file

Data notes: no data for concept 'interestExpense'

The thesis, from the filings

Star Equity Holdings, Inc. earns about 10% on invested capital, but has diluted owners by 6% over 5 years — worth asking whether the growth reaches owners. The applicable estimate puts fair value near $7.12 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$169.2M1$200.9M2$161.3M3$140.1M3$172.2M4
Net income$3.23M5$7.13M6$2.2M7−$4.77M8−$5.92M8
Operating cash flow$2.51M9$9.45M10$315,00011−$2.79M12−$7.26M12
Capital expenditure$284,00013$504,00014$99,00015$18,00016$1.7M16
Free cash flow (derived)$2.22M9$8.95M10$216,00011−$2.81M12−$8.96M12
Total debt———$017$8.47M17
Cash & equivalents$21.7M18$27.1M19$22.6M20$17M21$10.3M21
Diluted shares3.0M3.1M3.1M3.0M3.2M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$205.46
your share of equity
Profit it earned you last year
−$18.5
Free cash flow it threw off
−$28.01
Debt you’d be carrying
$26.49

10 shares is a claim on $205.46 of net worth that earned you −$18.5 and generated −$28.01 of cash last year, against $26.49 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
10% avg · 5y
FY21 18%FY22 38%FY23 8%FY24 -12%FY25 -5%

It earned an average 10% on invested capital over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+6% shares · 5y

Share count is up 6% over 5 years — owners have been diluted. Worth asking what they got for it.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
DCF · Growth Exit 5Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
Earnings Power Value
$7.12
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$2.2M
  • growthAssumed0.0%
Graham Number
not applicable
diluted EPS missing or non-positive — Graham Number undefined

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0001210708-23-000055 (RevenueFromContractWithCustomerIncludingAssessedTax)
  2. 10-K · period ending 2022-12-31 · accession 0001210708-24-000013 (RevenueFromContractWithCustomerIncludingAssessedTax)
  3. 10-K · period ending 2023-12-31 · accession 0001210708-25-000013 (RevenueFromContractWithCustomerIncludingAssessedTax)
  4. 10-K · period ending 2025-12-31 · accession 0001210708-26-000038 (Revenues)
  5. 10-K · period ending 2021-12-31 · accession 0001210708-23-000055 (NetIncomeLoss)
  6. 10-K · period ending 2022-12-31 · accession 0001210708-24-000013 (NetIncomeLoss)
  7. 10-K · period ending 2023-12-31 · accession 0001210708-25-000013 (NetIncomeLoss)
  8. 10-K · period ending 2024-12-31 · accession 0001210708-26-000038 (NetIncomeLoss)
  9. 10-K · period ending 2021-12-31 · accession 0001210708-23-000055 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2022-12-31 · accession 0001210708-24-000013 (NetCashProvidedByUsedInOperatingActivities)
  11. 10-K · period ending 2023-12-31 · accession 0001210708-25-000013 (NetCashProvidedByUsedInOperatingActivities)
  12. 10-K · period ending 2024-12-31 · accession 0001210708-26-000038 (NetCashProvidedByUsedInOperatingActivities)
  13. 10-K · period ending 2021-12-31 · accession 0001210708-23-000055 (PaymentsToAcquireProductiveAssets)
  14. 10-K · period ending 2022-12-31 · accession 0001210708-24-000013 (PaymentsToAcquireProductiveAssets)
  15. 10-K · period ending 2023-12-31 · accession 0001210708-25-000013 (PaymentsToAcquireProductiveAssets)
  16. 10-K · period ending 2024-12-31 · accession 0001210708-26-000038 (PaymentsToAcquireProductiveAssets)
  17. 10-K · period ending 2024-12-31 · accession 0001210708-26-000038 (ShortTermBorrowings)
  18. 10-K · period ending 2021-12-31 · accession 0001210708-23-000055 (CashAndCashEquivalentsAtCarryingValue)
  19. 10-K · period ending 2022-12-31 · accession 0001210708-24-000013 (CashAndCashEquivalentsAtCarryingValue)
  20. 10-K · period ending 2023-12-31 · accession 0001210708-25-000013 (CashAndCashEquivalentsAtCarryingValue)
  21. 10-K · period ending 2024-12-31 · accession 0001210708-26-000038 (CashAndCashEquivalentsAtCarryingValue)