Star Equity Holdings Inc. 10% Series A Cumulative Perpetual Preferred Stock (STRRP)

FairStock Score: 51/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for durable businesses bought at a sensible price, and this preferred issue does not yet resemble one. Star Equity is a holding company in modular buildings, building products, business services, and energy services. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $54.9M and net income was -$1.8M, versus $35.5M and -$688,000 in fiscal Q2 2025. For FY2025, ended 2025-12-31, revenue was $172.2M and net loss was $5.9M, after FY2023 net income of $2.2M. That fits the given Lynch category: TURNAROUND — loss in the latest year after earlier profits. FairStock calculations from the 2026-10-13 close show P/B 0.56, P/E -4.56, ROE -18.24%, ROCE -4.22%, and FCF yield -42.1%. Trailing free cash flow was -$14.2M. The 10.38% preferred yield is attractive only if the company can cover it; otherwise cumulative dividends simply accrue as a larger claim ahead of common equity. The Altman Z-score of -4.51 is a red flag, while Piotroski 5/9 suggests some accounting signals are not deteriorating uniformly. Revenue growth is real, but profitability is negative and cash burn is heavy. The competitive segments lack an obvious moat. Price below book may tempt a Graham investor, but book value can shrink when losses persist. I would need evidence of positive cash flow and dividend coverage before seeing margin of safety.

In plain English: Star Equity Holdings is a holding company that makes modular buildings and building products, provides business services and energy services, and employs about 1,200 people. The business looks weak right now: it is losing money and using cash, even though revenue has grown. The preferred stock yields about 10% and recently traded at $9.12, but the weak profits and cash burn make the high payout risky rather than a safe bargain.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer