As of December 15, 2025, STR Holdings Inc has a Discounted Cash Flow (DCF) derived fair value of $0.00 per share. With the current market price at $0.05, this represents a potential upside of -2401.7%.
| Key Metrics | Value |
|---|---|
| DCF Fair Value (5-year) | $0.00 |
| DCF Fair Value (10-year) | $0.00 |
| Potential Upside (5-year) | -2363.8% |
| Potential Upside (10-year) | -2401.7% |
| Discount Rate (WACC) | 9.5% - 11.4% |
Revenue is projected to grow from $11 million in 12-2018 to $7 million by 12-2028, representing a compound annual growth rate of approximately -4.4%.
| Fiscal Year | Revenue (USD millions) | Growth |
|---|---|---|
| 12-2018 | 11 | 20% |
| 12-2019 | 6 | -47% |
| 12-2020 | 6 | 2% |
| 12-2021 | 6 | 2% |
| 12-2022 | 6 | 3% |
| 12-2023 | 6 | 2% |
| 12-2024 | 6 | 3% |
| 12-2025 | 7 | 3% |
| 12-2026 | 7 | 4% |
| 12-2027 | 7 | 3% |
| 12-2028 | 7 | 2% |
Net profit margin is expected to improve from -53% in 12-2018 to -28% by 12-2028, driven by operational efficiency and economies of scale.
| Fiscal Year | Net Profit (USD millions) | Profit Margin |
|---|---|---|
| 12-2018 | (6) | -53% |
| 12-2019 | (3) | -48% |
| 12-2020 | (3) | -44% |
| 12-2021 | (2) | -40% |
| 12-2022 | (2) | -35% |
| 12-2023 | (2) | -32% |
| 12-2024 | (2) | -31% |
| 12-2025 | (2) | -30% |
| 12-2026 | (2) | -29% |
| 12-2027 | (2) | -29% |
| 12-2028 | (2) | -28% |
with a 5-year average of $2 million. Projected CapEx is expected to maintain at approximately 13% of revenue.
Depreciation is based on an average useful life of 5 years for capital assets.
| Fiscal Year | D&A (USD millions) |
|---|---|
| 12-2019 | 2 |
| 12-2020 | 1 |
| 12-2021 | 1 |
| 12-2022 | 1 |
| 12-2023 | 1 |
| 12-2024 | 1 |
Net working capital is expected to increase gradually, with projected changes affecting free cash flow.
| Components | Average Days |
|---|---|
| Days Receivables | 54 |
| Days Inventory | 39 |
| Days Payables | 41 |
| Fiscal Year | EBITDA | Tax | CapEx | Change in NWC | FCF |
|---|---|---|---|---|---|
| 3M/2019 | (0) | (0) | 0 | (0) | (0) |
| 2020 | (1) | (0) | 1 | (0) | (2) |
| 2021 | (1) | (0) | 1 | 0 | (2) |
| 2022 | (1) | (0) | 1 | (0) | (1) |
| 2023 | (1) | (0) | 1 | 0 | (2) |
| Valuation Method | Fair Price (USD) | Potential Upside |
|---|---|---|
| 5-Year DCF (Growth) | 0.00 | -2363.8% |
| 10-Year DCF (Growth) | 0.00 | -2401.7% |
| 5-Year DCF (EBITDA) | 0.00 | -100.0% |
| 10-Year DCF (EBITDA) | 0.00 | -100.0% |
Is STR Holdings Inc (STRI) a buy or a sell? STR Holdings Inc is definitely a sell. Based on our DCF analysis, STR Holdings Inc (STRI) appears to be overvalued with upside potential of -2401.7%. The company's strong projected growth in revenue and profitability, coupled with consistent capital expenditure, supports our positive outlook on its intrinsic value.
Key investment drivers include:
Investors should consider reducing exposure at the current market price of $0.05.