ACRES Commercial Realty Corp. Common Stock (ACR)

FairStock Score: 25/100 — RISKY

Key Financials

Concerns

• Trades significantly above Graham Number ($6) with negative 217% margin of safety—limited downside protection
• High leverage at 2.89x debt-to-equity increases financial risk and interest expense burden
• Currently unprofitable—sustained losses could lead to dilutive capital raises or balance sheet deterioration
• Revenue declining at 35.8% year-over-year signals potential demand weakness or market share loss

AI Analysis

ACRES Commercial Realty Corp. Common Stock is a micro-cap real estate company valued at $148 million. Revenue stands at $88 million, though the company is currently unprofitable. From a quality standpoint, ACRES shows distressed Altman Z-Score of -0.4 warrants caution and modest 6% ROE. On valuation, the stock is commanding a steep 674.0x multiple, with trades far above its Graham Number ($6) with no margin of safety. Growth dynamics show revenue growing at -35.8% and profit growth of -76.5%. Our composite FairStock Score of 25/100 reflects below-average fundamentals overall. Without profitability, this remains speculative—suitable only for those with high risk tolerance and a long time horizon.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. Operational leverage in the business model means incremental revenue growth could disproportionately boost bottom-line profitability.

Bear Case

At 674x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer