Advanced Flower Capital Inc. Common Stock (AFCG)

FairStock Score: 66/100 — STEADY

Key Financials

AI Analysis

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

I am wary of businesses that must constantly raise and lend money, but Advanced Flower Capital is interesting because it lends to cannabis companies against real assets such as real estate, equipment, and licenses. That niche creates some barriers, yet it is not a durable moat. The numbers tell a story of deterioration followed by a possible turn. Revenue fell from $63.9 million in fiscal 2023 to $45.7 million in fiscal 2024 and $24.6 million in fiscal 2025. Net income was $21.0 million in fiscal 2023 and $16.8 million in fiscal 2024, then a loss of $20.7 million in fiscal 2025, or -$0.95 per diluted share. Then in fiscal Q1 2026, the quarter ended 2026-03-31, net income was $11.4 million ($0.49 per diluted share), and in fiscal Q2 2026, the quarter ended 2026-06-30, net income was $5.4 million ($0.23 per diluted share). That is why FairStock labels it a TURNAROUND: a loss in the latest year after earlier profits. Financial health is poor: Piotroski F-Score 2/9, Altman Z-Score -0.02, trailing free cash flow -$31.5 million, FCF yield -44.8%, and debt-to-equity 1.10. At the 2026-10-13 close of $3.10, the market cap is $70.3 million. The stock trades at 0.38 times book and below the $5.94 Graham Number, a 47.81% margin of safety. P/E is 16.32, dividend yield is 5.83%, and ROE is -1.76%. Cheapness is real only if the loan book is sound. I would want evidence that recent profits and cash collection are durable before trusting the discount.

In plain English: Advanced Flower Capital lends money to cannabis companies, taking security in things like property, equipment, and licenses. The business has been uneven: it lost money in its latest full year after earlier profits, but it made money in the first two quarters of 2026. At $3.10 on 2026-10-13, the stock looks cheaper than its stated accounting value, but weak cash flow and losses mean the cheapness may not be dependable.

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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