Atlanticus Holdings Corporation Common Stock (ATLC)

FairStock Score: 68/100 — STEADY

Key Financials

Strengths

• Solid return on equity of 19.7% above cost of capital
• Revenue growth of 38.1% demonstrates strong top-line momentum

Concerns

• High leverage at 10.16x debt-to-equity increases financial risk and interest expense burden
• Altman Z-Score of 0.2 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Atlanticus Holdings Corporation Common Stock is a micro-cap financial services company valued at $1.1 billion. The business generates $557 million in annual revenue with a 5.9% net margin. From a quality standpoint, Atlanticus shows solid Piotroski F-Score of 6/9 and distressed Altman Z-Score of 0.2 warrants caution. On valuation, the stock is attractively valued at 12.8x earnings, with trades above its Graham Number with a negative 1% margin. Growth dynamics show revenue growing at 38.1% and profit growth of 12.2%. Our composite FairStock Score of 68/100 reflects above-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Atlanticus's 38% revenue growth trajectory could accelerate as it captures additional market share in the financial services sector. Operational leverage in the business model means incremental revenue growth could disproportionately boost bottom-line profitability.

Bear Case

Elevated leverage at 10.2x D/E means rising interest rates or revenue weakness could strain debt covenants and force asset sales at distressed prices. 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