Atlanticus Holdings Corporation 7.625% Series B Cumulative Perpetual Preferred Stock no par value per share (ATLCP)

FairStock Score: 82/100 — HIGH CONVICTION

Key Financials

AI Analysis

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

As a value investor, I start with the business, not the ticker. Atlanticus provides credit-as-a-service and auto finance, a competitive field with no obvious wide moat, though its niche private-label and healthcare credit relationships can be sticky. The filed numbers show real momentum: in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $103.7 million, net income $49.7 million, and diluted EPS $2.50. In fiscal 2025 (period ended 2025-12-31), revenue was $309.6 million, net income $122.2 million, and diluted EPS $5.96, up from fiscal 2023 (period ended 2023-12-31) revenue of $160.9 million, net income of $102.8 million, and diluted EPS of $4.24. That is respectable growth, but I note net income grew more slowly than revenue. The common-equity valuation looks statistically cheap: at the 2026-10-13 close of $22.93, FairStock calculates a P/E of 3.01, P/B of 0.50, a Graham Number of $89.01, and a 74.24% margin of safety. A 7.88% yield on the cumulative perpetual preferred is appealing. But a preferred claim sits behind debt, and Atlanticus carries a D/E of 8.54, an Altman Z-Score of 0.16, and a ROCE of 2.76%. Those are not comfort indicators for a lender. The FCF yield of 269.3% is extraordinary and warrants scrutiny rather than blind enthusiasm. Beta of 2.02 signals volatility. So I see a growing, profitable niche lender with cheap common metrics and a high-yield preferred. But the balance sheet and low return on capital demand a margin of safety in the enterprise itself, not just the quote. The preferred dividend must be covered by durable earnings through a credit cycle.

In plain English: Atlanticus is a financial technology company that helps lenders and retailers offer credit and auto loans. The business has grown revenue and profit, and its common-stock numbers look cheap, but the company relies heavily on borrowed money. This preferred stock pays a high fixed dividend; that income looks attractive only if the company stays healthy.

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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