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

Strengths

• Solid return on equity of 19.7% above cost of capital
• Revenue growth of 38.1% demonstrates strong top-line momentum
• Attractive 8.2% dividend yield providing steady income returns
• FairStock composite score of 82/100 places it in the top tier across value, quality, and momentum factors

Concerns

• High leverage at 10.16x debt-to-equity increases financial risk and interest expense burden

AI Analysis

Atlanticus Holdings Corporation 7.625% Series B Cumulative Perpetual Preferred Stock no par value per share is a micro-cap financial services company. 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 adequate 20% ROE. On valuation, the stock is deeply undervalued on a P/E basis at 3.1x, with offers a 72% margin of safety vs Graham Number of $84. Growth dynamics show revenue growing at 38.1% and profit growth of 12.2%. The 8.2% dividend yield adds an income component for patient holders. Our composite FairStock Score of 82/100 reflects strong 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