ArrowMark Financial Corp. Common Stock (BANX)

FairStock Score: 68/100 — STEADY

Key Financials

Strengths

• Generates $10 million in annual free cash flow (6.6% yield on market cap)
• Solid return on equity of 10.9% above cost of capital
• Conservative balance sheet with debt-to-equity of just 0.15, providing financial flexibility
• Healthy net profit margin of 14.4% showing consistent profitability
• Attractive 9.8% dividend yield providing steady income returns

Concerns

• Weak Piotroski F-Score of 1/9 suggests deteriorating financial quality across multiple dimensions

AI Analysis

ArrowMark Financial Corp. Common Stock is a micro-cap financial services company valued at $152 million. The business generates $27 million in annual revenue with a 14.4% net margin and $10 million in free cash flow. From a quality standpoint, ArrowMark shows weak Piotroski F-Score of 1/9 signaling deteriorating fundamentals and Altman Z-Score of 2.8 in the grey zone. On valuation, the stock is deeply undervalued on a P/E basis at 7.8x, with offers a 44% margin of safety vs Graham Number of $35. The 9.8% dividend yield adds an income component for patient holders. 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

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $10 million in annual free cash flow (6.6% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the financial services space. 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