Flanigan's Enterprises Inc. Common Stock (BDL)

FairStock Score: 77/100 — HIGH CONVICTION

Key Financials

Strengths

• Generates $671,000 in annual free cash flow (1.2% yield on market cap)
• Strong Piotroski F-Score of 7/9 indicating robust financial health across profitability, leverage, and efficiency metrics
• Solid return on equity of 11.4% above cost of capital
• FairStock composite score of 77/100 places it in the top tier across value, quality, and momentum factors

Concerns

• Altman Z-Score of 1.7 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Flanigan's Enterprises Inc. Common Stock is a micro-cap consumer cyclical company valued at $55 million. Revenue stands at $209 million. From a quality standpoint, Flanigan's shows solid Piotroski F-Score of 7/9 and distressed Altman Z-Score of 1.7 warrants caution. On valuation, the stock is deeply undervalued on a P/E basis at 9.8x, with offers a 40% margin of safety vs Graham Number of $50. Growth dynamics show revenue growing at 5.2% and profit growth of 1363.6%. The 1.9% dividend yield adds an income component for patient holders. Our composite FairStock Score of 77/100 reflects strong 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 $671,000 in annual free cash flow (1.2% 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 consumer cyclical 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