Biglari Holdings Inc. Class B Common Stock (BH)

FairStock Score: 44/100 — MIXED

Key Financials

Strengths

• Generates $11 million in annual free cash flow (1.1% yield on market cap)
• Healthy net profit margin of 10.7% showing consistent profitability

AI Analysis

Biglari Holdings Inc. Class B Common Stock is a micro-cap consumer cyclical company valued at $959 million. The business generates $398 million in annual revenue with a 10.7% net margin and $11 million in free cash flow. From a quality standpoint, Biglari shows Altman Z-Score of 2.3 in the grey zone and negative ROE indicating losses. On valuation, the stock is 0.7% FCF yield. Growth dynamics show revenue growing at 9.6% and profit growth of -385.3%. Our composite FairStock Score of 44/100 reflects below-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 $11 million in annual free cash flow (1.1% 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