Buda Juice Inc. Common Stock (BUDA)

FairStock Score: 39/100 — MIXED

Key Financials

Strengths

• Generates $2 million in annual free cash flow (1.4% yield on market cap)
• High return on equity of 102.5% demonstrating efficient capital deployment
• Conservative balance sheet with debt-to-equity of just 0.21, providing financial flexibility
• Altman Z-Score of 60.1 confirms minimal bankruptcy risk and strong solvency

Concerns

• Trades significantly above Graham Number ($1) with negative 593% margin of safety—limited downside protection
• No meaningful dividend despite modest growth—total return depends entirely on multiple expansion

AI Analysis

Buda Juice Inc. Common Stock is a micro-cap consumer defensive company valued at $119 million. Revenue stands at $13 million. From a quality standpoint, Buda shows solid Piotroski F-Score of 6/9 and Altman Z-Score of 60.1 confirms fortress-level solvency. On valuation, the stock is trading at a premium 34.8x earnings, with trades far above its Graham Number ($1) with no margin of safety. Growth dynamics show revenue growing at 4.4% and profit growth of -30.1%. Our composite FairStock Score of 39/100 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 $2 million in annual free cash flow (1.4% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

At 35x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. 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