BrightView Holdings Inc. Common Stock (BV)

FairStock Score: 24/100 — RISKY

Key Financials

Strengths

• Generates $37 million in annual free cash flow (3.2% yield on market cap)
• Established organization with 18,200 employees providing operational scale

Concerns

• Trades significantly above Graham Number ($5) with negative 129% margin of safety—limited downside protection
• Currently unprofitable—sustained losses could lead to dilutive capital raises or balance sheet deterioration
• Altman Z-Score of 0.7 places it in the financial distress zone—elevated bankruptcy risk
• No meaningful dividend despite modest growth—total return depends entirely on multiple expansion

AI Analysis

BrightView Holdings Inc. Common Stock is a micro-cap industrials company valued at $1.2 billion. Revenue stands at $2.7 billion, though the company is currently unprofitable. From a quality standpoint, BrightView shows distressed Altman Z-Score of 0.7 warrants caution and modest 3% ROE. On valuation, the stock is commanding a steep 178.7x multiple, with trades far above its Graham Number ($5) with no margin of safety. Growth dynamics show revenue growing at 2.6% and profit growth of -46.1%. Our composite FairStock Score of 24/100 reflects below-average fundamentals overall. Without profitability, this remains speculative—suitable only for those with high risk tolerance and a long time horizon.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $37 million in annual free cash flow (3.2% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

At 179x 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