CBL & Associates Properties Inc. Common Stock (CBL)

FairStock Score: 81/100 — HIGH CONVICTION

Key Financials

Strengths

• Generates $233 million in annual free cash flow (16.7% yield on market cap)
• Strong Piotroski F-Score of 8/9 indicating robust financial health across profitability, leverage, and efficiency metrics
• High return on equity of 39.7% demonstrating efficient capital deployment
• Revenue growth of 18.8% demonstrates strong top-line momentum
• Attractive 4.0% dividend yield providing steady income returns

Concerns

• High leverage at 5.95x debt-to-equity increases financial risk and interest expense burden
• Altman Z-Score of 0.4 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

CBL & Associates Properties Inc. Common Stock is a micro-cap real estate company valued at $1.4 billion. The business generates $578 million in annual revenue with a 8.3% net margin and $233 million in free cash flow. From a quality standpoint, CBL shows near-perfect Piotroski F-Score of 8/9 indicating exceptional financial health and distressed Altman Z-Score of 0.4 warrants caution. On valuation, the stock is attractively valued at 10.4x earnings, with trades above its Graham Number with a negative 30% margin. Growth dynamics show revenue growing at 18.8% and profit growth of 29.0%. The 4.0% dividend yield adds an income component for patient holders. Our composite FairStock Score of 81/100 reflects strong fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

CBL's 19% revenue growth trajectory could accelerate as it captures additional market share in the real estate sector. With $233 million in annual free cash flow (16.7% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Elevated leverage at 6.0x D/E means rising interest rates or revenue weakness could strain debt covenants and force asset sales at distressed prices. 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