Consensus Cloud Solutions Inc. Common Stock (CCSI)

FairStock Score: 73/100 — STEADY

Key Financials

Strengths

• Generates $78 million in annual free cash flow (15.7% yield on market cap)
• FairStock composite score of 73/100 places it in the top tier across value, quality, and momentum factors

Concerns

• Trades significantly above Graham Number ($9) with negative 201% margin of safety—limited downside protection
• High leverage at 25.84x debt-to-equity increases financial risk and interest expense burden
• Altman Z-Score of 0.9 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Consensus Cloud Solutions Inc. Common Stock is a micro-cap technology company valued at $496 million. The business generates $351 million in annual revenue with a 5.8% net margin and $78 million in free cash flow. From a quality standpoint, Consensus shows distressed Altman Z-Score of 0.9 warrants caution and highly leveraged at 25.84x D/E. On valuation, the stock is deeply undervalued on a P/E basis at 6.2x, with trades far above its Graham Number ($9) with no margin of safety. Growth dynamics show revenue growing at 0.1% and profit growth of 13.5%. Our composite FairStock Score of 73/100 reflects above-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 $78 million in annual free cash flow (15.7% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Elevated leverage at 25.8x 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