CompX International Inc. Common Stock (CIX)

FairStock Score: 59/100 — STEADY

Key Financials

Strengths

• Generates $14 million in annual free cash flow (4.8% yield on market cap)
• Solid return on equity of 14.0% above cost of capital
• Conservative balance sheet with debt-to-equity of just 0.01, providing financial flexibility
• Altman Z-Score of 11.6 confirms minimal bankruptcy risk and strong solvency
• Attractive 4.9% dividend yield providing steady income returns

Concerns

• Revenue declining at 1.9% year-over-year signals potential demand weakness or market share loss

AI Analysis

CompX International Inc. Common Stock is a micro-cap industrials company valued at $289 million. Revenue stands at $159 million. From a quality standpoint, CompX shows Altman Z-Score of 11.6 confirms fortress-level solvency and adequate 14% ROE. On valuation, the stock is attractively valued at 14.5x earnings, with trades above its Graham Number with a negative 15% margin. Growth dynamics show revenue growing at -1.9% and profit growth of 3.6%. The 4.9% dividend yield adds an income component for patient holders. Our composite FairStock Score of 59/100 reflects mixed fundamentals overall. This combination of reasonable valuation, solid returns, and conservative leverage makes it worth a closer look for value-oriented portfolios.

Bull Case

The market underappreciates CompX's consistent 14% ROE at just 14x earnings—a re-rating toward sector peers could unlock 30-50% upside. With $14 million in annual free cash flow (4.8% 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 industrials 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