CKX Lands Inc. Common Stock (CKX)

FairStock Score: 72/100 — STEADY

Key Financials

Strengths

• Generates $7 million in annual free cash flow (30.0% yield on market cap)
• Solid return on equity of 15.0% above cost of capital
• Altman Z-Score of 17.9 confirms minimal bankruptcy risk and strong solvency
• FairStock composite score of 72/100 places it in the top tier across value, quality, and momentum factors

Concerns

• Revenue declining at 32.6% year-over-year signals potential demand weakness or market share loss

AI Analysis

CKX Lands Inc. Common Stock is a micro-cap energy company valued at $22 million. Revenue stands at $838,543. From a quality standpoint, CKX shows Altman Z-Score of 17.9 confirms fortress-level solvency and adequate 15% ROE. On valuation, the stock is deeply undervalued on a P/E basis at 7.4x, with offers a 41% margin of safety vs Graham Number of $18. Growth dynamics show revenue growing at -32.6% and profit growth of 7882.4%. Our composite FairStock Score of 72/100 reflects above-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

The market underappreciates CKX's consistent 15% ROE at just 7x earnings—a re-rating toward sector peers could unlock 30-50% upside. With $7 million in annual free cash flow (30.0% 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 energy 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