Columbia Sportswear Company Common Stock (COLM)

FairStock Score: 48/100 — MIXED

Key Financials

Strengths

• Generates $156 million in annual free cash flow (4.8% yield on market cap)
• Strong Piotroski F-Score of 8/9 indicating robust financial health across profitability, leverage, and efficiency metrics
• Solid return on equity of 10.2% above cost of capital
• Conservative balance sheet with debt-to-equity of just 0.28, providing financial flexibility

Concerns

• Revenue declining at 2.4% year-over-year signals potential demand weakness or market share loss

AI Analysis

Columbia Sportswear Company Common Stock is a small-cap consumer cyclical company valued at $3.2 billion. The business generates $3.4 billion in annual revenue with a 2.7% net margin and $156 million in free cash flow. From a quality standpoint, Columbia shows near-perfect Piotroski F-Score of 8/9 indicating exceptional financial health and healthy Altman Z-Score of 3.4. On valuation, the stock is reasonably priced at 19.2x earnings, with trades above its Graham Number with a negative 28% margin. Growth dynamics show revenue growing at -2.4% and profit growth of -9.2%. The 1.9% dividend yield adds an income component for patient holders. Our composite FairStock Score of 48/100 reflects mixed 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 $156 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 consumer cyclical 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