Core Scientific Inc. Common Stock (CORZ)

FairStock Score: 24/100 — RISKY

Key Financials

Strengths

• Generates $175 million in annual free cash flow (2.6% yield on market cap)
• Superior net profit margin of 60.9% indicating pricing power and operational efficiency

Concerns

• Revenue declining at 16.0% year-over-year signals potential demand weakness or market share loss
• Altman Z-Score of -1.3 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Core Scientific Inc. Common Stock is a small-cap technology company valued at $6.7 billion. The business generates $355 million in annual revenue with a 60.9% net margin and $175 million in free cash flow. From a quality standpoint, Core shows distressed Altman Z-Score of -1.3 warrants caution. Growth dynamics show revenue growing at -16.0% and profit growth of 180.7%. Our composite FairStock Score of 24/100 reflects below-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 $175 million in annual free cash flow (2.6% 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 technology 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