CorVel Corp. Common Stock (CRVL)

FairStock Score: 53/100 — MIXED

Key Financials

Strengths

• Generates $98 million in annual free cash flow (3.4% yield on market cap)
• High return on equity of 31.3% demonstrating efficient capital deployment
• Conservative balance sheet with debt-to-equity of just 0.07, providing financial flexibility
• Altman Z-Score of 9.5 confirms minimal bankruptcy risk and strong solvency

Concerns

• Trades significantly above Graham Number ($18) with negative 209% margin of safety—limited downside protection
• No meaningful dividend despite modest growth—total return depends entirely on multiple expansion

AI Analysis

CorVel Corp. Common Stock is a small-cap financial services company valued at $2.9 billion. Revenue stands at $941 million. From a quality standpoint, CorVel shows Altman Z-Score of 9.5 confirms fortress-level solvency and strong 31% ROE. On valuation, the stock is trading at a premium 27.8x earnings, with trades far above its Graham Number ($18) with no margin of safety. Growth dynamics show revenue growing at 3.4% and profit growth of 1.7%. Our composite FairStock Score of 53/100 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 $98 million in annual free cash flow (3.4% 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 financial services 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