D/B/A Centerspace Common Stock (CSR)

FairStock Score: 21/100 — RISKY

Key Financials

Strengths

• Generates $101 million in annual free cash flow (9.3% yield on market cap)
• Attractive 4.7% dividend yield providing steady income returns

Concerns

• Trades significantly above Graham Number ($32) with negative 106% margin of safety—limited downside protection
• Currently unprofitable—sustained losses could lead to dilutive capital raises or balance sheet deterioration
• Altman Z-Score of 0.1 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

D/B/A Centerspace Common Stock is a micro-cap real estate company valued at $1.1 billion. Revenue stands at $274 million, though the company is currently unprofitable. From a quality standpoint, D/B/A shows distressed Altman Z-Score of 0.1 warrants caution and modest 3% ROE. On valuation, the stock is commanding a steep 64.6x multiple, with trades far above its Graham Number ($32) with no margin of safety. Growth dynamics show revenue growing at 0.3% and profit growth of -273.6%. The 4.7% dividend yield adds an income component for patient holders. Our composite FairStock Score of 21/100 reflects below-average fundamentals overall. Without profitability, this remains speculative—suitable only for those with high risk tolerance and a long time horizon.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $101 million in annual free cash flow (9.3% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

At 65x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. 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