CTO Realty Growth Inc. Common Stock (CTO)
Slow GrowerFairStock Score: 47/100 — MIXED
Key Financials
| Current Price | $19.98 |
| Market Cap | $635M |
| P/E Ratio | 99.9 |
| ROE | 2.4% |
| Dividend Yield | 7.41% |
| Sector | Real Estate |
Strengths
- Generates $29 million in annual free cash flow (4.6% yield on market cap)
- Healthy net profit margin of 17.7% showing consistent profitability
- Attractive 7.8% dividend yield providing steady income returns
Concerns
- Trades significantly above Graham Number ($6) with negative 247% margin of safety—limited downside protection
- Altman Z-Score of 1.0 places it in the financial distress zone—elevated bankruptcy risk
AI Analysis
CTO Realty Growth Inc. Common Stock is a micro-cap real estate company valued at $635 million. The business generates $150 million in annual revenue with a 17.7% net margin and $29 million in free cash flow. From a quality standpoint, CTO shows solid Piotroski F-Score of 6/9 and distressed Altman Z-Score of 1.0 warrants caution. On valuation, the stock is commanding a steep 244.8x multiple, with trades far above its Graham Number ($6) with no margin of safety. Growth dynamics show revenue growing at 7.3% and profit growth of 286.2%. The 7.8% dividend yield adds an income component for patient holders. Our composite FairStock Score of 47/100 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 $29 million in annual free cash flow (4.6% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.
Bear Case
At 245x 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