Empire State Realty Trust Inc. Class A Common Stock (ESRT)

FairStock Score: 60/100 — STEADY

Key Financials

Strengths

• Generates $409 million in annual free cash flow (43.9% yield on market cap)
• Attractive 2.5% dividend yield providing steady income returns

Concerns

• Altman Z-Score of 0.2 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Empire State Realty Trust Inc. Class A Common Stock is a micro-cap real estate company valued at $933 million. The business generates $768 million in annual revenue with a 2.6% net margin and $409 million in free cash flow. From a quality standpoint, Empire shows distressed Altman Z-Score of 0.2 warrants caution and modest 4% ROE. On valuation, the stock is reasonably priced at 21.9x earnings, with a modest 8% margin of safety vs Graham Number. Growth dynamics show revenue growing at 0.8% and profit growth of 69.6%. The 2.5% dividend yield adds an income component for patient holders. Our composite FairStock Score of 60/100 reflects above-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 $409 million in annual free cash flow (43.9% 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 real estate 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