Figure Technology Solutions Inc. Class A Common Stock (FIGR)

FairStock Score: 54/100 — MIXED

Key Financials

Strengths

• Generates $24 million in annual free cash flow (0.3% yield on market cap)
• Solid return on equity of 16.8% above cost of capital
• Altman Z-Score of 4.4 confirms minimal bankruptcy risk and strong solvency
• Revenue growth of 65.5% demonstrates strong top-line momentum

Concerns

• Trades significantly above Graham Number ($8) with negative 330% margin of safety—limited downside protection
• Weak Piotroski F-Score of 3/9 suggests deteriorating financial quality across multiple dimensions

AI Analysis

Figure Technology Solutions Inc. Class A Common Stock is a small-cap financial services company valued at $7.0 billion. The business generates $432 million in annual revenue with a 3.5% net margin and $24 million in free cash flow. From a quality standpoint, Figure shows weak Piotroski F-Score of 3/9 signaling deteriorating fundamentals and healthy Altman Z-Score of 4.4. On valuation, the stock is commanding a steep 73.2x multiple, with trades far above its Graham Number ($8) with no margin of safety. Growth dynamics show revenue growing at 65.5% and profit growth of 176.8%. Our composite FairStock Score of 54/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Figure's 65% revenue growth trajectory could accelerate as it captures additional market share in the financial services sector. With $24 million in annual free cash flow (0.3% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

At 73x 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