Five Point Holdings LLC Class A Common Shares (FPH)

FairStock Score: 48/100 — MIXED

Key Financials

Strengths

• Strong Piotroski F-Score of 7/9 indicating robust financial health across profitability, leverage, and efficiency metrics
• Conservative balance sheet with debt-to-equity of just 0.22, providing financial flexibility
• Superior net profit margin of 42.3% indicating pricing power and operational efficiency

Concerns

• Revenue declining at 52.5% year-over-year signals potential demand weakness or market share loss
• Altman Z-Score of 1.6 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Five Point Holdings LLC Class A Common Shares is a micro-cap real estate company valued at $746 million. The business generates $110 million in annual revenue with a 42.3% net margin. From a quality standpoint, Five shows solid Piotroski F-Score of 7/9 and distressed Altman Z-Score of 1.6 warrants caution. On valuation, the stock is deeply undervalued on a P/E basis at 5.3x, with offers a 68% margin of safety vs Graham Number of $16. Growth dynamics show revenue growing at -52.5% and profit growth of -49.9%. Our composite FairStock Score of 48/100 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. Operational leverage in the business model means incremental revenue growth could disproportionately boost bottom-line profitability.

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