First Industrial Realty Trust Inc. Common Stock (FR)

FairStock Score: 54/100 — MIXED

Key Financials

Strengths

• Generates $422 million in annual free cash flow (5.0% yield on market cap)
• Healthy net profit margin of 19.7% showing consistent profitability
• Attractive 3.2% dividend yield providing steady income returns

Concerns

• Trades significantly above Graham Number ($29) with negative 119% margin of safety—limited downside protection

AI Analysis

First Industrial Realty Trust Inc. Common Stock is a small-cap real estate company valued at $8.4 billion. The business generates $728 million in annual revenue with a 19.7% net margin and $422 million in free cash flow. From a quality standpoint, First shows Altman Z-Score of 1.8 in the grey zone and modest 10% ROE. On valuation, the stock is trading at a premium 33.6x earnings, with trades far above its Graham Number ($29) with no margin of safety. Growth dynamics show revenue growing at 7.3% and profit growth of 15.2%. The 3.2% dividend yield adds an income component for patient holders. 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

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $422 million in annual free cash flow (5.0% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

At 34x 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