Genie Energy Ltd. Class B Common Stock Stock (GNE)

FairStock Score: 38/100 — MIXED

Key Financials

Strengths

• Generates $10 million in annual free cash flow (2.7% yield on market cap)
• 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 0.05, providing financial flexibility
• Revenue growth of 23.6% demonstrates strong top-line momentum
• Attractive 2.2% dividend yield providing steady income returns

Concerns

• Trades significantly above Graham Number ($7) with negative 97% margin of safety—limited downside protection

AI Analysis

Genie Energy Ltd. Class B Common Stock Stock is a micro-cap utilities company valued at $368 million. The business generates $483 million in annual revenue with a 1.4% net margin and $10 million in free cash flow. From a quality standpoint, Genie shows solid Piotroski F-Score of 7/9 and Altman Z-Score of 2.1 in the grey zone. On valuation, the stock is commanding a steep 47.2x multiple, with trades above its Graham Number with a negative 97% margin. Growth dynamics show revenue growing at 23.6% and profit growth of -33.9%. The 2.2% dividend yield adds an income component for patient holders. Our composite FairStock Score of 38/100 reflects below-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Genie's 24% revenue growth trajectory could accelerate as it captures additional market share in the utilities sector. With $10 million in annual free cash flow (2.7% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

At 47x 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