Herzfeld Credit Income Fund Inc. Common Stock (HERZ)

FairStock Score: 24/100 — RISKY

Key Financials

Strengths

• Altman Z-Score of 8.1 confirms minimal bankruptcy risk and strong solvency
• Attractive 11.0% dividend yield providing steady income returns

Concerns

• Trades significantly above Graham Number ($10) with negative 76% margin of safety—limited downside protection
• Weak Piotroski F-Score of 0/9 suggests deteriorating financial quality across multiple dimensions

AI Analysis

Herzfeld Credit Income Fund Inc. Common Stock is a micro-cap financial services company valued at $34 million. Revenue stands at $2 million. From a quality standpoint, Herzfeld shows weak Piotroski F-Score of 0/9 signaling deteriorating fundamentals and Altman Z-Score of 8.1 confirms fortress-level solvency. On valuation, the stock is commanding a steep 91.3x multiple, with trades above its Graham Number with a negative 76% margin. The 11.0% dividend yield adds an income component for patient holders. Our composite FairStock Score of 24/100 reflects below-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

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

At 91x 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