i3 Verticals Inc. Class A Common Stock (IIIV)

FairStock Score: 35/100 — MIXED

Key Financials

Strengths

• Conservative balance sheet with debt-to-equity of just 0.20, providing financial flexibility

Concerns

• Trades significantly above Graham Number ($6) with negative 238% margin of safety—limited downside protection
• No meaningful dividend despite modest growth—total return depends entirely on multiple expansion

AI Analysis

i3 Verticals Inc. Class A Common Stock is a micro-cap technology company valued at $468 million. The business generates $293 million in annual revenue with a 0.2% net margin. From a quality standpoint, i3 shows Altman Z-Score of 2.9 in the grey zone and conservative leverage at 0.20x debt-to-equity. On valuation, the stock is commanding a steep 171.6x multiple, with trades far above its Graham Number ($6) with no margin of safety. Growth dynamics show revenue growing at 0.9% and profit growth of -76.5%. Our composite FairStock Score of 35/100 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 172x 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