James River Group Holdings Inc. Common Stock (JRVR)

FairStock Score: 85/100 — HIGH CONVICTION

Key Financials

Strengths

• Generates $1.0 billion in annual free cash flow (356.1% yield on market cap)
• Revenue growth of 32.4% demonstrates strong top-line momentum
• FairStock composite score of 85/100 places it in the top tier across value, quality, and momentum factors

Concerns

• Weak Piotroski F-Score of 2/9 suggests deteriorating financial quality across multiple dimensions
• Altman Z-Score of -0.0 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

James River Group Holdings Inc. Common Stock is a micro-cap financial services company valued at $288 million. The business generates $688 million in annual revenue with a 4.4% net margin and $1.0 billion in free cash flow. From a quality standpoint, James shows weak Piotroski F-Score of 2/9 signaling deteriorating fundamentals and distressed Altman Z-Score of -0.0 warrants caution. On valuation, the stock is deeply undervalued on a P/E basis at 7.5x, with offers a 62% margin of safety vs Graham Number of $17. Growth dynamics show revenue growing at 32.4% and profit growth of 149.5%. Our composite FairStock Score of 85/100 reflects strong fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

James's 32% revenue growth trajectory could accelerate as it captures additional market share in the financial services sector. With $1.0 billion in annual free cash flow (356.1% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the financial services 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