FST Corp. Ordinary Shares (KBSX)

FairStock Score: 50/100 — MIXED

Key Financials

Strengths

• Generates $560,382 in annual free cash flow (0.8% yield on market cap)
• Strong Piotroski F-Score of 7/9 indicating robust financial health across profitability, leverage, and efficiency metrics
• High return on equity of 21.1% demonstrating efficient capital deployment
• Revenue growth of 47.2% demonstrates strong top-line momentum

Concerns

• Trades significantly above Graham Number ($1) with negative 145% margin of safety—limited downside protection
• High leverage at 2.07x debt-to-equity increases financial risk and interest expense burden
• Altman Z-Score of 0.8 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

FST Corp. Ordinary Shares is a micro-cap basic materials company valued at $67 million. Revenue stands at $52 million. From a quality standpoint, FST shows solid Piotroski F-Score of 7/9 and distressed Altman Z-Score of 0.8 warrants caution. On valuation, the stock is reasonably priced at 17.7x earnings, with trades far above its Graham Number ($1) with no margin of safety. Growth dynamics show revenue growing at 47.2% and profit growth of 61.7%. Our composite FairStock Score of 50/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

FST's 47% revenue growth trajectory could accelerate as it captures additional market share in the basic materials sector. With $560,382 in annual free cash flow (0.8% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Elevated leverage at 2.1x D/E means rising interest rates or revenue weakness could strain debt covenants and force asset sales at distressed prices. 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