MediaAlpha Inc. Class A Common Stock (MAX)

FairStock Score: 60/100 — STEADY

Key Financials

Strengths

• Generates $62 million in annual free cash flow (11.9% yield on market cap)

Concerns

• Trades significantly above Graham Number ($1) with negative 834% margin of safety—limited downside protection
• Revenue declining at 3.2% year-over-year signals potential demand weakness or market share loss
• Altman Z-Score of 0.0 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

MediaAlpha Inc. Class A Common Stock is a micro-cap communication services company valued at $515 million. The business generates $1.2 billion in annual revenue with a 2.7% net margin and $62 million in free cash flow. From a quality standpoint, MediaAlpha shows solid Piotroski F-Score of 6/9 and distressed Altman Z-Score of 0.0 warrants caution. On valuation, the stock is attractively valued at 12.6x earnings, with trades far above its Graham Number ($1) with no margin of safety. Growth dynamics show revenue growing at -3.2% and profit growth of 576.9%. Our composite FairStock Score of 60/100 reflects above-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. With $62 million in annual free cash flow (11.9% 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 communication 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