The Magnum Ice Cream Company N.V. Ordinary Shares (MICC)

FairStock Score: 40/100 — MIXED

Key Financials

Strengths

• Generates $366 million in annual free cash flow (4.5% yield on market cap)
• Solid return on equity of 17.9% above cost of capital
• Established organization with 15,399 employees providing operational scale

Concerns

• Trades significantly above Graham Number ($4) with negative 265% margin of safety—limited downside protection
• High leverage at 5.40x debt-to-equity increases financial risk and interest expense burden
• Weak Piotroski F-Score of 2/9 suggests deteriorating financial quality across multiple dimensions
• Altman Z-Score of 0.7 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

The Magnum Ice Cream Company N.V. Ordinary Shares is a small-cap consumer defensive company valued at $8.1 billion. Revenue stands at $7.9 billion. From a quality standpoint, The shows weak Piotroski F-Score of 2/9 signaling deteriorating fundamentals and distressed Altman Z-Score of 0.7 warrants caution. On valuation, the stock is reasonably priced at 23.1x earnings, with trades far above its Graham Number ($4) with no margin of safety. Our composite FairStock Score of 40/100 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. With $366 million in annual free cash flow (4.5% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Elevated leverage at 5.4x 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