Middleby Corporation (The) Common Stock (MIDD)

FairStock Score: 40/100 — MIXED

Key Financials

Strengths

• Strong Piotroski F-Score of 7/9 indicating robust financial health across profitability, leverage, and efficiency metrics
• Solid return on equity of 11.4% above cost of capital

Concerns

• Trades significantly above Graham Number ($95) with negative 54% margin of safety—limited downside protection
• Revenue declining at 67.0% year-over-year signals potential demand weakness or market share loss

AI Analysis

Middleby Corporation (The) Common Stock is a small-cap industrials company valued at $6.8 billion. The business generates $3.2 billion in annual revenue with a 1.2% net margin. From a quality standpoint, Middleby shows solid Piotroski F-Score of 7/9 and Altman Z-Score of 2.5 in the grey zone. On valuation, the stock is reasonably priced at 20.6x earnings, with trades above its Graham Number with a negative 54% margin. Growth dynamics show revenue growing at -67.0% and profit growth of -67.1%. 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. Operational leverage in the business model means incremental revenue growth could disproportionately boost bottom-line profitability.

Bear Case

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