ODDITY Tech Ltd. Class A Ordinary Shares (ODD)

FairStock Score: 76/100 — HIGH CONVICTION

Key Financials

Strengths

• Generates $29 million in annual free cash flow (3.3% yield on market cap)
• High return on equity of 32.6% demonstrating efficient capital deployment
• Revenue growth of 23.5% demonstrates strong top-line momentum
• FairStock composite score of 76/100 places it in the top tier across value, quality, and momentum factors

Concerns

• Weak Piotroski F-Score of 3/9 suggests deteriorating financial quality across multiple dimensions
• Altman Z-Score of 1.8 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

ODDITY Tech Ltd. Class A Ordinary Shares is a micro-cap consumer defensive company valued at $880 million. The business generates $810 million in annual revenue with a 0.7% net margin and $29 million in free cash flow. From a quality standpoint, ODDITY shows weak Piotroski F-Score of 3/9 signaling deteriorating fundamentals and distressed Altman Z-Score of 1.8 warrants caution. On valuation, the stock is deeply undervalued on a P/E basis at 8.6x, with a modest 8% margin of safety vs Graham Number. Growth dynamics show revenue growing at 23.5% and profit growth of 11.1%. Our composite FairStock Score of 76/100 reflects strong fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

ODDITY's 24% revenue growth trajectory could accelerate as it captures additional market share in the consumer defensive sector. With $29 million in annual free cash flow (3.3% 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 consumer defensive 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