Everpure Inc. Class A common stock (P)

FairStock Score: 27/100 — RISKY

Key Financials

Strengths

• Generates $377 million in annual free cash flow (1.7% yield on market cap)
• Solid return on equity of 13.7% above cost of capital
• Altman Z-Score of 4.5 confirms minimal bankruptcy risk and strong solvency
• Revenue growth of 20.4% demonstrates strong top-line momentum

Concerns

• Trades significantly above Graham Number ($7) with negative 830% margin of safety—limited downside protection

AI Analysis

Everpure Inc. Class A common stock is a mid-cap technology company valued at $22.7 billion. The business generates $3.7 billion in annual revenue with a 2.7% net margin and $377 million in free cash flow. From a quality standpoint, Everpure shows solid Piotroski F-Score of 6/9 and healthy Altman Z-Score of 4.5. On valuation, the stock is commanding a steep 127.2x multiple, with trades far above its Graham Number ($7) with no margin of safety. Growth dynamics show revenue growing at 20.4% and profit growth of 136.3%. Our composite FairStock Score of 27/100 reflects below-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Everpure's 20% revenue growth trajectory could accelerate as it captures additional market share in the technology sector. With $377 million in annual free cash flow (1.7% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

At 127x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. 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