PagerDuty Inc. Common Stock (PD)

FairStock Score: 71/100 — STEADY

Key Financials

Strengths

• Generates $112 million in annual free cash flow (21.3% yield on market cap)
• High return on equity of 82.5% demonstrating efficient capital deployment
• FairStock composite score of 71/100 places it in the top tier across value, quality, and momentum factors

Concerns

• Altman Z-Score of 0.4 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

PagerDuty Inc. Common Stock is a micro-cap technology company valued at $523 million. The business generates $493 million in annual revenue with a 2.2% net margin and $112 million in free cash flow. From a quality standpoint, PagerDuty shows solid Piotroski F-Score of 6/9 and distressed Altman Z-Score of 0.4 warrants caution. On valuation, the stock is deeply undervalued on a P/E basis at 3.3x, with offers a 45% margin of safety vs Graham Number of $11. Growth dynamics show revenue growing at 2.8% and profit growth of 207.0%. Our composite FairStock Score of 71/100 reflects above-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

The market underappreciates PagerDuty's consistent 83% ROE at just 3x earnings—a re-rating toward sector peers could unlock 30-50% upside. With $112 million in annual free cash flow (21.3% 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 technology 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