Pagaya Technologies Ltd. Class A Ordinary Shares (PGY)

FairStock Score: 83/100 — HIGH CONVICTION

Key Financials

Strengths

• Generates $181 million in annual free cash flow (16.5% yield on market cap)
• Solid return on equity of 13.0% above cost of capital
• Revenue growth of 16.5% demonstrates strong top-line momentum
• FairStock composite score of 83/100 places it in the top tier across value, quality, and momentum factors

Concerns

• Altman Z-Score of 1.3 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Pagaya Technologies Ltd. Class A Ordinary Shares is a micro-cap technology company valued at $1.1 billion. The business generates $1.3 billion in annual revenue with a 2.6% net margin and $181 million in free cash flow. From a quality standpoint, Pagaya shows distressed Altman Z-Score of 1.3 warrants caution and adequate 13% ROE. On valuation, the stock is attractively valued at 14.5x earnings, with trades above its Graham Number with a negative 20% margin. Growth dynamics show revenue growing at 16.5% and profit growth of 114.4%. Our composite FairStock Score of 83/100 reflects strong fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Pagaya's 16% revenue growth trajectory could accelerate as it captures additional market share in the technology sector. With $181 million in annual free cash flow (16.5% 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