Playboy Inc. Common Stock (PLBY)

FairStock Score: 31/100 — RISKY

Key Financials

Strengths

• Generates $3 million in annual free cash flow (1.6% yield on market cap)

Concerns

• High leverage at 5.22x debt-to-equity increases financial risk and interest expense burden
• Revenue declining at 58.1% year-over-year signals potential demand weakness or market share loss
• Altman Z-Score of -2.8 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Playboy Inc. Common Stock is a micro-cap consumer cyclical company valued at $211 million. The business generates $122 million in annual revenue with a 2.9% net margin and $3 million in free cash flow. From a quality standpoint, Playboy shows solid Piotroski F-Score of 6/9 and distressed Altman Z-Score of -2.8 warrants caution. On valuation, the stock is 0.5% FCF yield. Growth dynamics show revenue growing at -58.1% and profit growth of 128.6%. Our composite FairStock Score of 31/100 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. With $3 million in annual free cash flow (1.6% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Elevated leverage at 5.2x D/E means rising interest rates or revenue weakness could strain debt covenants and force asset sales at distressed prices. 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