Remitly Global Inc. Common Stock (RELY)

FairStock Score: 44/100 — MIXED

Key Financials

Strengths

• Generates $6 million in annual free cash flow (0.1% yield on market cap)
• Conservative balance sheet with debt-to-equity of just 0.22, providing financial flexibility
• Altman Z-Score of 5.1 confirms minimal bankruptcy risk and strong solvency
• Revenue growth of 25.7% demonstrates strong top-line momentum

Concerns

• Trades significantly above Graham Number ($5) with negative 279% margin of safety—limited downside protection

AI Analysis

Remitly Global Inc. Common Stock is a small-cap technology company valued at $4.3 billion. The business generates $1.6 billion in annual revenue with a 2.5% net margin and $6 million in free cash flow. From a quality standpoint, Remitly shows solid Piotroski F-Score of 6/9 and Altman Z-Score of 5.1 confirms fortress-level solvency. On valuation, the stock is commanding a steep 66.0x multiple, with trades far above its Graham Number ($5) with no margin of safety. Growth dynamics show revenue growing at 25.7% and profit growth of 820.1%. Our composite FairStock Score of 44/100 reflects below-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Remitly's 26% revenue growth trajectory could accelerate as it captures additional market share in the technology sector. With $6 million in annual free cash flow (0.1% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

At 66x 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