Rafael Holdings Inc. Class B Common Stock (RFL)

FairStock Score: 53/100 — MIXED

Key Financials

Strengths

• Generates $184,250 in annual free cash flow (0.3% yield on market cap)
• Conservative balance sheet with debt-to-equity of just 0.01, providing financial flexibility
• Revenue growth of 174.0% demonstrates strong top-line momentum

Concerns

• Weak Piotroski F-Score of 1/9 suggests deteriorating financial quality across multiple dimensions
• Altman Z-Score of -0.7 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Rafael Holdings Inc. Class B Common Stock is a micro-cap real estate company valued at $70 million. Revenue stands at $1 million. From a quality standpoint, Rafael shows weak Piotroski F-Score of 1/9 signaling deteriorating fundamentals and distressed Altman Z-Score of -0.7 warrants caution. Growth dynamics show revenue growing at 174.0% and profit growth of -38.3%. Our composite FairStock Score of 53/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Rafael's 174% revenue growth trajectory could accelerate as it captures additional market share in the real estate sector. With $184,250 in annual free cash flow (0.3% 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 real estate 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