Rush Street Interactive Inc. Class A Common Stock (RSI)

FairStock Score: 57/100 — STEADY

Key Financials

Strengths

• Generates $119 million in annual free cash flow (2.2% yield on market cap)
• Strong Piotroski F-Score of 7/9 indicating robust financial health across profitability, leverage, and efficiency metrics
• High return on equity of 29.5% demonstrating efficient capital deployment
• Conservative balance sheet with debt-to-equity of just 0.02, providing financial flexibility
• Altman Z-Score of 9.9 confirms minimal bankruptcy risk and strong solvency

Concerns

• Trades significantly above Graham Number ($3) with negative 628% margin of safety—limited downside protection

AI Analysis

Rush Street Interactive Inc. Class A Common Stock is a small-cap consumer cyclical company valued at $5.4 billion. The business generates $1.1 billion in annual revenue with a 0.5% net margin and $119 million in free cash flow. From a quality standpoint, Rush shows solid Piotroski F-Score of 7/9 and Altman Z-Score of 9.9 confirms fortress-level solvency. On valuation, the stock is commanding a steep 75.2x multiple, with trades far above its Graham Number ($3) with no margin of safety. Growth dynamics show revenue growing at 27.8% and profit growth of 159.1%. Our composite FairStock Score of 57/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Rush's 28% revenue growth trajectory could accelerate as it captures additional market share in the consumer cyclical sector. With $119 million in annual free cash flow (2.2% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

At 75x 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