SoFi Technologies Inc. Common Stock (SOFI)

FairStock Score: 41/100 — MIXED

Key Financials

Strengths

• Conservative balance sheet with debt-to-equity of just 0.18, providing financial flexibility
• Revenue growth of 39.6% demonstrates strong top-line momentum

Concerns

• Trades significantly above Graham Number ($9) with negative 115% margin of safety—limited downside protection
• Weak Piotroski F-Score of 3/9 suggests deteriorating financial quality across multiple dimensions
• Altman Z-Score of 0.3 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

SoFi Technologies Inc. Common Stock is a mid-cap financial services company valued at $23.4 billion. The business generates $3.6 billion in annual revenue with a 4.8% net margin. From a quality standpoint, SoFi shows weak Piotroski F-Score of 3/9 signaling deteriorating fundamentals and distressed Altman Z-Score of 0.3 warrants caution. On valuation, the stock is commanding a steep 47.0x multiple, with trades far above its Graham Number ($9) with no margin of safety. Growth dynamics show revenue growing at 39.6% and profit growth of -47.8%. Our composite FairStock Score of 37/100 reflects below-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

SoFi's 40% revenue growth trajectory could accelerate as it captures additional market share in the financial services sector. Operational leverage in the business model means incremental revenue growth could disproportionately boost bottom-line profitability.

Bear Case

At 47x 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