Source Capital Inc. Cmn Shs of BI (SOR)

FairStock Score: 66/100 — STEADY

Key Financials

Strengths

• Solid return on equity of 15.8% above cost of capital
• Altman Z-Score of 43.1 confirms minimal bankruptcy risk and strong solvency
• Attractive 5.5% dividend yield providing steady income returns

Concerns

• Weak Piotroski F-Score of 0/9 suggests deteriorating financial quality across multiple dimensions

AI Analysis

Source Capital Inc. Cmn Shs of BI is a micro-cap financial services company valued at $379 million. Revenue stands at $21 million. From a quality standpoint, Source shows weak Piotroski F-Score of 0/9 signaling deteriorating fundamentals and Altman Z-Score of 43.1 confirms fortress-level solvency. On valuation, the stock is deeply undervalued on a P/E basis at 6.3x, with offers a 48% margin of safety vs Graham Number of $89. The 5.5% dividend yield adds an income component for patient holders. Our composite FairStock Score of 66/100 reflects above-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

The market underappreciates Source's consistent 16% ROE at just 6x earnings—a re-rating toward sector peers could unlock 30-50% upside. Operational leverage in the business model means incremental revenue growth could disproportionately boost bottom-line profitability.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the financial services 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