SuperCom Ltd. Ordinary Shares (Israel) (SPCB)

FairStock Score: 44/100 — MIXED

Key Financials

Strengths

• Solid return on equity of 15.3% above cost of capital

Concerns

• Weak Piotroski F-Score of 3/9 suggests deteriorating financial quality across multiple dimensions
• Altman Z-Score of -0.4 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

SuperCom Ltd. Ordinary Shares (Israel) is a micro-cap industrials company valued at $40 million. The business generates $27 million in annual revenue with a 2.6% net margin. From a quality standpoint, SuperCom shows weak Piotroski F-Score of 3/9 signaling deteriorating fundamentals and distressed Altman Z-Score of -0.4 warrants caution. On valuation, the stock is attractively valued at 12.0x earnings, with a modest 25% margin of safety vs Graham Number. Our composite FairStock Score of 44/100 reflects below-average fundamentals overall. This combination of reasonable valuation, solid returns, and conservative leverage makes it worth a closer look for value-oriented portfolios.

Bull Case

The market underappreciates SuperCom's consistent 15% ROE at just 12x 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 industrials 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