Spruce Power Holding Corporation Class A Common Stock (SPRU)

FairStock Score: 43/100 — MIXED

Key Financials

Strengths

• Generates $5 million in annual free cash flow (7.0% yield on market cap)
• Revenue growth of 18.8% demonstrates strong top-line momentum

Concerns

• High leverage at 5.65x debt-to-equity increases financial risk and interest expense burden
• 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

Spruce Power Holding Corporation Class A Common Stock is a micro-cap technology company valued at $71 million. Revenue stands at $111 million. From a quality standpoint, Spruce 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 18.8% and profit growth of -15.8%. Our composite FairStock Score of 43/100 reflects below-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Spruce's 19% revenue growth trajectory could accelerate as it captures additional market share in the technology sector. With $5 million in annual free cash flow (7.0% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Elevated leverage at 5.7x D/E means rising interest rates or revenue weakness could strain debt covenants and force asset sales at distressed prices. 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