SR Bancorp Inc. Common stock (SRBK)

FairStock Score: 22/100 — RISKY

Key Financials

Concerns

• Altman Z-Score of 0.2 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

SR Bancorp Inc. Common stock is a micro-cap financial services company valued at $146 million. The business generates $32 million in annual revenue with a 2.6% net margin. From a quality standpoint, SR shows distressed Altman Z-Score of 0.2 warrants caution and modest 2% ROE. On valuation, the stock is trading at a premium 31.1x earnings, with trades above its Graham Number with a negative 4% margin. Growth dynamics show revenue growing at 6.4% and profit growth of -18.3%. The 1.1% dividend yield adds an income component for patient holders. Our composite FairStock Score of 22/100 reflects below-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. Operational leverage in the business model means incremental revenue growth could disproportionately boost bottom-line profitability.

Bear Case

At 31x 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