Seritage Growth Properties Class A Common Stock (SRG)

FairStock Score: 56/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a value investor, I begin with Graham's question: is this a business with durable earning power? Seritage owns and redevelops real estate, but the filed numbers show a company in transition, not a compounding enterprise. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was just $114,000 and net income was -$6.1 million, or -$0.13 per diluted share. In fiscal Q1 2026, the quarter ended 2026-03-31, net income was -$30.3 million. For FY2025, the year ended 2025-12-31, revenue was $607,000 and net income was -$68.2 million. FY2024 revenue was $567,000 with a net loss of $153.5 million, and FY2023 revenue was $5.7 million with a net loss of $154.9 million. That is not a moat; it is a cash-consuming asset story. The shares trade at $1.57 as of 2026-10-13, and FairStock calculates a P/B of 0.30, so the market values the equity at a large discount to reported book value. But trailing free cash flow is -$21.0 million and the FCF yield is -23.7%. FairStock also reports ROE of -16.73%, ROCE of -3.03%, Piotroski 4/9, and Altman Z-Score -3.22, which point to distress. Debt/equity of 0.17 is not high on its face, but negative cash flow makes it fragile. A beta of 2.19 and a 52-week range of $1.55 to $4.38 show how volatile and unloved the equity is. Cheapness on book value alone is not enough; I need a visible path to positive cash earnings. Until then, this is speculation about asset sales, not a business I can value with confidence.

In plain English: Seritage Growth Properties owns and redevelops real estate. The business looks weak because it is losing money and using cash, with very little revenue. The stock price looks cheap compared with the accounting value of its assets, but expensive compared with the cash losses it is producing.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer