Savers Value Village Inc. Common Stock (SVV)

FairStock Score: 45/100 — MIXED

Key Financials

Strengths

• Generates $27 million in annual free cash flow (2.1% yield on market cap)
• Strong Piotroski F-Score of 8/9 indicating robust financial health across profitability, leverage, and efficiency metrics
• Revenue growth of 15.6% demonstrates strong top-line momentum
• Established organization with 24,000 employees providing operational scale

Concerns

• Trades significantly above Graham Number ($3) with negative 182% margin of safety—limited downside protection
• High leverage at 3.23x debt-to-equity increases financial risk and interest expense burden
• Altman Z-Score of 0.6 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Savers Value Village Inc. Common Stock is a micro-cap consumer cyclical company valued at $1.3 billion. The business generates $1.7 billion in annual revenue with a 1.3% net margin and $27 million in free cash flow. From a quality standpoint, Savers shows near-perfect Piotroski F-Score of 8/9 indicating exceptional financial health and distressed Altman Z-Score of 0.6 warrants caution. On valuation, the stock is commanding a steep 60.6x multiple, with trades far above its Graham Number ($3) with no margin of safety. Growth dynamics show revenue growing at 15.6% and profit growth of 1284.0%. Our composite FairStock Score of 45/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Savers's 16% revenue growth trajectory could accelerate as it captures additional market share in the consumer cyclical sector. With $27 million in annual free cash flow (2.1% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

At 61x 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