TruBridge Inc. Common Stock (TBRG)

FairStock Score: 17/100 — RISKY

Key Financials

Strengths

• Generates $30 million in annual free cash flow (7.7% yield on market cap)

Concerns

• Trades significantly above Graham Number ($9) with negative 193% margin of safety—limited downside protection
• Currently unprofitable—sustained losses could lead to dilutive capital raises or balance sheet deterioration
• Revenue declining at 3.4% year-over-year signals potential demand weakness or market share loss
• Altman Z-Score of 1.4 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

TruBridge Inc. Common Stock is a micro-cap healthcare company valued at $384 million. Revenue stands at $347 million, though the company is currently unprofitable. From a quality standpoint, TruBridge shows solid Piotroski F-Score of 6/9 and distressed Altman Z-Score of 1.4 warrants caution. On valuation, the stock is commanding a steep 88.8x multiple, with trades far above its Graham Number ($9) with no margin of safety. Growth dynamics show revenue growing at -3.4% and profit growth of -39.9%. Our composite FairStock Score of 17/100 reflects below-average fundamentals overall. Without profitability, this remains speculative—suitable only for those with high risk tolerance and a long time horizon.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $30 million in annual free cash flow (7.7% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

At 89x 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