TOP Ships Inc. Common Stock (TOPS)

FairStock Score: 59/100 — STEADY

Key Financials

Strengths

• Generates $36 million in annual free cash flow (233.6% yield on market cap)

Concerns

• High leverage at 2.43x 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 -1.4 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

TOP Ships Inc. Common Stock is a micro-cap energy company valued at $16 million. The business generates $80 million in annual revenue with a 1.3% net margin and $36 million in free cash flow. From a quality standpoint, TOP shows weak Piotroski F-Score of 1/9 signaling deteriorating fundamentals and distressed Altman Z-Score of -1.4 warrants caution. On valuation, the stock is deeply undervalued on a P/E basis at 4.0x, with offers a 83% margin of safety vs Graham Number of $17. Our composite FairStock Score of 59/100 reflects mixed 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. With $36 million in annual free cash flow (233.6% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Elevated leverage at 2.4x 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