Tejon Ranch Co Common Stock (TRC)

FairStock Score: 41/100 — MIXED

Key Financials

Strengths

• Conservative balance sheet with debt-to-equity of just 0.19, providing financial flexibility
• Revenue growth of 17.7% demonstrates strong top-line momentum

Concerns

• Trades significantly above Graham Number ($5) with negative 301% margin of safety—limited downside protection

AI Analysis

Tejon Ranch Co Common Stock is a micro-cap industrials company valued at $528 million. The business generates $51 million in annual revenue with a 3.1% net margin. From a quality standpoint, Tejon shows solid Piotroski F-Score of 6/9 and Altman Z-Score of 2.6 in the grey zone. On valuation, the stock is commanding a steep 336.0x multiple, with trades far above its Graham Number ($5) with no margin of safety. Growth dynamics show revenue growing at 17.7% and profit growth of -64.7%. Our composite FairStock Score of 41/100 reflects below-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Tejon's 18% revenue growth trajectory could accelerate as it captures additional market share in the industrials sector. Operational leverage in the business model means incremental revenue growth could disproportionately boost bottom-line profitability.

Bear Case

At 336x 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