Tigo Energy Inc. Common Stock (TYGO)

FairStock Score: 49/100 — MIXED

Key Financials

Strengths

• Generates $18 million in annual free cash flow (5.1% yield on market cap)
• Strong Piotroski F-Score of 7/9 indicating robust financial health across profitability, leverage, and efficiency metrics
• Conservative balance sheet with debt-to-equity of just 0.10, providing financial flexibility
• Healthy net profit margin of 11.3% showing consistent profitability
• Revenue growth of 73.8% demonstrates strong top-line momentum

Concerns

• Trades significantly above Graham Number ($1) with negative 537% margin of safety—limited downside protection

AI Analysis

Tigo Energy Inc. Common Stock is a micro-cap technology company valued at $353 million. The business generates $104 million in annual revenue with a 11.3% net margin and $18 million in free cash flow. From a quality standpoint, Tigo shows solid Piotroski F-Score of 7/9 and Altman Z-Score of 2.4 in the grey zone. On valuation, the stock is commanding a steep 74.5x multiple, with trades far above its Graham Number ($1) with no margin of safety. Growth dynamics show revenue growing at 73.8% and profit growth of 143.7%. Our composite FairStock Score of 49/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Tigo's 74% revenue growth trajectory could accelerate as it captures additional market share in the technology sector. With $18 million in annual free cash flow (5.1% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

At 75x 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