Zumiez Inc. Common Stock (ZUMZ)

FairStock Score: 46/100 — MIXED

Key Financials

Strengths

• Generates $45 million in annual free cash flow (10.8% yield on market cap)
• Strong Piotroski F-Score of 8/9 indicating robust financial health across profitability, leverage, and efficiency metrics

Concerns

• No meaningful dividend despite modest growth—total return depends entirely on multiple expansion

AI Analysis

Zumiez Inc. Common Stock is a micro-cap consumer cyclical company valued at $415 million. The business generates $929 million in annual revenue with a 2.1% net margin and $45 million in free cash flow. From a quality standpoint, Zumiez shows near-perfect Piotroski F-Score of 8/9 indicating exceptional financial health and Altman Z-Score of 1.9 in the grey zone. On valuation, the stock is trading at a premium 31.6x earnings, with trades above its Graham Number with a negative 33% margin. Growth dynamics show revenue growing at 4.3% and profit growth of 32.5%. Our composite FairStock Score of 46/100 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 $45 million in annual free cash flow (10.8% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

At 32x 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