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ACR ACRES Commercial Realty Corp. - Fundamental Analysis

BEARISH
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ACR Stock | Fundamental Analysis & Investment Insights
NYSE Real Estate REIT - Mortgage
Current Price Live
$19.94
Analyst Target
$24.5
+22.9% Upside
52W High
$24.61
52W Low
$15.64

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Confidence Score
78%
Analysis Accuracy
ACR exhibits weak financial health with a Piotroski F-Score of just 2/9, signaling significant operational and balance sheet concerns. Despite strong recent earnings growth and profitability margins, the company's high leverage (Debt/Equity of 2.84) and extremely low valuation multiples like Price/Book of 0.32 suggest deep underlying risks. The absence of an Altman Z-Score due to insufficient data further clouds solvency assessment, while technical indicators and insider sentiment are neutral-to-bearish. Although the stock appears undervalued relative to the Graham Number ($35.84) and analyst target ($24.50), erratic earnings surprises and lack of dividend support undermine confidence in sustained recovery.

Key Strengths

High profitability margins: Gross margin at 35.64%, operating margin at 20.31%, and net profit margin at 32.15% exceed sector averages.
Strong year-over-year earnings growth: YoY EPS growth of +320.8% and revenue growth of 10.40% indicate recent top- and bottom-line momentum.
Significant earnings surprise in recent quarters: One quarter reported a +10,000% beat, showing potential for upside volatility.
Valuation appears attractive relative to Graham Number: Current price of $19.94 vs. Graham fair value of $35.84 implies ~79% upside.
Analyst target price suggests upside: Single analyst target of $24.50 implies ~23% potential appreciation.

Key Risks

Critically low Piotroski F-Score of 2/9: Indicates severe financial distress and poor fundamental health.
High leverage with Debt/Equity ratio of 2.84: Increases vulnerability to interest rate shocks and refinancing risk.
Erratic and volatile earnings performance: History of large negative surprises (e.g., -291.1%, -180.7%) undermines earnings quality.
No Altman Z-Score available: Prevents reliable assessment of bankruptcy risk, a critical gap for a highly leveraged REIT.
Bearish technical trend (0/100) and declining short-term price action: 1-month return of -10.1% and bearish technical signal suggest weakening momentum.
AI Fair Value Estimate
Based on comprehensive analysis
$26.5
+32.9% above current price

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