📊 FSP Key Takeaways
Is FSP a Good Investment? Thesis Analysis
Franklin Street Properties faces severe fundamental deterioration with negative profitability across all metrics, including a -42% net margin and -45M net loss despite 107.2M in revenue. The company is burning cash with negative free cash flow of -12.7M while carrying debt obligations, creating an unsustainable financial position that poses significant risk to equity holders.
Why Buy FSP? Key Strengths
- Moderate asset base of 892.9M provides some liquidation value
- Positive operating cash flow of 3.8M demonstrates some operational viability
- Zero net debt position (0.00x debt/equity ratio) reduces immediate default risk
FSP Investment Risks to Consider
- Severe operating losses with -41.8% operating margin indicating core business dysfunction
- Negative free cash flow of -12.7M is unsustainable and depletes cash reserves rapidly
- Revenue declined 10.8% year-over-year signaling contracting top-line with no profitability offset
- Negative interest coverage ratio of -6.5x indicates inability to service debt from operations
- Real estate sector cyclicality combined with existing operational distress creates refinancing risk
- Minimal cash position of 30.6M relative to annual cash burn rate
Key Metrics to Watch
- Operating cash flow trend and sustainability
- Revenue stabilization and return to growth
- Path to operating profitability and net income recovery
- Cash depletion rate and liquidity runway
- Occupancy rates and rental rate changes across property portfolio
- Capital expenditure efficiency and asset disposition activities
FSP Financial Metrics
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
FSP Profitability Ratios
FSP vs Default Sector
How FRANKLIN STREET PROPERTIES CORP /MA/ compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is FSP Overvalued or Undervalued?
Based on fundamental analysis, FRANKLIN STREET PROPERTIES CORP /MA/ has mixed fundamental signals relative to the Default sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
FSP Balance Sheet & Liquidity
FSP 5-Year Financial Trend & Growth Analysis
5-Year Trend Summary: FRANKLIN STREET PROPERTIES CORP /MA/'s revenue has declined by 46% over the 5-year period, indicating business contraction. The most recent EPS of $-0.47 indicates the company is currently unprofitable.
FSP Growth Metrics (YoY)
FSP Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $27.3M | -$37.6M | $-0.08 |
| Q2 2025 | $26.7M | -$28.6M | $-0.08 |
| Q1 2025 | $27.1M | -$7.6M | $-0.07 |
| Q3 2024 | $29.7M | -$44.2M | $-0.15 |
| Q2 2024 | $30.8M | -$6.0M | $-0.06 |
| Q1 2024 | $31.2M | $2.4M | $0.02 |
| Q3 2023 | $36.9M | $4.0M | $0.04 |
| Q2 2023 | $36.3M | -$6.0M | $-0.06 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
FSP Capital Allocation
FSP SEC 10-K & 10-Q Filing Analysis
Access official SEC EDGAR filings for FRANKLIN STREET PROPERTIES CORP /MA/ (CIK: 0001031316)
📋 Recent SEC Filings
❓ Frequently Asked Questions about FSP
What is the AI rating for FSP?
FRANKLIN STREET PROPERTIES CORP /MA/ (FSP) has an AI rating of STRONG SELL with 92% confidence, based on fundamental analysis of SEC EDGAR filings.
What are FSP's key strengths?
Claude: Moderate asset base of 892.9M provides some liquidation value. Positive operating cash flow of 3.8M demonstrates some operational viability.
What are the risks of investing in FSP?
Claude: Severe operating losses with -41.8% operating margin indicating core business dysfunction. Negative free cash flow of -12.7M is unsustainable and depletes cash reserves rapidly.
What is FSP's revenue and growth?
FRANKLIN STREET PROPERTIES CORP /MA/ reported revenue of $107.2M.
Does FSP pay dividends?
FRANKLIN STREET PROPERTIES CORP /MA/ pays dividends, with $4.1M distributed to shareholders in the trailing twelve months.
Where can I find FSP SEC filings?
Official SEC filings for FRANKLIN STREET PROPERTIES CORP /MA/ (CIK: 0001031316) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is FSP's EPS?
FRANKLIN STREET PROPERTIES CORP /MA/ has a diluted EPS of $-0.43.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is FSP a good stock to buy right now?
Based on our AI fundamental analysis in March 2026, FRANKLIN STREET PROPERTIES CORP /MA/ has a STRONG SELL rating with 92% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is FSP stock overvalued or undervalued?
Valuation metrics for FSP: ROE of -7.4% (sector avg: 15%), net margin of -42.0% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy FSP stock in 2026?
Our dual AI analysis gives FRANKLIN STREET PROPERTIES CORP /MA/ a combined STRONG SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is FSP's free cash flow?
FRANKLIN STREET PROPERTIES CORP /MA/'s operating cash flow is $3.8M, with capital expenditures of $16.4M. FCF margin is -11.8%.
How does FSP compare to other Default stocks?
Vs Default sector averages: Net margin -42.0% (avg: 12%), ROE -7.4% (avg: 15%), current ratio N/A (avg: 1.8).