Abits Group Inc

Where It Passes

Where It Falls Short

• Valuation0% pass✓ 10✗ 16▾

  No clean pass — all 12 investors flag at least one valuation criterion

  Price / 3-yr avg EPS

  ✗Graham<= 15x

  Price-to-Tangible-Book Ratio0.1x

  ✓Graham<= 1.5x

  P/E x P/TBV

  ✗Graham<= 22.5

  Basic earnings-growth PEG (dividends excluded)

  ✗Lynch< 1.0 (ideally < 0.5)

  Price / EPS

  ✗Dreman< 12x✗Templeton< 12x (fixed ceiling; proxy for the market's cheapest 40%)

  Price / (CFO / Shares)0.6x

  ✓Dreman< 8x

  Price / Tangible Book Value per Share0.1x

  ✓Dreman< 1.2x✓SchlossP/TBV <= 1.00x (app cutoff)

  Valuation Reasonableness

  ✗MungerP/E < 25 or Owner Earnings Yield > 5%

  P/E or FCF YieldFCF Yield=-143.0%

  ✗PabraiP/E < 15 or FCF Yield > 10%

  P/B or P/E vs. Historical AverageP/B=0.1x

  ✓MarksP/E < 15 or P/B < 2.0

  Discount to Intrinsic Value

  ✗Marks>= 20% below intrinsic value

  Price / FCF per ShareN/A (negative FCF)

  ✗Ackman<= 25

  Price vs. Trailing Low100% of trailing low ($0.33)

  ✓Templeton<= 120% of trailing low (certified split-adjusted live window)

  Price / Book Value per Share0.1x

  ✓Templeton< 1.5x✓SchlossP/B <= 0.80x (app cutoff)

  Net income / market capitalization-243.16%; #5722/6340 (top 90.3%)

  ✗AsnessTop 30% of eligible cross-section✗OshaughnessyTop 10% of eligible cross-section

  Positive book equity / market capitalization+6.5935; #238/6449 (top 3.7%)

  ✓AsnessTop 30% of eligible cross-section

  Price / Diluted EPS

  ✗NeffP/E <= 15x (app proxy for a P/E 40%-60% below the market)

  (EPS CAGR % + Dividend Yield %) / P/E

  ✗Neff> 0.7 (Neff's published traditional edge)

  Book Value per Share Change

  ✗SchlossLatest BVPS >= earliest BVPS over >= 3 years (app rule)

  Revenue / market capitalization+7.7357; #388/5247 (top 7.4%)

  ✓OshaughnessyTop 10% of eligible cross-section

  (Operating cash flow - capex) / market capitalization-142.96%; #4142/4519 (top 91.7%)

  ✗OshaughnessyTop 10% of eligible cross-section

  Trailing six-month price return through the evaluation date-71.86%; #5699/6202 (top 91.9%)

  ✗OshaughnessyTop 10% of eligible cross-section
• Growth0% pass✓ 2✗ 10▾

  No clean pass — all 8 investors flag at least one growth criterion

  EPS Growth (3-yr avg, 10-yr window)

  ✗Graham>= 33% growth

  Basic earnings-growth PEG (dividends excluded)

  ✗Lynch< 1.0 (ideally < 0.5)

  3-5 Year EPS CAGR

  ✗Lynch15-30% (Fast Grower); > 0% to pass

  EPS Growth Direction

  ✗DremanPositive over recent years

  EPS CAGR

  ✗Dreman> 5% annualized

  Positive Net Income Frequency2/7 years positive

  ✗MarksPositive net income in >= 7 of last 10 years

  3yr Median Revenue Growth299.1%

  ✓Ackman>= 5%

  Positive EPS Growth Frequency

  ✗AckmanPositive EPS growth in >= 3 of last 5 years

  5-Year EPS CAGR

  ✗Templeton> 0% (5-year EPS CAGR)

  Revenue growth vs. gross and operating margin trendgross margin 72.9% -> 40.3%, operating margin 72.9% -> 40.3%

  ✗SleepRevenue rising; gross margin flat or falling; operating margin holding

  5-year Revenue CAGR57.3%

  ✓SleepCAGR > 7%

  3-5 Year Diluted EPS CAGR

  ✗Neff7%-20% annualized
• Profitability6% pass✓ 4✗ 31▾

  15 of 16 flag ABTS's profitability — Graham, Buffett, Lynch +12 more

  Positive EPS (10 years)2/8 years positive

  ✗GrahamPositive EPS every year for 10 years

  EPS Growth (3-yr avg, 10-yr window)

  ✗Graham>= 33% growth

  Net Income Positive (10+ years)2/8 years positive

  ✗BuffettPositive every year for 10+ years

  ROE (up to 5-year arithmetic mean)-57.7%

  ✗Buffett> 15% arithmetic mean (app rule)

  Operating Margin (10-yr trend)40.3% (latest)

  ✓BuffettStable or rising over 10 years

  Free Cash Flow Proxy

  ✗BuffettPositive and growing

  Earnings Variance (10-yr CoV)

  ✗BuffettCoV < 0.3

  Retained Earnings Effectiveness

  ✗Buffett$1 retained -> > $1 market value created

  Basic earnings-growth PEG (dividends excluded)

  ✗Lynch< 1.0 (ideally < 0.5)

  3-5 Year EPS CAGR

  ✗Lynch15-30% (Fast Grower); > 0% to pass

  ROE-36.9%

  ✗Lynch> 15%

  Net Income / Total Assets-26.29%

  ✗PiotroskiROA > 0

  ROA Change YoY-8.00% -> -26.29% (delta: -18.29%)

  ✗PiotroskiCurrent ROA > Prior ROA

  (CFO / Total Assets) vs ROACFO/Assets=12.95%, ROA=-26.29%

  ✓PiotroskiCFO/Assets > ROA

  Pre-Tax Income / Revenue-30.3%

  ✗Dreman>= 8%

  Net Income / Shareholders' Equity-36.9%

  ✗Dreman> 12%

  Return on Equity-36.9%

  ✗Munger> 15%✗AkreROE > 20% (3-year avg)

  Margin of SafetyP/TBV=0.1x

  ✓PabraiP/TBV < 1.5 or P/E < 15

  ROE (high and growing)FY2023: ROE=-111.2%; FY2024: ROE=-8.8%; FY2025: ROE=-36.9%

  ✗AkreLatest 3 consecutive FYs: ROE > 15% in each

  Discount to Intrinsic Value

  ✗Marks>= 20% below intrinsic value

  Positive Net Income Frequency2/7 years positive

  ✗MarksPositive net income in >= 7 of last 10 years

  Operating Income / Revenue40.3%

  ✓Ackman>= 15%

  Net Income / Shareholders Equity-36.9%

  ✗Ackman>= 15%

  5-Year EPS CAGR

  ✗Templeton> 0% (5-year EPS CAGR)

  Operating Margin Trend72.9% (2023) -> 40.3% (2025)

  ✗TempletonNon-negative operating-margin trend over 3 years

  Revenue growth vs. gross and operating margin trendgross margin 72.9% -> 40.3%, operating margin 72.9% -> 40.3%

  ✗SleepRevenue rising; gross margin flat or falling; operating margin holding

  ROE (5-year)0/5 years above 12% (latest -36.9%)

  ✗SleepROE > 12% in a majority of years

  Net income / market capitalization-243.16%; #5722/6340 (top 90.3%)

  ✗AsnessTop 30% of eligible cross-section✗OshaughnessyTop 10% of eligible cross-section

  Gross profit / total assets+33.68%; #1234/3702 (top 33.3%)

  ✗AsnessTop 30% of eligible cross-section

  Net income / positive book equity-36.88%; #4031/5226 (top 77.1%)

  ✗AsnessTop 30% of eligible cross-section

  Negative 5-year standard deviation of ROA-0.3651; #4745/5884 (top 80.6%)

  ✗AsnessTop 30% of eligible cross-section

  3-5 Year Diluted EPS CAGR

  ✗Neff7%-20% annualized

  Positive Diluted-EPS Years2/7 years positive

  ✗Schloss>= 70% positive over 5-10 observed years (app rule)
• Verdicts13% pass✓ 2✗ 13▾

  Split decision: 13 FAIL · 2 PASS · 1 NEUTRAL

  Overall verdict

  ✗GrahamFAIL (1/7)✗BuffettFAIL (1/6)✗LynchFAIL (0/4)✓PiotroskiPASS (F-Score 4)✗DremanFAIL (2/9)✗MungerFAIL (1/3)✗PabraiFAIL (1/3)✗AkreFAIL (0/5)✗MarksFAIL (1/4)✗AckmanFAIL (3/8)✓TempletonPASS (4/8)✗SleepFAIL (2/6)✗AsnessFAIL (Rank #1894/2370 (Top 79.9%))✗NeffFAIL (1/6)✗SchlossFAIL (3/7)•OshaughnessyNEUTRAL (Not ranked)
• Cash Flow20% pass✓ 3✗ 9▾

  8 of 10 flag ABTS's cash flow — Buffett, Lynch, Pabrai +5 more

  Free Cash Flow Proxy

  ✗BuffettPositive and growing

  FCF Positive and Growing$-1.7M

  ✗LynchPositive and growing

  Operating Cash Flow$1.4M

  ✓PiotroskiCFO > 0

  (CFO / Total Assets) vs ROACFO/Assets=12.95%, ROA=-26.29%

  ✓PiotroskiCFO/Assets > ROA

  Price / (CFO / Shares)0.6x

  ✓Dreman< 8x

  P/E or FCF YieldFCF Yield=-143.0%

  ✗PabraiP/E < 15 or FCF Yield > 10%

  FCF Positive0/4 years FCF positive

  ✗MarksPositive FCF in majority of recent years

  (OCF - CapEx) / Market Cap-214.4%

  ✗Ackman>= 4%

  Price / FCF per ShareN/A (negative FCF)

  ✗Ackman<= 25

  Positive Operating Cash Flow frequency3/7 years positive

  ✗SleepPositive OCF in >= 70% of available years

  Operating Cash Flow - Capital Expenditures$-1.7M

  ✗Neff> $0 (app proxy for a strong fundamental case)

  (Operating cash flow - capex) / market capitalization-142.96%; #4142/4519 (top 91.7%)

  ✗OshaughnessyTop 10% of eligible cross-section
• Efficiency33% pass✓ 1✗ 2▾

  2 of 3 flag ABTS's efficiency — Akre and Sleep

  Revenue / Total Assets Change YoY0.59x -> 0.84x

  ✓PiotroskiImproved YoY

  Reinvestment Rate x ROICN/A (non-positive net income)

  ✗AkreReinvestment Rate * ROIC > 10%

  ROE (5-year)0/5 years above 12% (latest -36.9%)

  ✗SleepROE > 12% in a majority of years
• Debt & Leverage50% pass✓ 3✗ 2▾

  2 of 4 pass — Piotroski and Schloss object

  LT Debt / Total Assets Change0.00% -> 3.44%

  ✗PiotroskiDecreased YoY

  Total Debt / Shareholders' Equity0.05

  ✓Templeton< 1.0 (fixed cap; proxy for below-sector-median leverage)✓SchlossD/E < 1.00x

  Negative debt-to-equity (higher means less debt)-0.0482; #999/4210 (top 23.7%)

  ✓AsnessTop 30% of eligible cross-section

  Current Assets / Current Liabilities0.33x

  ✗SchlossCurrent ratio >= 1.50x (app cutoff)