Abacus Global Management, Inc.

Where It Passes

Where It Falls Short

• Growth0% pass✓ 3✗ 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

  Inventory Growth vs Revenue GrowthN/A (no inventory)

  ✓LynchInventory growth < Revenue growth

  EPS Growth Direction

  ✗DremanPositive over recent years

  EPS CAGR

  ✗Dreman> 5% annualized

  Positive Net Income Frequency4/5 years positive

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

  3yr Median Revenue Growth68.6%

  ✓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 90.2% -> 87.7%, operating margin 36.3% -> 37.7%

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

  5-year Revenue CAGR

  ✗SleepCAGR > 7%

  3-5 Year Diluted EPS CAGR

  ✗Neff7%-20% annualized
• Efficiency0% pass✓ 1✗ 10▾

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

  Current Ratio0.70

  ✗Graham>= 2.0

  ROIC (3-5 yr avg)7.5%

  ✗Buffett> 10%

  ROIC - WACC-2.5%

  ✗BuffettPositive (WACC = 10%)

  EBIT / (NWC + Net Fixed Assets)N/A (invested capital <= 0)

  ✗Greenblatt> 25%

  Current Ratio Change YoY2.55 -> 0.47

  ✗PiotroskiIncreased YoY

  Revenue / Total Assets Change YoY0.13x -> 0.26x

  ✓PiotroskiImproved YoY

  Current Assets / Current Liabilities0.70

  ✗Dreman> 1.5

  Return on Invested Capital8.8%

  ✗Munger> 15%

  ROIC (high and growing)FY2023: ROIC=11.6%; FY2024: ROIC=-0.1%; FY2025: ROIC=8.5%

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

  Reinvestment Rate x ROIC4.0% (RR=46% x ROIC=8.5%)

  ✗AkreReinvestment Rate * ROIC > 10%

  ROIC (5-year)0/3 years above 12% (latest 8.5%)

  ✗SleepROIC > 12% in a majority of years
• Profitability6% pass✓ 6✗ 29▾

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

  Positive EPS (10 years)3/6 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)4/6 years positive

  ✗BuffettPositive every year for 10+ years

  ROE (up to 5-year arithmetic mean)3.0%

  ✗Buffett> 15% arithmetic mean (app rule)

  Operating Margin (10-yr trend)37.7% (latest)

  ✗BuffettStable or rising over 10 years

  Free Cash Flow Proxy$54.2M

  ✓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

  ROE6.5%

  ✗Lynch> 15%

  EBIT / Enterprise Value7.3%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=7.3%, ROC=N/A (invested capital <= 0)

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Net Income / Total Assets4.05%

  ✓PiotroskiROA > 0

  ROA Change YoY-2.74% -> 4.05% (delta: +6.79%)

  ✓PiotroskiCurrent ROA > Prior ROA

  (CFO / Total Assets) vs ROACFO/Assets=-2.85%, ROA=4.05%

  ✗PiotroskiCFO/Assets > ROA

  Gross Margin Change YoY89.8% -> 87.7%

  ✗PiotroskiImproved YoY

  Pre-Tax Income / Revenue

  ✗Dreman>= 8%

  Net Income / Shareholders' Equity6.5%

  ✗Dreman> 12%

  Margin of SafetyP/E=24.5x, P/B=2.1x

  ✗PabraiP/B < 1.5 or P/E < 15

  Return on Equity3.0% (3-yr avg)

  ✗AkreROE > 20% (3-year avg)

  Discount to Intrinsic Value

  ✗Marks>= 20% below intrinsic value

  Positive Net Income Frequency4/5 years positive

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

  Operating Income / Revenue31.8%

  ✓Ackman>= 15%

  Net Income / Shareholders Equity6.5%

  ✗Ackman>= 15%

  5-Year EPS CAGR

  ✗Templeton> 0% (5-year EPS CAGR)

  Operating Margin Trend36.3% (2023) -> 37.7% (2025)

  ✓TempletonNon-negative operating-margin trend over 3 years

  Revenue growth vs. gross and operating margin trendgross margin 90.2% -> 87.7%, operating margin 36.3% -> 37.7%

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

  Net income / market capitalization+3.27%; #2282/6340 (top 36.0%)

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

  Gross profit / total assets+27.22%; #1577/3702 (top 42.6%)

  ✗AsnessTop 30% of eligible cross-section

  Net income / positive book equity+6.49%; #2285/5226 (top 43.7%)

  ✗AsnessTop 30% of eligible cross-section

  Negative 5-year standard deviation of ROA-0.2073; #4264/5884 (top 72.5%)

  ✗AsnessTop 30% of eligible cross-section

  3-5 Year Diluted EPS CAGR

  ✗Neff7%-20% annualized

  Positive Diluted-EPS Years

  ✗Schloss>= 70% positive over 5-10 observed years (app rule)
• Valuation8% pass✓ 1✗ 27▾

  12 of 13 flag ABX's valuation — Graham, Lynch, Greenblatt +9 more

  Price / 3-yr avg EPS

  ✗Graham<= 15x

  Price-to-Book Ratio2.1x

  ✗Graham<= 1.5x

  P/E x P/B

  ✗Graham<= 22.5

  Basic earnings-growth PEG (dividends excluded)

  ✗Lynch< 1.0 (ideally < 0.5)

  EBIT / Enterprise Value7.3%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=7.3%, ROC=N/A (invested capital <= 0)

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Price / EPS24.5x

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

  Price / (CFO / Shares)N/A (negative CFPS)

  ✗Dreman< 8x

  Price / Book Value per Share2.1x

  ✗Dreman< 1.2x✗Templeton< 1.5x✗SchlossP/B <= 0.80x (app cutoff)

  Valuation ReasonablenessP/E=24.5x, OE Yield=6.3%

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

  P/E or FCF YieldP/E=24.5x, FCF Yield=-3.1%

  ✗PabraiP/E < 15 or FCF Yield > 10%

  P/B or P/E vs. Historical AverageP/E=24.5x, P/B=2.1x

  ✗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 Low175% of trailing low ($5.02)

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

  Net income / market capitalization+3.27%; #2282/6340 (top 36.0%)

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

  Positive book equity / market capitalization+0.5048; #2867/6449 (top 44.5%)

  ✗AsnessTop 30% of eligible cross-section

  Price / Diluted EPS24.5x

  ✗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)

  Price / Tangible Book Value per Share8.64x

  ✗SchlossP/TBV <= 1.00x (app cutoff)

  Book Value per Share Change

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

  Revenue / market capitalization+0.3104; #3278/5247 (top 62.5%)

  ✗OshaughnessyTop 10% of eligible cross-section

  (Operating cash flow - capex) / market capitalization+10.39%; #713/4519 (top 15.8%)

  ✗OshaughnessyTop 10% of eligible cross-section

  Trailing six-month price return through the evaluation date-1.89%; #2915/6202 (top 47.0%)

  ✗OshaughnessyTop 10% of eligible cross-section
• Verdicts19% pass✓ 3✗ 13▾

  Split decision: 13 FAIL · 3 PASS

  Overall verdict

  ✗GrahamFAIL (1/9)✗BuffettFAIL (1/9)✗LynchFAIL (2/7)•GreenblattNot ranked✓PiotroskiPASS (F-Score 4)✗DremanFAIL (1/11)✓MungerPASS (2/4)✗PabraiFAIL (0/3)✗AkreFAIL (1/6)✗MarksFAIL (0/5)✓AckmanPASS (4/9)✗TempletonFAIL (3/8)✗SleepFAIL (2/6)✗AsnessFAIL (Rank #1076/2370 (Top 45.4%))✗NeffFAIL (3/6)✗SchlossFAIL (1/7)✗OshaughnessyFAIL (Rank #722/963 (Top 75.0%))
• Valuation models20% pass✓ 1✗ 4▾

  Models split on ABX at $8.81 — fair values range $3.03–$9.17

  Graham fair value$5.90

  ✗Graham-49.3% margin vs $8.81

  Buffett fair value$6.57

  ✗Buffett-34.1% margin vs $8.81

  Greenblatt fair value$3.03

  ✗Greenblatt-190.8% margin vs $8.81

  Pabrai fair value$9.17

  ✓Pabrai+3.9% margin vs $8.81

  Akre fair value$4.36

  ✗Akre-102.1% margin vs $8.81
• Debt & Leverage25% pass✓ 5✗ 10▾

  9 of 12 flag ABX's debt & leverage — Graham, Buffett, Lynch +6 more

  LT Debt vs Net Current AssetsLT Debt $290.8M vs NCA $-27.1M

  ✗GrahamLT Debt <= Net Current Assets

  Debt/Equity & Interest CoverageD/E: 0.76, IC: 2.2x

  ✗BuffettD/E < 0.5 AND Interest Coverage > 5x

  Total Debt / Equity0.76

  ✗Lynch< 0.33

  Cash - Long-term Debt$-267.4M

  ✗LynchPositive preferred

  LT Debt / Total Assets Change39.17% -> 32.13%

  ✓PiotroskiDecreased YoY

  Current Assets / Current Liabilities0.70

  ✗Dreman> 1.5✗SchlossCurrent ratio >= 1.50x (app cutoff)

  Total Debt / Shareholders' Equity0.76

  ✓Dreman< 0.8✓Templeton< 1.0 (fixed cap; proxy for below-sector-median leverage)✓SchlossD/E < 1.00x

  Debt Levels0.76

  ✗MungerDebt/Equity < 0.5✗AkreDebt/Equity < 0.3

  Interest Coverage & Debt/EBITDAIC=2.2x, D/EBITDA=3.3x

  ✗MarksInterest Coverage > 3x; Debt/EBITDA < 4x

  Total Debt / Shareholders Equity0.76

  ✓Ackman<= 1.0

  Negative debt-to-equity (higher means less debt)-0.7606; #2936/4210 (top 69.7%)

  ✗AsnessTop 30% of eligible cross-section
• Cash Flow30% pass✓ 4✗ 8▾

  7 of 10 flag ABX's cash flow — Piotroski, Dreman, Pabrai +4 more

  Free Cash Flow Proxy$54.2M

  ✓BuffettPositive and growing

  FCF Positive and Growing$89.5M

  ✓LynchPositive and growing

  Operating Cash Flow$-25.7M

  ✗PiotroskiCFO > 0

  (CFO / Total Assets) vs ROACFO/Assets=-2.85%, ROA=4.05%

  ✗PiotroskiCFO/Assets > ROA

  Price / (CFO / Shares)N/A (negative CFPS)

  ✗Dreman< 8x

  P/E or FCF YieldP/E=24.5x, FCF Yield=-3.1%

  ✗PabraiP/E < 15 or FCF Yield > 10%

  FCF Positive1/4 years FCF positive

  ✗MarksPositive FCF in majority of recent years

  (OCF - CapEx) / Market Cap10.4%

  ✓Ackman>= 4%

  Price / FCF per ShareN/A (negative FCF)

  ✗Ackman<= 25

  Positive Operating Cash Flow frequency1/5 years positive

  ✗SleepPositive OCF in >= 70% of available years

  Operating Cash Flow - Capital Expenditures$89.5M

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

  (Operating cash flow - capex) / market capitalization+10.39%; #713/4519 (top 15.8%)

  ✗OshaughnessyTop 10% of eligible cross-section