ProFrac Holding Corp.

Where It Passes

Where It Falls Short

• Debt & Leverage0% pass✗ 15▾

  All 12 investors flag ACDC's debt & leverage

  LT Debt vs Net Current AssetsLT Debt $916.7M vs NCA $-67.9M

  ✗GrahamLT Debt <= Net Current Assets

  Debt/Equity & Interest CoverageD/E: 2.03, IC: -1.7x

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

  Total Debt / Equity2.03

  ✗Lynch< 0.33

  Cash - Long-term Debt$-873.1M

  ✗LynchPositive preferred

  LT Debt / Total Assets Change31.61% -> 34.03%

  ✗PiotroskiDecreased YoY

  Current Assets / Current Liabilities0.90

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

  Total Debt / Shareholders' Equity2.03

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

  Debt Levels2.03

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

  Interest Coverage & Debt/EBITDAIC=-1.7x, D/EBITDA=6.0x

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

  Total Debt / Shareholders Equity2.03

  ✗Ackman<= 1.0

  Negative debt-to-equity (higher means less debt)-2.0269; #3785/4210 (top 89.9%)

  ✗AsnessTop 30% of eligible cross-section
• Valuation0% pass✓ 8✗ 20▾

  No clean pass — all 13 investors flag at least one valuation criterion

  Price / 3-yr avg EPS

  ✗Graham<= 15x

  Price-to-Book Ratio0.7x

  ✓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 Value-14.4%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=-14.4%, ROC=-17.2%

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Price / EPS

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

  Price / (CFO / Shares)2.8x

  ✓Dreman< 8x

  Price / Book Value per Share0.7x

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

  Valuation ReasonablenessOE Yield=-23.1%

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

  P/E or FCF YieldFCF Yield=3.4%

  ✗PabraiP/E < 15 or FCF Yield > 10%

  P/B or P/E vs. Historical AverageP/B=0.7x

  ✓MarksP/E < 15 or P/B < 2.0

  Discount to Intrinsic ValueN/A (negative normalized EPS)

  ✗Marks>= 20% below intrinsic value

  Price / FCF per Share27.0x

  ✗Ackman<= 25

  Price vs. Trailing Low100% of trailing low ($3.15)

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

  Net income / market capitalization-67.37%; #5202/6340 (top 82.1%)

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

  Positive book equity / market capitalization+0.8808; #1717/6449 (top 26.6%)

  ✓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)

  Price / Tangible Book Value per Share1.68x

  ✗SchlossP/TBV <= 1.00x (app cutoff)

  Book Value per Share Change

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

  Revenue / market capitalization+3.3037; #752/5247 (top 14.3%)

  ✗OshaughnessyTop 10% of eligible cross-section

  (Operating cash flow - capex) / market capitalization-2.77%; #2821/4519 (top 62.4%)

  ✗OshaughnessyTop 10% of eligible cross-section

  Trailing six-month price return through the evaluation date-46.43%; #5034/6202 (top 81.2%)

  ✗OshaughnessyTop 10% of eligible cross-section
• Growth0% pass✓ 1✗ 12▾

  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 GrowthInv: 16.9% vs Rev: -3.3%

  ✗LynchInventory growth < Revenue growth

  EPS Growth Direction

  ✗DremanPositive over recent years

  EPS CAGR

  ✗Dreman> 5% annualized

  Positive Net Income Frequency1/6 years positive

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

  3yr Median Revenue Growth-11.4%

  ✗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 33.8% -> 25.1%, operating margin 6.3% -> -11.6%

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

  5-year Revenue CAGR28.8%

  ✓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 Ratio0.90

  ✗Graham>= 2.0

  ROIC (3-5 yr avg)-2.5%

  ✗Buffett> 10%

  ROIC - WACC-12.5%

  ✗BuffettPositive (WACC = 10%)

  EBIT / (NWC + Net Fixed Assets)-17.2%

  ✗Greenblatt> 25%

  Current Ratio Change YoY0.87 -> 0.81

  ✗PiotroskiIncreased YoY

  Revenue / Total Assets Change YoY0.73x -> 0.75x

  ✓PiotroskiImproved YoY

  Current Assets / Current Liabilities0.90

  ✗Dreman> 1.5

  Return on Invested Capital-11.6%

  ✗Munger> 15%

  ROIC (high and growing)FY2023: ROIC=5.8%; FY2024: ROIC=-2.3%; FY2025: ROIC=-10.3%

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

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

  ✗AkreReinvestment Rate * ROIC > 10%

  ROIC (5-year)0/4 years above 12% (latest -10.3%)

  ✗SleepROIC > 12% in a majority of years
• Verdicts0% pass✗ 16▾

  Split decision: 15 FAIL · 1 NEUTRAL

  Overall verdict

  ✗GrahamFAIL (2/9)✗BuffettFAIL (0/9)✗LynchFAIL (0/7)✗GreenblattRank #2232✗PiotroskiFAIL (F-Score 3)✗DremanFAIL (2/11)✗MungerFAIL (0/4)✗PabraiFAIL (1/3)✗AkreFAIL (1/6)✗MarksFAIL (2/5)✗AckmanFAIL (1/9)✗TempletonFAIL (3/8)✗SleepFAIL (2/6)✗AsnessFAIL (Rank #1688/2370 (Top 71.2%))✗NeffFAIL (1/6)✗SchlossFAIL (1/7)•OshaughnessyNEUTRAL (Not ranked)
• Valuation models0% pass✗ 2▾

  ACDC overvalued: all 2 models price fair value below $3.15 (median $1.30)

  Munger fair value$1.65

  ✗Munger-90.9% margin vs $3.15

  Ackman fair value$0.96

  ✗Ackman-228.1% margin vs $3.15
• Profitability6% pass✓ 2✗ 33▾

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

  Positive EPS (10 years)1/6 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)1/6 years positive

  ✗BuffettPositive every year for 10+ years

  ROE (up to 5-year arithmetic mean)-27.4%

  ✗Buffett> 15% arithmetic mean (app rule)

  Operating Margin (10-yr trend)-11.6% (latest)

  ✗BuffettStable or rising over 10 years

  Free Cash Flow Proxy$-122.6M

  ✗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-76.5%

  ✗Lynch> 15%

  EBIT / Enterprise Value-14.4%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=-14.4%, ROC=-17.2%

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Net Income / Total Assets-14.34%

  ✗PiotroskiROA > 0

  ROA Change YoY-7.20% -> -14.34% (delta: -7.14%)

  ✗PiotroskiCurrent ROA > Prior ROA

  (CFO / Total Assets) vs ROACFO/Assets=7.36%, ROA=-14.34%

  ✓PiotroskiCFO/Assets > ROA

  Gross Margin Change YoY31.8% -> 25.1%

  ✗PiotroskiImproved YoY

  Pre-Tax Income / Revenue-19.0%

  ✗Dreman>= 8%

  Net Income / Shareholders' Equity-76.5%

  ✗Dreman> 12%

  Margin of SafetyP/B=0.7x

  ✓PabraiP/B < 1.5 or P/E < 15

  Return on Equity-27.0% (3-yr avg)

  ✗AkreROE > 20% (3-year avg)

  Discount to Intrinsic ValueN/A (negative normalized EPS)

  ✗Marks>= 20% below intrinsic value

  Positive Net Income Frequency1/6 years positive

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

  Operating Income / Revenue-11.8%

  ✗Ackman>= 15%

  Net Income / Shareholders Equity-76.5%

  ✗Ackman>= 15%

  5-Year EPS CAGR

  ✗Templeton> 0% (5-year EPS CAGR)

  Operating Margin Trend6.3% (2023) -> -11.6% (2025)

  ✗TempletonNon-negative operating-margin trend over 3 years

  Revenue growth vs. gross and operating margin trendgross margin 33.8% -> 25.1%, operating margin 6.3% -> -11.6%

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

  Net income / market capitalization-67.37%; #5202/6340 (top 82.1%)

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

  Gross profit / total assets+18.93%; #2121/3702 (top 57.3%)

  ✗AsnessTop 30% of eligible cross-section

  Net income / positive book equity-76.49%; #4452/5226 (top 85.2%)

  ✗AsnessTop 30% of eligible cross-section

  Negative 5-year standard deviation of ROA-0.0699; #3019/5884 (top 51.3%)

  ✗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)
• Cash Flow40% pass✓ 5✗ 7▾

  6 of 10 flag ACDC's cash flow — Buffett, Lynch, Pabrai +3 more

  Free Cash Flow Proxy$-122.6M

  ✗BuffettPositive and growing

  FCF Positive and Growing$-15.9M

  ✗LynchPositive and growing

  Operating Cash Flow$189.5M

  ✓PiotroskiCFO > 0

  (CFO / Total Assets) vs ROACFO/Assets=7.36%, ROA=-14.34%

  ✓PiotroskiCFO/Assets > ROA

  Price / (CFO / Shares)2.8x

  ✓Dreman< 8x

  P/E or FCF YieldFCF Yield=3.4%

  ✗PabraiP/E < 15 or FCF Yield > 10%

  FCF Positive4/6 years FCF positive

  ✓MarksPositive FCF in majority of recent years

  (OCF - CapEx) / Market Cap-3.0%

  ✗Ackman>= 4%

  Price / FCF per Share27.0x

  ✗Ackman<= 25

  Positive Operating Cash Flow frequency6/6 years positive

  ✓SleepPositive OCF in >= 70% of available years

  Operating Cash Flow - Capital Expenditures$-15.9M

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

  (Operating cash flow - capex) / market capitalization-2.77%; #2821/4519 (top 62.4%)

  ✗OshaughnessyTop 10% of eligible cross-section