AI Era Corp.

Where It Passes

Where It Falls Short

• Cash Flow0% pass✗ 12▾

  All 10 investors flag AERA's cash flow

  Free Cash Flow Proxy

  ✗BuffettPositive and growing

  FCF Positive and Growing$-0.0M

  ✗LynchPositive and growing

  Operating Cash Flow$-2.3M

  ✗PiotroskiCFO > 0

  (CFO / Total Assets) vs ROACFO/Assets=-34.80%, ROA=21.84%

  ✗PiotroskiCFO/Assets > ROA

  Price / (CFO / Shares)

  ✗Dreman< 8x

  P/E or FCF Yield

  ✗PabraiP/E < 15 or FCF Yield > 10%

  FCF Positive0/1 years FCF positive

  ✗MarksPositive FCF in majority of recent years

  (OCF - CapEx) / Market Cap

  ✗Ackman>= 4%

  Price / FCF per Share

  ✗Ackman<= 25

  Positive Operating Cash Flow frequency2/12 years positive

  ✗SleepPositive OCF in >= 70% of available years

  Operating Cash Flow - Capital Expenditures

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

  (Operating cash flow - capex) / market capitalization

  ✗OshaughnessyTop 10% of eligible cross-section
• 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$0.00 (2014) -> $-0.11 (2019)

  ✗DremanPositive over recent years

  EPS CAGR

  ✗Dreman> 5% annualized

  Positive Net Income Frequency3/12 years positive

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

  3yr Median Revenue Growth93.0%

  ✓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 83.5% -> 97.6%, operating margin -241.5% -> 29.5%

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

  5-year Revenue CAGR70.0%

  ✓SleepCAGR > 7%

  3-5 Year Diluted EPS CAGR

  ✗Neff7%-20% annualized
• Valuation8% pass✓ 6✗ 22▾

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

  Price / 3-yr avg EPS

  ✗Graham<= 15x

  Price-to-Book Ratio

  ✗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 Value101.9%

  ✓Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=101.9%, ROC=N/A (invested capital <= 0)

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Price / EPS

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

  Price / (CFO / Shares)

  ✗Dreman< 8x

  Price / Book Value per Share

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

  Valuation Reasonableness

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

  P/E or FCF Yield

  ✗PabraiP/E < 15 or FCF Yield > 10%

  P/B or P/E vs. Historical Average

  ✗MarksP/E < 15 or P/B < 2.0

  Discount to Intrinsic Value

  ✗Marks>= 20% below intrinsic value

  Price / FCF per Share

  ✗Ackman<= 25

  Price vs. Trailing Low100% of trailing low ($0.01)

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

  Net income / market capitalization+3037.94%; #15/6340 (top 0.2%)

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

  Positive book equity / market capitalization+55.2052; #73/6449 (top 1.1%)

  ✓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 Share

  ✗SchlossP/TBV <= 1.00x (app cutoff)

  Book Value per Share Change

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

  Revenue / market capitalization+132.9304; #78/5247 (top 1.5%)

  ✓OshaughnessyTop 10% of eligible cross-section

  (Operating cash flow - capex) / market capitalization

  ✗OshaughnessyTop 10% of eligible cross-section

  Trailing six-month price return through the evaluation date-96.28%; #6077/6202 (top 98.0%)

  ✗OshaughnessyTop 10% of eligible cross-section
• Efficiency13% pass✓ 2✗ 9▾

  7 of 8 flag AERA's efficiency — Graham, Buffett, Greenblatt +4 more

  Current Ratio0.08

  ✗Graham>= 2.0

  ROIC (3-5 yr avg)-45.3%

  ✗Buffett> 10%

  ROIC - WACC-55.3%

  ✗BuffettPositive (WACC = 10%)

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

  ✗Greenblatt> 25%

  Current Ratio Change YoY1.30 -> 0.07

  ✗PiotroskiIncreased YoY

  Revenue / Total Assets Change YoY1.40x -> 0.96x

  ✗PiotroskiImproved YoY

  Current Assets / Current Liabilities0.08

  ✗Dreman> 1.5

  Return on Invested Capital30.5%

  ✓Munger> 15%

  ROIC (high and growing)FY2023: ROIC=-171.4%; FY2024: ROIC=23.3%; FY2025: ROIC=30.5%

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

  Reinvestment Rate x ROIC30.5% (RR=100% x ROIC=30.5%)

  ✓AkreReinvestment Rate * ROIC > 10%

  ROIC (5-year)2/4 years above 12% (latest 30.5%)

  ✗SleepROIC > 12% in a majority of years
• Profitability19% pass✓ 13✗ 22▾

  13 of 16 flag AERA's profitability — Graham, Buffett, Lynch +10 more

  Positive EPS (10 years)1/13 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)3/13 years positive

  ✗BuffettPositive every year for 10+ years

  ROE (up to 5-year arithmetic mean)-89.4%

  ✗Buffett> 15% arithmetic mean (app rule)

  Operating Margin (10-yr trend)29.5% (latest)

  ✗BuffettStable or rising over 10 years

  Free Cash Flow Proxy

  ✗BuffettPositive and growing

  Earnings Variance (10-yr CoV)N/A (negative mean EPS)

  ✗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

  ROE47.5%

  ✓Lynch> 15%

  EBIT / Enterprise Value101.9%

  ✓Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=101.9%, ROC=N/A (invested capital <= 0)

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Net Income / Total Assets21.84%

  ✓PiotroskiROA > 0

  ROA Change YoY23.09% -> 21.84% (delta: -1.25%)

  ✗PiotroskiCurrent ROA > Prior ROA

  (CFO / Total Assets) vs ROACFO/Assets=-34.80%, ROA=21.84%

  ✗PiotroskiCFO/Assets > ROA

  Gross Margin Change YoY94.3% -> 97.6%

  ✓PiotroskiImproved YoY

  Pre-Tax Income / Revenue22.9%

  ✓Dreman>= 8%

  Net Income / Shareholders' Equity47.5%

  ✓Dreman> 12%

  Margin of Safety

  ✗PabraiP/B < 1.5 or P/E < 15

  Return on Equity-105.2% (3-yr avg)

  ✗AkreROE > 20% (3-year avg)

  Discount to Intrinsic Value

  ✗Marks>= 20% below intrinsic value

  Positive Net Income Frequency3/12 years positive

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

  Operating Income / Revenue29.5%

  ✓Ackman>= 15%

  Net Income / Shareholders Equity47.5%

  ✓Ackman>= 15%

  5-Year EPS CAGR

  ✗Templeton> 0% (5-year EPS CAGR)

  Operating Margin Trend-241.5% (2023) -> 29.5% (2025)

  ✓TempletonNon-negative operating-margin trend over 3 years

  Revenue growth vs. gross and operating margin trendgross margin 83.5% -> 97.6%, operating margin -241.5% -> 29.5%

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

  Net income / market capitalization+3037.94%; #15/6340 (top 0.2%)

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

  Gross profit / total assets+93.24%; #166/3702 (top 4.5%)

  ✓AsnessTop 30% of eligible cross-section

  Net income / positive book equity+47.48%; #225/5226 (top 4.3%)

  ✓AsnessTop 30% of eligible cross-section

  Negative 5-year standard deviation of ROA-0.5917; #5043/5884 (top 85.7%)

  ✗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)
• Verdicts23% pass✓ 3✗ 10▾

  Split decision: 10 FAIL · 3 NEUTRAL · 3 PASS

  Overall verdict

  ✗GrahamFAIL (0/9)✗BuffettFAIL (0/9)✗LynchFAIL (3/7)•GreenblattNot ranked✗PiotroskiFAIL (F-Score 3)✗DremanFAIL (3/11)•MungerNEUTRAL (3/4)✗PabraiFAIL (0/3)✓AkrePASS (3/6)✗MarksFAIL (1/5)✓AckmanPASS (5/9)✓TempletonPASS (4/8)✗SleepFAIL (1/6)•AsnessNEUTRAL (Not ranked)✗NeffFAIL (1/6)✗SchlossFAIL (1/7)•OshaughnessyNEUTRAL (Not ranked)
• Debt & Leverage50% pass✓ 9✗ 6▾

  6 of 12 pass — Graham, Buffett, Lynch +3 more object

  LT Debt vs Net Current Assets

  ✗GrahamLT Debt <= Net Current Assets

  Debt/Equity & Interest CoverageD/E: 0.59, IC: 26.5x

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

  Total Debt / Equity0.14

  ✓Lynch< 0.33

  Cash - Long-term Debt

  ✗LynchPositive preferred

  LT Debt / Total Assets Change0.00% -> 0.00%

  ✓PiotroskiDecreased YoY

  Current Assets / Current Liabilities0.08

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

  Total Debt / Shareholders' Equity0.14

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

  Debt Levels0.14

  ✓MungerDebt/Equity < 0.5✓AkreDebt/Equity < 0.3

  Interest Coverage & Debt/EBITDAIC=26.5x, D/EBITDA=0.5x

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

  Total Debt / Shareholders Equity0.14

  ✓Ackman<= 1.0

  Negative debt-to-equity (higher means less debt)-0.1412; #1467/4210 (top 34.8%)

  ✗AsnessTop 30% of eligible cross-section