Powerfleet, Inc.

Where It Passes

Where It Falls Short

• Growth0% pass✓ 2✗ 11▾

  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: 9.4% vs Rev: 6.7%

  ✗LynchInventory growth < Revenue growth

  EPS Growth Direction

  ✗DremanPositive over recent years

  EPS CAGR

  ✗Dreman> 5% annualized

  Positive Net Income Frequency0/9 years positive

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

  3yr Median Revenue Growth22.4%

  ✓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 50.2% -> 55.5%, operating margin -9.4% -> 4.4%

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

  5-year Revenue CAGR31.3%

  ✓SleepCAGR > 7%

  3-5 Year Diluted EPS CAGR

  ✗Neff7%-20% annualized
• Profitability6% pass✓ 8✗ 27▾

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

  Positive EPS (10 years)0/10 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)0/10 years positive

  ✗BuffettPositive every year for 10+ years

  ROE (up to 5-year arithmetic mean)-11.5%

  ✗Buffett> 15% arithmetic mean (app rule)

  Operating Margin (10-yr trend)4.4% (latest)

  ✓BuffettStable or rising over 10 years

  Free Cash Flow Proxy$18.1M

  ✓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-4.5%

  ✗Lynch> 15%

  EBIT / Enterprise Value3.6%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=3.6%, ROC=37.1%

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Net Income / Total Assets-2.15%

  ✗PiotroskiROA > 0

  ROA Change YoY-5.60% -> -2.15% (delta: +3.45%)

  ✓PiotroskiCurrent ROA > Prior ROA

  (CFO / Total Assets) vs ROACFO/Assets=3.19%, ROA=-2.15%

  ✓PiotroskiCFO/Assets > ROA

  Gross Margin Change YoY53.7% -> 55.5%

  ✓PiotroskiImproved YoY

  Pre-Tax Income / Revenue-2.6%

  ✗Dreman>= 8%

  Net Income / Shareholders' Equity-4.5%

  ✗Dreman> 12%

  Margin of SafetyP/B=0.7x

  ✓PabraiP/B < 1.5 or P/E < 15

  Return on Equity-10.2% (3-yr avg)

  ✗AkreROE > 20% (3-year avg)

  Discount to Intrinsic Value

  ✗Marks>= 20% below intrinsic value

  Positive Net Income Frequency0/9 years positive

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

  Operating Income / Revenue4.2%

  ✗Ackman>= 15%

  Net Income / Shareholders Equity-4.5%

  ✗Ackman>= 15%

  5-Year EPS CAGR

  ✗Templeton> 0% (5-year EPS CAGR)

  Operating Margin Trend-9.4% (2023) -> 4.4% (2025)

  ✓TempletonNon-negative operating-margin trend over 3 years

  Revenue growth vs. gross and operating margin trendgross margin 50.2% -> 55.5%, operating margin -9.4% -> 4.4%

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

  Net income / market capitalization-6.50%; #3980/6340 (top 62.8%)

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

  Gross profit / total assets+25.93%; #1660/3702 (top 44.8%)

  ✗AsnessTop 30% of eligible cross-section

  Net income / positive book equity-4.46%; #3181/5226 (top 60.9%)

  ✗AsnessTop 30% of eligible cross-section

  Negative 5-year standard deviation of ROA-0.0168; #1263/5884 (top 21.5%)

  ✓AsnessTop 30% of eligible cross-section

  3-5 Year Diluted EPS CAGR

  ✗Neff7%-20% annualized

  Positive Diluted-EPS Years0/9 years positive

  ✗Schloss>= 70% positive over 5-10 observed years (app rule)
• Verdicts7% pass✓ 1✗ 13▾

  Split decision: 12 FAIL · 3 NEUTRAL · 1 PASS

  Overall verdict

  ✗GrahamFAIL (2/9)✗BuffettFAIL (2/9)✗LynchFAIL (1/7)✗GreenblattRank #1175•PiotroskiNEUTRAL (F-Score 7)✗DremanFAIL (2/11)✓MungerPASS (2/4)✗PabraiFAIL (1/3)✗AkreFAIL (1/6)✗MarksFAIL (1/5)✗AckmanFAIL (3/9)•TempletonNEUTRAL (5/8)✗SleepFAIL (2/6)✗AsnessFAIL (Rank #1448/2370 (Top 61.1%))✗NeffFAIL (2/6)✗SchlossFAIL (2/7)•OshaughnessyNEUTRAL (Not ranked)
• Valuation8% pass✓ 8✗ 20▾

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

  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 Value3.6%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=3.6%, ROC=37.1%

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Price / EPS

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

  Price / (CFO / Shares)10.7x

  ✗Dreman< 8x

  Price / Book Value per Share0.7x

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

  Valuation ReasonablenessOE Yield=5.6%

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

  P/E or FCF YieldFCF Yield=2.7%

  ✗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 Value

  ✗Marks>= 20% below intrinsic value

  Price / FCF per Share36.9x

  ✗Ackman<= 25

  Price vs. Trailing Low100% of trailing low ($2.43)

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

  Net income / market capitalization-6.50%; #3980/6340 (top 62.8%)

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

  Positive book equity / market capitalization+1.4572; #951/6449 (top 14.7%)

  ✓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)

  Price / Tangible Book Value per ShareN/A (non-positive TBVPS)

  ✗SchlossP/TBV <= 1.00x (app cutoff)

  Book Value per Share Change

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

  Revenue / market capitalization+1.3859; #1425/5247 (top 27.2%)

  ✗OshaughnessyTop 10% of eligible cross-section

  (Operating cash flow - capex) / market capitalization+1.00%; #2399/4519 (top 53.1%)

  ✗OshaughnessyTop 10% of eligible cross-section

  Trailing six-month price return through the evaluation date-17.63%; #3844/6202 (top 62.0%)

  ✗OshaughnessyTop 10% of eligible cross-section
• Efficiency25% pass✓ 3✗ 8▾

  6 of 8 flag AIOT's efficiency — Graham, Buffett, Dreman +3 more

  Current Ratio1.02

  ✗Graham>= 2.0

  ROIC (3-5 yr avg)-5.3%

  ✗Buffett> 10%

  ROIC - WACC-15.3%

  ✗BuffettPositive (WACC = 10%)

  EBIT / (NWC + Net Fixed Assets)37.1%

  ✓Greenblatt> 25%

  Current Ratio Change YoY1.12 -> 1.13

  ✓PiotroskiIncreased YoY

  Revenue / Total Assets Change YoY0.40x -> 0.46x

  ✓PiotroskiImproved YoY

  Current Assets / Current Liabilities1.02

  ✗Dreman> 1.5

  Return on Invested Capital2.1%

  ✗Munger> 15%

  ROIC (high and growing)FY2023: ROIC=-6.4%; FY2024: ROIC=-3.0%; FY2025: ROIC=2.2%

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

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

  ✗AkreReinvestment Rate * ROIC > 10%

  ROIC (5-year)0/5 years above 12% (latest 2.2%)

  ✗SleepROIC > 12% in a majority of years
• Valuation models25% pass✓ 1✗ 3▾

  Models split on AIOT at $2.43 — fair values range $1.20–$4.08

  Buffett fair value$1.60

  ✗Buffett-51.9% margin vs $2.43

  Munger fair value$1.20

  ✗Munger-102.5% margin vs $2.43

  Pabrai fair value$4.08

  ✓Pabrai+40.4% margin vs $2.43

  Ackman fair value$2.36

  ✗Ackman-3.0% margin vs $2.43
• Debt & Leverage33% pass✓ 6✗ 9▾

  8 of 12 flag AIOT's debt & leverage — Graham, Buffett, Lynch +5 more

  Debt Levels0.49

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

  LT Debt vs Net Current AssetsLT Debt $227.2M vs NCA $3.9M

  ✗GrahamLT Debt <= Net Current Assets

  Debt/Equity & Interest CoverageD/E: 0.49, IC: 0.7x

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

  Total Debt / Equity0.49

  ✗Lynch< 0.33

  Cash - Long-term Debt$-200.4M

  ✗LynchPositive preferred

  LT Debt / Total Assets Change25.51% -> 24.03%

  ✓PiotroskiDecreased YoY

  Current Assets / Current Liabilities1.02

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

  Total Debt / Shareholders' Equity0.49

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

  Interest Coverage & Debt/EBITDAIC=0.7x, D/EBITDA=2.9x

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

  Total Debt / Shareholders Equity0.49

  ✓Ackman<= 1.0

  Negative debt-to-equity (higher means less debt)-0.4890; #2442/4210 (top 58.0%)

  ✗AsnessTop 30% of eligible cross-section
• Cash Flow40% pass✓ 5✗ 7▾

  6 of 10 flag AIOT's cash flow — Dreman, Pabrai, Marks +3 more

  Free Cash Flow Proxy$18.1M

  ✓BuffettPositive and growing

  FCF Positive and Growing$3.3M

  ✓LynchPositive and growing

  Operating Cash Flow$30.5M

  ✓PiotroskiCFO > 0

  (CFO / Total Assets) vs ROACFO/Assets=3.19%, ROA=-2.15%

  ✓PiotroskiCFO/Assets > ROA

  Price / (CFO / Shares)10.7x

  ✗Dreman< 8x

  P/E or FCF YieldFCF Yield=2.7%

  ✗PabraiP/E < 15 or FCF Yield > 10%

  FCF Positive4/9 years FCF positive

  ✗MarksPositive FCF in majority of recent years

  (OCF - CapEx) / Market Cap1.0%

  ✗Ackman>= 4%

  Price / FCF per Share36.9x

  ✗Ackman<= 25

  Positive Operating Cash Flow frequency5/9 years positive

  ✗SleepPositive OCF in >= 70% of available years

  Operating Cash Flow - Capital Expenditures$3.3M

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

  (Operating cash flow - capex) / market capitalization+1.00%; #2399/4519 (top 53.1%)

  ✗OshaughnessyTop 10% of eligible cross-section