Anika Therapeutics, Inc.

Where It Passes

Where It Falls Short

• Valuation0% pass✓ 3✗ 25▾

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

  Price / Book Value per Share1.3x

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

  Price / 3-yr avg EPS

  ✗Graham<= 15x

  Price-to-Book Ratio1.3x

  ✓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-9.1%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=-9.1%, 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)16.6x

  ✗Dreman< 8x

  Valuation ReasonablenessOE Yield=-6.6%

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

  P/E or FCF YieldFCF Yield=2.4%

  ✗PabraiP/E < 15 or FCF Yield > 10%

  P/B or P/E vs. Historical AverageP/B=1.3x

  ✓MarksP/E < 15 or P/B < 2.0

  Discount to Intrinsic ValueN/A (negative normalized EPS)

  ✗Marks>= 20% below intrinsic value

  Price / FCF per Share42.7x

  ✗Ackman<= 25

  Price vs. Trailing Low162% of trailing low ($8.26)

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

  Net income / market capitalization-0.98%; #3401/6340 (top 53.6%)

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

  Positive book equity / market capitalization+0.7665; #2022/6449 (top 31.4%)

  ✗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 Share1.39x

  ✗SchlossP/TBV <= 1.00x (app cutoff)

  Book Value per Share Change-45.7%

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

  Revenue / market capitalization+0.6876; #2224/5247 (top 42.4%)

  ✗OshaughnessyTop 10% of eligible cross-section

  (Operating cash flow - capex) / market capitalization+1.28%; #2358/4519 (top 52.2%)

  ✗OshaughnessyTop 10% of eligible cross-section

  Trailing six-month price return through the evaluation date-9.21%; #3391/6202 (top 54.7%)

  ✗OshaughnessyTop 10% of eligible cross-section
• Profitability6% pass✓ 5✗ 30▾

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

  Positive EPS (10 years)17/28 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)18/28 years positive

  ✗BuffettPositive every year for 10+ years

  ROE (up to 5-year arithmetic mean)-17.4%

  ✗Buffett> 15% arithmetic mean (app rule)

  Operating Margin (10-yr trend)-9.8% (latest)

  ✗BuffettStable or rising over 10 years

  Free Cash Flow Proxy$-12.3M

  ✗BuffettPositive and growing

  Earnings Variance (10-yr CoV)7.92

  ✗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-1.3%

  ✗Lynch> 15%

  EBIT / Enterprise Value-9.1%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=-9.1%, ROC=-17.2%

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Net Income / Total Assets-5.72%

  ✗PiotroskiROA > 0

  ROA Change YoY-27.81% -> -5.72% (delta: +22.09%)

  ✓PiotroskiCurrent ROA > Prior ROA

  (CFO / Total Assets) vs ROACFO/Assets=5.88%, ROA=-5.72%

  ✓PiotroskiCFO/Assets > ROA

  Gross Margin Change YoY63.4% -> 56.6%

  ✗PiotroskiImproved YoY

  Pre-Tax Income / Revenue-0.8%

  ✗Dreman>= 8%

  Net Income / Shareholders' Equity-1.3%

  ✗Dreman> 12%

  Margin of SafetyP/B=1.3x

  ✓PabraiP/B < 1.5 or P/E < 15

  Return on Equity-27.7% (3-yr avg)

  ✗AkreROE > 20% (3-year avg)

  Discount to Intrinsic ValueN/A (negative normalized EPS)

  ✗Marks>= 20% below intrinsic value

  Positive Net Income Frequency18/23 years positive

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

  Operating Income / Revenue-2.1%

  ✗Ackman>= 15%

  Net Income / Shareholders Equity-1.3%

  ✗Ackman>= 15%

  5-Year EPS CAGR

  ✗Templeton> 0% (5-year EPS CAGR)

  Operating Margin Trend0.7% (2023) -> -9.8% (2025)

  ✗TempletonNon-negative operating-margin trend over 3 years

  Revenue growth vs. gross and operating margin trendgross margin 68.3% -> 56.6%, operating margin 0.7% -> -9.8%

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

  Net income / market capitalization-0.98%; #3401/6340 (top 53.6%)

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

  Gross profit / total assets+41.27%; #912/3702 (top 24.6%)

  ✓AsnessTop 30% of eligible cross-section

  Net income / positive book equity-1.28%; #3003/5226 (top 57.5%)

  ✗AsnessTop 30% of eligible cross-section

  Negative 5-year standard deviation of ROA-0.1309; #3805/5884 (top 64.7%)

  ✗AsnessTop 30% of eligible cross-section

  3-5 Year Diluted EPS CAGR-33.5% over 5 years

  ✗Neff7%-20% annualized

  Positive Diluted-EPS Years5/10 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 (3/9)✗BuffettFAIL (2/9)✗LynchFAIL (1/7)✗GreenblattRank #2175•PiotroskiNEUTRAL (F-Score 6)✗DremanFAIL (2/11)✗MungerFAIL (1/4)✗PabraiFAIL (1/3)✗AkreFAIL (1/6)✗MarksFAIL (3/5)✗AckmanFAIL (2/9)✗TempletonFAIL (2/8)✓SleepPASS (3/6)•AsnessNEUTRAL (Not ranked)✗NeffFAIL (1/6)✗SchlossFAIL (1/7)•OshaughnessyNEUTRAL (Not ranked)
• Debt & Leverage8% pass✓ 3✗ 12▾

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

  LT Debt vs Net Current Assets

  ✗GrahamLT Debt <= Net Current Assets

  Debt/Equity & Interest Coverage

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

  Total Debt / Equity

  ✗Lynch< 0.33

  Cash - Long-term Debt

  ✗LynchPositive preferred

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

  ✓PiotroskiDecreased YoY

  Current Assets / Current Liabilities3.86

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

  Total Debt / Shareholders' Equity

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

  Debt Levels

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

  Interest Coverage & Debt/EBITDA

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

  Total Debt / Shareholders Equity

  ✗Ackman<= 1.0

  Negative debt-to-equity (higher means less debt)

  ✗AsnessTop 30% of eligible cross-section
• Growth13% pass✓ 3✗ 10▾

  7 of 8 flag ANIK's growth — Graham, Lynch, Dreman +4 more

  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: 86.4% vs Rev: 52.5%

  ✗LynchInventory growth < Revenue growth

  EPS Growth Direction$0.08 (2003) -> $-0.76 (2025)

  ✗DremanPositive over recent years

  EPS CAGR7.2% CAGR over 18 years

  ✓Dreman> 5% annualized

  Positive Net Income Frequency18/23 years positive

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

  3yr Median Revenue Growth-0.7%

  ✗Ackman>= 5%

  Positive EPS Growth Frequency3/5 years with positive EPS growth

  ✓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 68.3% -> 56.6%, operating margin 0.7% -> -9.8%

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

  5-year Revenue CAGR-2.9%

  ✗SleepCAGR > 7%

  3-5 Year Diluted EPS CAGR-33.5% over 5 years

  ✗Neff7%-20% annualized
• Valuation models33% pass✓ 1✗ 2▾

  Models split on ANIK at $13.40 — fair values range $3.52–$14.38

  Munger fair value$4.06

  ✗Munger-230.0% margin vs $13.40

  Akre fair value$14.38

  ✓Akre+6.8% margin vs $13.40

  Ackman fair value$3.52

  ✗Ackman-280.7% margin vs $13.40
• Efficiency38% pass✓ 5✗ 6▾

  5 of 8 flag ANIK's efficiency — Greenblatt, Piotroski, Munger +2 more

  Current Ratio3.86

  ✓Graham>= 2.0

  ROIC (3-5 yr avg)10.6%

  ✓Buffett> 10%

  ROIC - WACC+0.6%

  ✓BuffettPositive (WACC = 10%)

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

  ✗Greenblatt> 25%

  Current Ratio Change YoY4.88 -> 4.72

  ✗PiotroskiIncreased YoY

  Revenue / Total Assets Change YoY0.59x -> 0.59x

  ✓PiotroskiImproved YoY

  Current Assets / Current Liabilities3.86

  ✓Dreman> 1.5

  Return on Invested Capital

  ✗Munger> 15%

  ROIC (high and growing)FY2023: ROIC=unavailable; FY2024: ROIC=unavailable; FY2025: ROIC=unavailable

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

  Reinvestment Rate x ROIC

  ✗AkreReinvestment Rate * ROIC > 10%

  ROIC (5-year)

  ✗SleepROIC > 12% in a majority of years
• Cash Flow50% pass✓ 6✗ 6▾

  5 of 10 pass — Buffett, Dreman, Pabrai +2 more object

  Free Cash Flow Proxy$-12.3M

  ✗BuffettPositive and growing

  FCF Positive and Growing$2.3M

  ✓LynchPositive and growing

  Operating Cash Flow$11.2M

  ✓PiotroskiCFO > 0

  (CFO / Total Assets) vs ROACFO/Assets=5.88%, ROA=-5.72%

  ✓PiotroskiCFO/Assets > ROA

  Price / (CFO / Shares)16.6x

  ✗Dreman< 8x

  P/E or FCF YieldFCF Yield=2.4%

  ✗PabraiP/E < 15 or FCF Yield > 10%

  FCF Positive13/17 years FCF positive

  ✓MarksPositive FCF in majority of recent years

  (OCF - CapEx) / Market Cap1.2%

  ✗Ackman>= 4%

  Price / FCF per Share42.7x

  ✗Ackman<= 25

  Positive Operating Cash Flow frequency22/23 years positive

  ✓SleepPositive OCF in >= 70% of available years

  Operating Cash Flow - Capital Expenditures$2.3M

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

  (Operating cash flow - capex) / market capitalization+1.28%; #2358/4519 (top 52.2%)

  ✗OshaughnessyTop 10% of eligible cross-section