Aveanna Healthcare Holdings, Inc.

Where It Passes

Where It Falls Short

• Efficiency0% pass✓ 2✗ 9▾

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

  Current Ratio1.23

  ✗Graham>= 2.0

  ROIC (3-5 yr avg)-3.0%

  ✗Buffett> 10%

  ROIC - WACC-13.0%

  ✗BuffettPositive (WACC = 10%)

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

  ✗Greenblatt> 25%

  Current Ratio Change YoY0.98 -> 1.32

  ✓PiotroskiIncreased YoY

  Revenue / Total Assets Change YoY1.22x -> 1.21x

  ✗PiotroskiImproved YoY

  Current Assets / Current Liabilities1.23

  ✗Dreman> 1.5

  Return on Invested Capital14.7%

  ✗Munger> 15%

  ROIC (high and growing)FY2023: ROIC=0.6%; FY2024: ROIC=9.5%; FY2025: ROIC=13.6%

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

  Reinvestment Rate x ROIC13.6% (RR=100% x ROIC=13.6%)

  ✓AkreReinvestment Rate * ROIC > 10%

  ROIC (5-year)1/5 years above 12% (latest 13.6%)

  ✗SleepROIC > 12% in a majority of years
• Debt & Leverage8% pass✓ 1✗ 14▾

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

  LT Debt vs Net Current AssetsLT Debt $1.3B vs NCA $105.6M

  ✗GrahamLT Debt <= Net Current Assets

  Debt/Equity & Interest CoverageD/E: 3.84, IC: 2.6x

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

  Total Debt / Equity3.84

  ✗Lynch< 0.33

  Cash - Long-term Debt$-1.1B

  ✗LynchPositive preferred

  LT Debt / Total Assets Change76.45% -> 63.94%

  ✓PiotroskiDecreased YoY

  Current Assets / Current Liabilities1.23

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

  Total Debt / Shareholders' Equity3.84

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

  Debt Levels3.84

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

  Interest Coverage & Debt/EBITDAIC=2.6x, D/EBITDA=4.1x

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

  Total Debt / Shareholders Equity3.84

  ✗Ackman<= 1.0

  Negative debt-to-equity (higher means less debt)-3.8388; #4016/4210 (top 95.4%)

  ✗AsnessTop 30% of eligible cross-section
• Cash Flow10% pass✓ 2✗ 10▾

  9 of 10 flag AVAH's cash flow — Buffett, Lynch, Piotroski +6 more

  Free Cash Flow Proxy$-112.4M

  ✗BuffettPositive and growing

  FCF Positive and Growing$-27.3M

  ✗LynchPositive and growing

  Operating Cash Flow$125.9M

  ✓PiotroskiCFO > 0

  (CFO / Total Assets) vs ROACFO/Assets=6.25%, ROA=11.18%

  ✗PiotroskiCFO/Assets > ROA

  Price / (CFO / Shares)19.3x

  ✗Dreman< 8x

  P/E or FCF YieldP/E=11.0x

  ✓PabraiP/E < 15 or FCF Yield > 10%

  FCF Positive1/3 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 frequency4/7 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
• Growth13% pass✓ 5✗ 8▾

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

  EPS Growth (3-yr avg, 10-yr window)N/A (negative base EPS)

  ✗Graham>= 33% growth

  Basic earnings-growth PEG (dividends excluded)P/E 11.0x (growth N/A)

  ✗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$-0.56 (2019) -> $1.05 (2025)

  ✓DremanPositive over recent years

  EPS CAGR

  ✗Dreman> 5% annualized

  Positive Net Income Frequency1/7 years positive

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

  3yr Median Revenue Growth6.8%

  ✓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 31.4% -> 33.3%, operating margin 0.4% -> 10.5%

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

  5-year Revenue CAGR10.2%

  ✓SleepCAGR > 7%

  3-5 Year Diluted EPS CAGR

  ✗Neff7%-20% annualized
• Valuation15% pass✓ 9✗ 19▾

  11 of 13 flag AVAH's valuation — Graham, Lynch, Greenblatt +8 more

  Price / 3-yr avg EPS123.2x

  ✗Graham<= 15x

  Price-to-Book Ratio12.5x

  ✗Graham<= 1.5x

  P/E x P/B1,537.5

  ✗Graham<= 22.5

  Basic earnings-growth PEG (dividends excluded)P/E 11.0x (growth N/A)

  ✗Lynch< 1.0 (ideally < 0.5)

  EBIT / Enterprise Value8.4%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=8.4%, ROC=N/A (invested capital <= 0)

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Price / EPS11.0x

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

  Price / (CFO / Shares)19.3x

  ✗Dreman< 8x

  Price / Book Value per Share12.5x

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

  Valuation ReasonablenessP/E=11.0x, OE Yield=9.7%

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

  P/E or FCF YieldP/E=11.0x

  ✓PabraiP/E < 15 or FCF Yield > 10%

  P/B or P/E vs. Historical AverageP/E=11.0x, P/B=12.5x

  ✓MarksP/E < 15 or P/B < 2.0

  Discount to Intrinsic Value-721.4% (IV=$1.40 vs Price=$11.50)

  ✗Marks>= 20% below intrinsic value

  Price / FCF per Share

  ✗Ackman<= 25

  Price vs. Trailing Low290% of trailing low ($3.97)

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

  Net income / market capitalization+12.19%; #493/6340 (top 7.8%)

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

  Positive book equity / market capitalization+0.1343; #4558/6449 (top 70.7%)

  ✗AsnessTop 30% of eligible cross-section

  Price / Diluted EPS11.0x

  ✓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-50.6%

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

  Revenue / market capitalization+1.0656; #1698/5247 (top 32.4%)

  ✗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+84.89%; #404/6202 (top 6.5%)

  ✓OshaughnessyTop 10% of eligible cross-section
• Verdicts15% pass✓ 2✗ 11▾

  Split decision: 11 FAIL · 3 NEUTRAL · 1 PASS · 1 BUY

  Overall verdict

  ✗GrahamFAIL (1/9)✗BuffettFAIL (0/9)✗LynchFAIL (2/7)•GreenblattNot ranked•PiotroskiNEUTRAL (F-Score 6)✗DremanFAIL (4/11)✗MungerFAIL (1/4)•PabraiNEUTRAL (2/3)✗AkreFAIL (2/6)✗MarksFAIL (1/5)✓AckmanPASS (5/9)✗TempletonFAIL (3/8)✗SleepFAIL (1/6)✓AsnessBUY (Rank #560/2370 (Top 23.6%))✗NeffFAIL (2/6)✗SchlossFAIL (0/7)•OshaughnessyNEUTRAL (Not ranked)
• Profitability19% pass✓ 13✗ 22▾

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

  Positive EPS (10 years)1/8 years positive

  ✗GrahamPositive EPS every year for 10 years

  EPS Growth (3-yr avg, 10-yr window)N/A (negative base EPS)

  ✗Graham>= 33% growth

  Net Income Positive (10+ years)1/8 years positive

  ✗BuffettPositive every year for 10+ years

  ROE (up to 5-year arithmetic mean)11.9%

  ✗Buffett> 15% arithmetic mean (app rule)

  Operating Margin (10-yr trend)10.5% (latest)

  ✗BuffettStable or rising over 10 years

  Free Cash Flow Proxy$-112.4M

  ✗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)P/E 11.0x (growth N/A)

  ✗Lynch< 1.0 (ideally < 0.5)

  3-5 Year EPS CAGR

  ✗Lynch15-30% (Fast Grower); > 0% to pass

  ROE90.7%

  ✓Lynch> 15%

  EBIT / Enterprise Value8.4%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=8.4%, ROC=N/A (invested capital <= 0)

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Net Income / Total Assets11.18%

  ✓PiotroskiROA > 0

  ROA Change YoY-0.66% -> 11.18% (delta: +11.84%)

  ✓PiotroskiCurrent ROA > Prior ROA

  (CFO / Total Assets) vs ROACFO/Assets=6.25%, ROA=11.18%

  ✗PiotroskiCFO/Assets > ROA

  Gross Margin Change YoY31.4% -> 33.3%

  ✓PiotroskiImproved YoY

  Pre-Tax Income / Revenue7.7%

  ✗Dreman>= 8%

  Net Income / Shareholders' Equity90.7%

  ✓Dreman> 12%

  Margin of SafetyP/E=11.0x, P/B=12.5x

  ✓PabraiP/B < 1.5 or P/E < 15

  Return on Equity25.3% (3-yr avg)

  ✓AkreROE > 20% (3-year avg)

  Discount to Intrinsic Value-721.4% (IV=$1.40 vs Price=$11.50)

  ✗Marks>= 20% below intrinsic value

  Positive Net Income Frequency1/7 years positive

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

  Operating Income / Revenue11.4%

  ✗Ackman>= 15%

  Net Income / Shareholders Equity90.7%

  ✓Ackman>= 15%

  5-Year EPS CAGR

  ✗Templeton> 0% (5-year EPS CAGR)

  Operating Margin Trend0.4% (2023) -> 10.5% (2025)

  ✓TempletonNon-negative operating-margin trend over 3 years

  Revenue growth vs. gross and operating margin trendgross margin 31.4% -> 33.3%, operating margin 0.4% -> 10.5%

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

  Net income / market capitalization+12.19%; #493/6340 (top 7.8%)

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

  Gross profit / total assets+39.16%; #981/3702 (top 26.5%)

  ✓AsnessTop 30% of eligible cross-section

  Net income / positive book equity+90.73%; #94/5226 (top 1.8%)

  ✓AsnessTop 30% of eligible cross-section

  Negative 5-year standard deviation of ROA-0.1656; #4027/5884 (top 68.4%)

  ✗AsnessTop 30% of eligible cross-section

  3-5 Year Diluted EPS CAGR

  ✗Neff7%-20% annualized

  Positive Diluted-EPS Years1/7 years positive

  ✗Schloss>= 70% positive over 5-10 observed years (app rule)
• Valuation models25% pass✓ 1✗ 3▾

  Models split on AVAH at $11.50 — fair values range $4.67–$12.07

  Graham fair value$4.67

  ✗Graham-146.3% margin vs $11.50

  Greenblatt fair value$8.15

  ✗Greenblatt-41.1% margin vs $11.50

  Dreman fair value$10.20

  ✗Dreman-12.7% margin vs $11.50

  Pabrai fair value$12.07

  ✓Pabrai+4.7% margin vs $11.50