CBAK Energy Technology, Inc.

Where It Passes

Where It Falls Short

• Efficiency0% pass✗ 11▾

  All 8 investors flag CBAT's efficiency

  Current Ratio0.60

  ✗Graham>= 2.0

  ROIC (3-5 yr avg)-5.0%

  ✗Buffett> 10%

  ROIC - WACC-15.0%

  ✗BuffettPositive (WACC = 10%)

  EBIT / (NWC + Net Fixed Assets)-23.0%

  ✗Greenblatt> 25%

  Current Ratio Change YoY0.82 -> 0.60

  ✗PiotroskiIncreased YoY

  Revenue / Total Assets Change YoY0.58x -> 0.46x

  ✗PiotroskiImproved YoY

  Current Assets / Current Liabilities0.60

  ✗Dreman> 1.5

  Return on Invested Capital-10.0%

  ✗Munger> 15%

  ROIC (high and growing)FY2023: ROIC=-3.9%; FY2024: ROIC=4.7%; FY2025: ROIC=-10.0%

  ✗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 -10.0%)

  ✗SleepROIC > 12% in a majority of years
• Profitability6% pass✓ 3✗ 32▾

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

  Positive EPS (10 years)8/24 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)10/24 years positive

  ✗BuffettPositive every year for 10+ years

  ROE (up to 5-year arithmetic mean)7.5%

  ✗Buffett> 15% arithmetic mean (app rule)

  Operating Margin (10-yr trend)-9.4% (latest)

  ✗BuffettStable or rising over 10 years

  Free Cash Flow Proxy$-27.5M

  ✗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-8.3%

  ✗Lynch> 15%

  EBIT / Enterprise Value-16.1%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=-16.1%, ROC=-23.0%

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Net Income / Total Assets-2.20%

  ✗PiotroskiROA > 0

  ROA Change YoY3.90% -> -2.20% (delta: -6.10%)

  ✗PiotroskiCurrent ROA > Prior ROA

  (CFO / Total Assets) vs ROACFO/Assets=11.39%, ROA=-2.20%

  ✓PiotroskiCFO/Assets > ROA

  Gross Margin Change YoY23.7% -> 9.4%

  ✗PiotroskiImproved YoY

  Pre-Tax Income / Revenue-5.7%

  ✗Dreman>= 8%

  Net Income / Shareholders' Equity-8.3%

  ✗Dreman> 12%

  Margin of SafetyP/B=0.8x

  ✓PabraiP/B < 1.5 or P/E < 15

  Return on Equity-0.3% (3-yr avg)

  ✗AkreROE > 20% (3-year avg)

  Discount to Intrinsic ValueN/A (negative normalized EPS)

  ✗Marks>= 20% below intrinsic value

  Positive Net Income Frequency10/23 years positive

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

  Operating Income / Revenue-9.4%

  ✗Ackman>= 15%

  Net Income / Shareholders Equity-8.3%

  ✗Ackman>= 15%

  5-Year EPS CAGR

  ✗Templeton> 0% (5-year EPS CAGR)

  Operating Margin Trend-3.5% (2023) -> -9.4% (2025)

  ✗TempletonNon-negative operating-margin trend over 3 years

  Revenue growth vs. gross and operating margin trendgross margin 15.5% -> 9.4%, operating margin -3.5% -> -9.4%

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

  Net income / market capitalization-10.37%; #4196/6340 (top 66.2%)

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

  Gross profit / total assets+4.32%; #3136/3702 (top 84.7%)

  ✗AsnessTop 30% of eligible cross-section

  Net income / positive book equity-8.32%; #3348/5226 (top 64.1%)

  ✗AsnessTop 30% of eligible cross-section

  Negative 5-year standard deviation of ROA-0.1001; #3481/5884 (top 59.2%)

  ✗AsnessTop 30% of eligible cross-section

  3-5 Year Diluted EPS CAGR-42.9% over 3 years

  ✗Neff7%-20% annualized

  Positive Diluted-EPS Years2/10 years positive

  ✗Schloss>= 70% positive over 5-10 observed years (app rule)
• Valuation8% pass✓ 9✗ 19▾

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

  Price / Book Value per Share0.8x

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

  Price / 3-yr avg EPS

  ✗Graham<= 15x

  Price-to-Book Ratio0.8x

  ✓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-16.1%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=-16.1%, ROC=-23.0%

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Price / EPS

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

  Price / (CFO / Shares)1.9x

  ✓Dreman< 8x

  Valuation ReasonablenessOE Yield=-49.2%

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

  P/E or FCF YieldFCF Yield=4.3%

  ✗PabraiP/E < 15 or FCF Yield > 10%

  P/B or P/E vs. Historical AverageP/B=0.8x

  ✓MarksP/E < 15 or P/B < 2.0

  Discount to Intrinsic ValueN/A (negative normalized EPS)

  ✗Marks>= 20% below intrinsic value

  Price / FCF per Share23.2x

  ✓Ackman<= 25

  Price vs. Trailing Low129% of trailing low ($0.79)

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

  Net income / market capitalization-10.37%; #4196/6340 (top 66.2%)

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

  Positive book equity / market capitalization+1.2462; #1148/6449 (top 17.8%)

  ✓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 Share0.80x

  ✓SchlossP/TBV <= 1.00x (app cutoff)

  Book Value per Share Change+92.0%

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

  Revenue / market capitalization+2.1587; #1019/5247 (top 19.4%)

  ✗OshaughnessyTop 10% of eligible cross-section

  (Operating cash flow - capex) / market capitalization+4.32%; #1731/4519 (top 38.3%)

  ✗OshaughnessyTop 10% of eligible cross-section

  Trailing six-month price return through the evaluation date+25.15%; #1163/6202 (top 18.8%)

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

  7 of 8 flag CBAT'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: 121.4% vs Rev: 10.5%

  ✗LynchInventory growth < Revenue growth

  EPS Growth Direction

  ✗DremanPositive over recent years

  EPS CAGR

  ✗Dreman> 5% annualized

  Positive Net Income Frequency10/23 years positive

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

  3yr Median Revenue Growth-13.6%

  ✗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 15.5% -> 9.4%, operating margin -3.5% -> -9.4%

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

  5-year Revenue CAGR39.0%

  ✓SleepCAGR > 7%

  3-5 Year Diluted EPS CAGR-42.9% over 3 years

  ✗Neff7%-20% annualized
• Verdicts13% pass✓ 2✗ 14▾

  Split decision: 13 FAIL · 2 PASS · 1 NEUTRAL

  Overall verdict

  ✗GrahamFAIL (2/9)✗BuffettFAIL (0/9)✗LynchFAIL (2/7)✗GreenblattRank #2305✗PiotroskiFAIL (F-Score 3)✗DremanFAIL (3/11)✓MungerPASS (2/4)✗PabraiFAIL (1/3)✗AkreFAIL (1/6)✗MarksFAIL (2/5)✓AckmanPASS (5/9)✗TempletonFAIL (3/8)✗SleepFAIL (2/6)✗AsnessFAIL (Rank #1355/2370 (Top 57.2%))✗NeffFAIL (2/6)✗SchlossFAIL (3/7)•OshaughnessyNEUTRAL (Not ranked)
• Valuation models25% pass✓ 1✗ 3▾

  Models split on CBAT at $1.02 — fair values range $0.36–$1.77

  Munger fair value$0.52

  ✗Munger-96.2% margin vs $1.02

  Akre fair value$0.78

  ✗Akre-30.8% margin vs $1.02

  Ackman fair value$0.36

  ✗Ackman-183.3% margin vs $1.02

  Templeton fair value$1.77

  ✓Templeton+42.4% margin vs $1.02
• Cash Flow40% pass✓ 6✗ 6▾

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

  Free Cash Flow Proxy$-27.5M

  ✗BuffettPositive and growing

  FCF Positive and Growing$3.9M

  ✗LynchPositive and growing

  Operating Cash Flow$48.6M

  ✓PiotroskiCFO > 0

  (CFO / Total Assets) vs ROACFO/Assets=11.39%, ROA=-2.20%

  ✓PiotroskiCFO/Assets > ROA

  Price / (CFO / Shares)1.9x

  ✓Dreman< 8x

  P/E or FCF YieldFCF Yield=4.3%

  ✗PabraiP/E < 15 or FCF Yield > 10%

  FCF Positive7/18 years FCF positive

  ✗MarksPositive FCF in majority of recent years

  (OCF - CapEx) / Market Cap4.3%

  ✓Ackman>= 4%

  Price / FCF per Share23.2x

  ✓Ackman<= 25

  Positive Operating Cash Flow frequency11/18 years positive

  ✗SleepPositive OCF in >= 70% of available years

  Operating Cash Flow - Capital Expenditures$3.9M

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

  (Operating cash flow - capex) / market capitalization+4.32%; #1731/4519 (top 38.3%)

  ✗OshaughnessyTop 10% of eligible cross-section
• Debt & Leverage42% pass✓ 8✗ 7▾

  7 of 12 flag CBAT's debt & leverage — Graham, Buffett, Piotroski +4 more

  LT Debt vs Net Current AssetsLT Debt $4.1M vs NCA $-119.2M

  ✗GrahamLT Debt <= Net Current Assets

  Debt/Equity & Interest CoverageD/E: 0.29, IC: -17.2x

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

  Total Debt / Equity0.29

  ✓Lynch< 0.33

  Cash - Long-term Debt$4.2M

  ✓LynchPositive preferred

  LT Debt / Total Assets Change0.00% -> 0.97%

  ✗PiotroskiDecreased YoY

  Current Assets / Current Liabilities0.60

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

  Total Debt / Shareholders' Equity0.29

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

  Debt Levels0.29

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

  Interest Coverage & Debt/EBITDAIC=-17.2x, D/EBITDA=N/A

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

  Total Debt / Shareholders Equity0.29

  ✓Ackman<= 1.0

  Negative debt-to-equity (higher means less debt)-0.2898; #1967/4210 (top 46.7%)

  ✗AsnessTop 30% of eligible cross-section