CEMTREX 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 / 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 Value-75.7%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=-75.7%, ROC=-24.6%

  ✗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 YieldFCF Yield=-168.8%

  ✗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 ($0.61)

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

  Net income / market capitalization-2602.75%; #6175/6340 (top 97.4%)

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

  Positive book equity / market capitalization+30.4768; #106/6449 (top 1.6%)

  ✓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+67.7850; #104/5247 (top 2.0%)

  ✓OshaughnessyTop 10% of eligible cross-section

  (Operating cash flow - capex) / market capitalization-915.72%; #4398/4519 (top 97.3%)

  ✗OshaughnessyTop 10% of eligible cross-section

  Trailing six-month price return through the evaluation date-93.44%; #6042/6202 (top 97.4%)

  ✗OshaughnessyTop 10% of eligible cross-section
• Profitability6% pass✓ 6✗ 29▾

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

  Positive EPS (10 years)8/18 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)8/18 years positive

  ✗BuffettPositive every year for 10+ years

  ROE (up to 5-year arithmetic mean)-136.6%

  ✗Buffett> 15% arithmetic mean (app rule)

  Operating Margin (10-yr trend)0.7% (latest)

  ✗BuffettStable or rising over 10 years

  Free Cash Flow Proxy$-28.1M

  ✗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-85.4%

  ✗Lynch> 15%

  EBIT / Enterprise Value-75.7%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=-75.7%, ROC=-24.6%

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Net Income / Total Assets-58.83%

  ✗PiotroskiROA > 0

  ROA Change YoY-16.39% -> -58.83% (delta: -42.44%)

  ✗PiotroskiCurrent ROA > Prior ROA

  (CFO / Total Assets) vs ROACFO/Assets=0.33%, ROA=-58.83%

  ✓PiotroskiCFO/Assets > ROA

  Gross Margin Change YoY41.1% -> 42.2%

  ✓PiotroskiImproved YoY

  Pre-Tax Income / Revenue-37.1%

  ✗Dreman>= 8%

  Net Income / Shareholders' Equity-85.4%

  ✗Dreman> 12%

  Margin of Safety

  ✗PabraiP/B < 1.5 or P/E < 15

  Return on Equity-185.0% (3-yr avg)

  ✗AkreROE > 20% (3-year avg)

  Discount to Intrinsic Value

  ✗Marks>= 20% below intrinsic value

  Positive Net Income Frequency8/17 years positive

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

  Operating Income / Revenue-10.3%

  ✗Ackman>= 15%

  Net Income / Shareholders Equity-85.4%

  ✗Ackman>= 15%

  5-Year EPS CAGR

  ✗Templeton> 0% (5-year EPS CAGR)

  Operating Margin Trend-2.5% (2023) -> 0.7% (2025)

  ✓TempletonNon-negative operating-margin trend over 3 years

  Revenue growth vs. gross and operating margin trendgross margin 43.3% -> 42.2%, operating margin -2.5% -> 0.7%

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

  Net income / market capitalization-2602.75%; #6175/6340 (top 97.4%)

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

  Gross profit / total assets+38.88%; #993/3702 (top 26.8%)

  ✓AsnessTop 30% of eligible cross-section

  Net income / positive book equity-85.40%; #4506/5226 (top 86.2%)

  ✗AsnessTop 30% of eligible cross-section

  Negative 5-year standard deviation of ROA-0.1638; #4013/5884 (top 68.2%)

  ✗AsnessTop 30% of eligible cross-section

  3-5 Year Diluted EPS CAGR

  ✗Neff7%-20% annualized

  Positive Diluted-EPS Years3/5 years positive

  ✗Schloss>= 70% positive over 5-10 observed years (app rule)
• Cash Flow10% pass✓ 2✗ 10▾

  9 of 10 flag CETX's cash flow — Buffett, Lynch, Dreman +6 more

  Free Cash Flow Proxy$-28.1M

  ✗BuffettPositive and growing

  FCF Positive and Growing$-9.6M

  ✗LynchPositive and growing

  Operating Cash Flow$0.2M

  ✓PiotroskiCFO > 0

  (CFO / Total Assets) vs ROACFO/Assets=0.33%, ROA=-58.83%

  ✓PiotroskiCFO/Assets > ROA

  Price / (CFO / Shares)

  ✗Dreman< 8x

  P/E or FCF YieldFCF Yield=-168.8%

  ✗PabraiP/E < 15 or FCF Yield > 10%

  FCF Positive3/12 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 frequency6/16 years positive

  ✗SleepPositive OCF in >= 70% of available years

  Operating Cash Flow - Capital Expenditures$-9.6M

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

  (Operating cash flow - capex) / market capitalization-915.72%; #4398/4519 (top 97.3%)

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

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

  Current Ratio1.54

  ✗Graham>= 2.0

  ROIC (3-5 yr avg)-21.1%

  ✗Buffett> 10%

  ROIC - WACC-31.1%

  ✗BuffettPositive (WACC = 10%)

  EBIT / (NWC + Net Fixed Assets)-24.6%

  ✗Greenblatt> 25%

  Current Ratio Change YoY1.44 -> 1.22

  ✗PiotroskiIncreased YoY

  Revenue / Total Assets Change YoY1.52x -> 1.60x

  ✓PiotroskiImproved YoY

  Current Assets / Current Liabilities1.54

  ✓Dreman> 1.5

  Return on Invested Capital-11.9%

  ✗Munger> 15%

  ROIC (high and growing)FY2023: ROIC=-3.7%; FY2024: ROIC=-17.1%; FY2025: ROIC=1.8%

  ✗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 1.8%)

  ✗SleepROIC > 12% in a majority of years
• Verdicts19% pass✓ 3✗ 13▾

  Split decision: 12 FAIL · 3 PASS · 1 NEUTRAL

  Overall verdict

  ✗GrahamFAIL (1/9)✗BuffettFAIL (0/9)✗LynchFAIL (0/7)✗GreenblattRank #2529✓PiotroskiPASS (F-Score 5)✗DremanFAIL (2/11)✗MungerFAIL (1/4)✗PabraiFAIL (0/3)✗AkreFAIL (1/6)✗MarksFAIL (1/5)✗AckmanFAIL (3/9)✓TempletonPASS (4/8)✓SleepPASS (3/6)✗AsnessFAIL (Rank #2085/2370 (Top 88.0%))✗NeffFAIL (1/6)✗SchlossFAIL (2/7)•OshaughnessyNEUTRAL (Not ranked)
• Growth25% pass✓ 4✗ 9▾

  6 of 8 flag CETX's growth — Graham, Lynch, Dreman +3 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: 37.9% vs Rev: -6.5%

  ✗LynchInventory growth < Revenue growth

  EPS Growth Direction

  ✗DremanPositive over recent years

  EPS CAGR

  ✗Dreman> 5% annualized

  Positive Net Income Frequency8/17 years positive

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

  3yr Median Revenue Growth14.4%

  ✓Ackman>= 5%

  Positive EPS Growth Frequency1/1 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 43.3% -> 42.2%, operating margin -2.5% -> 0.7%

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

  5-year Revenue CAGR11.9%

  ✓SleepCAGR > 7%

  3-5 Year Diluted EPS CAGR

  ✗Neff7%-20% annualized
• Debt & Leverage50% pass✓ 8✗ 7▾

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

  LT Debt vs Net Current AssetsLT Debt $8.6M vs NCA $13.2M

  ✓GrahamLT Debt <= Net Current Assets

  Debt/Equity & Interest CoverageD/E: 0.52, IC: -0.5x

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

  Total Debt / Equity0.52

  ✗Lynch< 0.33

  Cash - Long-term Debt$-0.6M

  ✗LynchPositive preferred

  LT Debt / Total Assets Change30.08% -> 9.60%

  ✓PiotroskiDecreased YoY

  Current Assets / Current Liabilities1.54

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

  Total Debt / Shareholders' Equity0.52

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

  Debt Levels0.52

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

  Interest Coverage & Debt/EBITDAIC=-0.5x, D/EBITDA=N/A

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

  Total Debt / Shareholders Equity0.52

  ✓Ackman<= 1.0

  Negative debt-to-equity (higher means less debt)-0.5198; #2507/4210 (top 59.5%)

  ✗AsnessTop 30% of eligible cross-section