Cosmos Group Holdings Inc.

Where It Passes

Where It Falls Short

• Valuation0% pass✓ 2✗ 24▾

  No clean pass — all 12 investors flag at least one valuation criterion

  Price / 3-yr avg EPS

  ✗Graham<= 15x

  Price-to-Tangible-Book Ratio

  ✗Graham<= 1.5x

  P/E x P/TBV

  ✗Graham<= 22.5

  Basic earnings-growth PEG (dividends excluded)

  ✗Lynch< 1.0 (ideally < 0.5)

  Price / EPS

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

  Price / (CFO / Shares)

  ✗Dreman< 8x

  Price / Tangible Book Value per Share

  ✗Dreman< 1.2x✗SchlossP/TBV <= 1.00x (app cutoff)

  Valuation Reasonableness

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

  P/E or FCF Yield

  ✗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 Low12500% of trailing low ($0.00)

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

  Price / Book Value per Share

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

  Net income / market capitalization+306.34%; #46/6340 (top 0.7%)

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

  Positive book equity / market capitalization-26.9160; #6338/6449 (top 98.3%)

  ✗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)

  Book Value per Share Change

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

  Revenue / market capitalization+0.0042; #4940/5247 (top 94.1%)

  ✗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-50.00%; #5139/6202 (top 82.9%)

  ✗OshaughnessyTop 10% of eligible cross-section
• Growth0% pass✗ 12▾

  All 8 investors flag COSG's growth

  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

  EPS Growth Direction

  ✗DremanPositive over recent years

  EPS CAGR

  ✗Dreman> 5% annualized

  Positive Net Income Frequency4/9 years positive

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

  3yr Median Revenue Growth-95.6%

  ✗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 78.5% -> 40.0%, operating margin -687.6% -> -4315.5%

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

  5-year Revenue CAGR-60.6%

  ✗SleepCAGR > 7%

  3-5 Year Diluted EPS CAGR

  ✗Neff7%-20% annualized
• Profitability6% pass✓ 5✗ 30▾

  15 of 16 flag COSG'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)4/10 years positive

  ✗BuffettPositive every year for 10+ years

  ROE (up to 5-year arithmetic mean)-554.1%

  ✗Buffett> 15% arithmetic mean (app rule)

  Operating Margin (10-yr trend)-4315.5% (latest)

  ✗BuffettStable or rising over 10 years

  Free Cash Flow Proxy$-101.7M

  ✗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

  ROEN/A (negative equity)

  ✗Lynch> 15%

  Net Income / Total Assets10825.93%

  ✓PiotroskiROA > 0

  ROA Change YoY-414.58% -> 10825.93% (delta: +11240.51%)

  ✓PiotroskiCurrent ROA > Prior ROA

  (CFO / Total Assets) vs ROACFO/Assets=-8156.81%, ROA=10825.93%

  ✗PiotroskiCFO/Assets > ROA

  Pre-Tax Income / Revenue158164.3%

  ✓Dreman>= 8%

  Net Income / Shareholders' Equity

  ✗Dreman> 12%

  Return on Equity-554.1% (3-yr avg)

  ✗Munger> 15%✗AkreROE > 20% (3-year avg)

  Margin of Safety

  ✗PabraiP/TBV < 1.5 or P/E < 15

  ROE (high and growing)FY2022: ROE=-1589.2%; FY2023: ROE=unavailable; FY2024: ROE=unavailable

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

  Discount to Intrinsic Value

  ✗Marks>= 20% below intrinsic value

  Positive Net Income Frequency4/9 years positive

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

  Operating Income / Revenue-4315.5%

  ✗Ackman>= 15%

  Net Income / Shareholders Equity

  ✗Ackman>= 15%

  5-Year EPS CAGR

  ✗Templeton> 0% (5-year EPS CAGR)

  Operating Margin Trend-687.6% (2022) -> -4315.5% (2024)

  ✗TempletonNon-negative operating-margin trend over 3 years

  Revenue growth vs. gross and operating margin trendgross margin 78.5% -> 40.0%, operating margin -687.6% -> -4315.5%

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

  ROE (5-year)0/2 years above 12% (latest -1589.2%)

  ✗SleepROE > 12% in a majority of years

  Net income / market capitalization+306.34%; #46/6340 (top 0.7%)

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

  Gross profit / total assets+5.91%; #3057/3702 (top 82.6%)

  ✗AsnessTop 30% of eligible cross-section

  Net income / positive book equity

  ✗AsnessTop 30% of eligible cross-section

  Negative 5-year standard deviation of ROA-44.0588; #5786/5884 (top 98.3%)

  ✗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: 13 FAIL · 2 NEUTRAL · 1 PASS

  Overall verdict

  ✗GrahamFAIL (0/7)✗BuffettFAIL (0/6)✗LynchFAIL (1/4)✓PiotroskiPASS (F-Score 4)✗DremanFAIL (1/9)✗MungerFAIL (1/3)✗PabraiFAIL (0/3)✗AkreFAIL (0/5)✗MarksFAIL (0/4)✗AckmanFAIL (1/8)✗TempletonFAIL (1/8)✗SleepFAIL (1/6)•AsnessNEUTRAL (Not ranked)✗NeffFAIL (0/6)✗SchlossFAIL (0/7)•OshaughnessyNEUTRAL (Not ranked)
• Cash Flow10% pass✓ 1✗ 11▾

  9 of 10 flag COSG's cash flow — Buffett, Piotroski, Dreman +6 more

  Free Cash Flow Proxy$-101.7M

  ✗BuffettPositive and growing

  FCF Positive and Growing$2.9M

  ✓LynchPositive and growing

  Operating Cash Flow$-3.5M

  ✗PiotroskiCFO > 0

  (CFO / Total Assets) vs ROACFO/Assets=-8156.81%, ROA=10825.93%

  ✗PiotroskiCFO/Assets > ROA

  Price / (CFO / Shares)

  ✗Dreman< 8x

  P/E or FCF Yield

  ✗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 frequency2/9 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
• Debt & Leverage25% pass✓ 1✗ 4▾

  3 of 4 flag COSG's debt & leverage — Templeton, Asness and Schloss

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

  ✓PiotroskiDecreased YoY

  Total Debt / Shareholders' Equity

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

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

  ✗AsnessTop 30% of eligible cross-section

  Current Assets / Current Liabilities0.00x

  ✗SchlossCurrent ratio >= 1.50x (app cutoff)
• Efficiency33% pass✓ 1✗ 2▾

  2 of 3 flag COSG's efficiency — Akre and Sleep

  Revenue / Total Assets Change YoY0.03x -> 0.15x

  ✓PiotroskiImproved YoY

  Reinvestment Rate x ROIC

  ✗AkreReinvestment Rate * ROIC > 10%

  ROE (5-year)0/2 years above 12% (latest -1589.2%)

  ✗SleepROE > 12% in a majority of years