CTO Realty Growth, Inc.

Where It Passes

Where It Falls Short

• Debt & Leverage0% pass✗ 15▾

  All 12 investors flag CTO's debt & leverage

  LT Debt vs Net Current Assets

  ✗GrahamLT Debt <= Net Current Assets

  Debt/Equity & Interest CoverageD/E: 1.05, IC: 2.1x

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

  Total Debt / Equity1.05

  ✗Lynch< 0.33

  Cash - Long-term Debt$-708.8M

  ✗LynchPositive preferred

  LT Debt / Total Assets Change43.92% -> 48.77%

  ✗PiotroskiDecreased YoY

  Current Assets / Current Liabilities

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

  Total Debt / Shareholders' Equity1.05

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

  Debt Levels1.05

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

  Interest Coverage & Debt/EBITDAIC=2.1x, D/EBITDA=5.6x

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

  Total Debt / Shareholders Equity1.05

  ✗Ackman<= 1.0

  Negative debt-to-equity (higher means less debt)-1.0533; #3273/4210 (top 77.7%)

  ✗AsnessTop 30% of eligible cross-section
• Efficiency0% pass✓ 1✗ 10▾

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

  Current Ratio

  ✗Graham>= 2.0

  ROIC (3-5 yr avg)1.9%

  ✗Buffett> 10%

  ROIC - WACC-8.1%

  ✗BuffettPositive (WACC = 10%)

  EBIT / (NWC + Net Fixed Assets)

  ✗Greenblatt> 25%

  Current Ratio Change YoY

  ✗PiotroskiIncreased YoY

  Revenue / Total Assets Change YoY0.11x -> 0.12x

  ✓PiotroskiImproved YoY

  Current Assets / Current Liabilities

  ✗Dreman> 1.5

  Return on Invested Capital3.6%

  ✗Munger> 15%

  ROIC (high and growing)FY2023: ROIC=2.2%; FY2024: ROIC=1.2%; FY2025: ROIC=2.3%

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

  Reinvestment Rate x ROIC0.0% (RR=0% x ROIC=3.6%)

  ✗AkreReinvestment Rate * ROIC > 10%

  ROIC (5-year)0/5 years above 12% (latest 2.3%)

  ✗SleepROIC > 12% in a majority of years
• Verdicts0% pass✗ 14▾

  Split decision: 14 FAIL · 2 NEUTRAL

  Overall verdict

  ✗GrahamFAIL (2/7)✗BuffettFAIL (1/9)✗LynchFAIL (2/7)•GreenblattNot ranked•PiotroskiNEUTRAL (F-Score 6)✗DremanFAIL (2/10)✗MungerFAIL (1/4)✗PabraiFAIL (0/3)✗AkreFAIL (0/6)✗MarksFAIL (2/5)✗AckmanFAIL (3/9)✗TempletonFAIL (2/8)✗SleepFAIL (2/6)✗AsnessFAIL (Rank #942/2370 (Top 39.7%))✗NeffFAIL (1/6)✗SchlossFAIL (2/7)•OshaughnessyNEUTRAL (Not ranked)
• Valuation8% pass✓ 2✗ 23▾

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

  Net income / market capitalization+5.65%; #1509/6340 (top 23.8%)

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

  Price / FFO per Share

  ✗Graham<= 15x✗Dreman< 12x✗Ackman<= 25

  Basic earnings-growth PEG (dividends excluded)

  ✗Lynch< 1.0 (ideally < 0.5)

  EBIT / Enterprise Value2.4%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=2.4%, ROC=None

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Price / (CFO / Shares)

  ✗Dreman< 8x

  Valuation ReasonablenessP/E=254.0x

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

  P/FFO or FFO YieldFFO Yield=8.9%

  ✗PabraiP/FFO < 15 or FFO Yield > 10%

  P/B or P/E vs. Historical AverageP/E=254.0x

  ✗MarksP/E < 15 or P/B < 2.0

  Discount to Intrinsic Value

  ✗Marks>= 20% below intrinsic value

  Price / EPS254.0x

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

  Price vs. Trailing Low125% of trailing low ($16.30)

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

  Price / Book Value per Share

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

  Positive book equity / market capitalization+0.8651; #1762/6449 (top 27.3%)

  ✓AsnessTop 30% of eligible cross-section

  Price / Diluted EPS254.0x

  ✗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 Share

  ✗SchlossP/TBV <= 1.00x (app cutoff)

  Book Value per Share Change

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

  Revenue / market capitalization+0.2162; #3700/5247 (top 70.5%)

  ✗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-1.12%; #2867/6202 (top 46.2%)

  ✗OshaughnessyTop 10% of eligible cross-section
• Profitability13% pass✓ 11✗ 24▾

  14 of 16 flag CTO's profitability — Graham, Buffett, Lynch +11 more

  Net income / market capitalization+5.65%; #1509/6340 (top 23.8%)

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

  Positive EPS (10 years)17/24 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)20/24 years positive

  ✗BuffettPositive every year for 10+ years

  ROE (up to 5-year arithmetic mean)2.0%

  ✗Buffett> 15% arithmetic mean (app rule)

  Operating Margin (10-yr trend)22.7% (latest)

  ✗BuffettStable or rising over 10 years

  Free Cash Flow Proxy$3.2M

  ✓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

  ROE6.5%

  ✗Lynch> 15%

  EBIT / Enterprise Value2.4%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=2.4%, ROC=None

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Net Income / Total Assets0.80%

  ✓PiotroskiROA > 0

  ROA Change YoY-0.17% -> 0.80% (delta: +0.96%)

  ✓PiotroskiCurrent ROA > Prior ROA

  (CFO / Total Assets) vs ROACFO/Assets=5.11%, ROA=0.80%

  ✓PiotroskiCFO/Assets > ROA

  Gross Margin Change YoY73.3% -> 74.6%

  ✓PiotroskiImproved YoY

  Pre-Tax Income / Revenue26.5%

  ✓Dreman>= 8%

  Net Income / Shareholders' Equity6.5%

  ✗Dreman> 12%

  Margin of Safety

  ✗PabraiP/FFO < 15

  Return on Equity0.9% (3-yr avg)

  ✗AkreROE > 20% (3-year avg)

  Discount to Intrinsic Value

  ✗Marks>= 20% below intrinsic value

  Positive Net Income Frequency20/23 years positive

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

  Operating Income / Revenue37.5%

  ✓Ackman>= 15%

  Net Income / Shareholders Equity6.5%

  ✗Ackman>= 15%

  5-Year EPS CAGR

  ✗Templeton> 0% (5-year EPS CAGR)

  Operating Margin Trend24.3% (2023) -> 22.7% (2025)

  ✗TempletonNon-negative operating-margin trend over 3 years

  Revenue growth vs. gross and operating margin trendgross margin 72.3% -> 74.6%, operating margin 24.3% -> 22.7%

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

  Gross profit / total assets+8.55%; #2902/3702 (top 78.4%)

  ✗AsnessTop 30% of eligible cross-section

  Net income / positive book equity+6.53%; #2280/5226 (top 43.6%)

  ✗AsnessTop 30% of eligible cross-section

  Negative 5-year standard deviation of ROA-0.0152; #1164/5884 (top 19.8%)

  ✓AsnessTop 30% of eligible cross-section

  3-5 Year Diluted EPS CAGR

  ✗Neff7%-20% annualized

  Positive Diluted-EPS Years8/10 years positive

  ✓Schloss>= 70% positive over 5-10 observed years (app rule)
• Growth13% pass✓ 4✗ 9▾

  7 of 8 flag CTO'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 GrowthN/A (no inventory)

  ✓LynchInventory growth < Revenue growth

  EPS Growth Direction

  ✗DremanPositive over recent years

  EPS CAGR

  ✗Dreman> 5% annualized

  Positive Net Income Frequency20/23 years positive

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

  3yr Median Revenue Growth20.1%

  ✓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 72.3% -> 74.6%, operating margin 24.3% -> 22.7%

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

  5-year Revenue CAGR21.5%

  ✓SleepCAGR > 7%

  3-5 Year Diluted EPS CAGR

  ✗Neff7%-20% annualized
• Cash Flow50% pass✓ 4✗ 3▾

  3 of 6 pass — Dreman, Neff and Oshaughnessy object

  Free Cash Flow Proxy$3.2M

  ✓BuffettPositive and growing

  Operating Cash Flow$64.6M

  ✓PiotroskiCFO > 0

  (CFO / Total Assets) vs ROACFO/Assets=5.11%, ROA=0.80%

  ✓PiotroskiCFO/Assets > ROA

  Price / (CFO / Shares)

  ✗Dreman< 8x

  Positive Operating Cash Flow frequency18/21 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