Dime Commercial Bancshares, Inc. /NY/

Where It Passes

Where It Falls Short

• Efficiency0% pass✗ 3▾

  All 3 investors flag DCOM's efficiency

  Revenue / Total Assets Change YoY0.05x -> 0.04x

  ✗PiotroskiImproved YoY

  Reinvestment Rate x ROIC6.5% (RR=70% x ROIC=9.4%)

  ✗AkreReinvestment Rate * ROIC > 10%

  ROE (5-year)1/5 years above 12% (latest 7.5%)

  ✗SleepROE > 12% in a majority of years
• Verdicts0% pass✗ 10▾

  Split decision: 10 FAIL · 6 NEUTRAL

  Overall verdict

  ✗GrahamFAIL (1/7)✗BuffettFAIL (1/6)✗LynchFAIL (2/4)•PiotroskiNEUTRAL (F-Score 5)✗DremanFAIL (2/9)•MungerNEUTRAL (2/3)✗PabraiFAIL (0/3)✗AkreFAIL (0/5)•MarksNEUTRAL (3/4)✗AckmanFAIL (3/8)•TempletonNEUTRAL (5/8)✗SleepFAIL (2/6)•AsnessNEUTRAL (Not ranked)✗NeffFAIL (2/6)✗SchlossFAIL (3/7)•OshaughnessyNEUTRAL (Not ranked)
• Profitability13% pass✓ 11✗ 24▾

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

  Net income / market capitalization+7.74%; #1044/6340 (top 16.5%)

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

  Positive EPS (10 years)24/25 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)24/25 years positive

  ✗BuffettPositive every year for 10+ years

  ROE (up to 5-year arithmetic mean)7.8%

  ✗Buffett> 15% arithmetic mean (app rule)

  Operating Margin (10-yr trend)

  ✗BuffettStable or rising over 10 years

  Free Cash Flow Proxy$156.2M

  ✓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)7.90

  ✗Lynch< 1.0 (ideally < 0.5)

  3-5 Year EPS CAGR2.3%

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

  ROE9.4%

  ✗Lynch> 15%

  Net Income / Total Assets0.72%

  ✓PiotroskiROA > 0

  ROA Change YoY0.20% -> 0.72% (delta: +0.52%)

  ✓PiotroskiCurrent ROA > Prior ROA

  (CFO / Total Assets) vs ROACFO/Assets=1.22%, ROA=0.72%

  ✓PiotroskiCFO/Assets > ROA

  Pre-Tax Income / Revenue817.2%

  ✓Dreman>= 8%

  Net Income / Shareholders' Equity9.4%

  ✗Dreman> 12%

  Return on Equity9.4%

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

  Margin of SafetyP/E=17.9x, P/TBV=1.5x

  ✗PabraiP/TBV < 1.5 or P/E < 15

  ROE (high and growing)FY2023: ROE=7.8%; FY2024: ROE=2.1%; FY2025: ROE=7.5%

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

  Discount to Intrinsic Value-62.4% (IV=$26.00 vs Price=$42.22)

  ✗Marks>= 20% below intrinsic value

  Positive Net Income Frequency24/24 years positive

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

  Operating Income / Revenue

  ✗Ackman>= 15%

  Net Income / Shareholders Equity9.4%

  ✗Ackman>= 15%

  5-Year EPS CAGR2.3% CAGR over 5 years

  ✓Templeton> 0% (5-year EPS CAGR)

  Operating Margin Trend

  ✗TempletonNon-negative operating-margin trend over 3 years

  Revenue growth vs. gross and operating margin trend

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

  ROE (5-year)1/5 years above 12% (latest 7.5%)

  ✗SleepROE > 12% in a majority of years

  Gross profit / total assets

  ✗AsnessTop 30% of eligible cross-section

  Net income / positive book equity+9.38%; #1909/5226 (top 36.5%)

  ✗AsnessTop 30% of eligible cross-section

  Negative 5-year standard deviation of ROA-0.0031; #326/5884 (top 5.5%)

  ✓AsnessTop 30% of eligible cross-section

  3-5 Year Diluted EPS CAGR2.3% over 5 years

  ✗Neff7%-20% annualized

  Positive Diluted-EPS Years10/10 years positive

  ✓Schloss>= 70% positive over 5-10 observed years (app rule)
• Valuation17% pass✓ 5✗ 21▾

  10 of 12 flag DCOM's valuation — Graham, Lynch, Dreman +7 more

  Price / Book Value per Share1.3x

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

  Net income / market capitalization+7.74%; #1044/6340 (top 16.5%)

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

  Price / 3-yr avg EPS24.4x

  ✗Graham<= 15x

  Price-to-Tangible-Book Ratio1.5x

  ✗Graham<= 1.5x

  P/E x P/TBV37.60

  ✗Graham<= 22.5

  Basic earnings-growth PEG (dividends excluded)7.90

  ✗Lynch< 1.0 (ideally < 0.5)

  Price / EPS17.9x

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

  Price / (CFO / Shares)9.9x

  ✗Dreman< 8x

  Price / Tangible Book Value per Share1.5x

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

  Valuation ReasonablenessP/E=17.9x, OE Yield=6.4%

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

  P/E or FCF YieldP/E=17.9x

  ✗PabraiP/E < 15 or FCF Yield > 10%

  P/B or P/E vs. Historical AverageP/E=17.9x, P/B=1.3x

  ✓MarksP/E < 15 or P/B < 2.0

  Discount to Intrinsic Value-62.4% (IV=$26.00 vs Price=$42.22)

  ✗Marks>= 20% below intrinsic value

  Price / FCF per Share

  ✗Ackman<= 25

  Price vs. Trailing Low165% of trailing low ($25.66)

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

  Positive book equity / market capitalization+0.8248; #1859/6449 (top 28.8%)

  ✓AsnessTop 30% of eligible cross-section

  Price / Diluted EPS17.9x

  ✗NeffP/E <= 15x (app proxy for a P/E 40%-60% below the market)

  (EPS CAGR % + Dividend Yield %) / P/E0.26

  ✗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+0.0133; #4816/5247 (top 91.8%)

  ✗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+12.83%; #1702/6202 (top 27.4%)

  ✗OshaughnessyTop 10% of eligible cross-section
• Valuation models29% pass✓ 2✗ 5▾

  Models split on DCOM at $42.22 — fair values range $5.34–$42.53

  Graham fair value$42.27

  ✓Graham+0.1% margin vs $42.22

  Lynch fair value$5.34

  ✗Lynch-690.6% margin vs $42.22

  Dreman fair value$26.00

  ✗Dreman-62.4% margin vs $42.22

  Pabrai fair value$42.53

  ✓Pabrai+0.7% margin vs $42.22

  Akre fair value$38.30

  ✗Akre-10.2% margin vs $42.22

  Marks fair value$29.52

  ✗Marks-43.0% margin vs $42.22

  Templeton fair value$29.78

  ✗Templeton-41.8% margin vs $42.22
• Growth38% pass✓ 6✗ 6▾

  5 of 8 flag DCOM's growth — Graham, Lynch, Dreman +2 more

  EPS Growth (3-yr avg, 10-yr window)

  ✗Graham>= 33% growth

  Basic earnings-growth PEG (dividends excluded)7.90

  ✗Lynch< 1.0 (ideally < 0.5)

  3-5 Year EPS CAGR2.3%

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

  EPS Growth Direction

  ✗DremanPositive over recent years

  EPS CAGR

  ✗Dreman> 5% annualized

  Positive Net Income Frequency24/24 years positive

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

  3yr Median Revenue Growth6.7%

  ✓Ackman>= 5%

  Positive EPS Growth Frequency3/5 years with positive EPS growth

  ✓AckmanPositive EPS growth in >= 3 of last 5 years

  5-Year EPS CAGR2.3% CAGR over 5 years

  ✓Templeton> 0% (5-year EPS CAGR)

  Revenue growth vs. gross and operating margin trend

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

  5-year Revenue CAGR24.0%

  ✓SleepCAGR > 7%

  3-5 Year Diluted EPS CAGR2.3% over 5 years

  ✗Neff7%-20% annualized
• Debt & Leverage50% pass✓ 3✗ 2▾

  2 of 4 pass — Asness and Schloss object

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

  ✓PiotroskiDecreased YoY

  Total Debt / Shareholders' Equity0.15

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

  Negative debt-to-equity (higher means less debt)-0.1519; #1512/4210 (top 35.9%)

  ✗AsnessTop 30% of eligible cross-section

  Current Assets / Current Liabilities

  ✗SchlossCurrent ratio >= 1.50x (app cutoff)
• Cash Flow50% pass✓ 6✗ 6▾

  5 of 10 pass — Dreman, Pabrai, Ackman +2 more object

  Free Cash Flow Proxy$156.2M

  ✓BuffettPositive and growing

  FCF Positive and Growing$291.4M

  ✓LynchPositive and growing

  Operating Cash Flow$186.6M

  ✓PiotroskiCFO > 0

  (CFO / Total Assets) vs ROACFO/Assets=1.22%, ROA=0.72%

  ✓PiotroskiCFO/Assets > ROA

  Price / (CFO / Shares)9.9x

  ✗Dreman< 8x

  P/E or FCF YieldP/E=17.9x

  ✗PabraiP/E < 15 or FCF Yield > 10%

  FCF Positive13/13 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 frequency23/23 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