Ellomay Capital Ltd.

Where It Passes

Where It Falls Short

• Valuation0% pass✓ 1✗ 27▾

  No clean pass — all 13 investors flag at least one valuation criterion

  Price / 3-yr avg EPS

  ✗Graham<= 15x

  Price-to-Book Ratio1.9x

  ✗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 Value4.1%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=4.1%, ROC=2.1%

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Price / EPS

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

  Price / (CFO / Shares)27.9x

  ✗Dreman< 8x

  Price / Book Value per Share1.9x

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

  Valuation ReasonablenessOE Yield=-28.6%

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

  P/E or FCF YieldFCF Yield=-27.3%

  ✗PabraiP/E < 15 or FCF Yield > 10%

  P/B or P/E vs. Historical AverageP/B=1.9x

  ✓MarksP/E < 15 or P/B < 2.0

  Discount to Intrinsic ValueN/A (negative normalized EPS)

  ✗Marks>= 20% below intrinsic value

  Price / FCF per ShareN/A (negative FCF)

  ✗Ackman<= 25

  Price vs. Trailing Low123% of trailing low ($14.57)

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

  Net income / market capitalization-2.74%; #3655/6340 (top 57.6%)

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

  Positive book equity / market capitalization+0.4984; #2897/6449 (top 44.9%)

  ✗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 Share2.63x

  ✗SchlossP/TBV <= 1.00x (app cutoff)

  Book Value per Share Change-7.7%

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

  Revenue / market capitalization+0.1700; #3929/5247 (top 74.9%)

  ✗OshaughnessyTop 10% of eligible cross-section

  (Operating cash flow - capex) / market capitalization-27.29%; #3629/4519 (top 80.3%)

  ✗OshaughnessyTop 10% of eligible cross-section

  Trailing six-month price return through the evaluation date-26.50%; #4265/6202 (top 68.8%)

  ✗OshaughnessyTop 10% of eligible cross-section
• Efficiency0% pass✗ 11▾

  All 8 investors flag ELLO's efficiency

  Current Ratio0.73

  ✗Graham>= 2.0

  ROIC (3-5 yr avg)2.5%

  ✗Buffett> 10%

  ROIC - WACC-7.5%

  ✗BuffettPositive (WACC = 10%)

  EBIT / (NWC + Net Fixed Assets)2.1%

  ✗Greenblatt> 25%

  Current Ratio Change YoY1.06 -> 0.73

  ✗PiotroskiIncreased YoY

  Revenue / Total Assets Change YoY0.08x -> 0.06x

  ✗PiotroskiImproved YoY

  Current Assets / Current Liabilities0.73

  ✗Dreman> 1.5

  Return on Invested Capital4.9%

  ✗Munger> 15%

  ROIC (high and growing)FY2022: ROIC=1.8%; FY2023: ROIC=2.8%; FY2024: ROIC=4.9%

  ✗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 4.9%)

  ✗SleepROIC > 12% in a majority of years
• Profitability6% pass✓ 5✗ 30▾

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

  Positive EPS (10 years)4/11 years positive

  ✗GrahamPositive EPS every year for 10 years

  EPS Growth (3-yr avg, 10-yr window)-130.0%

  ✗Graham>= 33% growth

  Net Income Positive (10+ years)4/11 years positive

  ✗BuffettPositive every year for 10+ years

  ROE (up to 5-year arithmetic mean)-4.4%

  ✗Buffett> 15% arithmetic mean (app rule)

  Operating Margin (10-yr trend)22.4% (latest)

  ✗BuffettStable or rising over 10 years

  Free Cash Flow Proxy$-66.1M

  ✗BuffettPositive and growing

  Earnings Variance (10-yr CoV)N/A (negative mean EPS)

  ✗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-5.5%

  ✗Lynch> 15%

  EBIT / Enterprise Value4.1%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=4.1%, ROC=2.1%

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Net Income / Total Assets-0.96%

  ✗PiotroskiROA > 0

  ROA Change YoY0.36% -> -0.96% (delta: -1.33%)

  ✗PiotroskiCurrent ROA > Prior ROA

  (CFO / Total Assets) vs ROACFO/Assets=1.18%, ROA=-0.96%

  ✓PiotroskiCFO/Assets > ROA

  Gross Margin Change YoY20.4% -> 11.8%

  ✗PiotroskiImproved YoY

  Pre-Tax Income / Revenue-26.1%

  ✗Dreman>= 8%

  Net Income / Shareholders' Equity-5.5%

  ✗Dreman> 12%

  Margin of SafetyP/B=1.9x

  ✗PabraiP/B < 1.5 or P/E < 15

  Return on Equity-1.3% (3-yr avg)

  ✗AkreROE > 20% (3-year avg)

  Discount to Intrinsic ValueN/A (negative normalized EPS)

  ✗Marks>= 20% below intrinsic value

  Positive Net Income Frequency4/10 years positive

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

  Operating Income / Revenue22.4%

  ✓Ackman>= 15%

  Net Income / Shareholders Equity-5.5%

  ✗Ackman>= 15%

  5-Year EPS CAGR

  ✗Templeton> 0% (5-year EPS CAGR)

  Operating Margin Trend8.7% (2022) -> 22.4% (2024)

  ✓TempletonNon-negative operating-margin trend over 3 years

  Revenue growth vs. gross and operating margin trendgross margin 24.9% -> 11.8%, operating margin 8.7% -> 22.4%

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

  Net income / market capitalization-2.74%; #3655/6340 (top 57.6%)

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

  Gross profit / total assets+0.71%; #3377/3702 (top 91.2%)

  ✗AsnessTop 30% of eligible cross-section

  Net income / positive book equity-5.50%; #3230/5226 (top 61.8%)

  ✗AsnessTop 30% of eligible cross-section

  Negative 5-year standard deviation of ROA-0.0107; #878/5884 (top 14.9%)

  ✓AsnessTop 30% of eligible cross-section

  3-5 Year Diluted EPS CAGR10.8% over 5 years

  ✓Neff7%-20% annualized

  Positive Diluted-EPS Years4/10 years positive

  ✗Schloss>= 70% positive over 5-10 observed years (app rule)
• Verdicts6% pass✓ 1✗ 15▾

  Split decision: 14 FAIL · 1 PASS · 1 NEUTRAL

  Overall verdict

  ✗GrahamFAIL (0/9)✗BuffettFAIL (0/9)✗LynchFAIL (3/7)✗GreenblattRank #1634✗PiotroskiFAIL (F-Score 3)✗DremanFAIL (1/11)✗MungerFAIL (1/4)✗PabraiFAIL (0/3)✗AkreFAIL (1/6)✗MarksFAIL (1/5)✗AckmanFAIL (3/9)✗TempletonFAIL (3/8)✓SleepPASS (3/6)✗AsnessFAIL (Rank #1581/2370 (Top 66.7%))✗NeffFAIL (2/6)✗SchlossFAIL (1/7)•OshaughnessyNEUTRAL (Not ranked)
• Growth13% pass✓ 3✗ 10▾

  7 of 8 flag ELLO's growth — Graham, Lynch, Dreman +4 more

  EPS Growth (3-yr avg, 10-yr window)-130.0%

  ✗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: -27.0% vs Rev: -22.1%

  ✓LynchInventory growth < Revenue growth

  EPS Growth Direction$0.85 (2015) -> $-0.53 (2024)

  ✗DremanPositive over recent years

  EPS CAGR-17.2% CAGR over 8 years

  ✗Dreman> 5% annualized

  Positive Net Income Frequency4/10 years positive

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

  3yr Median Revenue Growth-2.9%

  ✗Ackman>= 5%

  Positive EPS Growth Frequency2/5 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 24.9% -> 11.8%, operating margin 8.7% -> 22.4%

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

  5-year Revenue CAGR14.6%

  ✓SleepCAGR > 7%

  3-5 Year Diluted EPS CAGR10.8% over 5 years

  ✓Neff7%-20% annualized
• Cash Flow20% pass✓ 3✗ 9▾

  8 of 10 flag ELLO's cash flow — Buffett, Lynch, Dreman +5 more

  Free Cash Flow Proxy$-66.1M

  ✗BuffettPositive and growing

  FCF Positive and Growing$-67.6M

  ✗LynchPositive and growing

  Operating Cash Flow$8.3M

  ✓PiotroskiCFO > 0

  (CFO / Total Assets) vs ROACFO/Assets=1.18%, ROA=-0.96%

  ✓PiotroskiCFO/Assets > ROA

  Price / (CFO / Shares)27.9x

  ✗Dreman< 8x

  P/E or FCF YieldFCF Yield=-27.3%

  ✗PabraiP/E < 15 or FCF Yield > 10%

  FCF Positive2/9 years FCF positive

  ✗MarksPositive FCF in majority of recent years

  (OCF - CapEx) / Market Cap-29.3%

  ✗Ackman>= 4%

  Price / FCF per ShareN/A (negative FCF)

  ✗Ackman<= 25

  Positive Operating Cash Flow frequency9/10 years positive

  ✓SleepPositive OCF in >= 70% of available years

  Operating Cash Flow - Capital Expenditures$-67.6M

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

  (Operating cash flow - capex) / market capitalization-27.29%; #3629/4519 (top 80.3%)

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

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

  LT Debt vs Net Current AssetsLT Debt $6.1M vs NCA $-24.8M

  ✗GrahamLT Debt <= Net Current Assets

  Debt/Equity & Interest CoverageD/E: 0.23, IC: 0.4x

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

  Total Debt / Equity0.23

  ✓Lynch< 0.33

  Cash - Long-term Debt$36.7M

  ✓LynchPositive preferred

  LT Debt / Total Assets Change0.82% -> 0.87%

  ✗PiotroskiDecreased YoY

  Current Assets / Current Liabilities0.73

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

  Total Debt / Shareholders' Equity0.23

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

  Debt Levels0.23

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

  Interest Coverage & Debt/EBITDAIC=0.4x, D/EBITDA=1.1x

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

  Total Debt / Shareholders Equity0.23

  ✓Ackman<= 1.0

  Negative debt-to-equity (higher means less debt)-0.2291; #1786/4210 (top 42.4%)

  ✗AsnessTop 30% of eligible cross-section