EquipmentShare.com Inc

Where It Passes

Where It Falls Short

• Debt & Leverage0% pass✓ 2✗ 13▾

  No clean pass — all 12 investors flag at least one debt & leverage criterion

  LT Debt vs Net Current AssetsLT Debt $4.2B vs NCA $1.4B

  ✗GrahamLT Debt <= Net Current Assets

  Debt/Equity & Interest CoverageD/E: 6.20, IC: 1.1x

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

  Total Debt / Equity3.38

  ✗Lynch< 0.33

  Cash - Long-term Debt$-3.9B

  ✗LynchPositive preferred

  LT Debt / Total Assets Change52.49% -> 54.58%

  ✗PiotroskiDecreased YoY

  Current Assets / Current Liabilities2.45

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

  Total Debt / Shareholders' Equity3.38

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

  Debt Levels3.38

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

  Interest Coverage & Debt/EBITDAIC=1.1x, D/EBITDA=4.9x

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

  Total Debt / Shareholders Equity3.38

  ✗Ackman<= 1.0

  Negative debt-to-equity (higher means less debt)-3.3832; #3965/4210 (top 94.2%)

  ✗AsnessTop 30% of eligible cross-section
• Profitability6% pass✓ 5✗ 30▾

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

  Positive EPS (10 years)1/4 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)3/4 years positive

  ✗BuffettPositive every year for 10+ years

  ROE (up to 5-year arithmetic mean)3.7%

  ✗Buffett> 15% arithmetic mean (app rule)

  Operating Margin (10-yr trend)

  ✗BuffettStable or rising over 10 years

  Free Cash Flow Proxy

  ✗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)P/E 1542.0x (growth N/A)

  ✗Lynch< 1.0 (ideally < 0.5)

  3-5 Year EPS CAGR

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

  ROE7.6%

  ✗Lynch> 15%

  EBIT / Enterprise Value4.3%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=4.3%, ROC=28.2%

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Net Income / Total Assets0.67%

  ✓PiotroskiROA > 0

  ROA Change YoY0.06% -> 0.67% (delta: +0.61%)

  ✓PiotroskiCurrent ROA > Prior ROA

  (CFO / Total Assets) vs ROACFO/Assets=4.41%, ROA=0.67%

  ✓PiotroskiCFO/Assets > ROA

  Gross Margin Change YoY25.1% -> 28.3%

  ✓PiotroskiImproved YoY

  Pre-Tax Income / Revenue1.2%

  ✗Dreman>= 8%

  Net Income / Shareholders' Equity7.6%

  ✗Dreman> 12%

  Margin of SafetyP/E=1542.0x, P/B=2.2x

  ✗PabraiP/B < 1.5 or P/E < 15

  Return on Equity3.7% (3-yr avg)

  ✗AkreROE > 20% (3-year avg)

  Discount to Intrinsic ValueN/A (negative normalized EPS)

  ✗Marks>= 20% below intrinsic value

  Positive Net Income Frequency3/3 years positive

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

  Operating Income / Revenue6.8%

  ✗Ackman>= 15%

  Net Income / Shareholders Equity7.6%

  ✗Ackman>= 15%

  5-Year EPS CAGR

  ✗Templeton> 0% (5-year EPS CAGR)

  Operating Margin Trend9.8% (2023) -> 6.8% (2025)

  ✗TempletonNon-negative operating-margin trend over 3 years

  Revenue growth vs. gross and operating margin trendgross margin 29.7% -> 28.3%, operating margin 9.8% -> 6.8%

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

  Net income / market capitalization+1.02%; #2976/6340 (top 46.9%)

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

  Gross profit / total assets+20.69%; #2020/3702 (top 54.6%)

  ✗AsnessTop 30% of eligible cross-section

  Net income / positive book equity+7.58%; #2152/5226 (top 41.2%)

  ✗AsnessTop 30% of eligible cross-section

  Negative 5-year standard deviation of ROA

  ✗AsnessTop 30% of eligible cross-section

  3-5 Year Diluted EPS CAGR

  ✗Neff7%-20% annualized

  Positive Diluted-EPS Years

  ✗Schloss>= 70% positive over 5-10 observed years (app rule)
• Valuation8% pass✓ 3✗ 25▾

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

  Price / 3-yr avg EPS

  ✗Graham<= 15x

  Price-to-Book Ratio2.2x

  ✗Graham<= 1.5x

  P/E x P/B

  ✗Graham<= 22.5

  Basic earnings-growth PEG (dividends excluded)P/E 1542.0x (growth N/A)

  ✗Lynch< 1.0 (ideally < 0.5)

  EBIT / Enterprise Value4.3%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=4.3%, ROC=28.2%

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Price / EPS1542.0x

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

  Price / (CFO / Shares)4.3x

  ✓Dreman< 8x

  Price / Book Value per Share2.2x

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

  Valuation ReasonablenessP/E=1542.0x, OE Yield=35.4%

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

  P/E or FCF YieldP/E=1542.0x

  ✗PabraiP/E < 15 or FCF Yield > 10%

  P/B or P/E vs. Historical AverageP/E=1542.0x, P/B=2.2x

  ✗MarksP/E < 15 or P/B < 2.0

  Discount to Intrinsic ValueN/A (negative normalized EPS)

  ✗Marks>= 20% below intrinsic value

  Price / FCF per Share

  ✗Ackman<= 25

  Price vs. Trailing Low100% of trailing low ($15.42)

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

  Net income / market capitalization+1.02%; #2976/6340 (top 46.9%)

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

  Positive book equity / market capitalization+0.3195; #3613/6449 (top 56.0%)

  ✗AsnessTop 30% of eligible cross-section

  Price / Diluted EPS1542.0x

  ✗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 Share17.09x

  ✗SchlossP/TBV <= 1.00x (app cutoff)

  Book Value per Share Change

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

  Revenue / market capitalization+1.1192; #1644/5247 (top 31.3%)

  ✗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-24.34%; #4178/6202 (top 67.4%)

  ✗OshaughnessyTop 10% of eligible cross-section
• Growth13% pass✓ 3✗ 10▾

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

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

  ✗Graham>= 33% growth

  Basic earnings-growth PEG (dividends excluded)P/E 1542.0x (growth N/A)

  ✗Lynch< 1.0 (ideally < 0.5)

  3-5 Year EPS CAGR

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

  Inventory Growth vs Revenue GrowthInv: 21.1% vs Rev: 16.3%

  ✗LynchInventory growth < Revenue growth

  EPS Growth Direction$-0.20 (2023) -> $0.01 (2025)

  ✓DremanPositive over recent years

  EPS CAGR

  ✗Dreman> 5% annualized

  Positive Net Income Frequency3/3 years positive

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

  3yr Median Revenue Growth31.8%

  ✓Ackman>= 5%

  Positive EPS Growth Frequency1/2 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 29.7% -> 28.3%, operating margin 9.8% -> 6.8%

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

  5-year Revenue CAGR

  ✗SleepCAGR > 7%

  3-5 Year Diluted EPS CAGR

  ✗Neff7%-20% annualized
• Verdicts13% pass✓ 2✗ 13▾

  Split decision: 12 FAIL · 2 PASS · 2 NEUTRAL

  Overall verdict

  ✗GrahamFAIL (2/9)✗BuffettFAIL (0/9)✗LynchFAIL (0/7)✗GreenblattRank #1168✓PiotroskiPASS (F-Score 5)✗DremanFAIL (4/11)✓MungerPASS (2/4)✗PabraiFAIL (0/3)✗AkreFAIL (0/6)✗MarksFAIL (1/5)✗AckmanFAIL (1/9)✗TempletonFAIL (2/8)✗SleepFAIL (1/6)•AsnessNEUTRAL (Not ranked)✗NeffFAIL (1/6)✗SchlossFAIL (2/7)•OshaughnessyNEUTRAL (Not ranked)
• Cash Flow30% pass✓ 4✗ 8▾

  7 of 10 flag EQPT's cash flow — Buffett, Lynch, Pabrai +4 more

  Free Cash Flow Proxy

  ✗BuffettPositive and growing

  FCF Positive and Growing

  ✗LynchPositive and growing

  Operating Cash Flow$264.0M

  ✓PiotroskiCFO > 0

  (CFO / Total Assets) vs ROACFO/Assets=4.41%, ROA=0.67%

  ✓PiotroskiCFO/Assets > ROA

  Price / (CFO / Shares)4.3x

  ✓Dreman< 8x

  P/E or FCF YieldP/E=1542.0x

  ✗PabraiP/E < 15 or FCF Yield > 10%

  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 frequency3/3 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
• Efficiency38% pass✓ 3✗ 8▾

  5 of 8 flag EQPT's efficiency — Buffett, Piotroski, Munger +2 more

  Current Ratio2.45

  ✓Graham>= 2.0

  ROIC (3-5 yr avg)6.6%

  ✗Buffett> 10%

  ROIC - WACC-3.4%

  ✗BuffettPositive (WACC = 10%)

  EBIT / (NWC + Net Fixed Assets)28.2%

  ✓Greenblatt> 25%

  Current Ratio Change YoY2.14 -> 1.97

  ✗PiotroskiIncreased YoY

  Revenue / Total Assets Change YoY0.78x -> 0.73x

  ✗PiotroskiImproved YoY

  Current Assets / Current Liabilities2.45

  ✓Dreman> 1.5

  Return on Invested Capital6.2%

  ✗Munger> 15%

  ROIC (high and growing)FY2023: ROIC=unavailable; FY2024: ROIC=5.6%; FY2025: ROIC=6.2%

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

  Reinvestment Rate x ROIC0.5% (RR=7% x ROIC=6.2%)

  ✗AkreReinvestment Rate * ROIC > 10%

  ROIC (5-year)0/2 years above 12% (latest 6.2%)

  ✗SleepROIC > 12% in a majority of years
• Valuation models50% pass✓ 2✗ 2▾

  Models split on EQPT at $15.42 — fair values range $1.26–$89.17

  Graham fair value$1.26

  ✗Graham-1123.8% margin vs $15.42

  Greenblatt fair value$27.13

  ✓Greenblatt+43.2% margin vs $15.42

  Pabrai fair value$89.17

  ✓Pabrai+82.7% margin vs $15.42

  Akre fair value$5.47

  ✗Akre-181.9% margin vs $15.42