Evogene Ltd.

Where It Passes

Where It Falls Short

• Debt & Leverage8% pass✓ 3✗ 12▾

  11 of 12 flag EVGN's debt & leverage — Graham, Buffett, Lynch +8 more

  LT Debt vs Net Current Assets

  ✗GrahamLT Debt <= Net Current Assets

  Debt/Equity & Interest CoverageD/E: N/A (negative equity), IC: -7.3x

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

  Total Debt / EquityN/A (negative equity)

  ✗Lynch< 0.33

  Cash - Long-term Debt

  ✗LynchPositive preferred

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

  ✓PiotroskiDecreased YoY

  Current Assets / Current Liabilities4.54

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

  Total Debt / Shareholders' Equity

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

  Debt LevelsN/A (non-positive equity)

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

  Interest Coverage & Debt/EBITDAIC=-7.3x, D/EBITDA=N/A

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

  Total Debt / Shareholders Equity

  ✗Ackman<= 1.0

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

  ✗AsnessTop 30% of eligible cross-section
• Verdicts8% pass✓ 1✗ 12▾

  Split decision: 12 FAIL · 3 NEUTRAL · 1 PASS

  Overall verdict

  ✗GrahamFAIL (1/9)✗BuffettFAIL (0/9)✗LynchFAIL (1/7)•GreenblattNot ranked✗PiotroskiFAIL (F-Score 3)✗DremanFAIL (2/11)✗MungerFAIL (1/4)•PabraiNEUTRAL (2/3)✗AkreFAIL (1/6)✗MarksFAIL (1/5)✗AckmanFAIL (2/9)✓TempletonPASS (4/8)✗SleepFAIL (2/6)•AsnessNEUTRAL (Not ranked)✗NeffFAIL (2/6)✗SchlossFAIL (1/7)•OshaughnessyNEUTRAL (Not ranked)
• Cash Flow10% pass✓ 1✗ 11▾

  9 of 10 flag EVGN's cash flow — Buffett, Lynch, Piotroski +6 more

  Free Cash Flow Proxy$-7.5M

  ✗BuffettPositive and growing

  FCF Positive and Growing$-13.6M

  ✗LynchPositive and growing

  Operating Cash Flow$-13.5M

  ✗PiotroskiCFO > 0

  (CFO / Total Assets) vs ROACFO/Assets=-67.36%, ROA=-42.33%

  ✗PiotroskiCFO/Assets > ROA

  Price / (CFO / Shares)N/A (negative CFPS)

  ✗Dreman< 8x

  P/E or FCF YieldP/E=0.3x, FCF Yield=-203.6%

  ✓PabraiP/E < 15 or FCF Yield > 10%

  FCF Positive0/11 years FCF positive

  ✗MarksPositive FCF in majority of recent years

  (OCF - CapEx) / Market Cap-422.8%

  ✗Ackman>= 4%

  Price / FCF per ShareN/A (negative FCF)

  ✗Ackman<= 25

  Positive Operating Cash Flow frequency0/11 years positive

  ✗SleepPositive OCF in >= 70% of available years

  Operating Cash Flow - Capital Expenditures$-13.6M

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

  (Operating cash flow - capex) / market capitalization-203.62%; #4206/4519 (top 93.1%)

  ✗OshaughnessyTop 10% of eligible cross-section
• Profitability13% pass✓ 3✗ 32▾

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

  Positive EPS (10 years)1/12 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)0/12 years positive

  ✗BuffettPositive every year for 10+ years

  ROE (up to 5-year arithmetic mean)-86.4%

  ✗Buffett> 15% arithmetic mean (app rule)

  Operating Margin (10-yr trend)-364.2% (latest)

  ✗BuffettStable or rising over 10 years

  Free Cash Flow Proxy$-7.5M

  ✗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 0.3x (growth N/A)

  ✗Lynch< 1.0 (ideally < 0.5)

  3-5 Year EPS CAGR

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

  ROEN/A (negative equity)

  ✗Lynch> 15%

  EBIT / Enterprise ValueN/A (EV <= 0)

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=N/A (EV <= 0), ROC=-2444.9%

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Net Income / Total Assets-42.33%

  ✗PiotroskiROA > 0

  ROA Change YoY-41.35% -> -42.33% (delta: -0.97%)

  ✗PiotroskiCurrent ROA > Prior ROA

  (CFO / Total Assets) vs ROACFO/Assets=-67.36%, ROA=-42.33%

  ✗PiotroskiCFO/Assets > ROA

  Gross Margin Change YoY57.3% -> -6.3%

  ✗PiotroskiImproved YoY

  Pre-Tax Income / Revenue-350.3%

  ✗Dreman>= 8%

  Net Income / Shareholders' Equity

  ✗Dreman> 12%

  Margin of SafetyP/E=0.3x

  ✓PabraiP/B < 1.5 or P/E < 15

  Return on Equity-115.1% (3-yr avg)

  ✗AkreROE > 20% (3-year avg)

  Discount to Intrinsic Value

  ✗Marks>= 20% below intrinsic value

  Positive Net Income Frequency0/11 years positive

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

  Operating Income / Revenue-364.2%

  ✗Ackman>= 15%

  Net Income / Shareholders Equity

  ✗Ackman>= 15%

  5-Year EPS CAGR

  ✗Templeton> 0% (5-year EPS CAGR)

  Operating Margin Trend-745.5% (2023) -> -364.2% (2025)

  ✓TempletonNon-negative operating-margin trend over 3 years

  Revenue growth vs. gross and operating margin trendgross margin 50.0% -> -6.3%, operating margin -745.5% -> -364.2%

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

  Net income / market capitalization-126.69%; #5497/6340 (top 86.7%)

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

  Gross profit / total assets-1.20%; #3561/3702 (top 96.2%)

  ✗AsnessTop 30% of eligible cross-section

  Net income / positive book equity

  ✗AsnessTop 30% of eligible cross-section

  Negative 5-year standard deviation of ROA-0.0400; #2289/5884 (top 38.9%)

  ✗AsnessTop 30% of eligible cross-section

  3-5 Year Diluted EPS CAGR

  ✗Neff7%-20% annualized

  Positive Diluted-EPS Years1/10 years positive

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

  7 of 8 flag EVGN'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 0.3x (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: -88.5% vs Rev: -30.9%

  ✓LynchInventory growth < Revenue growth

  EPS Growth Direction

  ✗DremanPositive over recent years

  EPS CAGR

  ✗Dreman> 5% annualized

  Positive Net Income Frequency0/11 years positive

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

  3yr Median Revenue Growth78.0%

  ✓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 50.0% -> -6.3%, operating margin -745.5% -> -364.2%

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

  5-year Revenue CAGR29.9%

  ✓SleepCAGR > 7%

  3-5 Year Diluted EPS CAGR

  ✗Neff7%-20% annualized
• Valuation15% pass✓ 7✗ 21▾

  11 of 13 flag EVGN's valuation — Graham, Lynch, Greenblatt +8 more

  Price / 3-yr avg EPS

  ✗Graham<= 15x

  Price-to-Book Ratio

  ✗Graham<= 1.5x

  P/E x P/B

  ✗Graham<= 22.5

  Basic earnings-growth PEG (dividends excluded)P/E 0.3x (growth N/A)

  ✗Lynch< 1.0 (ideally < 0.5)

  EBIT / Enterprise ValueN/A (EV <= 0)

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=N/A (EV <= 0), ROC=-2444.9%

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Price / EPS0.3x

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

  Price / (CFO / Shares)N/A (negative CFPS)

  ✗Dreman< 8x

  Price / Book Value per ShareN/A (negative BVPS)

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

  Valuation ReasonablenessP/E=0.3x, OE Yield=-231.8%

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

  P/E or FCF YieldP/E=0.3x, FCF Yield=-203.6%

  ✓PabraiP/E < 15 or FCF Yield > 10%

  P/B or P/E vs. Historical AverageP/E=0.3x

  ✓MarksP/E < 15 or P/B < 2.0

  Discount to Intrinsic Value

  ✗Marks>= 20% below intrinsic value

  Price / FCF per ShareN/A (negative FCF)

  ✗Ackman<= 25

  Price vs. Trailing Low100% of trailing low ($0.37)

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

  Net income / market capitalization-126.69%; #5497/6340 (top 86.7%)

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

  Positive book equity / market capitalization-0.0122; #5349/6449 (top 82.9%)

  ✗AsnessTop 30% of eligible cross-section

  Price / Diluted EPS0.3x

  ✓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 ShareN/A (non-positive TBVPS)

  ✗SchlossP/TBV <= 1.00x (app cutoff)

  Book Value per Share Change

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

  Revenue / market capitalization+0.5753; #2437/5247 (top 46.4%)

  ✗OshaughnessyTop 10% of eligible cross-section

  (Operating cash flow - capex) / market capitalization-203.62%; #4206/4519 (top 93.1%)

  ✗OshaughnessyTop 10% of eligible cross-section

  Trailing six-month price return through the evaluation date-54.35%; #5269/6202 (top 85.0%)

  ✗OshaughnessyTop 10% of eligible cross-section
• Efficiency38% pass✓ 4✗ 7▾

  5 of 8 flag EVGN's efficiency — Buffett, Greenblatt, Munger +2 more

  Current Ratio4.54

  ✓Graham>= 2.0

  ROIC (3-5 yr avg)-110.3%

  ✗Buffett> 10%

  ROIC - WACC-120.3%

  ✗BuffettPositive (WACC = 10%)

  EBIT / (NWC + Net Fixed Assets)-2444.9%

  ✗Greenblatt> 25%

  Current Ratio Change YoY1.15 -> 4.54

  ✓PiotroskiIncreased YoY

  Revenue / Total Assets Change YoY0.14x -> 0.19x

  ✓PiotroskiImproved YoY

  Current Assets / Current Liabilities4.54

  ✓Dreman> 1.5

  Return on Invested Capital-524.0%

  ✗Munger> 15%

  ROIC (high and growing)FY2023: ROIC=-133.1%; FY2024: ROIC=-1412.1%; FY2025: ROIC=-524.0%

  ✗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 -524.0%)

  ✗SleepROIC > 12% in a majority of years