Funko, Inc.

Where It Passes

Where It Falls Short

• Profitability0% pass✓ 3✗ 32▾

  No clean pass — all 16 investors flag at least one profitability criterion

  Positive EPS (10 years)5/11 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)6/11 years positive

  ✗BuffettPositive every year for 10+ years

  ROE (up to 5-year arithmetic mean)-19.5%

  ✗Buffett> 15% arithmetic mean (app rule)

  Operating Margin (10-yr trend)-5.0% (latest)

  ✗BuffettStable or rising over 10 years

  Free Cash Flow Proxy$-41.2M

  ✗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

  ROE2.3%

  ✗Lynch> 15%

  EBIT / Enterprise Value6.1%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=6.1%, ROC=39.4%

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Net Income / Total Assets-9.83%

  ✗PiotroskiROA > 0

  ROA Change YoY-2.08% -> -9.83% (delta: -7.75%)

  ✗PiotroskiCurrent ROA > Prior ROA

  (CFO / Total Assets) vs ROACFO/Assets=-0.75%, ROA=-9.83%

  ✓PiotroskiCFO/Assets > ROA

  Gross Margin Change YoY41.4% -> 38.7%

  ✗PiotroskiImproved YoY

  Pre-Tax Income / Revenue1.2%

  ✗Dreman>= 8%

  Net Income / Shareholders' Equity2.3%

  ✗Dreman> 12%

  Margin of SafetyP/B=2.0x

  ✗PabraiP/B < 1.5 or P/E < 15

  Return on Equity-36.3% (3-yr avg)

  ✗AkreROE > 20% (3-year avg)

  Discount to Intrinsic ValueN/A (negative normalized EPS)

  ✗Marks>= 20% below intrinsic value

  Positive Net Income Frequency6/10 years positive

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

  Operating Income / Revenue3.6%

  ✗Ackman>= 15%

  Net Income / Shareholders Equity2.3%

  ✗Ackman>= 15%

  5-Year EPS CAGR

  ✗Templeton> 0% (5-year EPS CAGR)

  Operating Margin Trend-9.5% (2023) -> -5.0% (2025)

  ✓TempletonNon-negative operating-margin trend over 3 years

  Revenue growth vs. gross and operating margin trendgross margin 30.4% -> 38.7%, operating margin -9.5% -> -5.0%

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

  Net income / market capitalization+1.18%; #2932/6340 (top 46.2%)

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

  Gross profit / total assets+51.26%; #650/3702 (top 17.6%)

  ✓AsnessTop 30% of eligible cross-section

  Net income / positive book equity+2.33%; #2727/5226 (top 52.2%)

  ✗AsnessTop 30% of eligible cross-section

  Negative 5-year standard deviation of ROA-0.0830; #3252/5884 (top 55.3%)

  ✗AsnessTop 30% of eligible cross-section

  3-5 Year Diluted EPS CAGR

  ✗Neff7%-20% annualized

  Positive Diluted-EPS Years5/9 years positive

  ✗Schloss>= 70% positive over 5-10 observed years (app rule)
• 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 Ratio2.0x

  ✗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 Value6.1%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=6.1%, ROC=39.4%

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Price / EPS

  ✗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 Share2.0x

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

  Valuation ReasonablenessOE Yield=-11.0%

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

  P/E or FCF YieldFCF Yield=-9.8%

  ✗PabraiP/E < 15 or FCF Yield > 10%

  P/B or P/E vs. Historical AverageP/B=2.0x

  ✗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 Low221% of trailing low ($3.12)

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

  Net income / market capitalization+1.18%; #2932/6340 (top 46.2%)

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

  Positive book equity / market capitalization+0.5078; #2856/6449 (top 44.3%)

  ✗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 ShareN/A (non-positive TBVPS)

  ✗SchlossP/TBV <= 1.00x (app cutoff)

  Book Value per Share Change-49.6%

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

  Revenue / market capitalization+2.4143; #945/5247 (top 18.0%)

  ✗OshaughnessyTop 10% of eligible cross-section

  (Operating cash flow - capex) / market capitalization+12.48%; #534/4519 (top 11.8%)

  ✗OshaughnessyTop 10% of eligible cross-section

  Trailing six-month price return through the evaluation date+89.84%; #379/6202 (top 6.1%)

  ✓OshaughnessyTop 10% of eligible cross-section
• Growth0% pass✓ 1✗ 12▾

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

  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 GrowthInv: -8.2% vs Rev: 1.2%

  ✓LynchInventory growth < Revenue growth

  EPS Growth Direction

  ✗DremanPositive over recent years

  EPS CAGR

  ✗Dreman> 5% annualized

  Positive Net Income Frequency6/10 years positive

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

  3yr Median Revenue Growth-13.5%

  ✗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 30.4% -> 38.7%, operating margin -9.5% -> -5.0%

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

  5-year Revenue CAGR6.8%

  ✗SleepCAGR > 7%

  3-5 Year Diluted EPS CAGR

  ✗Neff7%-20% annualized
• Verdicts6% pass✓ 1✗ 15▾

  Split decision: 14 FAIL · 1 BUY · 1 NEUTRAL

  Overall verdict

  ✗GrahamFAIL (1/9)✗BuffettFAIL (0/9)✗LynchFAIL (2/7)✗GreenblattRank #667✗PiotroskiFAIL (F-Score 2)✗DremanFAIL (0/11)✗MungerFAIL (0/4)✗PabraiFAIL (0/3)✗AkreFAIL (1/6)✗MarksFAIL (1/5)✗AckmanFAIL (3/9)✗TempletonFAIL (3/8)✗SleepFAIL (2/6)✓AsnessBUY (Rank #654/2370 (Top 27.6%))✗NeffFAIL (2/6)✗SchlossFAIL (1/7)•OshaughnessyNEUTRAL (Not ranked)
• Efficiency13% pass✓ 2✗ 9▾

  7 of 8 flag FNKO's efficiency — Graham, Buffett, Piotroski +4 more

  Current Ratio1.19

  ✗Graham>= 2.0

  ROIC (3-5 yr avg)-2.8%

  ✗Buffett> 10%

  ROIC - WACC-12.8%

  ✗BuffettPositive (WACC = 10%)

  EBIT / (NWC + Net Fixed Assets)39.4%

  ✓Greenblatt> 25%

  Current Ratio Change YoY0.94 -> 1.19

  ✓PiotroskiIncreased YoY

  Revenue / Total Assets Change YoY1.48x -> 1.33x

  ✗PiotroskiImproved YoY

  Current Assets / Current Liabilities1.19

  ✗Dreman> 1.5

  Return on Invested Capital6.7%

  ✗Munger> 15%

  ROIC (high and growing)FY2023: ROIC=-21.3%; FY2024: ROIC=2.5%; FY2025: ROIC=-8.8%

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

  Reinvestment Rate x ROICN/A (non-positive net income)

  ✗AkreReinvestment Rate * ROIC > 10%

  ROIC (5-year)1/5 years above 12% (latest -8.8%)

  ✗SleepROIC > 12% in a majority of years
• Debt & Leverage17% pass✓ 3✗ 12▾

  10 of 12 flag FNKO's debt & leverage — Graham, Buffett, Lynch +7 more

  Total Debt / Shareholders' Equity0.99

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

  LT Debt vs Net Current AssetsLT Debt $178.7M vs NCA $47.8M

  ✗GrahamLT Debt <= Net Current Assets

  Debt/Equity & Interest CoverageD/E: 1.21, IC: -2.5x

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

  Total Debt / Equity0.99

  ✗Lynch< 0.33

  Cash - Long-term Debt$-137.1M

  ✗LynchPositive preferred

  LT Debt / Total Assets Change14.18% -> 29.51%

  ✗PiotroskiDecreased YoY

  Current Assets / Current Liabilities1.19

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

  Debt Levels0.99

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

  Interest Coverage & Debt/EBITDAIC=-2.5x, D/EBITDA=16.6x

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

  Total Debt / Shareholders Equity0.99

  ✓Ackman<= 1.0

  Negative debt-to-equity (higher means less debt)-0.9906; #3216/4210 (top 76.4%)

  ✗AsnessTop 30% of eligible cross-section
• Cash Flow40% pass✓ 6✗ 6▾

  6 of 10 flag FNKO's cash flow — Buffett, Piotroski, Dreman +3 more

  Free Cash Flow Proxy$-41.2M

  ✗BuffettPositive and growing

  FCF Positive and Growing$48.6M

  ✓LynchPositive and growing

  Operating Cash Flow$-5.1M

  ✗PiotroskiCFO > 0

  (CFO / Total Assets) vs ROACFO/Assets=-0.75%, ROA=-9.83%

  ✓PiotroskiCFO/Assets > ROA

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

  ✗Dreman< 8x

  P/E or FCF YieldFCF Yield=-9.8%

  ✗PabraiP/E < 15 or FCF Yield > 10%

  FCF Positive6/10 years FCF positive

  ✓MarksPositive FCF in majority of recent years

  (OCF - CapEx) / Market Cap12.9%

  ✓Ackman>= 4%

  Price / FCF per ShareN/A (negative FCF)

  ✗Ackman<= 25

  Positive Operating Cash Flow frequency8/10 years positive

  ✓SleepPositive OCF in >= 70% of available years

  Operating Cash Flow - Capital Expenditures$48.6M

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

  (Operating cash flow - capex) / market capitalization+12.48%; #534/4519 (top 11.8%)

  ✗OshaughnessyTop 10% of eligible cross-section