EDAP TMS SA

Where It Passes

Where It Falls Short

• Profitability0% pass✓ 4✗ 31▾

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

  Positive EPS (10 years)3/18 years positive

  ✗GrahamPositive EPS every year for 10 years

  EPS Growth (3-yr avg, 10-yr window)N/A (negative base EPS)

  ✗Graham>= 33% growth

  Net Income Positive (10+ years)3/18 years positive

  ✗BuffettPositive every year for 10+ years

  ROE (up to 5-year arithmetic mean)-47.4%

  ✗Buffett> 15% arithmetic mean (app rule)

  Operating Margin (10-yr trend)-35.0% (latest)

  ✗BuffettStable or rising over 10 years

  Free Cash Flow Proxy$0.5M

  ✓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-150.7%

  ✗Lynch> 15%

  EBIT / Enterprise Value-16.4%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=-16.4%, ROC=-213.4%

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Net Income / Total Assets-37.02%

  ✗PiotroskiROA > 0

  ROA Change YoY-22.10% -> -37.02% (delta: -14.92%)

  ✗PiotroskiCurrent ROA > Prior ROA

  (CFO / Total Assets) vs ROACFO/Assets=-20.77%, ROA=-37.02%

  ✓PiotroskiCFO/Assets > ROA

  Gross Margin Change YoY41.4% -> 42.5%

  ✓PiotroskiImproved YoY

  Pre-Tax Income / Revenue-40.8%

  ✗Dreman>= 8%

  Net Income / Shareholders' Equity-150.7%

  ✗Dreman> 12%

  Margin of SafetyP/B=6.3x

  ✗PabraiP/B < 1.5 or P/E < 15

  Return on Equity-78.1% (3-yr avg)

  ✗AkreROE > 20% (3-year avg)

  Discount to Intrinsic ValueN/A (negative normalized EPS)

  ✗Marks>= 20% below intrinsic value

  Positive Net Income Frequency3/17 years positive

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

  Operating Income / Revenue-35.0%

  ✗Ackman>= 15%

  Net Income / Shareholders Equity-150.7%

  ✗Ackman>= 15%

  5-Year EPS CAGR

  ✗Templeton> 0% (5-year EPS CAGR)

  Operating Margin Trend-32.8% (2023) -> -35.0% (2025)

  ✗TempletonNon-negative operating-margin trend over 3 years

  Revenue growth vs. gross and operating margin trendgross margin 40.4% -> 42.5%, operating margin -32.8% -> -35.0%

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

  Net income / market capitalization-19.09%; #4530/6340 (top 71.5%)

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

  Gross profit / total assets+37.98%; #1029/3702 (top 27.8%)

  ✓AsnessTop 30% of eligible cross-section

  Net income / positive book equity-150.65%; #4781/5226 (top 91.5%)

  ✗AsnessTop 30% of eligible cross-section

  Negative 5-year standard deviation of ROA-0.1403; #3876/5884 (top 65.9%)

  ✗AsnessTop 30% of eligible cross-section

  3-5 Year Diluted EPS CAGR-30.3% over 5 years

  ✗Neff7%-20% annualized

  Positive Diluted-EPS Years3/10 years positive

  ✗Schloss>= 70% positive over 5-10 observed years (app rule)
• Valuation0% pass✗ 28▾

  All 13 investors flag FOCL's valuation

  Price / 3-yr avg EPS

  ✗Graham<= 15x

  Price-to-Book Ratio6.3x

  ✗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 Value-16.4%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=-16.4%, ROC=-213.4%

  ✗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 Share6.3x

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

  Valuation ReasonablenessOE Yield=-21.3%

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

  P/E or FCF Yield

  ✗PabraiP/E < 15 or FCF Yield > 10%

  P/B or P/E vs. Historical AverageP/B=6.3x

  ✗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 Low232% of trailing low ($1.40)

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

  Net income / market capitalization-19.09%; #4530/6340 (top 71.5%)

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

  Positive book equity / market capitalization+0.2345; #4010/6449 (top 62.2%)

  ✗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 Share8.21x

  ✗SchlossP/TBV <= 1.00x (app cutoff)

  Book Value per Share Change-53.3%

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

  Revenue / market capitalization+0.4603; #2749/5247 (top 52.4%)

  ✗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-24.77%; #4197/6202 (top 67.7%)

  ✗OshaughnessyTop 10% of eligible cross-section
• Growth0% pass✓ 2✗ 11▾

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

  EPS Growth (3-yr avg, 10-yr window)N/A (negative base EPS)

  ✗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: -33.3% vs Rev: 5.7%

  ✓LynchInventory growth < Revenue growth

  EPS Growth Direction$-1.30 (2010) -> $-0.78 (2025)

  ✗DremanPositive over recent years

  EPS CAGR-30.3% CAGR over 5 years

  ✗Dreman> 5% annualized

  Positive Net Income Frequency3/17 years positive

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

  3yr Median Revenue Growth5.7%

  ✓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 40.4% -> 42.5%, operating margin -32.8% -> -35.0%

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

  5-year Revenue CAGR6.6%

  ✗SleepCAGR > 7%

  3-5 Year Diluted EPS CAGR-30.3% over 5 years

  ✗Neff7%-20% annualized
• Verdicts0% pass✗ 16▾

  Split decision: 15 FAIL · 1 NEUTRAL

  Overall verdict

  ✗GrahamFAIL (2/9)✗BuffettFAIL (1/9)✗LynchFAIL (2/7)✗GreenblattRank #2704✗PiotroskiFAIL (F-Score 3)✗DremanFAIL (1/11)✗MungerFAIL (0/4)✗PabraiFAIL (0/3)✗AkreFAIL (0/6)✗MarksFAIL (0/5)✗AckmanFAIL (3/9)✗TempletonFAIL (2/8)✗SleepFAIL (1/6)✗AsnessFAIL (Rank #1719/2370 (Top 72.5%))✗NeffFAIL (1/6)✗SchlossFAIL (2/7)•OshaughnessyNEUTRAL (Not ranked)
• Cash Flow10% pass✓ 2✗ 10▾

  9 of 10 flag FOCL's cash flow — Lynch, Piotroski, Dreman +6 more

  Free Cash Flow Proxy$0.5M

  ✓BuffettPositive and growing

  FCF Positive and Growing$-0.7M

  ✗LynchPositive and growing

  Operating Cash Flow$-16.4M

  ✗PiotroskiCFO > 0

  (CFO / Total Assets) vs ROACFO/Assets=-20.77%, ROA=-37.02%

  ✓PiotroskiCFO/Assets > ROA

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

  ✗Dreman< 8x

  P/E or FCF Yield

  ✗PabraiP/E < 15 or FCF Yield > 10%

  FCF Positive2/10 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 frequency6/17 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
• Efficiency25% pass✓ 3✗ 8▾

  6 of 8 flag FOCL's efficiency — Buffett, Greenblatt, Piotroski +3 more

  Current Ratio2.63

  ✓Graham>= 2.0

  ROIC (3-5 yr avg)-70.0%

  ✗Buffett> 10%

  ROIC - WACC-80.0%

  ✗BuffettPositive (WACC = 10%)

  EBIT / (NWC + Net Fixed Assets)-213.4%

  ✗Greenblatt> 25%

  Current Ratio Change YoY1.85 -> 1.54

  ✗PiotroskiIncreased YoY

  Revenue / Total Assets Change YoY0.74x -> 0.89x

  ✓PiotroskiImproved YoY

  Current Assets / Current Liabilities2.63

  ✓Dreman> 1.5

  Return on Invested Capital-52.1%

  ✗Munger> 15%

  ROIC (high and growing)FY2023: ROIC=-25.9%; FY2024: ROIC=-35.7%; FY2025: ROIC=-52.1%

  ✗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 -52.1%)

  ✗SleepROIC > 12% in a majority of years
• Debt & Leverage33% pass✓ 7✗ 8▾

  8 of 12 flag FOCL's debt & leverage — Buffett, Lynch, Piotroski +5 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 $35.2M vs NCA $58.7M

  ✓GrahamLT Debt <= Net Current Assets

  Debt/Equity & Interest CoverageD/E: 0.93, IC: -43.9x

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

  Total Debt / Equity0.99

  ✗Lynch< 0.33

  Cash - Long-term Debt$21.0M

  ✓LynchPositive preferred

  LT Debt / Total Assets Change2.51% -> 20.13%

  ✗PiotroskiDecreased YoY

  Current Assets / Current Liabilities2.63

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

  Debt Levels0.99

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

  Interest Coverage & Debt/EBITDAIC=-43.9x, D/EBITDA=N/A

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

  Total Debt / Shareholders Equity0.99

  ✓Ackman<= 1.0

  Negative debt-to-equity (higher means less debt)-0.9898; #3215/4210 (top 76.4%)

  ✗AsnessTop 30% of eligible cross-section