Granite Ridge Resources, Inc.

Where It Passes

Where It Falls Short

• Valuation0% pass✓ 5✗ 23▾

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

  Price / Book Value per Share1.4x

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

  Price / 3-yr avg EPS20.3x

  ✗Graham<= 15x

  Price-to-Book Ratio1.4x

  ✓Graham<= 1.5x

  P/E x P/B27.80

  ✗Graham<= 22.5

  Basic earnings-growth PEG (dividends excluded)P/E 35.0x (growth N/A)

  ✗Lynch< 1.0 (ideally < 0.5)

  EBIT / Enterprise Value3.8%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=3.8%, ROC=None

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Price / EPS35.0x

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

  Price / (CFO / Shares)2.8x

  ✓Dreman< 8x

  Valuation ReasonablenessP/E=35.0x

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

  P/E or FCF YieldP/E=35.0x

  ✗PabraiP/E < 15 or FCF Yield > 10%

  P/B or P/E vs. Historical AverageP/E=35.0x, P/B=1.4x

  ✓MarksP/E < 15 or P/B < 2.0

  Discount to Intrinsic Value-35.5% (IV=$4.65 vs Price=$6.30)

  ✗Marks>= 20% below intrinsic value

  Price / FCF per Share

  ✗Ackman<= 25

  Price vs. Trailing Low136% of trailing low ($4.64)

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

  Net income / market capitalization-6.27%; #3961/6340 (top 62.5%)

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

  Positive book equity / market capitalization+0.6488; #2363/6449 (top 36.6%)

  ✗AsnessTop 30% of eligible cross-section

  Price / Diluted EPS35.0x

  ✗NeffP/E <= 15x (app proxy for a P/E 40%-60% below the market)

  (EPS CAGR % + Dividend Yield %) / P/E-0.70

  ✗Neff> 0.7 (Neff's published traditional edge)

  Price / Tangible Book Value per Share1.37x

  ✗SchlossP/TBV <= 1.00x (app cutoff)

  Book Value per Share Change+65.4%

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

  Revenue / market capitalization+0.6739; #2247/5247 (top 42.8%)

  ✗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+13.11%; #1690/6202 (top 27.2%)

  ✗OshaughnessyTop 10% of eligible cross-section
• Growth0% pass✓ 4✗ 9▾

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

  EPS Growth (3-yr avg, 10-yr window)-3.1%

  ✗Graham>= 33% growth

  Basic earnings-growth PEG (dividends excluded)P/E 35.0x (growth N/A)

  ✗Lynch< 1.0 (ideally < 0.5)

  3-5 Year EPS CAGR-31.6%

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

  Inventory Growth vs Revenue GrowthN/A (no inventory)

  ✓LynchInventory growth < Revenue growth

  EPS Growth Direction$-0.18 (2020) -> $0.18 (2025)

  ✓DremanPositive over recent years

  EPS CAGR-31.6% CAGR over 4 years

  ✗Dreman> 5% annualized

  Positive Net Income Frequency5/6 years positive

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

  3yr Median Revenue Growth-3.6%

  ✗Ackman>= 5%

  Positive EPS Growth Frequency3/5 years with positive EPS growth

  ✓AckmanPositive EPS growth in >= 3 of last 5 years

  5-Year EPS CAGR-31.6% CAGR over 4 years

  ✗Templeton> 0% (5-year EPS CAGR)

  Revenue growth vs. gross and operating margin trendrevenue up, operating margin 23.0% -> 10.3%

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

  5-year Revenue CAGR38.9%

  ✓SleepCAGR > 7%

  3-5 Year Diluted EPS CAGR-31.6% over 4 years

  ✗Neff7%-20% annualized
• Profitability13% pass✓ 6✗ 29▾

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

  Positive EPS (10 years)5/7 years positive

  ✗GrahamPositive EPS every year for 10 years

  EPS Growth (3-yr avg, 10-yr window)-3.1%

  ✗Graham>= 33% growth

  Net Income Positive (10+ years)5/7 years positive

  ✗BuffettPositive every year for 10+ years

  ROE (up to 5-year arithmetic mean)16.3%

  ✓Buffett> 15% arithmetic mean (app rule)

  Operating Margin (10-yr trend)10.3% (latest)

  ✗BuffettStable or rising over 10 years

  Free Cash Flow Proxy

  ✗BuffettPositive and growing

  Earnings Variance (10-yr CoV)1.18

  ✗BuffettCoV < 0.3

  Retained Earnings Effectiveness

  ✗Buffett$1 retained -> > $1 market value created

  Basic earnings-growth PEG (dividends excluded)P/E 35.0x (growth N/A)

  ✗Lynch< 1.0 (ideally < 0.5)

  3-5 Year EPS CAGR-31.6%

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

  ROE-9.7%

  ✗Lynch> 15%

  EBIT / Enterprise Value3.8%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=3.8%, ROC=None

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Net Income / Total Assets2.08%

  ✓PiotroskiROA > 0

  ROA Change YoY1.81% -> 2.08% (delta: +0.28%)

  ✓PiotroskiCurrent ROA > Prior ROA

  (CFO / Total Assets) vs ROACFO/Assets=25.38%, ROA=2.08%

  ✓PiotroskiCFO/Assets > ROA

  Gross Margin Change YoY

  ✗PiotroskiImproved YoY

  Pre-Tax Income / Revenue-10.7%

  ✗Dreman>= 8%

  Net Income / Shareholders' Equity-9.7%

  ✗Dreman> 12%

  Margin of SafetyP/E=35.0x, P/B=1.4x

  ✓PabraiP/B < 1.5 or P/E < 15

  Return on Equity6.3% (3-yr avg)

  ✗AkreROE > 20% (3-year avg)

  Discount to Intrinsic Value-35.5% (IV=$4.65 vs Price=$6.30)

  ✗Marks>= 20% below intrinsic value

  Positive Net Income Frequency5/6 years positive

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

  Operating Income / Revenue13.7%

  ✗Ackman>= 15%

  Net Income / Shareholders Equity-9.7%

  ✗Ackman>= 15%

  5-Year EPS CAGR-31.6% CAGR over 4 years

  ✗Templeton> 0% (5-year EPS CAGR)

  Operating Margin Trend23.0% (2023) -> 10.3% (2025)

  ✗TempletonNon-negative operating-margin trend over 3 years

  Revenue growth vs. gross and operating margin trendrevenue up, operating margin 23.0% -> 10.3%

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

  Net income / market capitalization-6.27%; #3961/6340 (top 62.5%)

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

  Gross profit / total assets

  ✗AsnessTop 30% of eligible cross-section

  Net income / positive book equity-9.67%; #3399/5226 (top 65.0%)

  ✗AsnessTop 30% of eligible cross-section

  Negative 5-year standard deviation of ROA-0.1191; #3689/5884 (top 62.7%)

  ✗AsnessTop 30% of eligible cross-section

  3-5 Year Diluted EPS CAGR-31.6% over 4 years

  ✗Neff7%-20% annualized

  Positive Diluted-EPS Years5/6 years positive

  ✓Schloss>= 70% positive over 5-10 observed years (app rule)
• Efficiency13% pass✓ 3✗ 8▾

  7 of 8 flag GRNT's efficiency — Graham, Greenblatt, Piotroski +4 more

  Current Ratio0.90

  ✗Graham>= 2.0

  ROIC (3-5 yr avg)15.9%

  ✓Buffett> 10%

  ROIC - WACC+5.9%

  ✓BuffettPositive (WACC = 10%)

  EBIT / (NWC + Net Fixed Assets)

  ✗Greenblatt> 25%

  Current Ratio Change YoY1.33 -> 1.25

  ✗PiotroskiIncreased YoY

  Revenue / Total Assets Change YoY0.37x -> 0.39x

  ✓PiotroskiImproved YoY

  Current Assets / Current Liabilities0.90

  ✗Dreman> 1.5

  Return on Invested Capital6.1%

  ✗Munger> 15%

  ROIC (high and growing)FY2023: ROIC=9.2%; FY2024: ROIC=5.6%; FY2025: ROIC=3.6%

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

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

  ✗AkreReinvestment Rate * ROIC > 10%

  ROIC (5-year)2/5 years above 12% (latest 3.6%)

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

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

  Total Debt / Shareholders' Equity0.85

  ✗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 $424.3M vs NCA $-18.2M

  ✗GrahamLT Debt <= Net Current Assets

  Debt/Equity & Interest CoverageD/E: 0.85, IC: 1.8x

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

  Total Debt / Equity0.85

  ✗Lynch< 0.33

  Cash - Long-term Debt$-381.6M

  ✗LynchPositive preferred

  LT Debt / Total Assets Change19.78% -> 32.75%

  ✗PiotroskiDecreased YoY

  Current Assets / Current Liabilities0.90

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

  Debt Levels0.85

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

  Interest Coverage & Debt/EBITDAIC=1.9x, D/EBITDA=N/A (D&A unavailable)

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

  Total Debt / Shareholders Equity0.85

  ✓Ackman<= 1.0

  Negative debt-to-equity (higher means less debt)-0.8516; #3044/4210 (top 72.3%)

  ✗AsnessTop 30% of eligible cross-section
• Verdicts23% pass✓ 3✗ 10▾

  Split decision: 10 FAIL · 3 PASS · 3 NEUTRAL

  Overall verdict

  ✗GrahamFAIL (2/9)✗BuffettFAIL (3/9)✗LynchFAIL (1/7)•GreenblattNot ranked✓PiotroskiPASS (F-Score 5)✗DremanFAIL (3/11)✗MungerFAIL (1/4)✗PabraiFAIL (1/3)✗AkreFAIL (0/6)✗MarksFAIL (1/5)✗AckmanFAIL (3/9)✓TempletonPASS (4/8)✓SleepPASS (3/6)•AsnessNEUTRAL (Not ranked)✗NeffFAIL (2/6)•SchlossNEUTRAL (4/7)•OshaughnessyNEUTRAL (Not ranked)
• Valuation models29% pass✓ 2✗ 5▾

  Models split on GRNT at $6.30 — fair values range $1.02–$11.16

  Graham fair value$4.32

  ✗Graham-45.8% margin vs $6.30

  Greenblatt fair value$3.93

  ✗Greenblatt-60.3% margin vs $6.30

  Dreman fair value$4.65

  ✗Dreman-35.5% margin vs $6.30

  Pabrai fair value$1.02

  ✗Pabrai-517.6% margin vs $6.30

  Akre fair value$5.78

  ✗Akre-9.0% margin vs $6.30

  Marks fair value$8.85

  ✓Marks+28.8% margin vs $6.30

  Templeton fair value$11.16

  ✓Templeton+43.5% margin vs $6.30
• Cash Flow30% pass✓ 4✗ 8▾

  7 of 10 flag GRNT'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$296.4M

  ✓PiotroskiCFO > 0

  (CFO / Total Assets) vs ROACFO/Assets=25.38%, ROA=2.08%

  ✓PiotroskiCFO/Assets > ROA

  Price / (CFO / Shares)2.8x

  ✓Dreman< 8x

  P/E or FCF YieldP/E=35.0x

  ✗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 frequency6/6 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