HARVARD BIOSCIENCE 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)12/29 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)11/29 years positive

  ✗BuffettPositive every year for 10+ years

  ROE (up to 5-year arithmetic mean)-90.1%

  ✗Buffett> 15% arithmetic mean (app rule)

  Operating Margin (10-yr trend)-56.1% (latest)

  ✗BuffettStable or rising over 10 years

  Free Cash Flow Proxy

  ✗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-231.2%

  ✗Lynch> 15%

  EBIT / Enterprise Value-2.1%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=-2.1%, ROC=-7.8%

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Net Income / Total Assets-70.81%

  ✗PiotroskiROA > 0

  ROA Change YoY-9.80% -> -70.81% (delta: -61.02%)

  ✗PiotroskiCurrent ROA > Prior ROA

  (CFO / Total Assets) vs ROACFO/Assets=8.40%, ROA=-70.81%

  ✓PiotroskiCFO/Assets > ROA

  Gross Margin Change YoY58.2% -> 57.7%

  ✗PiotroskiImproved YoY

  Pre-Tax Income / Revenue-13.5%

  ✗Dreman>= 8%

  Net Income / Shareholders' Equity-231.2%

  ✗Dreman> 12%

  Margin of SafetyP/B=30.6x

  ✗PabraiP/B < 1.5 or P/E < 15

  Return on Equity-145.7% (3-yr avg)

  ✗AkreROE > 20% (3-year avg)

  Discount to Intrinsic ValueN/A (negative normalized EPS)

  ✗Marks>= 20% below intrinsic value

  Positive Net Income Frequency11/23 years positive

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

  Operating Income / Revenue-1.8%

  ✗Ackman>= 15%

  Net Income / Shareholders Equity-231.2%

  ✗Ackman>= 15%

  5-Year EPS CAGR

  ✗Templeton> 0% (5-year EPS CAGR)

  Operating Margin Trend1.7% (2023) -> -56.1% (2025)

  ✗TempletonNon-negative operating-margin trend over 3 years

  Revenue growth vs. gross and operating margin trendgross margin 58.9% -> 57.7%, operating margin 1.7% -> -56.1%

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

  Net income / market capitalization-27.49%; #4751/6340 (top 74.9%)

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

  Gross profit / total assets+68.20%; #360/3702 (top 9.7%)

  ✓AsnessTop 30% of eligible cross-section

  Net income / positive book equity-231.22%; #4916/5226 (top 94.1%)

  ✗AsnessTop 30% of eligible cross-section

  Negative 5-year standard deviation of ROA-0.2663; #4507/5884 (top 76.6%)

  ✗AsnessTop 30% of eligible cross-section

  3-5 Year Diluted EPS CAGR-21.8% over 5 years

  ✗Neff7%-20% annualized

  Positive Diluted-EPS Years0/10 years positive

  ✗Schloss>= 70% positive over 5-10 observed years (app rule)
• 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 $37.2M vs NCA $19.9M

  ✗GrahamLT Debt <= Net Current Assets

  Debt/Equity & Interest CoverageD/E: 2.61, IC: -13.5x

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

  Total Debt / Equity7.28

  ✗Lynch< 0.33

  Cash - Long-term Debt$-32.3M

  ✗LynchPositive preferred

  LT Debt / Total Assets Change0.00% -> 44.80%

  ✗PiotroskiDecreased YoY

  Current Assets / Current Liabilities1.76

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

  Total Debt / Shareholders' Equity7.28

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

  Debt Levels7.28

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

  Interest Coverage & Debt/EBITDAIC=-13.5x, D/EBITDA=N/A (D&A unavailable)

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

  Total Debt / Shareholders Equity7.28

  ✗Ackman<= 1.0

  Negative debt-to-equity (higher means less debt)-7.2778; #4126/4210 (top 98.0%)

  ✗AsnessTop 30% of eligible cross-section
• Valuation models0% pass✗ 2▾

  HBIO overvalued: all 2 models price fair value below $9.39 (median $1.02)

  Munger fair value$1.03

  ✗Munger-811.7% margin vs $9.39

  Ackman fair value$1.01

  ✗Ackman-829.7% margin vs $9.39
• Verdicts6% pass✓ 1✗ 15▾

  Split decision: 14 FAIL · 1 PASS · 1 NEUTRAL

  Overall verdict

  ✗GrahamFAIL (0/9)✗BuffettFAIL (0/9)✗LynchFAIL (0/7)✗GreenblattRank #1962✓PiotroskiPASS (F-Score 4)✗DremanFAIL (1/11)✗MungerFAIL (0/4)✗PabraiFAIL (1/3)✗AkreFAIL (1/6)✗MarksFAIL (2/5)✗AckmanFAIL (1/9)✗TempletonFAIL (1/8)✗SleepFAIL (2/6)✗AsnessFAIL (Rank #2018/2370 (Top 85.1%))✗NeffFAIL (0/6)✗SchlossFAIL (1/7)•OshaughnessyNEUTRAL (Not ranked)
• Valuation8% pass✓ 2✗ 26▾

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

  Price / 3-yr avg EPS

  ✗Graham<= 15x

  Price-to-Book Ratio30.6x

  ✗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-2.1%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=-2.1%, ROC=-7.8%

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Price / EPS

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

  Price / (CFO / Shares)62.4x

  ✗Dreman< 8x

  Price / Book Value per Share30.6x

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

  Valuation Reasonableness

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

  P/E or FCF YieldFCF Yield=12.7%

  ✓PabraiP/E < 15 or FCF Yield > 10%

  P/B or P/E vs. Historical AverageP/B=30.6x

  ✗MarksP/E < 15 or P/B < 2.0

  Discount to Intrinsic ValueN/A (negative normalized EPS)

  ✗Marks>= 20% below intrinsic value

  Price / FCF per Share76.8x

  ✗Ackman<= 25

  Price vs. Trailing Low261% of trailing low ($3.60)

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

  Net income / market capitalization-27.49%; #4751/6340 (top 74.9%)

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

  Positive book equity / market capitalization+0.1189; #4643/6449 (top 72.0%)

  ✗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-84.2%

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

  Revenue / market capitalization+2.0822; #1050/5247 (top 20.0%)

  ✗OshaughnessyTop 10% of eligible cross-section

  (Operating cash flow - capex) / market capitalization-7.38%; #3116/4519 (top 69.0%)

  ✗OshaughnessyTop 10% of eligible cross-section

  Trailing six-month price return through the evaluation date+117.87%; #274/6202 (top 4.4%)

  ✓OshaughnessyTop 10% of eligible cross-section
• Growth13% pass✓ 1✗ 12▾

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

  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: 8.7% vs Rev: 2.3%

  ✗LynchInventory growth < Revenue growth

  EPS Growth Direction$0.07 (2001) -> $-1.28 (2025)

  ✗DremanPositive over recent years

  EPS CAGR0.0% CAGR over 13 years

  ✗Dreman> 5% annualized

  Positive Net Income Frequency11/23 years positive

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

  3yr Median Revenue Growth-8.1%

  ✗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 58.9% -> 57.7%, operating margin 1.7% -> -56.1%

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

  5-year Revenue CAGR-3.3%

  ✗SleepCAGR > 7%

  3-5 Year Diluted EPS CAGR-21.8% over 5 years

  ✗Neff7%-20% annualized
• Efficiency25% pass✓ 3✗ 8▾

  6 of 8 flag HBIO's efficiency — Graham, Buffett, Greenblatt +3 more

  Current Ratio1.76

  ✗Graham>= 2.0

  ROIC (3-5 yr avg)-20.2%

  ✗Buffett> 10%

  ROIC - WACC-30.2%

  ✗BuffettPositive (WACC = 10%)

  EBIT / (NWC + Net Fixed Assets)-7.8%

  ✗Greenblatt> 25%

  Current Ratio Change YoY0.82 -> 2.20

  ✓PiotroskiIncreased YoY

  Revenue / Total Assets Change YoY0.74x -> 1.08x

  ✓PiotroskiImproved YoY

  Current Assets / Current Liabilities1.76

  ✓Dreman> 1.5

  Return on Invested Capital-3.0%

  ✗Munger> 15%

  ROIC (high and growing)FY2023: ROIC=1.4%; FY2024: ROIC=-4.9%; FY2025: ROIC=-77.4%

  ✗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 -77.4%)

  ✗SleepROIC > 12% in a majority of years
• Cash Flow40% pass✓ 5✗ 7▾

  6 of 10 flag HBIO's cash flow — Buffett, Lynch, Dreman +3 more

  Free Cash Flow Proxy

  ✗BuffettPositive and growing

  FCF Positive and Growing$-3.2M

  ✗LynchPositive and growing

  Operating Cash Flow$6.7M

  ✓PiotroskiCFO > 0

  (CFO / Total Assets) vs ROACFO/Assets=8.40%, ROA=-70.81%

  ✓PiotroskiCFO/Assets > ROA

  Price / (CFO / Shares)62.4x

  ✗Dreman< 8x

  P/E or FCF YieldFCF Yield=12.7%

  ✓PabraiP/E < 15 or FCF Yield > 10%

  FCF Positive7/9 years FCF positive

  ✓MarksPositive FCF in majority of recent years

  (OCF - CapEx) / Market Cap-0.8%

  ✗Ackman>= 4%

  Price / FCF per Share76.8x

  ✗Ackman<= 25

  Positive Operating Cash Flow frequency26/26 years positive

  ✓SleepPositive OCF in >= 70% of available years

  Operating Cash Flow - Capital Expenditures$-3.2M

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

  (Operating cash flow - capex) / market capitalization-7.38%; #3116/4519 (top 69.0%)

  ✗OshaughnessyTop 10% of eligible cross-section