Hippo Holdings Inc.

Where It Passes

Where It Falls Short

• Profitability0% pass✓ 3✗ 29▾

  No clean pass — all 15 investors flag at least one profitability criterion

  Positive EPS (10 years)1/7 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)1/7 years positive

  ✗BuffettPositive every year for 10+ years

  ROE (up to 5-year arithmetic mean)-34.0%

  ✗Buffett> 15% arithmetic mean (app rule)

  Operating Margin (10-yr trend)

  ✗BuffettStable or rising over 10 years

  Free Cash Flow Proxy$78.0M

  ✓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)P/E 16.8x (growth N/A)

  ✗Lynch< 1.0 (ideally < 0.5)

  3-5 Year EPS CAGR

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

  ROE6.8%

  ✗Lynch> 15%

  Net Income / Total Assets3.03%

  ✓PiotroskiROA > 0

  ROA Change YoY-2.62% -> 3.03% (delta: +5.65%)

  ✓PiotroskiCurrent ROA > Prior ROA

  (CFO / Total Assets) vs ROACFO/Assets=0.48%, ROA=3.03%

  ✗PiotroskiCFO/Assets > ROA

  Pre-Tax Income / Revenue6.2%

  ✗Dreman>= 8%

  Net Income / Shareholders' Equity6.8%

  ✗Dreman> 12%

  Margin of SafetyP/E=16.8x, P/B=2.2x

  ✗PabraiP/B < 1.5 or P/E < 15

  Return on Equity-23.4% (3-yr avg)

  ✗AkreROE > 20% (3-year avg)

  Discount to Intrinsic ValueN/A (negative normalized EPS)

  ✗Marks>= 20% below intrinsic value

  Positive Net Income Frequency1/6 years positive

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

  Operating Income / Revenue

  ✗Ackman>= 15%

  Net Income / Shareholders Equity6.8%

  ✗Ackman>= 15%

  5-Year EPS CAGR

  ✗Templeton> 0% (5-year EPS CAGR)

  Operating Margin Trend

  ✗TempletonNon-negative operating-margin trend over 3 years

  Revenue growth vs. gross and operating margin trend

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

  Net income / market capitalization+3.23%; #2297/6340 (top 36.2%)

  ✗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+6.82%; #2243/5226 (top 42.9%)

  ✗AsnessTop 30% of eligible cross-section

  Negative 5-year standard deviation of ROA-0.1045; #3528/5884 (top 60.0%)

  ✗AsnessTop 30% of eligible cross-section

  3-5 Year Diluted EPS CAGR

  ✗Neff7%-20% annualized

  Positive Diluted-EPS Years1/6 years positive

  ✗Schloss>= 70% positive over 5-10 observed years (app rule)
• Valuation8% pass✓ 1✗ 25▾

  11 of 12 flag HIPO's valuation — Graham, Lynch, Dreman +8 more

  Price / 3-yr avg EPS

  ✗Graham<= 15x

  Price-to-Book Ratio2.2x

  ✗Graham<= 1.5x

  P/E x P/B

  ✗Graham<= 22.5

  Basic earnings-growth PEG (dividends excluded)P/E 16.8x (growth N/A)

  ✗Lynch< 1.0 (ideally < 0.5)

  Price / EPS16.8x

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

  Price / (CFO / Shares)105.0x

  ✗Dreman< 8x

  Price / Book Value per Share2.2x

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

  Valuation ReasonablenessP/E=16.8x, OE Yield=8.1%

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

  P/E or FCF YieldP/E=16.8x, FCF Yield=0.9%

  ✗PabraiP/E < 15 or FCF Yield > 10%

  P/B or P/E vs. Historical AverageP/E=16.8x, P/B=2.2x

  ✗MarksP/E < 15 or P/B < 2.0

  Discount to Intrinsic ValueN/A (negative normalized EPS)

  ✗Marks>= 20% below intrinsic value

  Price / FCF per Share106.2x

  ✗Ackman<= 25

  Price vs. Trailing Low

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

  Net income / market capitalization+3.23%; #2297/6340 (top 36.2%)

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

  Positive book equity / market capitalization+0.4735; #2981/6449 (top 46.2%)

  ✗AsnessTop 30% of eligible cross-section

  Price / Diluted EPS16.8x

  ✗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 Share2.29x

  ✗SchlossP/TBV <= 1.00x (app cutoff)

  Book Value per Share Change

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

  Revenue / market capitalization+0.5478; #2508/5247 (top 47.8%)

  ✗OshaughnessyTop 10% of eligible cross-section

  (Operating cash flow - capex) / market capitalization+12.80%; #506/4519 (top 11.2%)

  ✗OshaughnessyTop 10% of eligible cross-section

  Trailing six-month price return through the evaluation date

  ✗OshaughnessyTop 10% of eligible cross-section
• Verdicts8% pass✓ 1✗ 12▾

  Split decision: 12 FAIL · 3 NEUTRAL · 1 PASS

  Overall verdict

  ✗GrahamFAIL (1/7)✗BuffettFAIL (1/7)✗LynchFAIL (0/6)•PiotroskiNEUTRAL (F-Score 5)✗DremanFAIL (1/10)✗MungerFAIL (1/4)✗PabraiFAIL (0/3)✗AkreFAIL (1/6)✗MarksFAIL (0/5)✓AckmanPASS (4/9)✗TempletonFAIL (1/8)✗SleepFAIL (2/6)•AsnessNEUTRAL (Not ranked)✗NeffFAIL (2/6)✗SchlossFAIL (0/7)•OshaughnessyNEUTRAL (Not ranked)
• Debt & Leverage9% pass✓ 1✗ 12▾

  10 of 11 flag HIPO's debt & leverage — Buffett, Lynch, Dreman +7 more

  Debt/Equity & Interest Coverage

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

  Total Debt / Equity

  ✗Lynch< 0.33

  Cash - Long-term Debt

  ✗LynchPositive preferred

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

  ✓PiotroskiDecreased YoY

  Total Debt / Shareholders' Equity

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

  Debt Levels

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

  Interest Coverage & Debt/EBITDA

  ✗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

  Current Assets / Current Liabilities

  ✗SchlossCurrent ratio >= 1.50x (app cutoff)
• Growth13% pass✓ 4✗ 8▾

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

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

  ✗Graham>= 33% growth

  Basic earnings-growth PEG (dividends excluded)P/E 16.8x (growth N/A)

  ✗Lynch< 1.0 (ideally < 0.5)

  3-5 Year EPS CAGR

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

  EPS Growth Direction$-1.63 (2020) -> $2.22 (2025)

  ✓DremanPositive over recent years

  EPS CAGR

  ✗Dreman> 5% annualized

  Positive Net Income Frequency1/6 years positive

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

  3yr Median Revenue Growth75.2%

  ✓Ackman>= 5%

  Positive EPS Growth Frequency4/5 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 trend

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

  5-year Revenue CAGR55.5%

  ✓SleepCAGR > 7%

  3-5 Year Diluted EPS CAGR

  ✗Neff7%-20% annualized
• Cash Flow20% pass✓ 4✗ 8▾

  8 of 10 flag HIPO's cash flow — Lynch, Piotroski, Dreman +5 more

  Free Cash Flow Proxy$78.0M

  ✓BuffettPositive and growing

  FCF Positive and Growing$9.1M

  ✗LynchPositive and growing

  Operating Cash Flow$9.2M

  ✓PiotroskiCFO > 0

  (CFO / Total Assets) vs ROACFO/Assets=0.48%, ROA=3.03%

  ✗PiotroskiCFO/Assets > ROA

  Price / (CFO / Shares)105.0x

  ✗Dreman< 8x

  P/E or FCF YieldP/E=16.8x, FCF Yield=0.9%

  ✗PabraiP/E < 15 or FCF Yield > 10%

  FCF Positive2/6 years FCF positive

  ✗MarksPositive FCF in majority of recent years

  (OCF - CapEx) / Market Cap13.1%

  ✓Ackman>= 4%

  Price / FCF per Share106.2x

  ✗Ackman<= 25

  Positive Operating Cash Flow frequency2/6 years positive

  ✗SleepPositive OCF in >= 70% of available years

  Operating Cash Flow - Capital Expenditures$126.8M

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

  (Operating cash flow - capex) / market capitalization+12.80%; #506/4519 (top 11.2%)

  ✗OshaughnessyTop 10% of eligible cross-section
• Valuation models20% pass✓ 1✗ 4▾

  Models split on HIPO at $37.21 — fair values range $6.38–$45.38

  Graham fair value$28.96

  ✗Graham-28.5% margin vs $37.21

  Buffett fair value$35.49

  ✗Buffett-4.8% margin vs $37.21

  Munger fair value$6.38

  ✗Munger-483.2% margin vs $37.21

  Pabrai fair value$45.38

  ✓Pabrai+18.0% margin vs $37.21

  Ackman fair value$12.55

  ✗Ackman-196.4% margin vs $37.21
• Efficiency25% pass✓ 1✗ 4▾

  3 of 4 flag HIPO's efficiency — Munger, Akre and Sleep

  Revenue / Total Assets Change YoY0.24x -> 0.25x

  ✓PiotroskiImproved YoY

  Return on Invested Capital

  ✗Munger> 15%

  ROIC (high and growing)FY2023: ROIC=unavailable; FY2024: ROIC=unavailable; FY2025: ROIC=unavailable

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

  Reinvestment Rate x ROIC

  ✗AkreReinvestment Rate * ROIC > 10%

  ROIC (5-year)

  ✗SleepROIC > 12% in a majority of years