HYSTER-YALE, INC.

Where It Passes

Where It Falls Short

• Debt & Leverage0% pass✗ 15▾

  All 12 investors flag HY's debt & leverage

  LT Debt vs Net Current AssetsLT Debt $465.7M vs NCA $244.8M

  ✗GrahamLT Debt <= Net Current Assets

  Debt/Equity & Interest CoverageD/E: 1.06, IC: -3.1x

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

  Total Debt / Equity1.06

  ✗Lynch< 0.33

  Cash - Long-term Debt$-407.2M

  ✗LynchPositive preferred

  LT Debt / Total Assets Change11.92% -> 23.43%

  ✗PiotroskiDecreased YoY

  Current Assets / Current Liabilities1.24

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

  Total Debt / Shareholders' Equity1.06

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

  Debt Levels1.06

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

  Interest Coverage & Debt/EBITDAIC=-3.1x, D/EBITDA=N/A

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

  Total Debt / Shareholders Equity1.06

  ✗Ackman<= 1.0

  Negative debt-to-equity (higher means less debt)-1.0588; #3277/4210 (top 77.8%)

  ✗AsnessTop 30% of eligible cross-section
• Efficiency0% pass✗ 11▾

  All 8 investors flag HY's efficiency

  Current Ratio1.24

  ✗Graham>= 2.0

  ROIC (3-5 yr avg)4.5%

  ✗Buffett> 10%

  ROIC - WACC-5.5%

  ✗BuffettPositive (WACC = 10%)

  EBIT / (NWC + Net Fixed Assets)-18.0%

  ✗Greenblatt> 25%

  Current Ratio Change YoY1.35 -> 1.34

  ✗PiotroskiIncreased YoY

  Revenue / Total Assets Change YoY2.12x -> 1.87x

  ✗PiotroskiImproved YoY

  Current Assets / Current Liabilities1.24

  ✗Dreman> 1.5

  Return on Invested Capital-9.6%

  ✗Munger> 15%

  ROIC (high and growing)FY2023: ROIC=18.7%; FY2024: ROIC=21.1%; FY2025: ROIC=-1.8%

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

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

  ✗AkreReinvestment Rate * ROIC > 10%

  ROIC (5-year)2/5 years above 12% (latest -1.8%)

  ✗SleepROIC > 12% in a majority of years
• Verdicts13% pass✓ 2✗ 13▾

  Split decision: 12 FAIL · 2 PASS · 2 NEUTRAL

  Overall verdict

  ✓GrahamPASS (4/9)✗BuffettFAIL (0/9)✗LynchFAIL (0/7)✗GreenblattRank #2203✗PiotroskiFAIL (F-Score 3)✗DremanFAIL (4/11)✗MungerFAIL (1/4)✗PabraiFAIL (1/3)✗AkreFAIL (1/6)•MarksNEUTRAL (4/5)✗AckmanFAIL (3/9)•TempletonNEUTRAL (5/8)✓SleepPASS (3/6)✗AsnessFAIL (Rank #1783/2370 (Top 75.2%))✗NeffFAIL (3/6)✗SchlossFAIL (2/7)✗OshaughnessyFAIL (Rank #747/963 (Top 77.6%))
• Profitability19% pass✓ 6✗ 29▾

  13 of 16 flag HY's profitability — Graham, Buffett, Lynch +10 more

  Positive EPS (10 years)13/22 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)18/22 years positive

  ✗BuffettPositive every year for 10+ years

  ROE (up to 5-year arithmetic mean)-7.0%

  ✗Buffett> 15% arithmetic mean (app rule)

  Operating Margin (10-yr trend)-0.6% (latest)

  ✗BuffettStable or rising over 10 years

  Free Cash Flow Proxy$-76.8M

  ✗BuffettPositive and growing

  Earnings Variance (10-yr CoV)1.90

  ✗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-34.9%

  ✗Lynch> 15%

  EBIT / Enterprise Value-11.3%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=-11.3%, ROC=-18.0%

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Net Income / Total Assets-2.97%

  ✗PiotroskiROA > 0

  ROA Change YoY7.01% -> -2.97% (delta: -9.99%)

  ✗PiotroskiCurrent ROA > Prior ROA

  (CFO / Total Assets) vs ROACFO/Assets=4.26%, ROA=-2.97%

  ✓PiotroskiCFO/Assets > ROA

  Gross Margin Change YoY20.8% -> 16.8%

  ✗PiotroskiImproved YoY

  Pre-Tax Income / Revenue-3.3%

  ✗Dreman>= 8%

  Net Income / Shareholders' Equity-34.9%

  ✗Dreman> 12%

  Margin of SafetyP/B=1.0x

  ✓PabraiP/B < 1.5 or P/E < 15

  Return on Equity16.5% (3-yr avg)

  ✗AkreROE > 20% (3-year avg)

  Discount to Intrinsic Value54.2% (IV=$59.40 vs Price=$27.22)

  ✓Marks>= 20% below intrinsic value

  Positive Net Income Frequency18/21 years positive

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

  Operating Income / Revenue-2.8%

  ✗Ackman>= 15%

  Net Income / Shareholders Equity-34.9%

  ✗Ackman>= 15%

  5-Year EPS CAGR38.1% CAGR over 4 years

  ✓Templeton> 0% (5-year EPS CAGR)

  Operating Margin Trend5.1% (2023) -> -0.6% (2025)

  ✗TempletonNon-negative operating-margin trend over 3 years

  Revenue growth vs. gross and operating margin trendgross margin 19.1% -> 16.8%, operating margin 5.1% -> -0.6%

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

  Net income / market capitalization-26.51%; #4730/6340 (top 74.6%)

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

  Gross profit / total assets+26.27%; #1642/3702 (top 44.4%)

  ✗AsnessTop 30% of eligible cross-section

  Net income / positive book equity-34.91%; #3991/5226 (top 76.4%)

  ✗AsnessTop 30% of eligible cross-section

  Negative 5-year standard deviation of ROA-0.0607; #2825/5884 (top 48.0%)

  ✗AsnessTop 30% of eligible cross-section

  3-5 Year Diluted EPS CAGR30.3% over 5 years

  ✗Neff7%-20% annualized

  Positive Diluted-EPS Years7/10 years positive

  ✓Schloss>= 70% positive over 5-10 observed years (app rule)
• Valuation23% pass✓ 11✗ 17▾

  10 of 13 flag HY's valuation — Lynch, Greenblatt, Dreman +7 more

  Price / Book Value per Share1.0x

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

  Price / 3-yr avg EPS6.9x

  ✓Graham<= 15x

  Price-to-Book Ratio1.0x

  ✓Graham<= 1.5x

  P/E x P/B7.00

  ✓Graham<= 22.5

  Basic earnings-growth PEG (dividends excluded)

  ✗Lynch< 1.0 (ideally < 0.5)

  EBIT / Enterprise Value-11.3%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=-11.3%, ROC=-18.0%

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Price / EPS

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

  Price / (CFO / Shares)5.6x

  ✓Dreman< 8x

  Valuation ReasonablenessOE Yield=-16.0%

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

  P/E or FCF YieldFCF Yield=4.8%

  ✗PabraiP/E < 15 or FCF Yield > 10%

  P/B or P/E vs. Historical AverageP/B=1.0x

  ✓MarksP/E < 15 or P/B < 2.0

  Discount to Intrinsic Value54.2% (IV=$59.40 vs Price=$27.22)

  ✓Marks>= 20% below intrinsic value

  Price / FCF per Share20.4x

  ✓Ackman<= 25

  Price vs. Trailing Low100% of trailing low ($27.22)

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

  Net income / market capitalization-26.51%; #4730/6340 (top 74.6%)

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

  Positive book equity / market capitalization+0.7595; #2036/6449 (top 31.6%)

  ✗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 Share1.25x

  ✗SchlossP/TBV <= 1.00x (app cutoff)

  Book Value per Share Change-27.3%

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

  Revenue / market capitalization+6.8759; #423/5247 (top 8.1%)

  ✓OshaughnessyTop 10% of eligible cross-section

  (Operating cash flow - capex) / market capitalization+0.96%; #2408/4519 (top 53.3%)

  ✗OshaughnessyTop 10% of eligible cross-section

  Trailing six-month price return through the evaluation date-31.04%; #4458/6202 (top 71.9%)

  ✗OshaughnessyTop 10% of eligible cross-section
• Growth25% pass✓ 4✗ 9▾

  6 of 8 flag HY's growth — Graham, Lynch, Dreman +3 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: -10.2% vs Rev: -14.2%

  ✗LynchInventory growth < Revenue growth

  EPS Growth Direction$1.94 (2010) -> $-3.40 (2025)

  ✗DremanPositive over recent years

  EPS CAGR10.7% CAGR over 14 years

  ✓Dreman> 5% annualized

  Positive Net Income Frequency18/21 years positive

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

  3yr Median Revenue Growth4.6%

  ✗Ackman>= 5%

  Positive EPS Growth Frequency3/5 years with positive EPS growth

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

  5-Year EPS CAGR38.1% CAGR over 4 years

  ✓Templeton> 0% (5-year EPS CAGR)

  Revenue growth vs. gross and operating margin trendgross margin 19.1% -> 16.8%, operating margin 5.1% -> -0.6%

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

  5-year Revenue CAGR6.0%

  ✗SleepCAGR > 7%

  3-5 Year Diluted EPS CAGR30.3% over 5 years

  ✗Neff7%-20% annualized
• Cash Flow50% pass✓ 7✗ 5▾

  5 of 10 pass — Buffett, Lynch, Pabrai +2 more object

  Free Cash Flow Proxy$-76.8M

  ✗BuffettPositive and growing

  FCF Positive and Growing$4.7M

  ✗LynchPositive and growing

  Operating Cash Flow$86.1M

  ✓PiotroskiCFO > 0

  (CFO / Total Assets) vs ROACFO/Assets=4.26%, ROA=-2.97%

  ✓PiotroskiCFO/Assets > ROA

  Price / (CFO / Shares)5.6x

  ✓Dreman< 8x

  P/E or FCF YieldFCF Yield=4.8%

  ✗PabraiP/E < 15 or FCF Yield > 10%

  FCF Positive14/16 years FCF positive

  ✓MarksPositive FCF in majority of recent years

  (OCF - CapEx) / Market Cap1.0%

  ✗Ackman>= 4%

  Price / FCF per Share20.4x

  ✓Ackman<= 25

  Positive Operating Cash Flow frequency19/21 years positive

  ✓SleepPositive OCF in >= 70% of available years

  Operating Cash Flow - Capital Expenditures$4.7M

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

  (Operating cash flow - capex) / market capitalization+0.96%; #2408/4519 (top 53.3%)

  ✗OshaughnessyTop 10% of eligible cross-section
• Valuation models50% pass✓ 3✗ 3▾

  Models split on HY at $27.22 — fair values range $13.80–$64.29

  Greenblatt fair value$64.29

  ✓Greenblatt+57.7% margin vs $27.22

  Dreman fair value$59.40

  ✓Dreman+54.2% margin vs $27.22

  Munger fair value$19.61

  ✗Munger-38.8% margin vs $27.22

  Akre fair value$61.79

  ✓Akre+55.9% margin vs $27.22

  Marks fair value$13.80

  ✗Marks-97.2% margin vs $27.22

  Ackman fair value$22.13

  ✗Ackman-23.0% margin vs $27.22