Indivior Pharmaceuticals, Inc.

Where It Passes

Where It Falls Short

• Growth0% pass✓ 4✗ 9▾

  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)P/E 22.1x (growth N/A)

  ✗Lynch< 1.0 (ideally < 0.5)

  3-5 Year EPS CAGR

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

  Inventory Growth vs Revenue GrowthInv: -8.4% vs Rev: 4.3%

  ✓LynchInventory growth < Revenue growth

  EPS Growth Direction$-0.32 (2022) -> $1.64 (2025)

  ✓DremanPositive over recent years

  EPS CAGR

  ✗Dreman> 5% annualized

  Positive Net Income Frequency3/5 years positive

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

  3yr Median Revenue Growth8.7%

  ✓Ackman>= 5%

  Positive EPS Growth Frequency2/3 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 84.1% -> 80.2%, operating margin -13.9% -> 21.1%

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

  5-year Revenue CAGR

  ✗SleepCAGR > 7%

  3-5 Year Diluted EPS CAGR

  ✗Neff7%-20% annualized
• Valuation models0% pass✗ 6▾

  INDV overvalued: all 6 models price fair value below $36.28 (median $3.49)

  Buffett fair value$15.11

  ✗Buffett-140.1% margin vs $36.28

  Greenblatt fair value$3.12

  ✗Greenblatt-1062.8% margin vs $36.28

  Dreman fair value$3.85

  ✗Dreman-842.3% margin vs $36.28

  Pabrai fair value$24.65

  ✗Pabrai-47.2% margin vs $36.28

  Marks fair value$1.69

  ✗Marks-2046.7% margin vs $36.28

  Templeton fair value$1.69

  ✗Templeton-2046.7% margin vs $36.28
• Debt & Leverage8% pass✓ 2✗ 13▾

  11 of 12 flag INDV's debt & leverage — Graham, Buffett, Lynch +8 more

  LT Debt vs Net Current AssetsLT Debt $0.0M vs NCA $-501.0M

  ✗GrahamLT Debt <= Net Current Assets

  Debt/Equity & Interest CoverageD/E: N/A (negative equity), IC: 24.3x

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

  Total Debt / EquityN/A (negative equity)

  ✗Lynch< 0.33

  Cash - Long-term Debt$305.0M

  ✓LynchPositive preferred

  LT Debt / Total Assets Change23.94% -> 24.15%

  ✗PiotroskiDecreased YoY

  Current Assets / Current Liabilities0.61

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

  Total Debt / Shareholders' Equity

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

  Debt LevelsN/A (non-positive equity)

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

  Interest Coverage & Debt/EBITDAIC=24.3x, D/EBITDA=0.9x

  ✓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
• Valuation8% pass✓ 4✗ 24▾

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

  Price / 3-yr avg EPS151.2x

  ✗Graham<= 15x

  Price-to-Book Ratio

  ✗Graham<= 1.5x

  P/E x P/B

  ✗Graham<= 22.5

  Basic earnings-growth PEG (dividends excluded)P/E 22.1x (growth N/A)

  ✗Lynch< 1.0 (ideally < 0.5)

  EBIT / Enterprise Value12.5%

  ✓Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=12.5%, ROC=N/A (invested capital <= 0)

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Price / EPS22.1x

  ✗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 ShareN/A (negative BVPS)

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

  Valuation ReasonablenessP/E=22.1x, OE Yield=3.4%

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

  P/E or FCF YieldP/E=22.1x, FCF Yield=-2.2%

  ✗PabraiP/E < 15 or FCF Yield > 10%

  P/B or P/E vs. Historical AverageP/E=22.1x

  ✗MarksP/E < 15 or P/B < 2.0

  Discount to Intrinsic Value-907.8% (IV=$3.60 vs Price=$36.28)

  ✗Marks>= 20% below intrinsic value

  Price / FCF per ShareN/A (negative FCF)

  ✗Ackman<= 25

  Price vs. Trailing Low393% of trailing low ($9.24)

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

  Net income / market capitalization+10.51%; #597/6340 (top 9.4%)

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

  Positive book equity / market capitalization-0.0140; #5365/6449 (top 83.2%)

  ✗AsnessTop 30% of eligible cross-section

  Price / Diluted EPS22.1x

  ✗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

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

  Revenue / market capitalization+0.3209; #3234/5247 (top 61.6%)

  ✗OshaughnessyTop 10% of eligible cross-section

  (Operating cash flow - capex) / market capitalization+0.72%; #2437/4519 (top 53.9%)

  ✗OshaughnessyTop 10% of eligible cross-section

  Trailing six-month price return through the evaluation date+18.80%; #1402/6202 (top 22.6%)

  ✗OshaughnessyTop 10% of eligible cross-section
• Cash Flow10% pass✓ 1✗ 11▾

  9 of 10 flag INDV's cash flow — Buffett, Lynch, Piotroski +6 more

  Free Cash Flow Proxy$159.9M

  ✗BuffettPositive and growing

  FCF Positive and Growing$-93.0M

  ✗LynchPositive and growing

  Operating Cash Flow$-27.0M

  ✗PiotroskiCFO > 0

  (CFO / Total Assets) vs ROACFO/Assets=-2.25%, ROA=17.49%

  ✗PiotroskiCFO/Assets > ROA

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

  ✗Dreman< 8x

  P/E or FCF YieldP/E=22.1x, FCF Yield=-2.2%

  ✗PabraiP/E < 15 or FCF Yield > 10%

  FCF Positive2/5 years FCF positive

  ✗MarksPositive FCF in majority of recent years

  (OCF - CapEx) / Market Cap0.7%

  ✗Ackman>= 4%

  Price / FCF per ShareN/A (negative FCF)

  ✗Ackman<= 25

  Positive Operating Cash Flow frequency2/5 years positive

  ✗SleepPositive OCF in >= 70% of available years

  Operating Cash Flow - Capital Expenditures$31.0M

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

  (Operating cash flow - capex) / market capitalization+0.72%; #2437/4519 (top 53.9%)

  ✗OshaughnessyTop 10% of eligible cross-section
• Profitability19% pass✓ 12✗ 23▾

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

  Positive EPS (10 years)2/6 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)3/6 years positive

  ✗BuffettPositive every year for 10+ years

  ROE (up to 5-year arithmetic mean)169.4%

  ✓Buffett> 15% arithmetic mean (app rule)

  Operating Margin (10-yr trend)21.1% (latest)

  ✗BuffettStable or rising over 10 years

  Free Cash Flow Proxy$159.9M

  ✗BuffettPositive and growing

  Earnings Variance (10-yr CoV)

  ✗BuffettCoV < 0.3

  Retained Earnings Effectiveness

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

  Basic earnings-growth PEG (dividends excluded)P/E 22.1x (growth N/A)

  ✗Lynch< 1.0 (ideally < 0.5)

  3-5 Year EPS CAGR

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

  ROEN/A (negative equity)

  ✗Lynch> 15%

  EBIT / Enterprise Value12.5%

  ✓Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=12.5%, ROC=N/A (invested capital <= 0)

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Net Income / Total Assets17.49%

  ✓PiotroskiROA > 0

  ROA Change YoY0.53% -> 17.49% (delta: +16.95%)

  ✓PiotroskiCurrent ROA > Prior ROA

  (CFO / Total Assets) vs ROACFO/Assets=-2.25%, ROA=17.49%

  ✗PiotroskiCFO/Assets > ROA

  Gross Margin Change YoY80.6% -> 80.2%

  ✗PiotroskiImproved YoY

  Pre-Tax Income / Revenue39.2%

  ✓Dreman>= 8%

  Net Income / Shareholders' Equity

  ✗Dreman> 12%

  Margin of SafetyP/E=22.1x

  ✗PabraiP/B < 1.5 or P/E < 15

  Return on Equity169.4% (3-yr avg)

  ✓AkreROE > 20% (3-year avg)

  Discount to Intrinsic Value-907.8% (IV=$3.60 vs Price=$36.28)

  ✗Marks>= 20% below intrinsic value

  Positive Net Income Frequency3/5 years positive

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

  Operating Income / Revenue40.6%

  ✓Ackman>= 15%

  Net Income / Shareholders Equity

  ✗Ackman>= 15%

  5-Year EPS CAGR

  ✗Templeton> 0% (5-year EPS CAGR)

  Operating Margin Trend-13.9% (2023) -> 21.1% (2025)

  ✓TempletonNon-negative operating-margin trend over 3 years

  Revenue growth vs. gross and operating margin trendgross margin 84.1% -> 80.2%, operating margin -13.9% -> 21.1%

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

  Net income / market capitalization+10.51%; #597/6340 (top 9.4%)

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

  Gross profit / total assets+87.69%; #195/3702 (top 5.3%)

  ✓AsnessTop 30% of eligible cross-section

  Net income / positive book equity

  ✗AsnessTop 30% of eligible cross-section

  Negative 5-year standard deviation of ROA-0.0908; #3355/5884 (top 57.0%)

  ✗AsnessTop 30% of eligible cross-section

  3-5 Year Diluted EPS CAGR

  ✗Neff7%-20% annualized

  Positive Diluted-EPS Years

  ✗Schloss>= 70% positive over 5-10 observed years (app rule)
• Efficiency25% pass✓ 5✗ 6▾

  6 of 8 flag INDV's efficiency — Graham, Greenblatt, Piotroski +3 more

  Current Ratio0.61

  ✗Graham>= 2.0

  ROIC (3-5 yr avg)796.1%

  ✓Buffett> 10%

  ROIC - WACC+786.1%

  ✓BuffettPositive (WACC = 10%)

  EBIT / (NWC + Net Fixed Assets)N/A (invested capital <= 0)

  ✗Greenblatt> 25%

  Current Ratio Change YoY0.90 -> 0.71

  ✗PiotroskiIncreased YoY

  Revenue / Total Assets Change YoY0.90x -> 1.03x

  ✓PiotroskiImproved YoY

  Current Assets / Current Liabilities0.61

  ✗Dreman> 1.5

  Return on Invested Capital103.0%

  ✓Munger> 15%

  ROIC (high and growing)FY2023: ROIC=-214.4%; FY2024: ROIC=unavailable; FY2025: ROIC=93.7%

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

  Reinvestment Rate x ROIC93.7% (RR=100% x ROIC=93.7%)

  ✓AkreReinvestment Rate * ROIC > 10%

  ROIC (5-year)2/4 years above 12% (latest 93.7%)

  ✗SleepROIC > 12% in a majority of years
• Verdicts29% pass✓ 4✗ 10▾

  Split decision: 10 FAIL · 4 PASS · 2 NEUTRAL

  Overall verdict

  ✗GrahamFAIL (1/9)✗BuffettFAIL (3/9)✗LynchFAIL (2/7)•GreenblattNot ranked✗PiotroskiFAIL (F-Score 3)✗DremanFAIL (3/11)✓MungerPASS (2/4)✗PabraiFAIL (0/3)✓AkrePASS (3/6)✗MarksFAIL (1/5)✓AckmanPASS (4/9)✗TempletonFAIL (2/8)✓SleepPASS (3/6)•AsnessNEUTRAL (Not ranked)✗NeffFAIL (2/6)✗SchlossFAIL (0/7)•OshaughnessyNEUTRAL (Not ranked)