Kiniksa Pharmaceuticals International, plc

Where It Passes

Where It Falls Short

• Valuation0% pass✓ 2✗ 26▾

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

  Price / 3-yr avg EPS825.7x

  ✗Graham<= 15x

  Price-to-Book Ratio13.4x

  ✗Graham<= 1.5x

  P/E x P/B11,067.3

  ✗Graham<= 22.5

  Basic earnings-growth PEG (dividends excluded)P/E 128.4x (growth N/A)

  ✗Lynch< 1.0 (ideally < 0.5)

  EBIT / Enterprise Value1.0%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=1.0%, ROC=34.4%

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Price / EPS128.4x

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

  Price / (CFO / Shares)55.1x

  ✗Dreman< 8x

  Price / Book Value per Share13.4x

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

  Valuation ReasonablenessP/E=128.4x, OE Yield=0.8%

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

  P/E or FCF YieldP/E=128.4x, FCF Yield=1.8%

  ✗PabraiP/E < 15 or FCF Yield > 10%

  P/B or P/E vs. Historical AverageP/E=128.4x, P/B=13.4x

  ✗MarksP/E < 15 or P/B < 2.0

  Discount to Intrinsic Value-5404.6% (IV=$1.75 vs Price=$96.33)

  ✗Marks>= 20% below intrinsic value

  Price / FCF per Share55.8x

  ✗Ackman<= 25

  Price vs. Trailing Low491% of trailing low ($19.60)

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

  Net income / market capitalization+1.45%; #2863/6340 (top 45.2%)

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

  Positive book equity / market capitalization+0.0938; #4783/6449 (top 74.2%)

  ✗AsnessTop 30% of eligible cross-section

  Price / Diluted EPS128.4x

  ✗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 Share13.77x

  ✗SchlossP/TBV <= 1.00x (app cutoff)

  Book Value per Share Change+42.5%

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

  Revenue / market capitalization+0.1250; #4201/5247 (top 80.1%)

  ✗OshaughnessyTop 10% of eligible cross-section

  (Operating cash flow - capex) / market capitalization+2.61%; #2126/4519 (top 47.0%)

  ✗OshaughnessyTop 10% of eligible cross-section

  Trailing six-month price return through the evaluation date+104.61%; #309/6202 (top 5.0%)

  ✓OshaughnessyTop 10% of eligible cross-section
• Valuation models0% pass✗ 8▾

  KNSA overvalued: all 8 models price fair value below $96.33 (median $9.92)

  Graham fair value$11.01

  ✗Graham-774.9% margin vs $96.33

  Buffett fair value$8.83

  ✗Buffett-990.9% margin vs $96.33

  Greenblatt fair value$0.21

  ✗Greenblatt-45771.4% margin vs $96.33

  Dreman fair value$1.75

  ✗Dreman-5404.6% margin vs $96.33

  Munger fair value$31.47

  ✗Munger-206.1% margin vs $96.33

  Pabrai fair value$12.28

  ✗Pabrai-684.4% margin vs $96.33

  Ackman fair value$61.88

  ✗Ackman-55.7% margin vs $96.33

  Templeton fair value$1.95

  ✗Templeton-4840.0% margin vs $96.33
• Debt & Leverage8% pass✓ 3✗ 12▾

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

  LT Debt vs Net Current Assets

  ✗GrahamLT Debt <= Net Current Assets

  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

  Current Assets / Current Liabilities3.91

  ✓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 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
• Profitability13% pass✓ 13✗ 22▾

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

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

  ✗BuffettPositive every year for 10+ years

  ROE (up to 5-year arithmetic mean)-7.1%

  ✗Buffett> 15% arithmetic mean (app rule)

  Operating Margin (10-yr trend)11.4% (latest)

  ✓BuffettStable or rising over 10 years

  Free Cash Flow Proxy$59.0M

  ✓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 128.4x (growth N/A)

  ✗Lynch< 1.0 (ideally < 0.5)

  3-5 Year EPS CAGR-33.9%

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

  ROE15.4%

  ✓Lynch> 15%

  EBIT / Enterprise Value1.0%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=1.0%, ROC=34.4%

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Net Income / Total Assets7.73%

  ✓PiotroskiROA > 0

  ROA Change YoY-7.44% -> 7.73% (delta: +15.17%)

  ✓PiotroskiCurrent ROA > Prior ROA

  (CFO / Total Assets) vs ROACFO/Assets=18.07%, ROA=7.73%

  ✓PiotroskiCFO/Assets > ROA

  Gross Margin Change YoY85.6% -> 88.5%

  ✓PiotroskiImproved YoY

  Pre-Tax Income / Revenue15.5%

  ✓Dreman>= 8%

  Net Income / Shareholders' Equity15.4%

  ✓Dreman> 12%

  Margin of SafetyP/E=128.4x, P/B=13.4x

  ✗PabraiP/B < 1.5 or P/E < 15

  Return on Equity1.3% (3-yr avg)

  ✗AkreROE > 20% (3-year avg)

  Discount to Intrinsic Value-5404.6% (IV=$1.75 vs Price=$96.33)

  ✗Marks>= 20% below intrinsic value

  Positive Net Income Frequency3/9 years positive

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

  Operating Income / Revenue13.8%

  ✗Ackman>= 15%

  Net Income / Shareholders Equity15.4%

  ✓Ackman>= 15%

  5-Year EPS CAGR-33.9% CAGR over 3 years

  ✗Templeton> 0% (5-year EPS CAGR)

  Operating Margin Trend-9.3% (2023) -> 11.4% (2025)

  ✓TempletonNon-negative operating-margin trend over 3 years

  Revenue growth vs. gross and operating margin trendgross margin 87.6% -> 88.5%, operating margin -9.3% -> 11.4%

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

  Net income / market capitalization+1.45%; #2863/6340 (top 45.2%)

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

  Gross profit / total assets+78.56%; #260/3702 (top 7.0%)

  ✓AsnessTop 30% of eligible cross-section

  Net income / positive book equity+15.43%; #1121/5226 (top 21.5%)

  ✓AsnessTop 30% of eligible cross-section

  Negative 5-year standard deviation of ROA-0.3519; #4702/5884 (top 79.9%)

  ✗AsnessTop 30% of eligible cross-section

  3-5 Year Diluted EPS CAGR-33.9% over 3 years

  ✗Neff7%-20% annualized

  Positive Diluted-EPS Years3/9 years positive

  ✗Schloss>= 70% positive over 5-10 observed years (app rule)
• Growth13% pass✓ 3✗ 10▾

  7 of 8 flag KNSA'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 128.4x (growth N/A)

  ✗Lynch< 1.0 (ideally < 0.5)

  3-5 Year EPS CAGR-33.9%

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

  Inventory Growth vs Revenue GrowthInv: 161.0% vs Rev: 58.2%

  ✗LynchInventory growth < Revenue growth

  EPS Growth Direction$-35.85 (2017) -> $0.75 (2025)

  ✓DremanPositive over recent years

  EPS CAGR-33.9% CAGR over 3 years

  ✗Dreman> 5% annualized

  Positive Net Income Frequency3/9 years positive

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

  3yr Median Revenue Growth56.6%

  ✓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-33.9% CAGR over 3 years

  ✗Templeton> 0% (5-year EPS CAGR)

  Revenue growth vs. gross and operating margin trendgross margin 87.6% -> 88.5%, operating margin -9.3% -> 11.4%

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

  5-year Revenue CAGR

  ✗SleepCAGR > 7%

  3-5 Year Diluted EPS CAGR-33.9% over 3 years

  ✗Neff7%-20% annualized
• Verdicts20% pass✓ 3✗ 12▾

  Split decision: 11 FAIL · 2 PASS · 2 NEUTRAL · 1 BUY

  Overall verdict

  ✗GrahamFAIL (2/9)✗BuffettFAIL (2/9)✗LynchFAIL (2/7)✗GreenblattRank #1401✓PiotroskiBUY (F-Score 8)✓DremanPASS (5/11)✗MungerFAIL (0/4)✗PabraiFAIL (0/3)✗AkreFAIL (1/6)✗MarksFAIL (0/5)✓AckmanPASS (5/9)✗TempletonFAIL (2/8)✗SleepFAIL (1/6)•AsnessNEUTRAL (Not ranked)✗NeffFAIL (2/6)✗SchlossFAIL (2/7)•OshaughnessyNEUTRAL (Not ranked)
• Cash Flow40% pass✓ 5✗ 7▾

  6 of 10 flag KNSA's cash flow — Dreman, Pabrai, Marks +3 more

  Free Cash Flow Proxy$59.0M

  ✓BuffettPositive and growing

  FCF Positive and Growing$197.2M

  ✓LynchPositive and growing

  Operating Cash Flow$138.0M

  ✓PiotroskiCFO > 0

  (CFO / Total Assets) vs ROACFO/Assets=18.07%, ROA=7.73%

  ✓PiotroskiCFO/Assets > ROA

  Price / (CFO / Shares)55.1x

  ✗Dreman< 8x

  P/E or FCF YieldP/E=128.4x, FCF Yield=1.8%

  ✗PabraiP/E < 15 or FCF Yield > 10%

  FCF Positive4/9 years FCF positive

  ✗MarksPositive FCF in majority of recent years

  (OCF - CapEx) / Market Cap2.6%

  ✗Ackman>= 4%

  Price / FCF per Share55.8x

  ✗Ackman<= 25

  Positive Operating Cash Flow frequency4/9 years positive

  ✗SleepPositive OCF in >= 70% of available years

  Operating Cash Flow - Capital Expenditures$197.2M

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

  (Operating cash flow - capex) / market capitalization+2.61%; #2126/4519 (top 47.0%)

  ✗OshaughnessyTop 10% of eligible cross-section
• Efficiency50% pass✓ 5✗ 6▾

  4 of 8 pass — Buffett, Munger, Akre +1 more object

  Current Ratio3.91

  ✓Graham>= 2.0

  ROIC (3-5 yr avg)

  ✗Buffett> 10%

  ROIC - WACC

  ✗BuffettPositive (WACC = 10%)

  EBIT / (NWC + Net Fixed Assets)34.4%

  ✓Greenblatt> 25%

  Current Ratio Change YoY3.30 -> 3.79

  ✓PiotroskiIncreased YoY

  Revenue / Total Assets Change YoY0.73x -> 0.89x

  ✓PiotroskiImproved YoY

  Current Assets / Current Liabilities3.91

  ✓Dreman> 1.5

  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