KINGSWAY Corp

Where It Passes

Where It Falls Short

• Profitability0% pass✓ 4✗ 28▾

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

  Positive EPS (10 years)4/16 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)5/16 years positive

  ✗BuffettPositive every year for 10+ years

  ROE (up to 5-year arithmetic mean)-154.7%

  ✗Buffett> 15% arithmetic mean (app rule)

  Operating Margin (10-yr trend)-1.8% (latest)

  ✓BuffettStable or rising over 10 years

  Free Cash Flow Proxy$6.1M

  ✓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)

  ✗Lynch< 1.0 (ideally < 0.5)

  3-5 Year EPS CAGR

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

  ROE-69.3%

  ✗Lynch> 15%

  Net Income / Total Assets-4.43%

  ✗PiotroskiROA > 0

  ROA Change YoY-4.44% -> -4.43% (delta: +0.02%)

  ✓PiotroskiCurrent ROA > Prior ROA

  (CFO / Total Assets) vs ROACFO/Assets=-0.00%, ROA=-4.43%

  ✓PiotroskiCFO/Assets > ROA

  Pre-Tax Income / Revenue-5.3%

  ✗Dreman>= 8%

  Net Income / Shareholders' Equity-69.3%

  ✗Dreman> 12%

  Margin of SafetyP/B=17.0x

  ✗PabraiP/B < 1.5 or P/E < 15

  Return on Equity-26.5% (3-yr avg)

  ✗AkreROE > 20% (3-year avg)

  Discount to Intrinsic Value-1538.2% (IV=$0.55 vs Price=$9.01)

  ✗Marks>= 20% below intrinsic value

  Positive Net Income Frequency5/15 years positive

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

  Operating Income / Revenue0.7%

  ✗Ackman>= 15%

  Net Income / Shareholders Equity-69.3%

  ✗Ackman>= 15%

  5-Year EPS CAGR

  ✗Templeton> 0% (5-year EPS CAGR)

  Operating Margin Trend0.9% (2023) -> -1.8% (2025)

  ✗TempletonNon-negative operating-margin trend over 3 years

  Revenue growth vs. gross and operating margin trendrevenue up, operating margin 0.9% -> -1.8%

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

  Net income / market capitalization-2.63%; #3643/6340 (top 57.5%)

  ✗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-69.32%; #4398/5226 (top 84.2%)

  ✗AsnessTop 30% of eligible cross-section

  Negative 5-year standard deviation of ROA-0.0631; #2876/5884 (top 48.9%)

  ✗AsnessTop 30% of eligible cross-section

  3-5 Year Diluted EPS CAGR

  ✗Neff7%-20% annualized

  Positive Diluted-EPS Years3/10 years positive

  ✗Schloss>= 70% positive over 5-10 observed years (app rule)
• Valuation0% pass✓ 1✗ 25▾

  No clean pass — all 12 investors flag at least one valuation criterion

  Price / 3-yr avg EPS245.7x

  ✗Graham<= 15x

  Price-to-Book Ratio17.0x

  ✗Graham<= 1.5x

  P/E x P/B4,178.1

  ✗Graham<= 22.5

  Basic earnings-growth PEG (dividends excluded)

  ✗Lynch< 1.0 (ideally < 0.5)

  Price / EPS

  ✗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 Share17.0x

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

  Valuation ReasonablenessOE Yield=-0.4%

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

  P/E or FCF Yield

  ✗PabraiP/E < 15 or FCF Yield > 10%

  P/B or P/E vs. Historical AverageP/B=17.0x

  ✗MarksP/E < 15 or P/B < 2.0

  Discount to Intrinsic Value-1538.2% (IV=$0.55 vs Price=$9.01)

  ✗Marks>= 20% below intrinsic value

  Price / FCF per Share

  ✗Ackman<= 25

  Price vs. Trailing Low116% of trailing low ($7.77)

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

  Net income / market capitalization-2.63%; #3643/6340 (top 57.5%)

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

  Positive book equity / market capitalization+0.0379; #5060/6449 (top 78.5%)

  ✗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

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

  Revenue / market capitalization+0.5977; #2384/5247 (top 45.4%)

  ✗OshaughnessyTop 10% of eligible cross-section

  (Operating cash flow - capex) / market capitalization

  ✗OshaughnessyTop 10% of eligible cross-section

  Trailing six-month price return through the evaluation date-9.81%; #3423/6202 (top 55.2%)

  ✗OshaughnessyTop 10% of eligible cross-section
• Growth0% pass✓ 2✗ 10▾

  No clean pass — all 8 investors flag at least one growth criterion

  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

  EPS Growth Direction

  ✗DremanPositive over recent years

  EPS CAGR

  ✗Dreman> 5% annualized

  Positive Net Income Frequency5/15 years positive

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

  3yr Median Revenue Growth10.7%

  ✓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 trendrevenue up, operating margin 0.9% -> -1.8%

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

  5-year Revenue CAGR17.2%

  ✓SleepCAGR > 7%

  3-5 Year Diluted EPS CAGR

  ✗Neff7%-20% annualized
• Efficiency0% pass✗ 5▾

  All 4 investors flag KWY's efficiency

  Revenue / Total Assets Change YoY0.59x -> 0.58x

  ✗PiotroskiImproved YoY

  Return on Invested Capital3.1%

  ✗Munger> 15%

  ROIC (high and growing)FY2023: ROIC=1.0%; FY2024: ROIC=2.6%; FY2025: ROIC=-2.2%

  ✗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 -2.2%)

  ✗SleepROIC > 12% in a majority of years
• Valuation models0% pass✗ 2▾

  KWY overvalued: all 2 models price fair value below $9.01 (median $1.85)

  Dreman fair value$0.55

  ✗Dreman-1538.2% margin vs $9.01

  Templeton fair value$3.15

  ✗Templeton-186.0% margin vs $9.01
• Verdicts7% pass✓ 1✗ 13▾

  Split decision: 13 FAIL · 2 NEUTRAL · 1 PASS

  Overall verdict

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

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

  Debt/Equity & Interest CoverageD/E: 1.82, IC: 0.2x

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

  Total Debt / Equity1.82

  ✗Lynch< 0.33

  Cash - Long-term Debt$-42.4M

  ✗LynchPositive preferred

  LT Debt / Total Assets Change30.83% -> 30.55%

  ✓PiotroskiDecreased YoY

  Total Debt / Shareholders' Equity1.82

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

  Debt Levels1.82

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

  Interest Coverage & Debt/EBITDAIC=-0.4x, D/EBITDA=10.4x

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

  Total Debt / Shareholders Equity1.82

  ✗Ackman<= 1.0

  Negative debt-to-equity (higher means less debt)-1.8214; #3726/4210 (top 88.5%)

  ✗AsnessTop 30% of eligible cross-section

  Current Assets / Current Liabilities0.92x

  ✗SchlossCurrent ratio >= 1.50x (app cutoff)
• Cash Flow10% pass✓ 2✗ 10▾

  9 of 10 flag KWY's cash flow — Lynch, Piotroski, Dreman +6 more

  Free Cash Flow Proxy$6.1M

  ✓BuffettPositive and growing

  FCF Positive and Growing$-6.7M

  ✗LynchPositive and growing

  Operating Cash Flow$-0.0M

  ✗PiotroskiCFO > 0

  (CFO / Total Assets) vs ROACFO/Assets=-0.00%, ROA=-4.43%

  ✓PiotroskiCFO/Assets > ROA

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

  ✗Dreman< 8x

  P/E or FCF Yield

  ✗PabraiP/E < 15 or FCF Yield > 10%

  FCF Positive1/8 years FCF positive

  ✗MarksPositive FCF in majority of recent years

  (OCF - CapEx) / Market Cap

  ✗Ackman>= 4%

  Price / FCF per Share

  ✗Ackman<= 25

  Positive Operating Cash Flow frequency3/15 years positive

  ✗SleepPositive OCF in >= 70% of available years

  Operating Cash Flow - Capital Expenditures

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

  (Operating cash flow - capex) / market capitalization

  ✗OshaughnessyTop 10% of eligible cross-section