Magnum Ice Cream Co N.V.

Where It Passes

Where It Falls Short

• Valuation0% pass✗ 28▾

  All 13 investors flag MICC's valuation

  Price / 3-yr avg EPS35.3x

  ✗Graham<= 15x

  Price-to-Book Ratio16.6x

  ✗Graham<= 1.5x

  P/E x P/B585.70

  ✗Graham<= 22.5

  Basic earnings-growth PEG (dividends excluded)P/E 35.3x (growth N/A)

  ✗Lynch< 1.0 (ideally < 0.5)

  EBIT / Enterprise Value6.1%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=6.1%, ROC=32.8%

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Price / EPS35.3x

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

  Price / (CFO / Shares)21.5x

  ✗Dreman< 8x

  Price / Book Value per Share16.6x

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

  Valuation ReasonablenessP/E=35.3x, OE Yield=2.6%

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

  P/E or FCF YieldP/E=35.3x, FCF Yield=1.2%

  ✗PabraiP/E < 15 or FCF Yield > 10%

  P/B or P/E vs. Historical AverageP/E=35.3x, P/B=16.6x

  ✗MarksP/E < 15 or P/B < 2.0

  Discount to Intrinsic Value-135.3% (IV=$8.46 vs Price=$19.90)

  ✗Marks>= 20% below intrinsic value

  Price / FCF per Share82.3x

  ✗Ackman<= 25

  Price vs. Trailing Low133% of trailing low ($14.93)

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

  Net income / market capitalization+2.86%; #2423/6340 (top 38.2%)

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

  Positive book equity / market capitalization+0.0611; #4947/6449 (top 76.7%)

  ✗AsnessTop 30% of eligible cross-section

  Price / Diluted EPS35.3x

  ✗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+0.7733; #2086/5247 (top 39.8%)

  ✗OshaughnessyTop 10% of eligible cross-section

  (Operating cash flow - capex) / market capitalization+1.23%; #2366/4519 (top 52.4%)

  ✗OshaughnessyTop 10% of eligible cross-section

  Trailing six-month price return through the evaluation date+33.29%; #950/6202 (top 15.3%)

  ✗OshaughnessyTop 10% of eligible cross-section
• Valuation models0% pass✗ 9▾

  MICC overvalued: all 9 models price fair value below $19.90 (median $6.64)

  Graham fair value$3.90

  ✗Graham-410.3% margin vs $19.90

  Buffett fair value$6.64

  ✗Buffett-199.7% margin vs $19.90

  Greenblatt fair value$9.98

  ✗Greenblatt-99.4% margin vs $19.90

  Dreman fair value$8.46

  ✗Dreman-135.2% margin vs $19.90

  Munger fair value$3.02

  ✗Munger-558.9% margin vs $19.90

  Pabrai fair value$6.61

  ✗Pabrai-201.1% margin vs $19.90

  Akre fair value$9.21

  ✗Akre-116.1% margin vs $19.90

  Marks fair value$8.46

  ✗Marks-135.2% margin vs $19.90

  Ackman fair value$4.19

  ✗Ackman-374.9% margin vs $19.90
• Profitability6% pass✓ 10✗ 25▾

  15 of 16 flag MICC's profitability — Graham, Buffett, Lynch +12 more

  Positive EPS (10 years)1/4 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)3/4 years positive

  ✗BuffettPositive every year for 10+ years

  ROE (up to 5-year arithmetic mean)29.0%

  ✓Buffett> 15% arithmetic mean (app rule)

  Operating Margin (10-yr trend)

  ✗BuffettStable or rising over 10 years

  Free Cash Flow Proxy$344.2M

  ✗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 35.3x (growth N/A)

  ✗Lynch< 1.0 (ideally < 0.5)

  3-5 Year EPS CAGR

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

  ROE46.9%

  ✓Lynch> 15%

  EBIT / Enterprise Value6.1%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=6.1%, ROC=32.8%

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Net Income / Total Assets3.91%

  ✓PiotroskiROA > 0

  ROA Change YoY10.49% -> 3.91% (delta: -6.57%)

  ✗PiotroskiCurrent ROA > Prior ROA

  (CFO / Total Assets) vs ROACFO/Assets=6.45%, ROA=3.91%

  ✓PiotroskiCFO/Assets > ROA

  Gross Margin Change YoY34.9% -> 34.6%

  ✗PiotroskiImproved YoY

  Pre-Tax Income / Revenue5.7%

  ✗Dreman>= 8%

  Net Income / Shareholders' Equity46.9%

  ✓Dreman> 12%

  Margin of SafetyP/E=35.3x, P/B=16.6x

  ✗PabraiP/B < 1.5 or P/E < 15

  Return on Equity29.0% (3-yr avg)

  ✓AkreROE > 20% (3-year avg)

  Discount to Intrinsic Value-135.3% (IV=$8.46 vs Price=$19.90)

  ✗Marks>= 20% below intrinsic value

  Positive Net Income Frequency3/3 years positive

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

  Operating Income / Revenue7.6%

  ✗Ackman>= 15%

  Net Income / Shareholders Equity46.9%

  ✓Ackman>= 15%

  5-Year EPS CAGR

  ✗Templeton> 0% (5-year EPS CAGR)

  Operating Margin Trend9.7% (2023) -> 7.6% (2025)

  ✗TempletonNon-negative operating-margin trend over 3 years

  Revenue growth vs. gross and operating margin trendgross margin 34.1% -> 34.6%, operating margin 9.7% -> 7.6%

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

  Net income / market capitalization+2.86%; #2423/6340 (top 38.2%)

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

  Gross profit / total assets+36.58%; #1101/3702 (top 29.7%)

  ✓AsnessTop 30% of eligible cross-section

  Net income / positive book equity+46.88%; #231/5226 (top 4.4%)

  ✓AsnessTop 30% of eligible cross-section

  Negative 5-year standard deviation of ROA

  ✗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)
• Verdicts7% pass✓ 1✗ 14▾

  Split decision: 13 FAIL · 2 NEUTRAL · 1 PASS

  Overall verdict

  ✗GrahamFAIL (1/9)✗BuffettFAIL (1/9)✗LynchFAIL (2/7)✗GreenblattRank #770✓PiotroskiPASS (F-Score 5)✗DremanFAIL (2/11)✗MungerFAIL (1/4)✗PabraiFAIL (0/3)✗AkreFAIL (2/6)✗MarksFAIL (2/5)✗AckmanFAIL (3/9)✗TempletonFAIL (1/8)✗SleepFAIL (2/6)•AsnessNEUTRAL (Not ranked)✗NeffFAIL (2/6)✗SchlossFAIL (0/7)•OshaughnessyNEUTRAL (Not ranked)
• Debt & Leverage8% pass✓ 1✗ 14▾

  11 of 12 flag MICC'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 Liabilities1.02

  ✗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/EBITDAIC=5.1x, D/EBITDA=N/A

  ✗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
• Growth13% pass✓ 3✗ 10▾

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

  EPS Growth (3-yr avg, 10-yr window)

  ✗Graham>= 33% growth

  Basic earnings-growth PEG (dividends excluded)P/E 35.3x (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: 7.1% vs Rev: 12.4%

  ✓LynchInventory growth < Revenue growth

  EPS Growth Direction

  ✗DremanPositive over recent years

  EPS CAGR

  ✗Dreman> 5% annualized

  Positive Net Income Frequency3/3 years positive

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

  3yr Median Revenue Growth5.2%

  ✓Ackman>= 5%

  Positive EPS Growth Frequency

  ✗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 34.1% -> 34.6%, operating margin 9.7% -> 7.6%

  ✗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
• Efficiency13% pass✓ 2✗ 9▾

  7 of 8 flag MICC's efficiency — Graham, Buffett, Piotroski +4 more

  Current Ratio1.02

  ✗Graham>= 2.0

  ROIC (3-5 yr avg)

  ✗Buffett> 10%

  ROIC - WACC

  ✗BuffettPositive (WACC = 10%)

  EBIT / (NWC + Net Fixed Assets)32.8%

  ✓Greenblatt> 25%

  Current Ratio Change YoY0.80 -> 1.02

  ✓PiotroskiIncreased YoY

  Revenue / Total Assets Change YoY1.44x -> 1.06x

  ✗PiotroskiImproved YoY

  Current Assets / Current Liabilities1.02

  ✗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
• Cash Flow40% pass✓ 5✗ 7▾

  6 of 10 flag MICC's cash flow — Buffett, Lynch, Dreman +3 more

  Free Cash Flow Proxy$344.2M

  ✗BuffettPositive and growing

  FCF Positive and Growing$148.0M

  ✗LynchPositive and growing

  Operating Cash Flow$567.4M

  ✓PiotroskiCFO > 0

  (CFO / Total Assets) vs ROACFO/Assets=6.45%, ROA=3.91%

  ✓PiotroskiCFO/Assets > ROA

  Price / (CFO / Shares)21.5x

  ✗Dreman< 8x

  P/E or FCF YieldP/E=35.3x, FCF Yield=1.2%

  ✗PabraiP/E < 15 or FCF Yield > 10%

  FCF Positive3/3 years FCF positive

  ✓MarksPositive FCF in majority of recent years

  (OCF - CapEx) / Market Cap1.2%

  ✗Ackman>= 4%

  Price / FCF per Share82.3x

  ✗Ackman<= 25

  Positive Operating Cash Flow frequency3/3 years positive

  ✓SleepPositive OCF in >= 70% of available years

  Operating Cash Flow - Capital Expenditures$148.0M

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

  (Operating cash flow - capex) / market capitalization+1.23%; #2366/4519 (top 52.4%)

  ✗OshaughnessyTop 10% of eligible cross-section