McEwen Inc.

Where It Passes

Where It Falls Short

• Cash Flow0% pass✓ 1✗ 11▾

  No clean pass — all 10 investors flag at least one cash flow criterion

  Free Cash Flow Proxy$-44.9M

  ✗BuffettPositive and growing

  FCF Positive and Growing$-61.9M

  ✗LynchPositive and growing

  Operating Cash Flow$6.9M

  ✓PiotroskiCFO > 0

  (CFO / Total Assets) vs ROACFO/Assets=0.84%, ROA=4.20%

  ✗PiotroskiCFO/Assets > ROA

  Price / (CFO / Shares)96.2x

  ✗Dreman< 8x

  P/E or FCF YieldP/E=20.2x

  ✗PabraiP/E < 15 or FCF Yield > 10%

  FCF Positive2/10 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 frequency5/17 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
• Growth0% pass✓ 3✗ 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)P/E 20.2x (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: -0.6% vs Rev: 45.1%

  ✓LynchInventory growth < Revenue growth

  EPS Growth Direction

  ✗DremanPositive over recent years

  EPS CAGR

  ✗Dreman> 5% annualized

  Positive Net Income Frequency4/18 years positive

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

  3yr Median Revenue Growth13.2%

  ✓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 10.7% -> 24.1%, operating margin -97.5% -> 1.3%

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

  5-year Revenue CAGR13.5%

  ✓SleepCAGR > 7%

  3-5 Year Diluted EPS CAGR

  ✗Neff7%-20% annualized
• Efficiency0% pass✓ 1✗ 10▾

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

  Current Ratio1.34

  ✗Graham>= 2.0

  ROIC (3-5 yr avg)-12.9%

  ✗Buffett> 10%

  ROIC - WACC-22.9%

  ✗BuffettPositive (WACC = 10%)

  EBIT / (NWC + Net Fixed Assets)

  ✗Greenblatt> 25%

  Current Ratio Change YoY0.86 -> 1.69

  ✓PiotroskiIncreased YoY

  Revenue / Total Assets Change YoY0.26x -> 0.24x

  ✗PiotroskiImproved YoY

  Current Assets / Current Liabilities1.34

  ✗Dreman> 1.5

  Return on Invested Capital4.9%

  ✗Munger> 15%

  ROIC (high and growing)FY2023: ROIC=-23.6%; FY2024: ROIC=-7.3%; FY2025: ROIC=0.3%

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

  Reinvestment Rate x ROIC0.3% (RR=100% x ROIC=0.3%)

  ✗AkreReinvestment Rate * ROIC > 10%

  ROIC (5-year)0/5 years above 12% (latest 0.3%)

  ✗SleepROIC > 12% in a majority of years
• Valuation models0% pass✗ 3▾

  MUX overvalued: all 3 models price fair value below $11.90 (median $10.21)

  Graham fair value$11.43

  ✗Graham-4.1% margin vs $11.90

  Dreman fair value$4.45

  ✗Dreman-167.4% margin vs $11.90

  Pabrai fair value$10.21

  ✗Pabrai-16.6% margin vs $11.90
• Profitability6% pass✓ 9✗ 26▾

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

  Net income / market capitalization+6.06%; #1401/6340 (top 22.1%)

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

  Positive EPS (10 years)3/23 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)4/23 years positive

  ✗BuffettPositive every year for 10+ years

  ROE (up to 5-year arithmetic mean)-5.8%

  ✗Buffett> 15% arithmetic mean (app rule)

  Operating Margin (10-yr trend)1.3% (latest)

  ✓BuffettStable or rising over 10 years

  Free Cash Flow Proxy$-44.9M

  ✗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 20.2x (growth N/A)

  ✗Lynch< 1.0 (ideally < 0.5)

  3-5 Year EPS CAGR

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

  ROE6.6%

  ✗Lynch> 15%

  EBIT / Enterprise Value0.3%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=0.3%, ROC=None

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Net Income / Total Assets4.20%

  ✓PiotroskiROA > 0

  ROA Change YoY-6.57% -> 4.20% (delta: +10.77%)

  ✓PiotroskiCurrent ROA > Prior ROA

  (CFO / Total Assets) vs ROACFO/Assets=0.84%, ROA=4.20%

  ✗PiotroskiCFO/Assets > ROA

  Gross Margin Change YoY17.7% -> 24.1%

  ✓PiotroskiImproved YoY

  Pre-Tax Income / Revenue12.2%

  ✓Dreman>= 8%

  Net Income / Shareholders' Equity6.6%

  ✗Dreman> 12%

  Margin of SafetyP/E=20.2x, P/B=1.2x

  ✓PabraiP/B < 1.5 or P/E < 15

  Return on Equity2.8% (3-yr avg)

  ✗AkreROE > 20% (3-year avg)

  Discount to Intrinsic Value-167.4% (IV=$4.45 vs Price=$11.90)

  ✗Marks>= 20% below intrinsic value

  Positive Net Income Frequency4/18 years positive

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

  Operating Income / Revenue20.6%

  ✓Ackman>= 15%

  Net Income / Shareholders Equity6.6%

  ✗Ackman>= 15%

  5-Year EPS CAGR

  ✗Templeton> 0% (5-year EPS CAGR)

  Operating Margin Trend-97.5% (2023) -> 1.3% (2025)

  ✓TempletonNon-negative operating-margin trend over 3 years

  Revenue growth vs. gross and operating margin trendgross margin 10.7% -> 24.1%, operating margin -97.5% -> 1.3%

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

  Gross profit / total assets+7.48%; #2966/3702 (top 80.1%)

  ✗AsnessTop 30% of eligible cross-section

  Net income / positive book equity+6.60%; #2272/5226 (top 43.5%)

  ✗AsnessTop 30% of eligible cross-section

  Negative 5-year standard deviation of ROA-0.0897; #3341/5884 (top 56.8%)

  ✗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)
• Valuation15% pass✓ 6✗ 22▾

  11 of 13 flag MUX's valuation — Graham, Lynch, Greenblatt +8 more

  Price / Book Value per Share1.2x

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

  Net income / market capitalization+6.06%; #1401/6340 (top 22.1%)

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

  Price / 3-yr avg EPS40.1x

  ✗Graham<= 15x

  Price-to-Book Ratio1.2x

  ✓Graham<= 1.5x

  P/E x P/B48.50

  ✗Graham<= 22.5

  Basic earnings-growth PEG (dividends excluded)P/E 20.2x (growth N/A)

  ✗Lynch< 1.0 (ideally < 0.5)

  EBIT / Enterprise Value0.3%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=0.3%, ROC=None

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Price / EPS20.2x

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

  Price / (CFO / Shares)96.2x

  ✗Dreman< 8x

  Valuation ReasonablenessP/E=20.2x, OE Yield=9.4%

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

  P/E or FCF YieldP/E=20.2x

  ✗PabraiP/E < 15 or FCF Yield > 10%

  P/B or P/E vs. Historical AverageP/E=20.2x, P/B=1.2x

  ✓MarksP/E < 15 or P/B < 2.0

  Discount to Intrinsic Value-167.4% (IV=$4.45 vs Price=$11.90)

  ✗Marks>= 20% below intrinsic value

  Price / FCF per Share

  ✗Ackman<= 25

  Price vs. Trailing Low173% of trailing low ($6.88)

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

  Positive book equity / market capitalization+0.9192; #1643/6449 (top 25.5%)

  ✓AsnessTop 30% of eligible cross-section

  Price / Diluted EPS20.2x

  ✗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 Share1.21x

  ✗SchlossP/TBV <= 1.00x (app cutoff)

  Book Value per Share Change

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

  Revenue / market capitalization+0.3295; #3189/5247 (top 60.8%)

  ✗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-48.35%; #5098/6202 (top 82.2%)

  ✗OshaughnessyTop 10% of eligible cross-section
• Verdicts27% pass✓ 4✗ 11▾

  Split decision: 11 FAIL · 4 PASS · 1 NEUTRAL

  Overall verdict

  ✗GrahamFAIL (2/9)✗BuffettFAIL (1/9)✗LynchFAIL (2/7)•GreenblattNot ranked✓PiotroskiPASS (F-Score 5)✗DremanFAIL (2/11)✓MungerPASS (2/4)✗PabraiFAIL (1/3)✗AkreFAIL (1/6)✗MarksFAIL (1/5)✓AckmanPASS (4/9)✓TempletonPASS (4/8)✗SleepFAIL (1/6)✗AsnessFAIL (Rank #1368/2370 (Top 57.7%))✗NeffFAIL (1/6)✗SchlossFAIL (1/7)•OshaughnessyNEUTRAL (Not ranked)
• Debt & Leverage33% pass✓ 7✗ 8▾

  8 of 12 flag MUX's debt & leverage — Graham, Buffett, Lynch +5 more

  LT Debt vs Net Current AssetsLT Debt $117.8M vs NCA $25.6M

  ✗GrahamLT Debt <= Net Current Assets

  Debt/Equity & Interest CoverageD/E: 0.23, IC: 0.5x

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

  Total Debt / Equity0.19

  ✓Lynch< 0.33

  Cash - Long-term Debt$-68.7M

  ✗LynchPositive preferred

  LT Debt / Total Assets Change6.02% -> 15.38%

  ✗PiotroskiDecreased YoY

  Current Assets / Current Liabilities1.34

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

  Total Debt / Shareholders' Equity0.19

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

  Debt Levels0.19

  ✓MungerDebt/Equity < 0.5✓AkreDebt/Equity < 0.3

  Interest Coverage & Debt/EBITDAIC=0.5x, D/EBITDA=4.1x

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

  Total Debt / Shareholders Equity0.19

  ✓Ackman<= 1.0

  Negative debt-to-equity (higher means less debt)-0.1882; #1641/4210 (top 39.0%)

  ✗AsnessTop 30% of eligible cross-section