MAXLINEAR, INC

Where It Passes

Where It Falls Short

• Profitability0% pass✓ 4✗ 31▾

  No clean pass — all 16 investors flag at least one profitability criterion

  Positive EPS (10 years)5/18 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)5/18 years positive

  ✗BuffettPositive every year for 10+ years

  ROE (up to 5-year arithmetic mean)-12.3%

  ✗Buffett> 15% arithmetic mean (app rule)

  Operating Margin (10-yr trend)-27.1% (latest)

  ✗BuffettStable or rising over 10 years

  Free Cash Flow Proxy$-105.3M

  ✗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-5.5%

  ✗Lynch> 15%

  EBIT / Enterprise Value-0.1%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=-0.1%, ROC=-3.5%

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Net Income / Total Assets-17.16%

  ✗PiotroskiROA > 0

  ROA Change YoY-28.36% -> -17.16% (delta: +11.20%)

  ✓PiotroskiCurrent ROA > Prior ROA

  (CFO / Total Assets) vs ROACFO/Assets=2.46%, ROA=-17.16%

  ✓PiotroskiCFO/Assets > ROA

  Gross Margin Change YoY54.0% -> 56.8%

  ✓PiotroskiImproved YoY

  Pre-Tax Income / Revenue-2.2%

  ✗Dreman>= 8%

  Net Income / Shareholders' Equity-5.5%

  ✗Dreman> 12%

  Margin of SafetyP/B=10.7x

  ✗PabraiP/B < 1.5 or P/E < 15

  Return on Equity-29.5% (3-yr avg)

  ✗AkreROE > 20% (3-year avg)

  Discount to Intrinsic ValueN/A (negative normalized EPS)

  ✗Marks>= 20% below intrinsic value

  Positive Net Income Frequency5/17 years positive

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

  Operating Income / Revenue-0.9%

  ✗Ackman>= 15%

  Net Income / Shareholders Equity-5.5%

  ✗Ackman>= 15%

  5-Year EPS CAGR

  ✗Templeton> 0% (5-year EPS CAGR)

  Operating Margin Trend-5.5% (2023) -> -27.1% (2025)

  ✗TempletonNon-negative operating-margin trend over 3 years

  Revenue growth vs. gross and operating margin trendgross margin 55.6% -> 56.8%, operating margin -5.5% -> -27.1%

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

  Net income / market capitalization-0.58%; #3328/6340 (top 52.5%)

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

  Gross profit / total assets+41.81%; #901/3702 (top 24.3%)

  ✓AsnessTop 30% of eligible cross-section

  Net income / positive book equity-5.51%; #3231/5226 (top 61.8%)

  ✗AsnessTop 30% of eligible cross-section

  Negative 5-year standard deviation of ROA-0.1406; #3882/5884 (top 66.0%)

  ✗AsnessTop 30% of eligible cross-section

  3-5 Year Diluted EPS CAGR-10.2% over 5 years

  ✗Neff7%-20% annualized

  Positive Diluted-EPS Years3/10 years positive

  ✗Schloss>= 70% positive over 5-10 observed years (app rule)
• Valuation0% pass✓ 1✗ 27▾

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

  Price / 3-yr avg EPS

  ✗Graham<= 15x

  Price-to-Book Ratio10.7x

  ✗Graham<= 1.5x

  P/E x P/B

  ✗Graham<= 22.5

  Basic earnings-growth PEG (dividends excluded)

  ✗Lynch< 1.0 (ideally < 0.5)

  EBIT / Enterprise Value-0.1%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=-0.1%, ROC=-3.5%

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Price / EPS

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

  Price / (CFO / Shares)245.8x

  ✗Dreman< 8x

  Price / Book Value per Share10.7x

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

  Valuation ReasonablenessOE Yield=-2.2%

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

  P/E or FCF YieldFCF Yield=0.1%

  ✗PabraiP/E < 15 or FCF Yield > 10%

  P/B or P/E vs. Historical AverageP/B=10.7x

  ✗MarksP/E < 15 or P/B < 2.0

  Discount to Intrinsic ValueN/A (negative normalized EPS)

  ✗Marks>= 20% below intrinsic value

  Price / FCF per Share686.8x

  ✗Ackman<= 25

  Price vs. Trailing Low558% of trailing low ($9.99)

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

  Net income / market capitalization-0.58%; #3328/6340 (top 52.5%)

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

  Positive book equity / market capitalization+0.1054; #4714/6449 (top 73.1%)

  ✗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 Share57.13x

  ✗SchlossP/TBV <= 1.00x (app cutoff)

  Book Value per Share Change-0.4%

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

  Revenue / market capitalization+0.1306; #4168/5247 (top 79.4%)

  ✗OshaughnessyTop 10% of eligible cross-section

  (Operating cash flow - capex) / market capitalization-0.41%; #2600/4519 (top 57.5%)

  ✗OshaughnessyTop 10% of eligible cross-section

  Trailing six-month price return through the evaluation date+169.60%; #177/6202 (top 2.9%)

  ✓OshaughnessyTop 10% of eligible cross-section
• Growth0% pass✓ 2✗ 11▾

  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

  Inventory Growth vs Revenue GrowthInv: 31.7% vs Rev: 56.0%

  ✓LynchInventory growth < Revenue growth

  EPS Growth Direction

  ✗DremanPositive over recent years

  EPS CAGR

  ✗Dreman> 5% annualized

  Positive Net Income Frequency5/17 years positive

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

  3yr Median Revenue Growth-38.1%

  ✗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

  ✗Templeton> 0% (5-year EPS CAGR)

  Revenue growth vs. gross and operating margin trendgross margin 55.6% -> 56.8%, operating margin -5.5% -> -27.1%

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

  5-year Revenue CAGR-0.5%

  ✗SleepCAGR > 7%

  3-5 Year Diluted EPS CAGR-10.2% over 5 years

  ✗Neff7%-20% annualized
• Valuation models0% pass✗ 2▾

  MXL overvalued: all 2 models price fair value below $55.78 (median $1.08)

  Munger fair value$1.49

  ✗Munger-3643.6% margin vs $55.78

  Ackman fair value$0.67

  ✗Ackman-8225.4% margin vs $55.78
• Verdicts13% pass✓ 2✗ 14▾

  Split decision: 13 FAIL · 2 PASS · 1 NEUTRAL

  Overall verdict

  ✗GrahamFAIL (3/9)✗BuffettFAIL (0/9)✗LynchFAIL (2/7)✗GreenblattRank #1862✓PiotroskiPASS (F-Score 5)✗DremanFAIL (3/11)✗MungerFAIL (1/4)✗PabraiFAIL (0/3)✗AkreFAIL (1/6)✗MarksFAIL (1/5)✓AckmanPASS (4/9)✗TempletonFAIL (2/8)✗SleepFAIL (2/6)✗AsnessFAIL (Rank #1209/2370 (Top 51.0%))✗NeffFAIL (0/6)✗SchlossFAIL (2/7)•OshaughnessyNEUTRAL (Not ranked)
• Efficiency25% pass✓ 3✗ 8▾

  6 of 8 flag MXL's efficiency — Buffett, Greenblatt, Piotroski +3 more

  Current Ratio2.22

  ✓Graham>= 2.0

  ROIC (3-5 yr avg)-5.5%

  ✗Buffett> 10%

  ROIC - WACC-15.5%

  ✗BuffettPositive (WACC = 10%)

  EBIT / (NWC + Net Fixed Assets)-3.5%

  ✗Greenblatt> 25%

  Current Ratio Change YoY1.77 -> 1.34

  ✗PiotroskiIncreased YoY

  Revenue / Total Assets Change YoY0.42x -> 0.59x

  ✓PiotroskiImproved YoY

  Current Assets / Current Liabilities2.22

  ✓Dreman> 1.5

  Return on Invested Capital-0.7%

  ✗Munger> 15%

  ROIC (high and growing)FY2023: ROIC=-3.7%; FY2024: ROIC=-27.6%; FY2025: ROIC=-17.4%

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

  Reinvestment Rate x ROICN/A (non-positive net income)

  ✗AkreReinvestment Rate * ROIC > 10%

  ROIC (5-year)1/5 years above 12% (latest -17.4%)

  ✗SleepROIC > 12% in a majority of years
• Cash Flow30% pass✓ 4✗ 8▾

  7 of 10 flag MXL's cash flow — Buffett, Lynch, Dreman +4 more

  Free Cash Flow Proxy$-105.3M

  ✗BuffettPositive and growing

  FCF Positive and Growing$-20.6M

  ✗LynchPositive and growing

  Operating Cash Flow$19.6M

  ✓PiotroskiCFO > 0

  (CFO / Total Assets) vs ROACFO/Assets=2.46%, ROA=-17.16%

  ✓PiotroskiCFO/Assets > ROA

  Price / (CFO / Shares)245.8x

  ✗Dreman< 8x

  P/E or FCF YieldFCF Yield=0.1%

  ✗PabraiP/E < 15 or FCF Yield > 10%

  FCF Positive15/17 years FCF positive

  ✓MarksPositive FCF in majority of recent years

  (OCF - CapEx) / Market Cap-0.4%

  ✗Ackman>= 4%

  Price / FCF per Share686.8x

  ✗Ackman<= 25

  Positive Operating Cash Flow frequency15/17 years positive

  ✓SleepPositive OCF in >= 70% of available years

  Operating Cash Flow - Capital Expenditures$-20.6M

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

  (Operating cash flow - capex) / market capitalization-0.41%; #2600/4519 (top 57.5%)

  ✗OshaughnessyTop 10% of eligible cross-section
• Debt & Leverage50% pass✓ 9✗ 6▾

  6 of 12 pass — Buffett, Lynch, Piotroski +3 more object

  Debt Levels0.31

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

  LT Debt vs Net Current AssetsLT Debt $164.1M vs NCA $214.8M

  ✓GrahamLT Debt <= Net Current Assets

  Debt/Equity & Interest CoverageD/E: 0.31, IC: -0.6x

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

  Total Debt / Equity0.31

  ✓Lynch< 0.33

  Cash - Long-term Debt$-83.0M

  ✗LynchPositive preferred

  LT Debt / Total Assets Change14.23% -> 15.52%

  ✗PiotroskiDecreased YoY

  Current Assets / Current Liabilities2.22

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

  Total Debt / Shareholders' Equity0.31

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

  Interest Coverage & Debt/EBITDAIC=-0.6x, D/EBITDA=5.2x

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

  Total Debt / Shareholders Equity0.31

  ✓Ackman<= 1.0

  Negative debt-to-equity (higher means less debt)-0.3078; #2020/4210 (top 48.0%)

  ✗AsnessTop 30% of eligible cross-section