NEOGENOMICS INC

Where It Passes

Where It Falls Short

• Profitability0% pass✓ 3✗ 32▾

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

  Positive EPS (10 years)2/21 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)6/21 years positive

  ✗BuffettPositive every year for 10+ years

  ROE (up to 5-year arithmetic mean)-9.2%

  ✗Buffett> 15% arithmetic mean (app rule)

  Operating Margin (10-yr trend)-15.9% (latest)

  ✗BuffettStable or rising over 10 years

  Free Cash Flow Proxy$4.2M

  ✓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)

  ✗Lynch< 1.0 (ideally < 0.5)

  3-5 Year EPS CAGR

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

  ROE-4.0%

  ✗Lynch> 15%

  EBIT / Enterprise Value-2.1%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=-2.1%, ROC=-20.4%

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Net Income / Total Assets-7.94%

  ✗PiotroskiROA > 0

  ROA Change YoY-4.81% -> -7.94% (delta: -3.14%)

  ✗PiotroskiCurrent ROA > Prior ROA

  (CFO / Total Assets) vs ROACFO/Assets=0.38%, ROA=-7.94%

  ✓PiotroskiCFO/Assets > ROA

  Gross Margin Change YoY43.9% -> 43.2%

  ✗PiotroskiImproved YoY

  Pre-Tax Income / Revenue-4.6%

  ✗Dreman>= 8%

  Net Income / Shareholders' Equity-4.0%

  ✗Dreman> 12%

  Margin of SafetyP/B=2.5x

  ✗PabraiP/B < 1.5 or P/E < 15

  Return on Equity-10.3% (3-yr avg)

  ✗AkreROE > 20% (3-year avg)

  Discount to Intrinsic Value

  ✗Marks>= 20% below intrinsic value

  Positive Net Income Frequency6/16 years positive

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

  Operating Income / Revenue-6.3%

  ✗Ackman>= 15%

  Net Income / Shareholders Equity-4.0%

  ✗Ackman>= 15%

  5-Year EPS CAGR

  ✗Templeton> 0% (5-year EPS CAGR)

  Operating Margin Trend-18.2% (2023) -> -15.9% (2025)

  ✓TempletonNon-negative operating-margin trend over 3 years

  Revenue growth vs. gross and operating margin trendgross margin 41.3% -> 43.2%, operating margin -18.2% -> -15.9%

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

  Net income / market capitalization-1.56%; #3486/6340 (top 55.0%)

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

  Gross profit / total assets+25.61%; #1678/3702 (top 45.3%)

  ✗AsnessTop 30% of eligible cross-section

  Net income / positive book equity-4.03%; #3160/5226 (top 60.5%)

  ✗AsnessTop 30% of eligible cross-section

  Negative 5-year standard deviation of ROA-0.0282; #1818/5884 (top 30.9%)

  ✗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)
• 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 Ratio2.5x

  ✗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-2.1%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=-2.1%, ROC=-20.4%

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Price / EPS

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

  Price / (CFO / Shares)397.6x

  ✗Dreman< 8x

  Price / Book Value per Share2.5x

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

  Valuation Reasonableness

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

  P/E or FCF YieldFCF Yield=-1.1%

  ✗PabraiP/E < 15 or FCF Yield > 10%

  P/B or P/E vs. Historical AverageP/B=2.5x

  ✗MarksP/E < 15 or P/B < 2.0

  Discount to Intrinsic Value

  ✗Marks>= 20% below intrinsic value

  Price / FCF per ShareN/A (negative FCF)

  ✗Ackman<= 25

  Price vs. Trailing Low331% of trailing low ($4.84)

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

  Net income / market capitalization-1.56%; #3486/6340 (top 55.0%)

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

  Positive book equity / market capitalization+0.3863; #3333/6449 (top 51.7%)

  ✗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 Share80.95x

  ✗SchlossP/TBV <= 1.00x (app cutoff)

  Book Value per Share Change-2.7%

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

  Revenue / market capitalization+0.3800; #2984/5247 (top 56.9%)

  ✗OshaughnessyTop 10% of eligible cross-section

  (Operating cash flow - capex) / market capitalization-1.38%; #2706/4519 (top 59.9%)

  ✗OshaughnessyTop 10% of eligible cross-section

  Trailing six-month price return through the evaluation date+108.32%; #296/6202 (top 4.8%)

  ✓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)

  ✗Lynch< 1.0 (ideally < 0.5)

  3-5 Year EPS CAGR

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

  Inventory Growth vs Revenue GrowthInv: -10.4% vs Rev: 11.1%

  ✓LynchInventory growth < Revenue growth

  EPS Growth Direction$-0.09 (2010) -> $-0.04 (2015)

  ✗DremanPositive over recent years

  EPS CAGR

  ✗Dreman> 5% annualized

  Positive Net Income Frequency6/16 years positive

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

  3yr Median Revenue Growth11.6%

  ✓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 41.3% -> 43.2%, operating margin -18.2% -> -15.9%

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

  5-year Revenue CAGR10.4%

  ✓SleepCAGR > 7%

  3-5 Year Diluted EPS CAGR

  ✗Neff7%-20% annualized
• Verdicts13% pass✓ 2✗ 14▾

  Split decision: 13 FAIL · 2 PASS · 1 NEUTRAL

  Overall verdict

  ✗GrahamFAIL (2/9)✗BuffettFAIL (1/9)✗LynchFAIL (1/7)✗GreenblattRank #2036✓PiotroskiPASS (F-Score 4)✗DremanFAIL (3/11)✗MungerFAIL (1/4)✗PabraiFAIL (0/3)✗AkreFAIL (1/6)✗MarksFAIL (0/5)✓AckmanPASS (4/9)✗TempletonFAIL (3/8)✗SleepFAIL (2/6)✗AsnessFAIL (Rank #1138/2370 (Top 48.0%))✗NeffFAIL (1/6)✗SchlossFAIL (2/7)•OshaughnessyNEUTRAL (Not ranked)
• Cash Flow20% pass✓ 3✗ 9▾

  8 of 10 flag NEO's cash flow — Lynch, Dreman, Pabrai +5 more

  Free Cash Flow Proxy$4.2M

  ✓BuffettPositive and growing

  FCF Positive and Growing$-28.6M

  ✗LynchPositive and growing

  Operating Cash Flow$5.2M

  ✓PiotroskiCFO > 0

  (CFO / Total Assets) vs ROACFO/Assets=0.38%, ROA=-7.94%

  ✓PiotroskiCFO/Assets > ROA

  Price / (CFO / Shares)397.6x

  ✗Dreman< 8x

  P/E or FCF YieldFCF Yield=-1.1%

  ✗PabraiP/E < 15 or FCF Yield > 10%

  FCF Positive7/16 years FCF positive

  ✗MarksPositive FCF in majority of recent years

  (OCF - CapEx) / Market Cap-1.4%

  ✗Ackman>= 4%

  Price / FCF per ShareN/A (negative FCF)

  ✗Ackman<= 25

  Positive Operating Cash Flow frequency11/16 years positive

  ✗SleepPositive OCF in >= 70% of available years

  Operating Cash Flow - Capital Expenditures$-28.6M

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

  (Operating cash flow - capex) / market capitalization-1.38%; #2706/4519 (top 59.9%)

  ✗OshaughnessyTop 10% of eligible cross-section
• Efficiency38% pass✓ 4✗ 7▾

  5 of 8 flag NEO's efficiency — Buffett, Greenblatt, Munger +2 more

  Current Ratio3.53

  ✓Graham>= 2.0

  ROIC (3-5 yr avg)-8.0%

  ✗Buffett> 10%

  ROIC - WACC-18.0%

  ✗BuffettPositive (WACC = 10%)

  EBIT / (NWC + Net Fixed Assets)-20.4%

  ✗Greenblatt> 25%

  Current Ratio Change YoY1.98 -> 4.26

  ✓PiotroskiIncreased YoY

  Revenue / Total Assets Change YoY0.40x -> 0.53x

  ✓PiotroskiImproved YoY

  Current Assets / Current Liabilities3.53

  ✓Dreman> 1.5

  Return on Invested Capital-3.3%

  ✗Munger> 15%

  ROIC (high and growing)FY2023: ROIC=-5.8%; FY2024: ROIC=-5.0%; FY2025: ROIC=-7.8%

  ✗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 -7.8%)

  ✗SleepROIC > 12% in a majority of years
• Debt & Leverage42% pass✓ 7✗ 8▾

  7 of 12 flag NEO's debt & leverage — Graham, Buffett, Lynch +4 more

  Debt Levels0.47

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

  LT Debt vs Net Current AssetsLT Debt $374.7M vs NCA $293.9M

  ✗GrahamLT Debt <= Net Current Assets

  Debt/Equity & Interest CoverageD/E: 0.47, IC: -15.2x

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

  Total Debt / Equity0.47

  ✗Lynch< 0.33

  Cash - Long-term Debt$-235.4M

  ✗LynchPositive preferred

  LT Debt / Total Assets Change20.78% -> 25.14%

  ✗PiotroskiDecreased YoY

  Current Assets / Current Liabilities3.53

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

  Total Debt / Shareholders' Equity0.47

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

  Interest Coverage & Debt/EBITDAIC=-68.5x, D/EBITDA=N/A (D&A unavailable)

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

  Total Debt / Shareholders Equity0.47

  ✓Ackman<= 1.0

  Negative debt-to-equity (higher means less debt)-0.4701; #2414/4210 (top 57.3%)

  ✗AsnessTop 30% of eligible cross-section