NLI HOLDINGS, INC.

Where It Passes

Where It Falls Short

• Valuation0% pass✓ 6✗ 22▾

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

  Price / Book Value per Share1.0x

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

  Price / 3-yr avg EPS37.9x

  ✗Graham<= 15x

  Price-to-Book Ratio1.0x

  ✓Graham<= 1.5x

  P/E x P/B36.50

  ✗Graham<= 22.5

  Basic earnings-growth PEG (dividends excluded)

  ✗Lynch< 1.0 (ideally < 0.5)

  EBIT / Enterprise Value4.5%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=4.5%, 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)N/A (negative CFPS)

  ✗Dreman< 8x

  Valuation ReasonablenessOE Yield=-11.0%

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

  P/E or FCF YieldFCF Yield=-11.6%

  ✗PabraiP/E < 15 or FCF Yield > 10%

  P/B or P/E vs. Historical AverageP/B=1.0x

  ✓MarksP/E < 15 or P/B < 2.0

  Discount to Intrinsic Value-152.5% (IV=$2.80 vs Price=$7.07)

  ✗Marks>= 20% below intrinsic value

  Price / FCF per ShareN/A (negative FCF)

  ✗Ackman<= 25

  Price vs. Trailing Low129% of trailing low ($5.47)

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

  Net income / market capitalization-1.43%; #3463/6340 (top 54.6%)

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

  Positive book equity / market capitalization+1.0756; #1355/6449 (top 21.0%)

  ✓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 Share1.04x

  ✗SchlossP/TBV <= 1.00x (app cutoff)

  Book Value per Share Change+14.9%

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

  Revenue / market capitalization+0.4798; #2684/5247 (top 51.2%)

  ✗OshaughnessyTop 10% of eligible cross-section

  (Operating cash flow - capex) / market capitalization+2.78%; #2086/4519 (top 46.2%)

  ✗OshaughnessyTop 10% of eligible cross-section

  Trailing six-month price return through the evaluation date+17.83%; #1458/6202 (top 23.5%)

  ✗OshaughnessyTop 10% of eligible cross-section
• Debt & Leverage8% pass✓ 3✗ 12▾

  11 of 12 flag NL'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 Liabilities7.25

  ✓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=20.1x, 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
• Profitability13% pass✓ 7✗ 28▾

  14 of 16 flag NL's profitability — Graham, Buffett, Lynch +11 more

  Positive EPS (10 years)11/18 years positive

  ✗GrahamPositive EPS every year for 10 years

  EPS Growth (3-yr avg, 10-yr window)-67.8%

  ✗Graham>= 33% growth

  Net Income Positive (10+ years)11/18 years positive

  ✗BuffettPositive every year for 10+ years

  ROE (up to 5-year arithmetic mean)5.7%

  ✗Buffett> 15% arithmetic mean (app rule)

  Operating Margin (10-yr trend)6.7% (latest)

  ✓BuffettStable or rising over 10 years

  Free Cash Flow Proxy$-37.8M

  ✗BuffettPositive and growing

  Earnings Variance (10-yr CoV)1.98

  ✗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-1.3%

  ✗Lynch> 15%

  EBIT / Enterprise Value4.5%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=4.5%, ROC=20.4%

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Net Income / Total Assets-8.15%

  ✗PiotroskiROA > 0

  ROA Change YoY11.63% -> -8.15% (delta: -19.77%)

  ✗PiotroskiCurrent ROA > Prior ROA

  (CFO / Total Assets) vs ROACFO/Assets=-7.84%, ROA=-8.15%

  ✓PiotroskiCFO/Assets > ROA

  Gross Margin Change YoY28.3% -> 30.4%

  ✓PiotroskiImproved YoY

  Pre-Tax Income / Revenue-6.4%

  ✗Dreman>= 8%

  Net Income / Shareholders' Equity-1.3%

  ✗Dreman> 12%

  Margin of SafetyP/B=1.0x

  ✓PabraiP/B < 1.5 or P/E < 15

  Return on Equity1.9% (3-yr avg)

  ✗AkreROE > 20% (3-year avg)

  Discount to Intrinsic Value-152.5% (IV=$2.80 vs Price=$7.07)

  ✗Marks>= 20% below intrinsic value

  Positive Net Income Frequency11/17 years positive

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

  Operating Income / Revenue9.8%

  ✗Ackman>= 15%

  Net Income / Shareholders Equity-1.3%

  ✗Ackman>= 15%

  5-Year EPS CAGR46.5% CAGR over 4 years

  ✓Templeton> 0% (5-year EPS CAGR)

  Operating Margin Trend8.8% (2023) -> 6.7% (2025)

  ✗TempletonNon-negative operating-margin trend over 3 years

  Revenue growth vs. gross and operating margin trendgross margin 30.5% -> 30.4%, operating margin 8.8% -> 6.7%

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

  Net income / market capitalization-1.43%; #3463/6340 (top 54.6%)

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

  Gross profit / total assets+11.07%; #2722/3702 (top 73.5%)

  ✗AsnessTop 30% of eligible cross-section

  Net income / positive book equity-1.33%; #3004/5226 (top 57.5%)

  ✗AsnessTop 30% of eligible cross-section

  Negative 5-year standard deviation of ROA-0.0703; #3028/5884 (top 51.5%)

  ✗AsnessTop 30% of eligible cross-section

  3-5 Year Diluted EPS CAGR21.1% over 5 years

  ✗Neff7%-20% annualized

  Positive Diluted-EPS Years7/10 years positive

  ✓Schloss>= 70% positive over 5-10 observed years (app rule)
• Verdicts21% pass✓ 3✗ 11▾

  Split decision: 10 FAIL · 3 PASS · 3 NEUTRAL

  Overall verdict

  ✗GrahamFAIL (3/9)✗BuffettFAIL (1/9)✗LynchFAIL (1/7)✗GreenblattRank #1257✓PiotroskiPASS (F-Score 5)✗DremanFAIL (3/11)✗MungerFAIL (1/4)✗PabraiFAIL (1/3)✗AkreFAIL (1/6)✗MarksFAIL (3/5)✗AckmanFAIL (1/9)✓TempletonPASS (4/8)✓SleepPASS (3/6)•AsnessNEUTRAL (Not ranked)✗NeffFAIL (3/6)•SchlossNEUTRAL (4/7)•OshaughnessyNEUTRAL (Not ranked)
• Growth25% pass✓ 2✗ 11▾

  6 of 8 flag NL's growth — Graham, Lynch, Dreman +3 more

  EPS Growth (3-yr avg, 10-yr window)-67.8%

  ✗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: 7.2% vs Rev: 4.3%

  ✗LynchInventory growth < Revenue growth

  EPS Growth Direction$-0.24 (2009) -> $-0.77 (2025)

  ✗DremanPositive over recent years

  EPS CAGR-0.1% CAGR over 14 years

  ✗Dreman> 5% annualized

  Positive Net Income Frequency11/17 years positive

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

  3yr Median Revenue Growth-3.2%

  ✗Ackman>= 5%

  Positive EPS Growth Frequency2/5 years with positive EPS growth

  ✗AckmanPositive EPS growth in >= 3 of last 5 years

  5-Year EPS CAGR46.5% CAGR over 4 years

  ✓Templeton> 0% (5-year EPS CAGR)

  Revenue growth vs. gross and operating margin trendgross margin 30.5% -> 30.4%, operating margin 8.8% -> 6.7%

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

  5-year Revenue CAGR6.7%

  ✗SleepCAGR > 7%

  3-5 Year Diluted EPS CAGR21.1% over 5 years

  ✗Neff7%-20% annualized
• Efficiency38% pass✓ 4✗ 7▾

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

  Current Ratio7.25

  ✓Graham>= 2.0

  ROIC (3-5 yr avg)-5.9%

  ✗Buffett> 10%

  ROIC - WACC-15.9%

  ✗BuffettPositive (WACC = 10%)

  EBIT / (NWC + Net Fixed Assets)20.4%

  ✗Greenblatt> 25%

  Current Ratio Change YoY2.61 -> 7.77

  ✓PiotroskiIncreased YoY

  Revenue / Total Assets Change YoY0.25x -> 0.34x

  ✓PiotroskiImproved YoY

  Current Assets / Current Liabilities7.25

  ✓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 NL's cash flow — Buffett, Piotroski, Dreman +3 more

  Free Cash Flow Proxy$-37.8M

  ✗BuffettPositive and growing

  FCF Positive and Growing$9.6M

  ✓LynchPositive and growing

  Operating Cash Flow$-36.4M

  ✗PiotroskiCFO > 0

  (CFO / Total Assets) vs ROACFO/Assets=-7.84%, ROA=-8.15%

  ✓PiotroskiCFO/Assets > ROA

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

  ✗Dreman< 8x

  P/E or FCF YieldFCF Yield=-11.6%

  ✗PabraiP/E < 15 or FCF Yield > 10%

  FCF Positive15/17 years FCF positive

  ✓MarksPositive FCF in majority of recent years

  (OCF - CapEx) / Market Cap2.8%

  ✗Ackman>= 4%

  Price / FCF per ShareN/A (negative FCF)

  ✗Ackman<= 25

  Positive Operating Cash Flow frequency16/17 years positive

  ✓SleepPositive OCF in >= 70% of available years

  Operating Cash Flow - Capital Expenditures$9.6M

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

  (Operating cash flow - capex) / market capitalization+2.78%; #2086/4519 (top 46.2%)

  ✗OshaughnessyTop 10% of eligible cross-section
• Valuation models40% pass✓ 2✗ 3▾

  Models split on NL at $7.07 — fair values range $2.80–$9.70

  Greenblatt fair value$3.38

  ✗Greenblatt-109.2% margin vs $7.07

  Dreman fair value$2.80

  ✗Dreman-152.5% margin vs $7.07

  Akre fair value$9.70

  ✓Akre+27.1% margin vs $7.07

  Marks fair value$7.47

  ✓Marks+5.4% margin vs $7.07

  Templeton fair value$6.90

  ✗Templeton-2.5% margin vs $7.07