NOCOPI TECHNOLOGIES INC/MD/

Where It Passes

Where It Falls Short

• Valuation0% pass✓ 4✗ 24▾

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

  Price / Book Value per Share1.4x

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

  Price / 3-yr avg EPS

  ✗Graham<= 15x

  Price-to-Book Ratio1.4x

  ✓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-6.5%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=-6.5%, ROC=-47.8%

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Price / EPS

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

  Price / (CFO / Shares)26.6x

  ✗Dreman< 8x

  Valuation ReasonablenessOE Yield=-0.8%

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

  P/E or FCF YieldFCF Yield=3.4%

  ✗PabraiP/E < 15 or FCF Yield > 10%

  P/B or P/E vs. Historical AverageP/B=1.4x

  ✓MarksP/E < 15 or P/B < 2.0

  Discount to Intrinsic ValueN/A (negative normalized EPS)

  ✗Marks>= 20% below intrinsic value

  Price / FCF per Share26.6x

  ✗Ackman<= 25

  Price vs. Trailing Low120% of trailing low ($1.46)

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

  Net income / market capitalization+3.68%; #2143/6340 (top 33.8%)

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

  Positive book equity / market capitalization+0.7748; #1998/6449 (top 31.0%)

  ✗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 Share1.39x

  ✗SchlossP/TBV <= 1.00x (app cutoff)

  Book Value per Share Change

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

  Revenue / market capitalization+0.2374; #3604/5247 (top 68.7%)

  ✗OshaughnessyTop 10% of eligible cross-section

  (Operating cash flow - capex) / market capitalization-1.58%; #2724/4519 (top 60.3%)

  ✗OshaughnessyTop 10% of eligible cross-section

  Trailing six-month price return through the evaluation date+19.86%; #1354/6202 (top 21.8%)

  ✗OshaughnessyTop 10% of eligible cross-section
• Profitability6% pass✓ 7✗ 28▾

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

  Positive EPS (10 years)5/19 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)10/19 years positive

  ✗BuffettPositive every year for 10+ years

  ROE (up to 5-year arithmetic mean)-2.1%

  ✗Buffett> 15% arithmetic mean (app rule)

  Operating Margin (10-yr trend)-40.3% (latest)

  ✗BuffettStable or rising over 10 years

  Free Cash Flow Proxy$-0.1M

  ✗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

  ROE4.8%

  ✗Lynch> 15%

  EBIT / Enterprise Value-6.5%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=-6.5%, ROC=-47.8%

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Net Income / Total Assets-1.10%

  ✗PiotroskiROA > 0

  ROA Change YoY-19.24% -> -1.10% (delta: +18.14%)

  ✓PiotroskiCurrent ROA > Prior ROA

  (CFO / Total Assets) vs ROACFO/Assets=5.09%, ROA=-1.10%

  ✓PiotroskiCFO/Assets > ROA

  Gross Margin Change YoY52.0% -> 54.5%

  ✓PiotroskiImproved YoY

  Pre-Tax Income / Revenue16.0%

  ✓Dreman>= 8%

  Net Income / Shareholders' Equity4.8%

  ✗Dreman> 12%

  Margin of SafetyP/B=1.4x

  ✓PabraiP/B < 1.5 or P/E < 15

  Return on Equity-10.8% (3-yr avg)

  ✗AkreROE > 20% (3-year avg)

  Discount to Intrinsic ValueN/A (negative normalized EPS)

  ✗Marks>= 20% below intrinsic value

  Positive Net Income Frequency10/17 years positive

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

  Operating Income / Revenue5.9%

  ✗Ackman>= 15%

  Net Income / Shareholders Equity4.8%

  ✗Ackman>= 15%

  5-Year EPS CAGR

  ✗Templeton> 0% (5-year EPS CAGR)

  Operating Margin Trend-89.8% (2023) -> -40.3% (2025)

  ✓TempletonNon-negative operating-margin trend over 3 years

  Revenue growth vs. gross and operating margin trendgross margin 52.9% -> 54.5%, operating margin -89.8% -> -40.3%

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

  Net income / market capitalization+3.68%; #2143/6340 (top 33.8%)

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

  Gross profit / total assets+16.63%; #2312/3702 (top 62.5%)

  ✗AsnessTop 30% of eligible cross-section

  Net income / positive book equity+4.75%; #2489/5226 (top 47.6%)

  ✗AsnessTop 30% of eligible cross-section

  Negative 5-year standard deviation of ROA-0.1274; #3779/5884 (top 64.2%)

  ✗AsnessTop 30% of eligible cross-section

  3-5 Year Diluted EPS CAGR88.8% over 5 years

  ✗Neff7%-20% annualized

  Positive Diluted-EPS Years5/10 years positive

  ✗Schloss>= 70% positive over 5-10 observed years (app rule)
• Debt & Leverage8% pass✓ 3✗ 12▾

  11 of 12 flag NNUP'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 Liabilities12.49

  ✓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=-25.0x, 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✓ 2✗ 11▾

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

  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: 363.0% vs Rev: 172.4%

  ✗LynchInventory growth < Revenue growth

  EPS Growth Direction$0.00 (2010) -> $-0.01 (2025)

  ✗DremanPositive over recent years

  EPS CAGR88.8% CAGR over 5 years

  ✓Dreman> 5% annualized

  Positive Net Income Frequency10/17 years positive

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

  3yr Median Revenue Growth-29.5%

  ✗Ackman>= 5%

  Positive EPS Growth Frequency2/5 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 52.9% -> 54.5%, operating margin -89.8% -> -40.3%

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

  5-year Revenue CAGR-10.9%

  ✗SleepCAGR > 7%

  3-5 Year Diluted EPS CAGR88.8% over 5 years

  ✗Neff7%-20% annualized
• Verdicts13% pass✓ 2✗ 13▾

  Split decision: 12 FAIL · 2 PASS · 2 NEUTRAL

  Overall verdict

  ✗GrahamFAIL (2/9)✗BuffettFAIL (2/9)✗LynchFAIL (0/7)✗GreenblattRank #2258✓PiotroskiPASS (F-Score 5)✗DremanFAIL (3/11)✗MungerFAIL (0/4)✗PabraiFAIL (1/3)✗AkreFAIL (1/6)✗MarksFAIL (3/5)✗AckmanFAIL (1/9)✓TempletonPASS (4/8)✗SleepFAIL (2/6)•AsnessNEUTRAL (Not ranked)✗NeffFAIL (0/6)✗SchlossFAIL (1/7)•OshaughnessyNEUTRAL (Not ranked)
• Cash Flow20% pass✓ 3✗ 9▾

  8 of 10 flag NNUP's cash flow — Buffett, Lynch, Dreman +5 more

  Free Cash Flow Proxy$-0.1M

  ✗BuffettPositive and growing

  FCF Positive and Growing$-0.3M

  ✗LynchPositive and growing

  Operating Cash Flow$0.7M

  ✓PiotroskiCFO > 0

  (CFO / Total Assets) vs ROACFO/Assets=5.09%, ROA=-1.10%

  ✓PiotroskiCFO/Assets > ROA

  Price / (CFO / Shares)26.6x

  ✗Dreman< 8x

  P/E or FCF YieldFCF Yield=3.4%

  ✗PabraiP/E < 15 or FCF Yield > 10%

  FCF Positive10/15 years FCF positive

  ✓MarksPositive FCF in majority of recent years

  (OCF - CapEx) / Market Cap-1.7%

  ✗Ackman>= 4%

  Price / FCF per Share26.6x

  ✗Ackman<= 25

  Positive Operating Cash Flow frequency11/16 years positive

  ✗SleepPositive OCF in >= 70% of available years

  Operating Cash Flow - Capital Expenditures$-0.3M

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

  (Operating cash flow - capex) / market capitalization-1.58%; #2724/4519 (top 60.3%)

  ✗OshaughnessyTop 10% of eligible cross-section
• Valuation models33% pass✓ 1✗ 2▾

  Models split on NNUP at $1.75 — fair values range $0.54–$3.82

  Munger fair value$0.71

  ✗Munger-146.5% margin vs $1.75

  Akre fair value$3.82

  ✓Akre+54.2% margin vs $1.75

  Ackman fair value$0.54

  ✗Ackman-224.1% margin vs $1.75
• Efficiency38% pass✓ 4✗ 7▾

  5 of 8 flag NNUP's efficiency — Greenblatt, Piotroski, Munger +2 more

  Current Ratio12.49

  ✓Graham>= 2.0

  ROIC (3-5 yr avg)58.1%

  ✓Buffett> 10%

  ROIC - WACC+48.1%

  ✓BuffettPositive (WACC = 10%)

  EBIT / (NWC + Net Fixed Assets)-47.8%

  ✗Greenblatt> 25%

  Current Ratio Change YoY65.79 -> 45.02

  ✗PiotroskiIncreased YoY

  Revenue / Total Assets Change YoY0.15x -> 0.11x

  ✗PiotroskiImproved YoY

  Current Assets / Current Liabilities12.49

  ✓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