NextBoat Inc.

Where It Passes

Where It Falls Short

• 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 Ratio2.9x

  ✗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-16.3%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=-16.3%, ROC=-388.9%

  ✗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

  Price / Book Value per Share2.9x

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

  Valuation ReasonablenessOE Yield=-6.3%

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

  P/E or FCF YieldFCF Yield=-3.6%

  ✗PabraiP/E < 15 or FCF Yield > 10%

  P/B or P/E vs. Historical AverageP/B=2.9x

  ✗MarksP/E < 15 or P/B < 2.0

  Discount to Intrinsic ValueN/A (negative normalized EPS)

  ✗Marks>= 20% below intrinsic value

  Price / FCF per ShareN/A (negative FCF)

  ✗Ackman<= 25

  Price vs. Trailing Low100% of trailing low ($1.40)

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

  Net income / market capitalization-22.87%; #4638/6340 (top 73.2%)

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

  Positive book equity / market capitalization+0.3426; #3497/6449 (top 54.2%)

  ✗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 Share3.18x

  ✗SchlossP/TBV <= 1.00x (app cutoff)

  Book Value per Share Change

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

  Revenue / market capitalization+4.2667; #617/5247 (top 11.8%)

  ✗OshaughnessyTop 10% of eligible cross-section

  (Operating cash flow - capex) / market capitalization-3.62%; #2872/4519 (top 63.6%)

  ✗OshaughnessyTop 10% of eligible cross-section

  Trailing six-month price return through the evaluation date-47.17%; #5065/6202 (top 81.7%)

  ✗OshaughnessyTop 10% of eligible cross-section
• Cash Flow0% pass✓ 1✗ 11▾

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

  Free Cash Flow Proxy$-2.0M

  ✗BuffettPositive and growing

  FCF Positive and Growing$-1.3M

  ✗LynchPositive and growing

  Operating Cash Flow$-0.7M

  ✗PiotroskiCFO > 0

  (CFO / Total Assets) vs ROACFO/Assets=-1.44%, ROA=-3.87%

  ✓PiotroskiCFO/Assets > ROA

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

  ✗Dreman< 8x

  P/E or FCF YieldFCF Yield=-3.6%

  ✗PabraiP/E < 15 or FCF Yield > 10%

  FCF Positive0/2 years FCF positive

  ✗MarksPositive FCF in majority of recent years

  (OCF - CapEx) / Market Cap-3.7%

  ✗Ackman>= 4%

  Price / FCF per ShareN/A (negative FCF)

  ✗Ackman<= 25

  Positive Operating Cash Flow frequency0/2 years positive

  ✗SleepPositive OCF in >= 70% of available years

  Operating Cash Flow - Capital Expenditures$-1.3M

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

  (Operating cash flow - capex) / market capitalization-3.62%; #2872/4519 (top 63.6%)

  ✗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: 15.2% vs Rev: 21.1%

  ✓LynchInventory growth < Revenue growth

  EPS Growth Direction

  ✗DremanPositive over recent years

  EPS CAGR

  ✗Dreman> 5% annualized

  Positive Net Income Frequency1/2 years positive

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

  3yr Median Revenue Growth21.1%

  ✓Ackman>= 5%

  Positive EPS Growth Frequency0/1 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 trend

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

  5-year Revenue CAGR

  ✗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 Ratio1.04

  ✗Graham>= 2.0

  ROIC (3-5 yr avg)6.4%

  ✗Buffett> 10%

  ROIC - WACC-3.6%

  ✗BuffettPositive (WACC = 10%)

  EBIT / (NWC + Net Fixed Assets)-388.9%

  ✗Greenblatt> 25%

  Current Ratio Change YoY0.98 -> 1.29

  ✓PiotroskiIncreased YoY

  Revenue / Total Assets Change YoY3.13x -> 2.48x

  ✗PiotroskiImproved YoY

  Current Assets / Current Liabilities1.04

  ✗Dreman> 1.5

  Return on Invested Capital-24.3%

  ✗Munger> 15%

  ROIC (high and growing)FY2023: ROIC=unavailable; FY2024: ROIC=9.7%; FY2025: ROIC=1.0%

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

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

  ✗AkreReinvestment Rate * ROIC > 10%

  ROIC (5-year)0/2 years above 12% (latest 1.0%)

  ✗SleepROIC > 12% in a majority of years
• Profitability6% pass✓ 4✗ 31▾

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

  Positive EPS (10 years)1/3 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)1/3 years positive

  ✗BuffettPositive every year for 10+ years

  ROE (up to 5-year arithmetic mean)43.3%

  ✓Buffett> 15% arithmetic mean (app rule)

  Operating Margin (10-yr trend)

  ✗BuffettStable or rising over 10 years

  Free Cash Flow Proxy$-2.0M

  ✗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-66.8%

  ✗Lynch> 15%

  EBIT / Enterprise Value-16.3%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=-16.3%, ROC=-388.9%

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Net Income / Total Assets-3.87%

  ✗PiotroskiROA > 0

  ROA Change YoY3.13% -> -3.87% (delta: -7.00%)

  ✗PiotroskiCurrent ROA > Prior ROA

  (CFO / Total Assets) vs ROACFO/Assets=-1.44%, ROA=-3.87%

  ✓PiotroskiCFO/Assets > ROA

  Gross Margin Change YoY8.9% -> 9.6%

  ✓PiotroskiImproved YoY

  Pre-Tax Income / Revenue-1.7%

  ✗Dreman>= 8%

  Net Income / Shareholders' Equity-66.8%

  ✗Dreman> 12%

  Margin of SafetyP/B=2.9x

  ✗PabraiP/B < 1.5 or P/E < 15

  Return on Equity43.3% (3-yr avg)

  ✓AkreROE > 20% (3-year avg)

  Discount to Intrinsic ValueN/A (negative normalized EPS)

  ✗Marks>= 20% below intrinsic value

  Positive Net Income Frequency1/2 years positive

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

  Operating Income / Revenue-3.6%

  ✗Ackman>= 15%

  Net Income / Shareholders Equity-66.8%

  ✗Ackman>= 15%

  5-Year EPS CAGR

  ✗Templeton> 0% (5-year EPS CAGR)

  Operating Margin Trend

  ✗TempletonNon-negative operating-margin trend over 3 years

  Revenue growth vs. gross and operating margin trend

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

  Net income / market capitalization-22.87%; #4638/6340 (top 73.2%)

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

  Gross profit / total assets+18.73%; #2138/3702 (top 57.8%)

  ✗AsnessTop 30% of eligible cross-section

  Net income / positive book equity-66.78%; #4374/5226 (top 83.7%)

  ✗AsnessTop 30% of eligible cross-section

  Negative 5-year standard deviation of ROA

  ✗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)
• Verdicts7% pass✓ 1✗ 14▾

  Split decision: 13 FAIL · 2 NEUTRAL · 1 PASS

  Overall verdict

  ✗GrahamFAIL (1/9)✗BuffettFAIL (1/9)✗LynchFAIL (2/7)✗GreenblattRank #2754✓PiotroskiPASS (F-Score 4)✗DremanFAIL (1/11)✗MungerFAIL (1/4)✗PabraiFAIL (0/3)✗AkreFAIL (2/6)✗MarksFAIL (0/5)✗AckmanFAIL (2/9)✗TempletonFAIL (3/8)✗SleepFAIL (1/6)•AsnessNEUTRAL (Not ranked)✗NeffFAIL (0/6)✗SchlossFAIL (1/7)•OshaughnessyNEUTRAL (Not ranked)
• Debt & Leverage33% pass✓ 7✗ 8▾

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

  Debt Levels0.45

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

  LT Debt vs Net Current AssetsLT Debt $3.3M vs NCA $3.0M

  ✗GrahamLT Debt <= Net Current Assets

  Debt/Equity & Interest CoverageD/E: 0.45, IC: -1.9x

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

  Total Debt / Equity0.45

  ✗Lynch< 0.33

  Cash - Long-term Debt$4.5M

  ✓LynchPositive preferred

  LT Debt / Total Assets Change0.72% -> 0.13%

  ✓PiotroskiDecreased YoY

  Current Assets / Current Liabilities1.04

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

  Total Debt / Shareholders' Equity0.45

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

  Interest Coverage & Debt/EBITDAIC=-1.9x, D/EBITDA=N/A

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

  Total Debt / Shareholders Equity0.45

  ✓Ackman<= 1.0

  Negative debt-to-equity (higher means less debt)-0.4506; #2365/4210 (top 56.2%)

  ✗AsnessTop 30% of eligible cross-section
• Valuation models50% pass✓ 1✗ 1▾

  Models split on NXB at $1.40 — fair values range $0.51–$5.24

  Greenblatt fair value$0.51

  ✗Greenblatt-174.5% margin vs $1.40

  Akre fair value$5.24

  ✓Akre+73.3% margin vs $1.40