OGE ENERGY CORP.

Where It Passes

Where It Falls Short

• Debt & Leverage8% pass✓ 1✗ 14▾

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

  LT Debt vs Net Current AssetsLT Debt $5.5B vs NCA $-232.6M

  ✗GrahamLT Debt <= Net Current Assets

  Debt/Equity & Interest CoverageD/E: 1.09, IC: 3.5x

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

  Total Debt / Equity1.09

  ✗Lynch< 0.33

  Cash - Long-term Debt$-5.5B

  ✗LynchPositive preferred

  LT Debt / Total Assets Change36.61% -> 37.36%

  ✗PiotroskiDecreased YoY

  Current Assets / Current Liabilities0.81

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

  Total Debt / Shareholders' Equity1.09

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

  Debt Levels1.09

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

  Interest Coverage & Debt/EBITDAIC=3.5x, D/EBITDA=4.0x

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

  Total Debt / Shareholders Equity1.09

  ✗Ackman<= 1.0

  Negative debt-to-equity (higher means less debt)-1.0948; #3314/4210 (top 78.7%)

  ✗AsnessTop 30% of eligible cross-section
• Valuation8% pass✓ 3✗ 25▾

  12 of 13 flag OGE's valuation — Graham, Lynch, Greenblatt +9 more

  Net income / market capitalization+5.18%; #1626/6340 (top 25.6%)

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

  Price / 3-yr avg EPS23.5x

  ✗Graham<= 15x

  Price-to-Book Ratio2.1x

  ✗Graham<= 1.5x

  P/E x P/B50.20

  ✗Graham<= 22.5

  Basic earnings-growth PEG (dividends excluded)P/E 22.2x (growth N/A)

  ✗Lynch< 1.0 (ideally < 0.5)

  EBIT / Enterprise Value5.3%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=5.3%, ROC=6.6%

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Price / EPS22.2x

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

  Price / (CFO / Shares)9.4x

  ✗Dreman< 8x

  Price / Book Value per Share2.1x

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

  Valuation ReasonablenessP/E=22.2x, OE Yield=-0.2%

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

  P/E or FCF YieldP/E=22.2x, FCF Yield=0.8%

  ✗PabraiP/E < 15 or FCF Yield > 10%

  P/B or P/E vs. Historical AverageP/E=22.2x, P/B=2.1x

  ✗MarksP/E < 15 or P/B < 2.0

  Discount to Intrinsic Value-56.7% (IV=$32.90 vs Price=$51.56)

  ✗Marks>= 20% below intrinsic value

  Price / FCF per Share128.6x

  ✗Ackman<= 25

  Price vs. Trailing Low122% of trailing low ($42.23)

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

  Positive book equity / market capitalization+0.4897; #2926/6449 (top 45.4%)

  ✗AsnessTop 30% of eligible cross-section

  Price / Diluted EPS22.2x

  ✗NeffP/E <= 15x (app proxy for a P/E 40%-60% below the market)

  (EPS CAGR % + Dividend Yield %) / P/E-0.35

  ✗Neff> 0.7 (Neff's published traditional edge)

  Price / Tangible Book Value per Share2.14x

  ✗SchlossP/TBV <= 1.00x (app cutoff)

  Book Value per Share Change+33.0%

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

  Revenue / market capitalization+0.3165; #3252/5247 (top 62.0%)

  ✗OshaughnessyTop 10% of eligible cross-section

  (Operating cash flow - capex) / market capitalization+1.96%; #2258/4519 (top 50.0%)

  ✗OshaughnessyTop 10% of eligible cross-section

  Trailing six-month price return through the evaluation date+5.66%; #2114/6202 (top 34.1%)

  ✗OshaughnessyTop 10% of eligible cross-section
• Valuation models10% pass✓ 1✗ 9▾

  Models split on OGE at $51.56 — fair values range $4.09–$58.54

  Graham fair value$35.49

  ✗Graham-45.3% margin vs $51.56

  Buffett fair value$26.97

  ✗Buffett-91.2% margin vs $51.56

  Greenblatt fair value$28.02

  ✗Greenblatt-84.0% margin vs $51.56

  Dreman fair value$32.90

  ✗Dreman-56.7% margin vs $51.56

  Munger fair value$4.09

  ✗Munger-1160.6% margin vs $51.56

  Pabrai fair value$4.74

  ✗Pabrai-987.8% margin vs $51.56

  Akre fair value$58.54

  ✓Akre+11.9% margin vs $51.56

  Marks fair value$32.67

  ✗Marks-57.8% margin vs $51.56

  Ackman fair value$9.34

  ✗Ackman-452.0% margin vs $51.56

  Templeton fair value$40.74

  ✗Templeton-26.6% margin vs $51.56
• Profitability13% pass✓ 13✗ 22▾

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

  Net income / market capitalization+5.18%; #1626/6340 (top 25.6%)

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

  Positive EPS (10 years)17/18 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)17/18 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)24.5% (latest)

  ✓BuffettStable or rising over 10 years

  Free Cash Flow Proxy$470.7M

  ✓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)P/E 22.2x (growth N/A)

  ✗Lynch< 1.0 (ideally < 0.5)

  3-5 Year EPS CAGR-10.9%

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

  ROE10.6%

  ✗Lynch> 15%

  EBIT / Enterprise Value5.3%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=5.3%, ROC=6.6%

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Net Income / Total Assets3.28%

  ✓PiotroskiROA > 0

  ROA Change YoY3.22% -> 3.28% (delta: +0.06%)

  ✓PiotroskiCurrent ROA > Prior ROA

  (CFO / Total Assets) vs ROACFO/Assets=7.91%, ROA=3.28%

  ✓PiotroskiCFO/Assets > ROA

  Gross Margin Change YoY63.9% -> 61.4%

  ✗PiotroskiImproved YoY

  Pre-Tax Income / Revenue19.4%

  ✓Dreman>= 8%

  Net Income / Shareholders' Equity10.6%

  ✗Dreman> 12%

  Margin of SafetyP/E=22.2x, P/B=2.1x

  ✗PabraiP/B < 1.5 or P/E < 15

  Return on Equity9.4% (3-yr avg)

  ✗AkreROE > 20% (3-year avg)

  Discount to Intrinsic Value-56.7% (IV=$32.90 vs Price=$51.56)

  ✗Marks>= 20% below intrinsic value

  Positive Net Income Frequency17/18 years positive

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

  Operating Income / Revenue25.8%

  ✓Ackman>= 15%

  Net Income / Shareholders Equity10.6%

  ✗Ackman>= 15%

  5-Year EPS CAGR-10.9% CAGR over 4 years

  ✗Templeton> 0% (5-year EPS CAGR)

  Operating Margin Trend24.3% (2023) -> 24.5% (2025)

  ✓TempletonNon-negative operating-margin trend over 3 years

  Revenue growth vs. gross and operating margin trendgross margin 65.9% -> 61.4%, operating margin 24.3% -> 24.5%

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

  Gross profit / total assets+13.92%; #2499/3702 (top 67.5%)

  ✗AsnessTop 30% of eligible cross-section

  Net income / positive book equity+10.57%; #1719/5226 (top 32.9%)

  ✗AsnessTop 30% of eligible cross-section

  Negative 5-year standard deviation of ROA-0.0115; #924/5884 (top 15.7%)

  ✓AsnessTop 30% of eligible cross-section

  3-5 Year Diluted EPS CAGR-10.9% over 4 years

  ✗Neff7%-20% annualized

  Positive Diluted-EPS Years9/10 years positive

  ✓Schloss>= 70% positive over 5-10 observed years (app rule)
• Efficiency13% pass✓ 2✗ 9▾

  7 of 8 flag OGE's efficiency — Graham, Buffett, Greenblatt +4 more

  Current Ratio0.81

  ✗Graham>= 2.0

  ROIC (3-5 yr avg)5.8%

  ✗Buffett> 10%

  ROIC - WACC-4.2%

  ✗BuffettPositive (WACC = 10%)

  EBIT / (NWC + Net Fixed Assets)6.6%

  ✗Greenblatt> 25%

  Current Ratio Change YoY0.73 -> 0.78

  ✓PiotroskiIncreased YoY

  Revenue / Total Assets Change YoY0.22x -> 0.23x

  ✓PiotroskiImproved YoY

  Current Assets / Current Liabilities0.81

  ✗Dreman> 1.5

  Return on Invested Capital6.3%

  ✗Munger> 15%

  ROIC (high and growing)FY2023: ROIC=5.8%; FY2024: ROIC=6.1%; FY2025: ROIC=6.1%

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

  Reinvestment Rate x ROIC2.3% (RR=37% x ROIC=6.3%)

  ✗AkreReinvestment Rate * ROIC > 10%

  ROIC (5-year)0/5 years above 12% (latest 6.1%)

  ✗SleepROIC > 12% in a majority of years
• Verdicts19% pass✓ 3✗ 13▾

  Split decision: 12 FAIL · 3 PASS · 1 NEUTRAL

  Overall verdict

  ✗GrahamFAIL (2/9)✗BuffettFAIL (2/9)✗LynchFAIL (2/7)✗GreenblattRank #1436•PiotroskiNEUTRAL (F-Score 6)✗DremanFAIL (2/11)✓MungerPASS (2/4)✗PabraiFAIL (0/3)✗AkreFAIL (0/6)✗MarksFAIL (2/5)✓AckmanPASS (5/9)✗TempletonFAIL (3/8)✓SleepPASS (3/6)✗AsnessFAIL (Rank #897/2370 (Top 37.8%))✗NeffFAIL (3/6)✗SchlossFAIL (3/7)✗OshaughnessyFAIL (Rank #681/963 (Top 70.7%))
• Growth38% pass✓ 6✗ 7▾

  5 of 8 flag OGE's growth — Graham, Lynch, Dreman +2 more

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

  ✗Graham>= 33% growth

  Basic earnings-growth PEG (dividends excluded)P/E 22.2x (growth N/A)

  ✗Lynch< 1.0 (ideally < 0.5)

  3-5 Year EPS CAGR-10.9%

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

  Inventory Growth vs Revenue GrowthInv: -32.9% vs Rev: 2.4%

  ✓LynchInventory growth < Revenue growth

  EPS Growth Direction

  ✗DremanPositive over recent years

  EPS CAGR

  ✗Dreman> 5% annualized

  Positive Net Income Frequency17/18 years positive

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

  3yr Median Revenue Growth9.2%

  ✓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-10.9% CAGR over 4 years

  ✗Templeton> 0% (5-year EPS CAGR)

  Revenue growth vs. gross and operating margin trendgross margin 65.9% -> 61.4%, operating margin 24.3% -> 24.5%

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

  5-year Revenue CAGR9.0%

  ✓SleepCAGR > 7%

  3-5 Year Diluted EPS CAGR-10.9% over 4 years

  ✗Neff7%-20% annualized
• Cash Flow50% pass✓ 6✗ 6▾

  5 of 10 pass — Dreman, Pabrai, Marks +2 more object

  Free Cash Flow Proxy$470.7M

  ✓BuffettPositive and growing

  FCF Positive and Growing$209.2M

  ✓LynchPositive and growing

  Operating Cash Flow$1.1B

  ✓PiotroskiCFO > 0

  (CFO / Total Assets) vs ROACFO/Assets=7.91%, ROA=3.28%

  ✓PiotroskiCFO/Assets > ROA

  Price / (CFO / Shares)9.4x

  ✗Dreman< 8x

  P/E or FCF YieldP/E=22.2x, FCF Yield=0.8%

  ✗PabraiP/E < 15 or FCF Yield > 10%

  FCF Positive7/18 years FCF positive

  ✗MarksPositive FCF in majority of recent years

  (OCF - CapEx) / Market Cap2.0%

  ✗Ackman>= 4%

  Price / FCF per Share128.6x

  ✗Ackman<= 25

  Positive Operating Cash Flow frequency17/18 years positive

  ✓SleepPositive OCF in >= 70% of available years

  Operating Cash Flow - Capital Expenditures$209.2M

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

  (Operating cash flow - capex) / market capitalization+1.96%; #2258/4519 (top 50.0%)

  ✗OshaughnessyTop 10% of eligible cross-section