Ranpak Holdings Corp.

Where It Passes

Where It Falls Short

• Profitability6% pass✓ 3✗ 32▾

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

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

  ✗BuffettPositive every year for 10+ years

  ROE (up to 5-year arithmetic mean)-4.6%

  ✗Buffett> 15% arithmetic mean (app rule)

  Operating Margin (10-yr trend)-6.2% (latest)

  ✗BuffettStable or rising over 10 years

  Free Cash Flow Proxy$-12.8M

  ✗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-6.8%

  ✗Lynch> 15%

  EBIT / Enterprise Value-1.1%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=-1.1%, ROC=-4.6%

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Net Income / Total Assets-3.40%

  ✗PiotroskiROA > 0

  ROA Change YoY-1.95% -> -3.40% (delta: -1.46%)

  ✗PiotroskiCurrent ROA > Prior ROA

  (CFO / Total Assets) vs ROACFO/Assets=2.05%, ROA=-3.40%

  ✓PiotroskiCFO/Assets > ROA

  Gross Margin Change YoY37.9% -> 33.1%

  ✗PiotroskiImproved YoY

  Pre-Tax Income / Revenue-10.2%

  ✗Dreman>= 8%

  Net Income / Shareholders' Equity-6.8%

  ✗Dreman> 12%

  Margin of SafetyP/B=0.5x

  ✓PabraiP/B < 1.5 or P/E < 15

  Return on Equity-5.3% (3-yr avg)

  ✗AkreROE > 20% (3-year avg)

  Discount to Intrinsic ValueN/A (negative normalized EPS)

  ✗Marks>= 20% below intrinsic value

  Positive Net Income Frequency1/8 years positive

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

  Operating Income / Revenue-1.7%

  ✗Ackman>= 15%

  Net Income / Shareholders Equity-6.8%

  ✗Ackman>= 15%

  5-Year EPS CAGR

  ✗Templeton> 0% (5-year EPS CAGR)

  Operating Margin Trend-2.2% (2023) -> -6.2% (2025)

  ✗TempletonNon-negative operating-margin trend over 3 years

  Revenue growth vs. gross and operating margin trendgross margin 36.7% -> 33.1%, operating margin -2.2% -> -6.2%

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

  Net income / market capitalization-12.26%; #4274/6340 (top 67.4%)

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

  Gross profit / total assets+13.02%; #2566/3702 (top 69.3%)

  ✗AsnessTop 30% of eligible cross-section

  Net income / positive book equity-6.77%; #3289/5226 (top 62.9%)

  ✗AsnessTop 30% of eligible cross-section

  Negative 5-year standard deviation of ROA-0.0122; #964/5884 (top 16.4%)

  ✓AsnessTop 30% of eligible cross-section

  3-5 Year Diluted EPS CAGR

  ✗Neff7%-20% annualized

  Positive Diluted-EPS Years1/8 years positive

  ✗Schloss>= 70% positive over 5-10 observed years (app rule)
• Valuation8% pass✓ 8✗ 20▾

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

  Price / 3-yr avg EPS

  ✗Graham<= 15x

  Price-to-Book Ratio0.5x

  ✓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-1.1%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=-1.1%, ROC=-4.6%

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Price / EPS

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

  Price / (CFO / Shares)12.1x

  ✗Dreman< 8x

  Price / Book Value per Share0.5x

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

  Valuation ReasonablenessOE Yield=10.1%

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

  P/E or FCF Yield

  ✗PabraiP/E < 15 or FCF Yield > 10%

  P/B or P/E vs. Historical AverageP/B=0.5x

  ✓MarksP/E < 15 or P/B < 2.0

  Discount to Intrinsic ValueN/A (negative normalized EPS)

  ✗Marks>= 20% below intrinsic value

  Price / FCF per Share

  ✗Ackman<= 25

  Price vs. Trailing Low100% of trailing low ($3.31)

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

  Net income / market capitalization-12.26%; #4274/6340 (top 67.4%)

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

  Positive book equity / market capitalization+1.8098; #745/6449 (top 11.6%)

  ✓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 ShareN/A (non-positive TBVPS)

  ✗SchlossP/TBV <= 1.00x (app cutoff)

  Book Value per Share Change-8.8%

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

  Revenue / market capitalization+1.4798; #1351/5247 (top 25.7%)

  ✗OshaughnessyTop 10% of eligible cross-section

  (Operating cash flow - capex) / market capitalization

  ✗OshaughnessyTop 10% of eligible cross-section

  Trailing six-month price return through the evaluation date-34.97%; #4626/6202 (top 74.6%)

  ✗OshaughnessyTop 10% of eligible cross-section
• Growth13% pass✓ 3✗ 10▾

  7 of 8 flag PACK'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: -19.2% vs Rev: 8.3%

  ✓LynchInventory growth < Revenue growth

  EPS Growth Direction

  ✗DremanPositive over recent years

  EPS CAGR

  ✗Dreman> 5% annualized

  Positive Net Income Frequency1/8 years positive

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

  3yr Median Revenue Growth7.1%

  ✓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

  ✗Templeton> 0% (5-year EPS CAGR)

  Revenue growth vs. gross and operating margin trendgross margin 36.7% -> 33.1%, operating margin -2.2% -> -6.2%

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

  5-year Revenue CAGR5.8%

  ✗SleepCAGR > 7%

  3-5 Year Diluted EPS CAGR

  ✗Neff7%-20% annualized
• Efficiency13% pass✓ 2✗ 9▾

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

  Current Ratio1.79

  ✗Graham>= 2.0

  ROIC (3-5 yr avg)-1.3%

  ✗Buffett> 10%

  ROIC - WACC-11.3%

  ✗BuffettPositive (WACC = 10%)

  EBIT / (NWC + Net Fixed Assets)-4.6%

  ✗Greenblatt> 25%

  Current Ratio Change YoY2.21 -> 1.83

  ✗PiotroskiIncreased YoY

  Revenue / Total Assets Change YoY0.33x -> 0.35x

  ✓PiotroskiImproved YoY

  Current Assets / Current Liabilities1.79

  ✓Dreman> 1.5

  Return on Invested Capital-0.6%

  ✗Munger> 15%

  ROIC (high and growing)FY2023: ROIC=-0.6%; FY2024: ROIC=-1.1%; FY2025: ROIC=-2.1%

  ✗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 -2.1%)

  ✗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 (0/9)✗LynchFAIL (1/7)✗GreenblattRank #1908✓PiotroskiPASS (F-Score 4)✗DremanFAIL (3/11)✗MungerFAIL (1/4)✗PabraiFAIL (1/3)✗AkreFAIL (0/6)✗MarksFAIL (1/5)✓AckmanPASS (4/9)✓TempletonPASS (4/8)✗SleepFAIL (1/6)✗AsnessFAIL (Rank #1623/2370 (Top 68.5%))✗NeffFAIL (1/6)✗SchlossFAIL (3/7)•OshaughnessyNEUTRAL (Not ranked)
• Cash Flow20% pass✓ 3✗ 9▾

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

  Free Cash Flow Proxy$-12.8M

  ✗BuffettPositive and growing

  FCF Positive and Growing$-2.7M

  ✗LynchPositive and growing

  Operating Cash Flow$23.1M

  ✓PiotroskiCFO > 0

  (CFO / Total Assets) vs ROACFO/Assets=2.05%, ROA=-3.40%

  ✓PiotroskiCFO/Assets > ROA

  Price / (CFO / Shares)12.1x

  ✗Dreman< 8x

  P/E or FCF Yield

  ✗PabraiP/E < 15 or FCF Yield > 10%

  FCF Positive3/6 years FCF positive

  ✗MarksPositive FCF in majority of recent years

  (OCF - CapEx) / Market Cap

  ✗Ackman>= 4%

  Price / FCF per Share

  ✗Ackman<= 25

  Positive Operating Cash Flow frequency8/8 years positive

  ✓SleepPositive OCF in >= 70% of available years

  Operating Cash Flow - Capital Expenditures

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

  (Operating cash flow - capex) / market capitalization

  ✗OshaughnessyTop 10% of eligible cross-section
• Debt & Leverage42% pass✓ 7✗ 8▾

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

  LT Debt vs Net Current AssetsLT Debt $399.1M vs NCA $63.9M

  ✗GrahamLT Debt <= Net Current Assets

  Debt/Equity & Interest CoverageD/E: 0.79, IC: -0.2x

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

  Total Debt / Equity0.79

  ✗Lynch< 0.33

  Cash - Long-term Debt$-345.7M

  ✗LynchPositive preferred

  LT Debt / Total Assets Change36.30% -> 35.24%

  ✓PiotroskiDecreased YoY

  Current Assets / Current Liabilities1.79

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

  Total Debt / Shareholders' Equity0.79

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

  Debt Levels0.79

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

  Interest Coverage & Debt/EBITDAIC=-0.2x, D/EBITDA=7.0x

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

  Total Debt / Shareholders Equity0.79

  ✓Ackman<= 1.0

  Negative debt-to-equity (higher means less debt)-0.7914; #2989/4210 (top 71.0%)

  ✗AsnessTop 30% of eligible cross-section