People 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 / 3-yr avg EPS

  ✗Graham<= 15x

  Price-to-Book Ratio0.7x

  ✓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-5.1%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=-5.1%, ROC=-55.4%

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Price / EPS

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

  Price / (CFO / Shares)54.7x

  ✗Dreman< 8x

  Price / Book Value per Share0.7x

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

  Valuation Reasonableness

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

  P/E or FCF YieldFCF Yield=1.4%

  ✗PabraiP/E < 15 or FCF Yield > 10%

  P/B or P/E vs. Historical AverageP/B=0.7x

  ✓MarksP/E < 15 or P/B < 2.0

  Discount to Intrinsic ValueN/A (negative normalized EPS)

  ✗Marks>= 20% below intrinsic value

  Price / FCF per Share78.2x

  ✗Ackman<= 25

  Price vs. Trailing Low136% of trailing low ($32.22)

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

  Net income / market capitalization-10.03%; #4182/6340 (top 66.0%)

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

  Positive book equity / market capitalization+1.3371; #1057/6449 (top 16.4%)

  ✓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 Share1.41x

  ✗SchlossP/TBV <= 1.00x (app cutoff)

  Book Value per Share Change-18.5%

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

  Revenue / market capitalization+0.5897; #2402/5247 (top 45.8%)

  ✗OshaughnessyTop 10% of eligible cross-section

  (Operating cash flow - capex) / market capitalization+3.40%; #1956/4519 (top 43.3%)

  ✗OshaughnessyTop 10% of eligible cross-section

  Trailing six-month price return through the evaluation date-2.52%; #2967/6202 (top 47.8%)

  ✗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)-201.4%

  ✗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 GrowthN/A (no inventory)

  ✓LynchInventory growth < Revenue growth

  EPS Growth Direction$2.90 (2018) -> $-1.30 (2025)

  ✗DremanPositive over recent years

  EPS CAGR0.5% CAGR over 5 years

  ✗Dreman> 5% annualized

  Positive Net Income Frequency5/8 years positive

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

  3yr Median Revenue Growth-16.6%

  ✗Ackman>= 5%

  Positive EPS Growth Frequency3/5 years with positive EPS growth

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

  5-Year EPS CAGR0.0% CAGR over 3 years

  ✗Templeton> 0% (5-year EPS CAGR)

  Revenue growth vs. gross and operating margin trendgross margin 72.1% -> 66.2%, operating margin -5.4% -> -4.1%

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

  5-year Revenue CAGR-2.8%

  ✗SleepCAGR > 7%

  3-5 Year Diluted EPS CAGR0.5% over 5 years

  ✗Neff7%-20% annualized
• Valuation models0% pass✗ 3▾

  Models split on PPLI at $43.76 — fair values range $4.63–$43.74

  Munger fair value$7.01

  ✗Munger-524.3% margin vs $43.76

  Akre fair value$43.74

  ✗Akre0.0% margin vs $43.76

  Ackman fair value$4.63

  ✗Ackman-845.1% margin vs $43.76
• Profitability6% pass✓ 6✗ 29▾

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

  Positive EPS (10 years)5/9 years positive

  ✗GrahamPositive EPS every year for 10 years

  EPS Growth (3-yr avg, 10-yr window)-201.4%

  ✗Graham>= 33% growth

  Net Income Positive (10+ years)5/9 years positive

  ✗BuffettPositive every year for 10+ years

  ROE (up to 5-year arithmetic mean)-3.8%

  ✗Buffett> 15% arithmetic mean (app rule)

  Operating Margin (10-yr trend)-4.1% (latest)

  ✓BuffettStable or rising over 10 years

  Free Cash Flow Proxy

  ✗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

  ROE-7.5%

  ✗Lynch> 15%

  EBIT / Enterprise Value-5.1%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=-5.1%, ROC=-55.4%

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Net Income / Total Assets-1.46%

  ✗PiotroskiROA > 0

  ROA Change YoY-5.57% -> -1.46% (delta: +4.11%)

  ✓PiotroskiCurrent ROA > Prior ROA

  (CFO / Total Assets) vs ROACFO/Assets=0.90%, ROA=-1.46%

  ✓PiotroskiCFO/Assets > ROA

  Gross Margin Change YoY61.8% -> 66.2%

  ✓PiotroskiImproved YoY

  Pre-Tax Income / Revenue-14.8%

  ✗Dreman>= 8%

  Net Income / Shareholders' Equity-7.5%

  ✗Dreman> 12%

  Margin of SafetyP/B=0.7x

  ✓PabraiP/B < 1.5 or P/E < 15

  Return on Equity-2.5% (3-yr avg)

  ✗AkreROE > 20% (3-year avg)

  Discount to Intrinsic ValueN/A (negative normalized EPS)

  ✗Marks>= 20% below intrinsic value

  Positive Net Income Frequency5/8 years positive

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

  Operating Income / Revenue-8.8%

  ✗Ackman>= 15%

  Net Income / Shareholders Equity-7.5%

  ✗Ackman>= 15%

  5-Year EPS CAGR0.0% CAGR over 3 years

  ✗Templeton> 0% (5-year EPS CAGR)

  Operating Margin Trend-5.4% (2023) -> -4.1% (2025)

  ✓TempletonNon-negative operating-margin trend over 3 years

  Revenue growth vs. gross and operating margin trendgross margin 72.1% -> 66.2%, operating margin -5.4% -> -4.1%

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

  Net income / market capitalization-10.03%; #4182/6340 (top 66.0%)

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

  Gross profit / total assets+22.21%; #1913/3702 (top 51.7%)

  ✗AsnessTop 30% of eligible cross-section

  Net income / positive book equity-7.50%; #3310/5226 (top 63.3%)

  ✗AsnessTop 30% of eligible cross-section

  Negative 5-year standard deviation of ROA-0.0577; #2756/5884 (top 46.8%)

  ✗AsnessTop 30% of eligible cross-section

  3-5 Year Diluted EPS CAGR0.5% over 5 years

  ✗Neff7%-20% annualized

  Positive Diluted-EPS Years5/8 years positive

  ✗Schloss>= 70% positive over 5-10 observed years (app rule)
• Efficiency25% pass✓ 3✗ 8▾

  6 of 8 flag PPLI's efficiency — Buffett, Greenblatt, Piotroski +3 more

  Current Ratio4.01

  ✓Graham>= 2.0

  ROIC (3-5 yr avg)-2.3%

  ✗Buffett> 10%

  ROIC - WACC-12.3%

  ✗BuffettPositive (WACC = 10%)

  EBIT / (NWC + Net Fixed Assets)-55.4%

  ✗Greenblatt> 25%

  Current Ratio Change YoY2.80 -> 2.75

  ✗PiotroskiIncreased YoY

  Revenue / Total Assets Change YoY0.27x -> 0.34x

  ✓PiotroskiImproved YoY

  Current Assets / Current Liabilities4.01

  ✓Dreman> 1.5

  Return on Invested Capital-2.3%

  ✗Munger> 15%

  ROIC (high and growing)FY2023: ROIC=-2.3%; FY2024: ROIC=-0.3%; FY2025: ROIC=-1.2%

  ✗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 -1.2%)

  ✗SleepROIC > 12% in a majority of years
• Verdicts27% pass✓ 4✗ 11▾

  Split decision: 10 FAIL · 4 PASS · 2 NEUTRAL

  Overall verdict

  ✗GrahamFAIL (3/9)✗BuffettFAIL (1/9)✗LynchFAIL (3/7)✗GreenblattRank #2270•PiotroskiNEUTRAL (F-Score 6)✗DremanFAIL (4/11)✓MungerPASS (2/4)✗PabraiFAIL (1/3)✗AkreFAIL (1/6)✗MarksFAIL (2/5)✓AckmanPASS (4/9)✓TempletonPASS (4/8)✓SleepPASS (3/6)✗AsnessFAIL (Rank #1291/2370 (Top 54.5%))✗NeffFAIL (1/6)✗SchlossFAIL (3/7)•OshaughnessyNEUTRAL (Not ranked)
• Debt & Leverage42% pass✓ 8✗ 7▾

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

  Debt Levels0.32

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

  LT Debt vs Net Current AssetsLT Debt $1.4B vs NCA $1.3B

  ✗GrahamLT Debt <= Net Current Assets

  Debt/Equity & Interest CoverageD/E: 0.32, IC: -1.6x

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

  Total Debt / Equity0.32

  ✓Lynch< 0.33

  Cash - Long-term Debt$-65.9M

  ✗LynchPositive preferred

  LT Debt / Total Assets Change14.81% -> 19.65%

  ✗PiotroskiDecreased YoY

  Current Assets / Current Liabilities4.01

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

  Total Debt / Shareholders' Equity0.32

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

  Interest Coverage & Debt/EBITDAIC=-0.8x, D/EBITDA=N/A (D&A unavailable)

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

  Total Debt / Shareholders Equity0.32

  ✓Ackman<= 1.0

  Negative debt-to-equity (higher means less debt)-0.3209; #2055/4210 (top 48.8%)

  ✗AsnessTop 30% of eligible cross-section
• Cash Flow50% pass✓ 6✗ 6▾

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

  Free Cash Flow Proxy

  ✗BuffettPositive and growing

  FCF Positive and Growing$111.6M

  ✓LynchPositive and growing

  Operating Cash Flow$64.0M

  ✓PiotroskiCFO > 0

  (CFO / Total Assets) vs ROACFO/Assets=0.90%, ROA=-1.46%

  ✓PiotroskiCFO/Assets > ROA

  Price / (CFO / Shares)54.7x

  ✗Dreman< 8x

  P/E or FCF YieldFCF Yield=1.4%

  ✗PabraiP/E < 15 or FCF Yield > 10%

  FCF Positive7/8 years FCF positive

  ✓MarksPositive FCF in majority of recent years

  (OCF - CapEx) / Market Cap3.2%

  ✗Ackman>= 4%

  Price / FCF per Share78.2x

  ✗Ackman<= 25

  Positive Operating Cash Flow frequency7/8 years positive

  ✓SleepPositive OCF in >= 70% of available years

  Operating Cash Flow - Capital Expenditures$111.6M

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

  (Operating cash flow - capex) / market capitalization+3.40%; #1956/4519 (top 43.3%)

  ✗OshaughnessyTop 10% of eligible cross-section