Fang Holdings Ltd

Where It Passes

Where It Falls Short

• Valuation0% pass✓ 8✗ 20▾

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

  Price / 3-yr avg EPS

  ✗Graham<= 15x

  Price-to-Book Ratio0.0x

  ✓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-31.4%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=-31.4%, ROC=-7.3%

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Price / EPS

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

  Price / (CFO / Shares)2.5x

  ✓Dreman< 8x

  Price / Book Value per Share0.0x

  ✓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=-13.5%

  ✗PabraiP/E < 15 or FCF Yield > 10%

  P/B or P/E vs. Historical AverageP/B=0.0x

  ✓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 Low667% of trailing low ($0.02)

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

  Net income / market capitalization-318.25%; #5810/6340 (top 91.6%)

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

  Positive book equity / market capitalization+38.3933; #92/6449 (top 1.4%)

  ✓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 Share0.03x

  ✓SchlossP/TBV <= 1.00x (app cutoff)

  Book Value per Share Change-41.7%

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

  Revenue / market capitalization+3.3950; #733/5247 (top 14.0%)

  ✗OshaughnessyTop 10% of eligible cross-section

  (Operating cash flow - capex) / market capitalization-13.47%; #3351/4519 (top 74.2%)

  ✗OshaughnessyTop 10% of eligible cross-section

  Trailing six-month price return through the evaluation date-52.04%; #5208/6202 (top 84.0%)

  ✗OshaughnessyTop 10% of eligible cross-section
• Efficiency0% pass✗ 11▾

  All 8 investors flag SFUNY's efficiency

  Current Ratio1.40

  ✗Graham>= 2.0

  ROIC (3-5 yr avg)-8.8%

  ✗Buffett> 10%

  ROIC - WACC-18.8%

  ✗BuffettPositive (WACC = 10%)

  EBIT / (NWC + Net Fixed Assets)-7.3%

  ✗Greenblatt> 25%

  Current Ratio Change YoY1.49 -> 1.40

  ✗PiotroskiIncreased YoY

  Revenue / Total Assets Change YoY0.05x -> 0.04x

  ✗PiotroskiImproved YoY

  Current Assets / Current Liabilities1.40

  ✗Dreman> 1.5

  Return on Invested Capital-5.3%

  ✗Munger> 15%

  ROIC (high and growing)FY2022: ROIC=-4.5%; FY2023: ROIC=-28.7%; FY2024: ROIC=-5.3%

  ✗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 -5.3%)

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

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

  Positive EPS (10 years)7/17 years positive

  ✗GrahamPositive EPS every year for 10 years

  EPS Growth (3-yr avg, 10-yr window)-242.9%

  ✗Graham>= 33% growth

  Net Income Positive (10+ years)7/17 years positive

  ✗BuffettPositive every year for 10+ years

  ROE (up to 5-year arithmetic mean)-14.4%

  ✗Buffett> 15% arithmetic mean (app rule)

  Operating Margin (10-yr trend)-112.2% (latest)

  ✗BuffettStable or rising over 10 years

  Free Cash Flow Proxy$-184.3M

  ✗BuffettPositive and growing

  Earnings Variance (10-yr CoV)5.48

  ✗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-8.3%

  ✗Lynch> 15%

  EBIT / Enterprise Value-31.4%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=-31.4%, ROC=-7.3%

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Net Income / Total Assets-3.43%

  ✗PiotroskiROA > 0

  ROA Change YoY-18.98% -> -3.43% (delta: +15.55%)

  ✓PiotroskiCurrent ROA > Prior ROA

  (CFO / Total Assets) vs ROACFO/Assets=0.43%, ROA=-3.43%

  ✓PiotroskiCFO/Assets > ROA

  Gross Margin Change YoY84.2% -> 81.4%

  ✗PiotroskiImproved YoY

  Pre-Tax Income / Revenue-141.8%

  ✗Dreman>= 8%

  Net Income / Shareholders' Equity-8.3%

  ✗Dreman> 12%

  Margin of SafetyP/B=0.0x

  ✓PabraiP/B < 1.5 or P/E < 15

  Return on Equity-22.6% (3-yr avg)

  ✗AkreROE > 20% (3-year avg)

  Discount to Intrinsic ValueN/A (negative normalized EPS)

  ✗Marks>= 20% below intrinsic value

  Positive Net Income Frequency7/16 years positive

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

  Operating Income / Revenue-112.2%

  ✗Ackman>= 15%

  Net Income / Shareholders Equity-8.3%

  ✗Ackman>= 15%

  5-Year EPS CAGR

  ✗Templeton> 0% (5-year EPS CAGR)

  Operating Margin Trend-49.7% (2022) -> -112.2% (2024)

  ✗TempletonNon-negative operating-margin trend over 3 years

  Revenue growth vs. gross and operating margin trendgross margin 84.8% -> 81.4%, operating margin -49.7% -> -112.2%

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

  Net income / market capitalization-318.25%; #5810/6340 (top 91.6%)

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

  Gross profit / total assets+2.98%; #3211/3702 (top 86.7%)

  ✗AsnessTop 30% of eligible cross-section

  Net income / positive book equity-8.29%; #3346/5226 (top 64.0%)

  ✗AsnessTop 30% of eligible cross-section

  Negative 5-year standard deviation of ROA-0.0677; #2969/5884 (top 50.5%)

  ✗AsnessTop 30% of eligible cross-section

  3-5 Year Diluted EPS CAGR-33.5% over 5 years

  ✗Neff7%-20% annualized

  Positive Diluted-EPS Years1/10 years positive

  ✗Schloss>= 70% positive over 5-10 observed years (app rule)
• Verdicts6% pass✓ 1✗ 15▾

  Split decision: 14 FAIL · 1 PASS · 1 NEUTRAL

  Overall verdict

  ✗GrahamFAIL (1/9)✗BuffettFAIL (0/9)✗LynchFAIL (1/7)✗GreenblattRank #2284✓PiotroskiPASS (F-Score 5)✗DremanFAIL (3/11)✗MungerFAIL (1/4)✗PabraiFAIL (1/3)✗AkreFAIL (0/6)✗MarksFAIL (3/5)✗AckmanFAIL (2/9)✗TempletonFAIL (3/8)✗SleepFAIL (2/6)✗AsnessFAIL (Rank #2055/2370 (Top 86.7%))✗NeffFAIL (0/6)✗SchlossFAIL (3/7)•OshaughnessyNEUTRAL (Not ranked)
• Growth13% pass✓ 2✗ 11▾

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

  EPS Growth (3-yr avg, 10-yr window)-242.9%

  ✗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$0.68 (2009) -> $-0.32 (2024)

  ✗DremanPositive over recent years

  EPS CAGR-12.2% CAGR over 8 years

  ✗Dreman> 5% annualized

  Positive Net Income Frequency7/16 years positive

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

  3yr Median Revenue Growth-38.7%

  ✗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 84.8% -> 81.4%, operating margin -49.7% -> -112.2%

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

  5-year Revenue CAGR-32.5%

  ✗SleepCAGR > 7%

  3-5 Year Diluted EPS CAGR-33.5% over 5 years

  ✗Neff7%-20% annualized
• Debt & Leverage33% pass✓ 6✗ 9▾

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

  Debt Levels0.48

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

  LT Debt vs Net Current AssetsLT Debt $125.3M vs NCA $84.7M

  ✗GrahamLT Debt <= Net Current Assets

  Debt/Equity & Interest CoverageD/E: 0.48, IC: -3.5x

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

  Total Debt / Equity0.48

  ✗Lynch< 0.33

  Cash - Long-term Debt$-60.2M

  ✗LynchPositive preferred

  LT Debt / Total Assets Change17.69% -> 14.94%

  ✓PiotroskiDecreased YoY

  Current Assets / Current Liabilities1.40

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

  Total Debt / Shareholders' Equity0.48

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

  Interest Coverage & Debt/EBITDAIC=-3.5x, D/EBITDA=N/A (D&A unavailable)

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

  Total Debt / Shareholders Equity0.48

  ✓Ackman<= 1.0

  Negative debt-to-equity (higher means less debt)-0.4779; #2425/4210 (top 57.6%)

  ✗AsnessTop 30% of eligible cross-section
• Cash Flow40% pass✓ 5✗ 7▾

  6 of 10 flag SFUNY's cash flow — Buffett, Lynch, Pabrai +3 more

  Free Cash Flow Proxy$-184.3M

  ✗BuffettPositive and growing

  FCF Positive and Growing$-1.2M

  ✗LynchPositive and growing

  Operating Cash Flow$3.6M

  ✓PiotroskiCFO > 0

  (CFO / Total Assets) vs ROACFO/Assets=0.43%, ROA=-3.43%

  ✓PiotroskiCFO/Assets > ROA

  Price / (CFO / Shares)2.5x

  ✓Dreman< 8x

  P/E or FCF YieldFCF Yield=-13.5%

  ✗PabraiP/E < 15 or FCF Yield > 10%

  FCF Positive10/16 years FCF positive

  ✓MarksPositive FCF in majority of recent years

  (OCF - CapEx) / Market Cap-13.5%

  ✗Ackman>= 4%

  Price / FCF per ShareN/A (negative FCF)

  ✗Ackman<= 25

  Positive Operating Cash Flow frequency13/16 years positive

  ✓SleepPositive OCF in >= 70% of available years

  Operating Cash Flow - Capital Expenditures$-1.2M

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

  (Operating cash flow - capex) / market capitalization-13.47%; #3351/4519 (top 74.2%)

  ✗OshaughnessyTop 10% of eligible cross-section