SKK Holdings Ltd

Where It Passes

Where It Falls Short

• Profitability0% pass✓ 1✗ 34▾

  No clean pass — all 16 investors flag at least one profitability criterion

  Positive EPS (10 years)3/5 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)3/5 years positive

  ✗BuffettPositive every year for 10+ years

  ROE (up to 5-year arithmetic mean)13.6%

  ✗Buffett> 15% arithmetic mean (app rule)

  Operating Margin (10-yr trend)-19.6% (latest)

  ✗BuffettStable or rising over 10 years

  Free Cash Flow Proxy

  ✗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-40.3%

  ✗Lynch> 15%

  EBIT / Enterprise Value-9.8%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=-9.8%, ROC=-16.7%

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Net Income / Total Assets-9.23%

  ✗PiotroskiROA > 0

  ROA Change YoY1.47% -> -9.23% (delta: -10.70%)

  ✗PiotroskiCurrent ROA > Prior ROA

  (CFO / Total Assets) vs ROACFO/Assets=-1.62%, ROA=-9.23%

  ✓PiotroskiCFO/Assets > ROA

  Gross Margin Change YoY36.2% -> 25.1%

  ✗PiotroskiImproved YoY

  Pre-Tax Income / Revenue-21.7%

  ✗Dreman>= 8%

  Net Income / Shareholders' Equity-40.3%

  ✗Dreman> 12%

  Margin of SafetyP/B=11.8x

  ✗PabraiP/B < 1.5 or P/E < 15

  Return on Equity-8.5% (3-yr avg)

  ✗AkreROE > 20% (3-year avg)

  Discount to Intrinsic ValueN/A (negative normalized EPS)

  ✗Marks>= 20% below intrinsic value

  Positive Net Income Frequency3/4 years positive

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

  Operating Income / Revenue-19.6%

  ✗Ackman>= 15%

  Net Income / Shareholders Equity-40.3%

  ✗Ackman>= 15%

  5-Year EPS CAGR

  ✗Templeton> 0% (5-year EPS CAGR)

  Operating Margin Trend3.4% (2023) -> -19.6% (2025)

  ✗TempletonNon-negative operating-margin trend over 3 years

  Revenue growth vs. gross and operating margin trendgross margin 28.4% -> 25.1%, operating margin 3.4% -> -19.6%

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

  Net income / market capitalization-12.13%; #4267/6340 (top 67.3%)

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

  Gross profit / total assets+10.28%; #2784/3702 (top 75.2%)

  ✗AsnessTop 30% of eligible cross-section

  Net income / positive book equity-40.33%; #4087/5226 (top 78.2%)

  ✗AsnessTop 30% of eligible cross-section

  Negative 5-year standard deviation of ROA-0.0500; #2581/5884 (top 43.9%)

  ✗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)
• Valuation0% pass✓ 2✗ 26▾

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

  Price / 3-yr avg EPS

  ✗Graham<= 15x

  Price-to-Book Ratio11.8x

  ✗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-9.8%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=-9.8%, ROC=-16.7%

  ✗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 Share11.8x

  ✗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=-23.5%

  ✗PabraiP/E < 15 or FCF Yield > 10%

  P/B or P/E vs. Historical AverageP/B=11.8x

  ✗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 Low257% of trailing low ($1.77)

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

  Net income / market capitalization-12.13%; #4267/6340 (top 67.3%)

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

  Positive book equity / market capitalization+0.3007; #3693/6449 (top 57.3%)

  ✗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 Share11.78x

  ✗SchlossP/TBV <= 1.00x (app cutoff)

  Book Value per Share Change+195.7%

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

  Revenue / market capitalization+0.5377; #2537/5247 (top 48.4%)

  ✗OshaughnessyTop 10% of eligible cross-section

  (Operating cash flow - capex) / market capitalization-23.45%; #3571/4519 (top 79.0%)

  ✗OshaughnessyTop 10% of eligible cross-section

  Trailing six-month price return through the evaluation date+89.58%; #380/6202 (top 6.1%)

  ✓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: 4.7% vs Rev: 16.6%

  ✓LynchInventory growth < Revenue growth

  EPS Growth Direction$0.10 (2022) -> $-0.16 (2025)

  ✗DremanPositive over recent years

  EPS CAGR-45.2% CAGR over 2 years

  ✗Dreman> 5% annualized

  Positive Net Income Frequency3/4 years positive

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

  3yr Median Revenue Growth15.0%

  ✓Ackman>= 5%

  Positive EPS Growth Frequency1/3 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 28.4% -> 25.1%, operating margin 3.4% -> -19.6%

  ✗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✗ 11▾

  All 8 investors flag SKK's efficiency

  Current Ratio0.74

  ✗Graham>= 2.0

  ROIC (3-5 yr avg)-8.0%

  ✗Buffett> 10%

  ROIC - WACC-18.0%

  ✗BuffettPositive (WACC = 10%)

  EBIT / (NWC + Net Fixed Assets)-16.7%

  ✗Greenblatt> 25%

  Current Ratio Change YoY0.79 -> 0.74

  ✗PiotroskiIncreased YoY

  Revenue / Total Assets Change YoY0.43x -> 0.41x

  ✗PiotroskiImproved YoY

  Current Assets / Current Liabilities0.74

  ✗Dreman> 1.5

  Return on Invested Capital-20.8%

  ✗Munger> 15%

  ROIC (high and growing)FY2023: ROIC=unavailable; FY2024: ROIC=4.4%; FY2025: ROIC=-20.8%

  ✗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 -20.8%)

  ✗SleepROIC > 12% in a majority of years
• Verdicts0% pass✗ 16▾

  Split decision: 15 FAIL · 1 NEUTRAL

  Overall verdict

  ✗GrahamFAIL (0/9)✗BuffettFAIL (0/9)✗LynchFAIL (1/7)✗GreenblattRank #2179✗PiotroskiFAIL (F-Score 2)✗DremanFAIL (1/11)✗MungerFAIL (1/4)✗PabraiFAIL (0/3)✗AkreFAIL (0/6)✗MarksFAIL (0/5)✗AckmanFAIL (2/9)✗TempletonFAIL (2/8)✗SleepFAIL (1/6)✗AsnessFAIL (Rank #1741/2370 (Top 73.5%))✗NeffFAIL (1/6)✗SchlossFAIL (2/7)•OshaughnessyNEUTRAL (Not ranked)
• Cash Flow10% pass✓ 2✗ 10▾

  9 of 10 flag SKK's cash flow — Buffett, Lynch, Piotroski +6 more

  Free Cash Flow Proxy

  ✗BuffettPositive and growing

  FCF Positive and Growing$-5.6M

  ✗LynchPositive and growing

  Operating Cash Flow$-0.5M

  ✗PiotroskiCFO > 0

  (CFO / Total Assets) vs ROACFO/Assets=-1.62%, ROA=-9.23%

  ✓PiotroskiCFO/Assets > ROA

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

  ✗Dreman< 8x

  P/E or FCF YieldFCF Yield=-23.5%

  ✗PabraiP/E < 15 or FCF Yield > 10%

  FCF Positive1/4 years FCF positive

  ✗MarksPositive FCF in majority of recent years

  (OCF - CapEx) / Market Cap-6.6%

  ✗Ackman>= 4%

  Price / FCF per ShareN/A (negative FCF)

  ✗Ackman<= 25

  Positive Operating Cash Flow frequency3/4 years positive

  ✓SleepPositive OCF in >= 70% of available years

  Operating Cash Flow - Capital Expenditures$-5.6M

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

  (Operating cash flow - capex) / market capitalization-23.45%; #3571/4519 (top 79.0%)

  ✗OshaughnessyTop 10% of eligible cross-section
• Debt & Leverage33% pass✓ 6✗ 9▾

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

  Debt Levels0.33

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

  LT Debt vs Net Current Assets

  ✗GrahamLT Debt <= Net Current Assets

  Debt/Equity & Interest CoverageD/E: 0.33, IC: -5.3x

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

  Total Debt / Equity0.33

  ✗Lynch< 0.33

  Cash - Long-term Debt

  ✗LynchPositive preferred

  LT Debt / Total Assets Change0.00% -> 0.00%

  ✓PiotroskiDecreased YoY

  Current Assets / Current Liabilities0.74

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

  Total Debt / Shareholders' Equity0.33

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

  Interest Coverage & Debt/EBITDAIC=-5.3x, D/EBITDA=N/A (D&A unavailable)

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

  Total Debt / Shareholders Equity0.33

  ✓Ackman<= 1.0

  Negative debt-to-equity (higher means less debt)-0.3311; #2084/4210 (top 49.5%)

  ✗AsnessTop 30% of eligible cross-section