Sanara MedTech Inc.

Where It Passes

Where It Falls Short

• Profitability0% pass✓ 5✗ 30▾

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

  Positive EPS (10 years)0/19 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)1/19 years positive

  ✗BuffettPositive every year for 10+ years

  ROE (up to 5-year arithmetic mean)-142.3%

  ✗Buffett> 15% arithmetic mean (app rule)

  Operating Margin (10-yr trend)7.1% (latest)

  ✓BuffettStable or rising over 10 years

  Free Cash Flow Proxy$-38.2M

  ✗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-39.3%

  ✗Lynch> 15%

  EBIT / Enterprise Value1.9%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=1.9%, ROC=170.1%

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Net Income / Total Assets-51.50%

  ✗PiotroskiROA > 0

  ROA Change YoY-10.97% -> -51.50% (delta: -40.52%)

  ✗PiotroskiCurrent ROA > Prior ROA

  (CFO / Total Assets) vs ROACFO/Assets=9.30%, ROA=-51.50%

  ✓PiotroskiCFO/Assets > ROA

  Gross Margin Change YoY90.6% -> 92.7%

  ✓PiotroskiImproved YoY

  Pre-Tax Income / Revenue-0.4%

  ✗Dreman>= 8%

  Net Income / Shareholders' Equity-39.3%

  ✗Dreman> 12%

  Margin of SafetyP/B=48.7x

  ✗PabraiP/B < 1.5 or P/E < 15

  Return on Equity-222.2% (3-yr avg)

  ✗AkreROE > 20% (3-year avg)

  Discount to Intrinsic ValueN/A (negative normalized EPS)

  ✗Marks>= 20% below intrinsic value

  Positive Net Income Frequency1/17 years positive

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

  Operating Income / Revenue5.6%

  ✗Ackman>= 15%

  Net Income / Shareholders Equity-39.3%

  ✗Ackman>= 15%

  5-Year EPS CAGR

  ✗Templeton> 0% (5-year EPS CAGR)

  Operating Margin Trend-6.5% (2023) -> 7.1% (2025)

  ✓TempletonNon-negative operating-margin trend over 3 years

  Revenue growth vs. gross and operating margin trendgross margin 87.9% -> 92.7%, operating margin -6.5% -> 7.1%

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

  Net income / market capitalization-1.01%; #3406/6340 (top 53.7%)

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

  Gross profit / total assets+144.01%; #70/3702 (top 1.9%)

  ✓AsnessTop 30% of eligible cross-section

  Net income / positive book equity-39.34%; #4070/5226 (top 77.9%)

  ✗AsnessTop 30% of eligible cross-section

  Negative 5-year standard deviation of ROA-0.1628; #4007/5884 (top 68.1%)

  ✗AsnessTop 30% of eligible cross-section

  3-5 Year Diluted EPS CAGR

  ✗Neff7%-20% annualized

  Positive Diluted-EPS Years0/10 years positive

  ✗Schloss>= 70% positive over 5-10 observed years (app rule)
• Debt & Leverage0% pass✓ 2✗ 13▾

  No clean pass — all 12 investors flag at least one debt & leverage criterion

  LT Debt vs Net Current AssetsLT Debt $46.7M vs NCA $20.1M

  ✗GrahamLT Debt <= Net Current Assets

  Debt/Equity & Interest CoverageD/E: 6.10, IC: 0.9x

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

  Total Debt / Equity6.10

  ✗Lynch< 0.33

  Cash - Long-term Debt$-29.9M

  ✗LynchPositive preferred

  LT Debt / Total Assets Change34.84% -> 63.02%

  ✗PiotroskiDecreased YoY

  Current Assets / Current Liabilities2.24

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

  Total Debt / Shareholders' Equity6.10

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

  Debt Levels6.10

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

  Interest Coverage & Debt/EBITDAIC=0.9x, D/EBITDA=5.4x

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

  Total Debt / Shareholders Equity6.10

  ✗Ackman<= 1.0

  Negative debt-to-equity (higher means less debt)-6.0952; #4098/4210 (top 97.3%)

  ✗AsnessTop 30% of eligible cross-section
• Valuation0% pass✓ 1✗ 27▾

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

  Price / 3-yr avg EPS

  ✗Graham<= 15x

  Price-to-Book Ratio48.7x

  ✗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 Value1.9%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=1.9%, ROC=170.1%

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Price / EPS

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

  Price / (CFO / Shares)42.6x

  ✗Dreman< 8x

  Price / Book Value per Share48.7x

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

  Valuation ReasonablenessOE Yield=-13.2%

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

  P/E or FCF YieldFCF Yield=0.7%

  ✗PabraiP/E < 15 or FCF Yield > 10%

  P/B or P/E vs. Historical AverageP/B=48.7x

  ✗MarksP/E < 15 or P/B < 2.0

  Discount to Intrinsic ValueN/A (negative normalized EPS)

  ✗Marks>= 20% below intrinsic value

  Price / FCF per Share133.9x

  ✗Ackman<= 25

  Price vs. Trailing Low196% of trailing low ($16.53)

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

  Net income / market capitalization-1.01%; #3406/6340 (top 53.7%)

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

  Positive book equity / market capitalization+0.0258; #5108/6449 (top 79.2%)

  ✗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-32.0%

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

  Revenue / market capitalization+0.3765; #2997/5247 (top 57.1%)

  ✗OshaughnessyTop 10% of eligible cross-section

  (Operating cash flow - capex) / market capitalization+2.45%; #2172/4519 (top 48.1%)

  ✗OshaughnessyTop 10% of eligible cross-section

  Trailing six-month price return through the evaluation date+95.70%; #355/6202 (top 5.7%)

  ✓OshaughnessyTop 10% of eligible cross-section
• Growth0% pass✓ 3✗ 10▾

  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: -2.6% vs Rev: 9.8%

  ✓LynchInventory growth < Revenue growth

  EPS Growth Direction$-0.19 (2010) -> $-4.36 (2025)

  ✗DremanPositive over recent years

  EPS CAGR

  ✗Dreman> 5% annualized

  Positive Net Income Frequency1/17 years positive

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

  3yr Median Revenue Growth33.4%

  ✓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 87.9% -> 92.7%, operating margin -6.5% -> 7.1%

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

  5-year Revenue CAGR45.9%

  ✓SleepCAGR > 7%

  3-5 Year Diluted EPS CAGR

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

  SMTI overvalued: all 3 models price fair value below $32.35 (median $4.40)

  Greenblatt fair value$1.28

  ✗Greenblatt-2427.3% margin vs $32.35

  Munger fair value$4.40

  ✗Munger-635.2% margin vs $32.35

  Ackman fair value$8.65

  ✗Ackman-274.0% margin vs $32.35
• Verdicts6% pass✓ 1✗ 15▾

  Split decision: 14 FAIL · 1 PASS · 1 NEUTRAL

  Overall verdict

  ✗GrahamFAIL (2/9)✗BuffettFAIL (1/9)✗LynchFAIL (2/7)✗GreenblattRank #918✓PiotroskiPASS (F-Score 4)✗DremanFAIL (1/11)✗MungerFAIL (0/4)✗PabraiFAIL (0/3)✗AkreFAIL (1/6)✗MarksFAIL (0/5)✗AckmanFAIL (2/9)✗TempletonFAIL (2/8)✗SleepFAIL (2/6)✗AsnessFAIL (Rank #1675/2370 (Top 70.7%))✗NeffFAIL (2/6)✗SchlossFAIL (1/7)•OshaughnessyNEUTRAL (Not ranked)
• Cash Flow30% pass✓ 4✗ 8▾

  7 of 10 flag SMTI's cash flow — Buffett, Dreman, Pabrai +4 more

  Free Cash Flow Proxy$-38.2M

  ✗BuffettPositive and growing

  FCF Positive and Growing$7.3M

  ✓LynchPositive and growing

  Operating Cash Flow$6.8M

  ✓PiotroskiCFO > 0

  (CFO / Total Assets) vs ROACFO/Assets=9.30%, ROA=-51.50%

  ✓PiotroskiCFO/Assets > ROA

  Price / (CFO / Shares)42.6x

  ✗Dreman< 8x

  P/E or FCF YieldFCF Yield=0.7%

  ✗PabraiP/E < 15 or FCF Yield > 10%

  FCF Positive3/13 years FCF positive

  ✗MarksPositive FCF in majority of recent years

  (OCF - CapEx) / Market Cap2.5%

  ✗Ackman>= 4%

  Price / FCF per Share133.9x

  ✗Ackman<= 25

  Positive Operating Cash Flow frequency3/16 years positive

  ✗SleepPositive OCF in >= 70% of available years

  Operating Cash Flow - Capital Expenditures$7.3M

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

  (Operating cash flow - capex) / market capitalization+2.45%; #2172/4519 (top 48.1%)

  ✗OshaughnessyTop 10% of eligible cross-section
• Efficiency38% pass✓ 4✗ 7▾

  5 of 8 flag SMTI's efficiency — Buffett, Piotroski, Munger +2 more

  Current Ratio2.24

  ✓Graham>= 2.0

  ROIC (3-5 yr avg)-20041.5%

  ✗Buffett> 10%

  ROIC - WACC-20051.5%

  ✗BuffettPositive (WACC = 10%)

  EBIT / (NWC + Net Fixed Assets)170.1%

  ✓Greenblatt> 25%

  Current Ratio Change YoY2.18 -> 1.80

  ✗PiotroskiIncreased YoY

  Revenue / Total Assets Change YoY0.98x -> 1.41x

  ✓PiotroskiImproved YoY

  Current Assets / Current Liabilities2.24

  ✓Dreman> 1.5

  Return on Invested Capital9.0%

  ✗Munger> 15%

  ROIC (high and growing)FY2023: ROIC=-6.1%; FY2024: ROIC=1.4%; FY2025: ROIC=11.1%

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

  Reinvestment Rate x ROICN/A (non-positive net income)

  ✗AkreReinvestment Rate * ROIC > 10%

  ROIC (5-year)0/3 years above 12% (latest 11.1%)

  ✗SleepROIC > 12% in a majority of years