SR Bancorp, Inc.

Where It Passes

Where It Falls Short

• Valuation0% pass✓ 6✗ 20▾

  No clean pass — all 12 investors flag at least one valuation criterion

  Price / Book Value per Share0.9x

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

  Price / 3-yr avg EPS

  ✗Graham<= 15x

  Price-to-Tangible-Book Ratio1.0x

  ✓Graham<= 1.5x

  P/E x P/TBV

  ✗Graham<= 22.5

  Basic earnings-growth PEG (dividends excluded)P/E 31.1x (growth N/A)

  ✗Lynch< 1.0 (ideally < 0.5)

  Price / EPS31.1x

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

  Price / (CFO / Shares)35.4x

  ✗Dreman< 8x

  Price / Tangible Book Value per Share1.0x

  ✓Dreman< 1.2x✓SchlossP/TBV <= 1.00x (app cutoff)

  Valuation ReasonablenessP/E=31.1x

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

  P/E or FCF YieldP/E=31.1x, FCF Yield=3.1%

  ✗PabraiP/E < 15 or FCF Yield > 10%

  P/B or P/E vs. Historical AverageP/E=31.1x, P/B=0.9x

  ✓MarksP/E < 15 or P/B < 2.0

  Discount to Intrinsic ValueN/A (negative normalized EPS)

  ✗Marks>= 20% below intrinsic value

  Price / FCF per Share39.1x

  ✗Ackman<= 25

  Price vs. Trailing Low159% of trailing low ($11.93)

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

  Net income / market capitalization+2.74%; #2468/6340 (top 38.9%)

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

  Positive book equity / market capitalization+1.3397; #1055/6449 (top 16.4%)

  ✓AsnessTop 30% of eligible cross-section

  Price / Diluted EPS31.1x

  ✗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)

  Book Value per Share Change

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

  Revenue / market capitalization

  ✗OshaughnessyTop 10% of eligible cross-section

  (Operating cash flow - capex) / market capitalization+8.44%; #948/4519 (top 21.0%)

  ✗OshaughnessyTop 10% of eligible cross-section

  Trailing six-month price return through the evaluation date+7.17%; #2013/6202 (top 32.5%)

  ✗OshaughnessyTop 10% of eligible cross-section
• Growth0% pass✗ 12▾

  All 8 investors flag SRBK's growth

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

  ✗Graham>= 33% growth

  Basic earnings-growth PEG (dividends excluded)P/E 31.1x (growth N/A)

  ✗Lynch< 1.0 (ideally < 0.5)

  3-5 Year EPS CAGR

  ✗Lynch15-30% (Fast Grower); > 0% to pass

  EPS Growth Direction

  ✗DremanPositive over recent years

  EPS CAGR

  ✗Dreman> 5% annualized

  Positive Net Income Frequency3/4 years positive

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

  3yr Median Revenue Growth

  ✗Ackman>= 5%

  Positive EPS Growth Frequency1/1 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 trend

  ✗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✗ 3▾

  All 3 investors flag SRBK's efficiency

  Revenue / Total Assets Change YoY

  ✗PiotroskiImproved YoY

  Reinvestment Rate x ROIC1.1% (RR=54% x ROIC=2.0%)

  ✗AkreReinvestment Rate * ROIC > 10%

  ROE (5-year)0/4 years above 12% (latest 2.7%)

  ✗SleepROE > 12% in a majority of years
• Verdicts0% pass✗ 13▾

  Split decision: 13 FAIL · 3 NEUTRAL

  Overall verdict

  ✗GrahamFAIL (1/7)✗BuffettFAIL (0/6)✗LynchFAIL (1/4)•PiotroskiNEUTRAL (F-Score 5)✗DremanFAIL (1/9)✗MungerFAIL (1/3)✗PabraiFAIL (1/3)✗AkreFAIL (0/5)✗MarksFAIL (2/4)✗AckmanFAIL (1/8)✗TempletonFAIL (3/8)✗SleepFAIL (2/6)•AsnessNEUTRAL (Not ranked)✗NeffFAIL (2/6)✗SchlossFAIL (2/7)•OshaughnessyNEUTRAL (Not ranked)
• Valuation models0% pass✗ 3▾

  SRBK overvalued: all 3 models price fair value below $18.99 (median $14.83)

  Graham fair value$17.48

  ✗Graham-8.6% margin vs $18.99

  Munger fair value$4.94

  ✗Munger-284.4% margin vs $18.99

  Akre fair value$14.83

  ✗Akre-28.1% margin vs $18.99
• Profitability6% pass✓ 4✗ 31▾

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

  Positive EPS (10 years)1/5 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)0.0%

  ✗Buffett> 15% arithmetic mean (app rule)

  Operating Margin (10-yr trend)

  ✗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)P/E 31.1x (growth N/A)

  ✗Lynch< 1.0 (ideally < 0.5)

  3-5 Year EPS CAGR

  ✗Lynch15-30% (Fast Grower); > 0% to pass

  ROE2.0%

  ✗Lynch> 15%

  Net Income / Total Assets0.47%

  ✓PiotroskiROA > 0

  ROA Change YoY-1.06% -> 0.47% (delta: +1.54%)

  ✓PiotroskiCurrent ROA > Prior ROA

  (CFO / Total Assets) vs ROACFO/Assets=0.43%, ROA=0.47%

  ✗PiotroskiCFO/Assets > ROA

  Pre-Tax Income / Revenue

  ✗Dreman>= 8%

  Net Income / Shareholders' Equity2.0%

  ✗Dreman> 12%

  Return on Equity2.0%

  ✗Munger> 15%✗AkreROE > 20% (3-year avg)

  Margin of SafetyP/E=31.1x, P/TBV=1.0x

  ✓PabraiP/TBV < 1.5 or P/E < 15

  ROE (high and growing)FY2022: ROE=1.3%; FY2023: ROE=-5.4%; FY2024: ROE=2.7%

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

  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

  ✗Ackman>= 15%

  Net Income / Shareholders Equity2.0%

  ✗Ackman>= 15%

  5-Year EPS CAGR

  ✗Templeton> 0% (5-year EPS CAGR)

  Operating Margin Trend

  ✗TempletonNon-negative operating-margin trend over 3 years

  Revenue growth vs. gross and operating margin trend

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

  ROE (5-year)0/4 years above 12% (latest 2.7%)

  ✗SleepROE > 12% in a majority of years

  Net income / market capitalization+2.74%; #2468/6340 (top 38.9%)

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

  Gross profit / total assets

  ✗AsnessTop 30% of eligible cross-section

  Net income / positive book equity+2.04%; #2758/5226 (top 52.8%)

  ✗AsnessTop 30% of eligible cross-section

  Negative 5-year standard deviation of ROA-0.0061; #559/5884 (top 9.5%)

  ✓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)
• Cash Flow40% pass✓ 6✗ 6▾

  6 of 10 flag SRBK's cash flow — Buffett, Piotroski, Dreman +3 more

  Free Cash Flow Proxy

  ✗BuffettPositive and growing

  FCF Positive and Growing$11.5M

  ✓LynchPositive and growing

  Operating Cash Flow$4.7M

  ✓PiotroskiCFO > 0

  (CFO / Total Assets) vs ROACFO/Assets=0.43%, ROA=0.47%

  ✗PiotroskiCFO/Assets > ROA

  Price / (CFO / Shares)35.4x

  ✗Dreman< 8x

  P/E or FCF YieldP/E=31.1x, FCF Yield=3.1%

  ✗PabraiP/E < 15 or FCF Yield > 10%

  FCF Positive3/4 years FCF positive

  ✓MarksPositive FCF in majority of recent years

  (OCF - CapEx) / Market Cap6.9%

  ✓Ackman>= 4%

  Price / FCF per Share39.1x

  ✗Ackman<= 25

  Positive Operating Cash Flow frequency3/4 years positive

  ✓SleepPositive OCF in >= 70% of available years

  Operating Cash Flow - Capital Expenditures$11.5M

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

  (Operating cash flow - capex) / market capitalization+8.44%; #948/4519 (top 21.0%)

  ✗OshaughnessyTop 10% of eligible cross-section
• Debt & Leverage50% pass✓ 3✗ 2▾

  2 of 4 pass — Asness and Schloss object

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

  ✓PiotroskiDecreased YoY

  Total Debt / Shareholders' Equity0.19

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

  Negative debt-to-equity (higher means less debt)-0.1920; #1653/4210 (top 39.3%)

  ✗AsnessTop 30% of eligible cross-section

  Current Assets / Current Liabilities

  ✗SchlossCurrent ratio >= 1.50x (app cutoff)