STONERIDGE INC

Where It Passes

Where It Falls Short

• Debt & Leverage0% pass✓ 1✗ 14▾

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

  LT Debt vs Net Current AssetsLT Debt $0.0M vs NCA $-13.6M

  ✗GrahamLT Debt <= Net Current Assets

  Debt/Equity & Interest CoverageD/E: 1.01, IC: -2.7x

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

  Total Debt / Equity1.16

  ✗Lynch< 0.33

  Cash - Long-term Debt$63.4M

  ✓LynchPositive preferred

  LT Debt / Total Assets Change0.00% -> 32.83%

  ✗PiotroskiDecreased YoY

  Current Assets / Current Liabilities0.96

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

  Total Debt / Shareholders' Equity1.16

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

  Debt Levels1.16

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

  Interest Coverage & Debt/EBITDAIC=-2.7x, D/EBITDA=N/A

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

  Total Debt / Shareholders Equity1.16

  ✗Ackman<= 1.0

  Negative debt-to-equity (higher means less debt)-1.1561; #3365/4210 (top 79.9%)

  ✗AsnessTop 30% of eligible cross-section
• Efficiency0% pass✓ 1✗ 10▾

  No clean pass — all 8 investors flag at least one efficiency criterion

  Current Ratio0.96

  ✗Graham>= 2.0

  ROIC (3-5 yr avg)0.0%

  ✗Buffett> 10%

  ROIC - WACC-10.0%

  ✗BuffettPositive (WACC = 10%)

  EBIT / (NWC + Net Fixed Assets)-50.1%

  ✗Greenblatt> 25%

  Current Ratio Change YoY2.58 -> 2.30

  ✗PiotroskiIncreased YoY

  Revenue / Total Assets Change YoY1.46x -> 1.56x

  ✓PiotroskiImproved YoY

  Current Assets / Current Liabilities0.96

  ✗Dreman> 1.5

  Return on Invested Capital-18.7%

  ✗Munger> 15%

  ROIC (high and growing)FY2023: ROIC=3.5%; FY2024: ROIC=-0.1%; FY2025: ROIC=-8.5%

  ✗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 -8.5%)

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

  Split decision: 15 FAIL · 1 NEUTRAL

  Overall verdict

  ✗GrahamFAIL (2/9)✗BuffettFAIL (0/9)✗LynchFAIL (1/7)✗GreenblattRank #2521✗PiotroskiFAIL (F-Score 3)✗DremanFAIL (2/11)✗MungerFAIL (0/4)✗PabraiFAIL (1/3)✗AkreFAIL (1/6)✗MarksFAIL (3/5)✗AckmanFAIL (2/9)✗TempletonFAIL (2/8)✗SleepFAIL (2/6)✗AsnessFAIL (Rank #1802/2370 (Top 76.0%))✗NeffFAIL (1/6)✗SchlossFAIL (1/7)•OshaughnessyNEUTRAL (Not ranked)
• Profitability6% pass✓ 3✗ 32▾

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

  Positive EPS (10 years)18/28 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)17/28 years positive

  ✗BuffettPositive every year for 10+ years

  ROE (up to 5-year arithmetic mean)-13.9%

  ✗Buffett> 15% arithmetic mean (app rule)

  Operating Margin (10-yr trend)-4.5% (latest)

  ✗BuffettStable or rising over 10 years

  Free Cash Flow Proxy$-92.2M

  ✗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-107.0%

  ✗Lynch> 15%

  EBIT / Enterprise Value-28.2%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=-28.2%, ROC=-50.1%

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Net Income / Total Assets-18.66%

  ✗PiotroskiROA > 0

  ROA Change YoY-2.66% -> -18.66% (delta: -16.00%)

  ✗PiotroskiCurrent ROA > Prior ROA

  (CFO / Total Assets) vs ROACFO/Assets=6.17%, ROA=-18.66%

  ✓PiotroskiCFO/Assets > ROA

  Gross Margin Change YoY20.8% -> 19.9%

  ✗PiotroskiImproved YoY

  Pre-Tax Income / Revenue-10.3%

  ✗Dreman>= 8%

  Net Income / Shareholders' Equity-107.0%

  ✗Dreman> 12%

  Margin of SafetyP/B=0.8x

  ✓PabraiP/B < 1.5 or P/E < 15

  Return on Equity-21.9% (3-yr avg)

  ✗AkreROE > 20% (3-year avg)

  Discount to Intrinsic ValueN/A (negative normalized EPS)

  ✗Marks>= 20% below intrinsic value

  Positive Net Income Frequency17/24 years positive

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

  Operating Income / Revenue-9.0%

  ✗Ackman>= 15%

  Net Income / Shareholders Equity-107.0%

  ✗Ackman>= 15%

  5-Year EPS CAGR

  ✗Templeton> 0% (5-year EPS CAGR)

  Operating Margin Trend1.3% (2023) -> -4.5% (2025)

  ✗TempletonNon-negative operating-margin trend over 3 years

  Revenue growth vs. gross and operating margin trendgross margin 20.6% -> 19.9%, operating margin 1.3% -> -4.5%

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

  Net income / market capitalization-91.88%; #5356/6340 (top 84.5%)

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

  Gross profit / total assets+31.05%; #1374/3702 (top 37.1%)

  ✗AsnessTop 30% of eligible cross-section

  Net income / positive book equity-107.02%; #4623/5226 (top 88.5%)

  ✗AsnessTop 30% of eligible cross-section

  Negative 5-year standard deviation of ROA-0.0704; #3032/5884 (top 51.5%)

  ✗AsnessTop 30% of eligible cross-section

  3-5 Year Diluted EPS CAGR-46.5% over 5 years

  ✗Neff7%-20% annualized

  Positive Diluted-EPS Years5/10 years positive

  ✗Schloss>= 70% positive over 5-10 observed years (app rule)
• Valuation8% pass✓ 8✗ 20▾

  12 of 13 flag SRI's valuation — Graham, Lynch, Greenblatt +9 more

  Price / 3-yr avg EPS

  ✗Graham<= 15x

  Price-to-Book Ratio0.8x

  ✓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-28.2%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=-28.2%, ROC=-50.1%

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Price / EPS

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

  Price / (CFO / Shares)4.2x

  ✓Dreman< 8x

  Price / Book Value per Share0.8x

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

  Valuation ReasonablenessOE Yield=-64.9%

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

  P/E or FCF YieldFCF Yield=8.4%

  ✗PabraiP/E < 15 or FCF Yield > 10%

  P/B or P/E vs. Historical AverageP/B=0.8x

  ✓MarksP/E < 15 or P/B < 2.0

  Discount to Intrinsic ValueN/A (negative normalized EPS)

  ✗Marks>= 20% below intrinsic value

  Price / FCF per Share11.7x

  ✓Ackman<= 25

  Price vs. Trailing Low131% of trailing low ($3.86)

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

  Net income / market capitalization-91.88%; #5356/6340 (top 84.5%)

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

  Positive book equity / market capitalization+0.8586; #1780/6449 (top 27.6%)

  ✓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 Share1.36x

  ✗SchlossP/TBV <= 1.00x (app cutoff)

  Book Value per Share Change-41.6%

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

  Revenue / market capitalization+4.8575; #552/5247 (top 10.5%)

  ✗OshaughnessyTop 10% of eligible cross-section

  (Operating cash flow - capex) / market capitalization-1.52%; #2716/4519 (top 60.1%)

  ✗OshaughnessyTop 10% of eligible cross-section

  Trailing six-month price return through the evaluation date-10.42%; #3462/6202 (top 55.8%)

  ✗OshaughnessyTop 10% of eligible cross-section
• Growth13% pass✓ 1✗ 12▾

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

  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: -15.0% vs Rev: -19.6%

  ✗LynchInventory growth < Revenue growth

  EPS Growth Direction

  ✗DremanPositive over recent years

  EPS CAGR

  ✗Dreman> 5% annualized

  Positive Net Income Frequency17/24 years positive

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

  3yr Median Revenue Growth-5.2%

  ✗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 20.6% -> 19.9%, operating margin 1.3% -> -4.5%

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

  5-year Revenue CAGR5.9%

  ✗SleepCAGR > 7%

  3-5 Year Diluted EPS CAGR-46.5% over 5 years

  ✗Neff7%-20% annualized
• Cash Flow40% pass✓ 6✗ 6▾

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

  Free Cash Flow Proxy$-92.2M

  ✗BuffettPositive and growing

  FCF Positive and Growing$-2.2M

  ✗LynchPositive and growing

  Operating Cash Flow$34.0M

  ✓PiotroskiCFO > 0

  (CFO / Total Assets) vs ROACFO/Assets=6.17%, ROA=-18.66%

  ✓PiotroskiCFO/Assets > ROA

  Price / (CFO / Shares)4.2x

  ✓Dreman< 8x

  P/E or FCF YieldFCF Yield=8.4%

  ✗PabraiP/E < 15 or FCF Yield > 10%

  FCF Positive14/25 years FCF positive

  ✓MarksPositive FCF in majority of recent years

  (OCF - CapEx) / Market Cap-1.5%

  ✗Ackman>= 4%

  Price / FCF per Share11.7x

  ✓Ackman<= 25

  Positive Operating Cash Flow frequency24/25 years positive

  ✓SleepPositive OCF in >= 70% of available years

  Operating Cash Flow - Capital Expenditures$-2.2M

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

  (Operating cash flow - capex) / market capitalization-1.52%; #2716/4519 (top 60.1%)

  ✗OshaughnessyTop 10% of eligible cross-section
• Valuation models50% pass✓ 2✗ 2▾

  Models split on SRI at $5.07 — fair values range $3.59–$8.61

  Munger fair value$5.39

  ✓Munger+5.9% margin vs $5.07

  Akre fair value$8.61

  ✓Akre+41.1% margin vs $5.07

  Marks fair value$4.67

  ✗Marks-8.6% margin vs $5.07

  Ackman fair value$3.59

  ✗Ackman-41.2% margin vs $5.07