SunOpta Inc.

Where It Passes

Where It Falls Short

• Valuation0% pass✗ 28▾

  All 13 investors flag STKL's valuation

  Price / 3-yr avg EPS

  ✗Graham<= 15x

  Price-to-Book Ratio4.5x

  ✗Graham<= 1.5x

  P/E x P/B

  ✗Graham<= 22.5

  Basic earnings-growth PEG (dividends excluded)P/E 49.8x (growth N/A)

  ✗Lynch< 1.0 (ideally < 0.5)

  EBIT / Enterprise Value3.9%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=3.9%, ROC=9.9%

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Price / EPS49.8x

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

  Price / (CFO / Shares)15.4x

  ✗Dreman< 8x

  Price / Book Value per Share4.5x

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

  Valuation ReasonablenessP/E=49.8x, OE Yield=3.5%

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

  P/E or FCF YieldP/E=49.8x, FCF Yield=2.8%

  ✗PabraiP/E < 15 or FCF Yield > 10%

  P/B or P/E vs. Historical AverageP/E=49.8x, P/B=4.5x

  ✗MarksP/E < 15 or P/B < 2.0

  Discount to Intrinsic ValueN/A (negative normalized EPS)

  ✗Marks>= 20% below intrinsic value

  Price / FCF per Share36.1x

  ✗Ackman<= 25

  Price vs. Trailing Low

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

  Net income / market capitalization+2.06%; #2712/6340 (top 42.8%)

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

  Positive book equity / market capitalization+0.2227; #4078/6449 (top 63.2%)

  ✗AsnessTop 30% of eligible cross-section

  Price / Diluted EPS49.8x

  ✗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 Share5.87x

  ✗SchlossP/TBV <= 1.00x (app cutoff)

  Book Value per Share Change-40.3%

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

  Revenue / market capitalization+1.0662; #1697/5247 (top 32.3%)

  ✗OshaughnessyTop 10% of eligible cross-section

  (Operating cash flow - capex) / market capitalization+2.77%; #2089/4519 (top 46.2%)

  ✗OshaughnessyTop 10% of eligible cross-section

  Trailing six-month price return through the evaluation date

  ✗OshaughnessyTop 10% of eligible cross-section
• Valuation models0% pass✗ 6▾

  STKL overvalued: all 6 models price fair value below $6.48 (median $2.50)

  Graham fair value$2.05

  ✗Graham-216.1% margin vs $6.48

  Buffett fair value$2.68

  ✗Buffett-141.8% margin vs $6.48

  Greenblatt fair value$1.34

  ✗Greenblatt-383.6% margin vs $6.48

  Munger fair value$2.31

  ✗Munger-180.5% margin vs $6.48

  Pabrai fair value$3.58

  ✗Pabrai-81.0% margin vs $6.48

  Ackman fair value$3.37

  ✗Ackman-92.3% margin vs $6.48
• Debt & Leverage8% pass✓ 1✗ 14▾

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

  LT Debt vs Net Current AssetsLT Debt $217.5M vs NCA $33.5M

  ✗GrahamLT Debt <= Net Current Assets

  Debt/Equity & Interest CoverageD/E: 1.47, IC: 1.9x

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

  Total Debt / Equity1.47

  ✗Lynch< 0.33

  Cash - Long-term Debt$-217.4M

  ✗LynchPositive preferred

  LT Debt / Total Assets Change35.27% -> 31.31%

  ✓PiotroskiDecreased YoY

  Current Assets / Current Liabilities1.18

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

  Total Debt / Shareholders' Equity1.47

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

  Debt Levels1.47

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

  Interest Coverage & Debt/EBITDAIC=1.9x, D/EBITDA=3.2x

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

  Total Debt / Shareholders Equity1.47

  ✗Ackman<= 1.0

  Negative debt-to-equity (higher means less debt)-1.4679; #3570/4210 (top 84.8%)

  ✗AsnessTop 30% of eligible cross-section
• Profitability13% pass✓ 8✗ 27▾

  14 of 16 flag STKL's profitability — Graham, Buffett, Lynch +11 more

  Positive EPS (10 years)13/26 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)14/26 years positive

  ✗BuffettPositive every year for 10+ years

  ROE (up to 5-year arithmetic mean)-23.8%

  ✗Buffett> 15% arithmetic mean (app rule)

  Operating Margin (10-yr trend)4.9% (latest)

  ✗BuffettStable or rising over 10 years

  Free Cash Flow Proxy$26.9M

  ✓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 49.8x (growth N/A)

  ✗Lynch< 1.0 (ideally < 0.5)

  3-5 Year EPS CAGR-29.6%

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

  ROE9.2%

  ✗Lynch> 15%

  EBIT / Enterprise Value3.9%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=3.9%, ROC=9.9%

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Net Income / Total Assets2.27%

  ✓PiotroskiROA > 0

  ROA Change YoY-2.60% -> 2.27% (delta: +4.87%)

  ✓PiotroskiCurrent ROA > Prior ROA

  (CFO / Total Assets) vs ROACFO/Assets=7.15%, ROA=2.27%

  ✓PiotroskiCFO/Assets > ROA

  Gross Margin Change YoY13.3% -> 14.2%

  ✓PiotroskiImproved YoY

  Pre-Tax Income / Revenue2.0%

  ✗Dreman>= 8%

  Net Income / Shareholders' Equity9.2%

  ✗Dreman> 12%

  Margin of SafetyP/E=49.8x, P/B=4.5x

  ✗PabraiP/B < 1.5 or P/E < 15

  Return on Equity-38.9% (3-yr avg)

  ✗AkreROE > 20% (3-year avg)

  Discount to Intrinsic ValueN/A (negative normalized EPS)

  ✗Marks>= 20% below intrinsic value

  Positive Net Income Frequency14/25 years positive

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

  Operating Income / Revenue4.9%

  ✗Ackman>= 15%

  Net Income / Shareholders Equity9.2%

  ✗Ackman>= 15%

  5-Year EPS CAGR

  ✗Templeton> 0% (5-year EPS CAGR)

  Operating Margin Trend0.8% (2023) -> 4.9% (2025)

  ✓TempletonNon-negative operating-margin trend over 3 years

  Revenue growth vs. gross and operating margin trendgross margin 13.7% -> 14.2%, operating margin 0.8% -> 4.9%

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

  Net income / market capitalization+2.06%; #2712/6340 (top 42.8%)

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

  Gross profit / total assets+16.69%; #2303/3702 (top 62.2%)

  ✗AsnessTop 30% of eligible cross-section

  Net income / positive book equity+9.23%; #1923/5226 (top 36.8%)

  ✗AsnessTop 30% of eligible cross-section

  Negative 5-year standard deviation of ROA-0.1071; #3563/5884 (top 60.6%)

  ✗AsnessTop 30% of eligible cross-section

  3-5 Year Diluted EPS CAGR-29.6% over 5 years

  ✗Neff7%-20% annualized

  Positive Diluted-EPS Years2/10 years positive

  ✗Schloss>= 70% positive over 5-10 observed years (app rule)
• Efficiency13% pass✓ 2✗ 9▾

  7 of 8 flag STKL's efficiency — Graham, Buffett, Greenblatt +4 more

  Current Ratio1.18

  ✗Graham>= 2.0

  ROIC (3-5 yr avg)2.9%

  ✗Buffett> 10%

  ROIC - WACC-7.1%

  ✗BuffettPositive (WACC = 10%)

  EBIT / (NWC + Net Fixed Assets)9.9%

  ✗Greenblatt> 25%

  Current Ratio Change YoY0.94 -> 1.18

  ✓PiotroskiIncreased YoY

  Revenue / Total Assets Change YoY1.08x -> 1.18x

  ✓PiotroskiImproved YoY

  Current Assets / Current Liabilities1.18

  ✗Dreman> 1.5

  Return on Invested Capital7.4%

  ✗Munger> 15%

  ROIC (high and growing)FY2023: ROIC=0.9%; FY2024: ROIC=3.0%; FY2025: ROIC=7.4%

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

  Reinvestment Rate x ROIC7.4% (RR=100% x ROIC=7.4%)

  ✗AkreReinvestment Rate * ROIC > 10%

  ROIC (5-year)0/5 years above 12% (latest 7.4%)

  ✗SleepROIC > 12% in a majority of years
• Verdicts13% pass✓ 2✗ 13▾

  Split decision: 12 FAIL · 2 NEUTRAL · 1 BUY · 1 PASS

  Overall verdict

  ✗GrahamFAIL (1/9)✗BuffettFAIL (1/9)✗LynchFAIL (1/7)✗GreenblattRank #1534✓PiotroskiBUY (F-Score 8)✗DremanFAIL (0/11)✗MungerFAIL (0/4)✗PabraiFAIL (0/3)✗AkreFAIL (1/6)✗MarksFAIL (1/5)✗AckmanFAIL (3/9)✗TempletonFAIL (2/8)✓SleepPASS (3/6)•AsnessNEUTRAL (Not ranked)✗NeffFAIL (2/6)✗SchlossFAIL (0/7)•OshaughnessyNEUTRAL (Not ranked)
• Growth25% pass✓ 4✗ 9▾

  6 of 8 flag STKL's growth — Graham, Lynch, Dreman +3 more

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

  ✗Graham>= 33% growth

  Basic earnings-growth PEG (dividends excluded)P/E 49.8x (growth N/A)

  ✗Lynch< 1.0 (ideally < 0.5)

  3-5 Year EPS CAGR-29.6%

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

  Inventory Growth vs Revenue GrowthInv: 15.3% vs Rev: 13.0%

  ✗LynchInventory growth < Revenue growth

  EPS Growth Direction

  ✗DremanPositive over recent years

  EPS CAGR

  ✗Dreman> 5% annualized

  Positive Net Income Frequency14/25 years positive

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

  3yr Median Revenue Growth13.0%

  ✓Ackman>= 5%

  Positive EPS Growth Frequency3/5 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 13.7% -> 14.2%, operating margin 0.8% -> 4.9%

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

  5-year Revenue CAGR0.7%

  ✗SleepCAGR > 7%

  3-5 Year Diluted EPS CAGR-29.6% over 5 years

  ✗Neff7%-20% annualized
• Cash Flow50% pass✓ 6✗ 6▾

  5 of 10 pass — Dreman, Pabrai, Marks +2 more object

  Free Cash Flow Proxy$26.9M

  ✓BuffettPositive and growing

  FCF Positive and Growing$21.2M

  ✓LynchPositive and growing

  Operating Cash Flow$49.7M

  ✓PiotroskiCFO > 0

  (CFO / Total Assets) vs ROACFO/Assets=7.15%, ROA=2.27%

  ✓PiotroskiCFO/Assets > ROA

  Price / (CFO / Shares)15.4x

  ✗Dreman< 8x

  P/E or FCF YieldP/E=49.8x, FCF Yield=2.8%

  ✗PabraiP/E < 15 or FCF Yield > 10%

  FCF Positive8/17 years FCF positive

  ✗MarksPositive FCF in majority of recent years

  (OCF - CapEx) / Market Cap2.8%

  ✗Ackman>= 4%

  Price / FCF per Share36.1x

  ✗Ackman<= 25

  Positive Operating Cash Flow frequency14/17 years positive

  ✓SleepPositive OCF in >= 70% of available years

  Operating Cash Flow - Capital Expenditures$21.2M

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

  (Operating cash flow - capex) / market capitalization+2.77%; #2089/4519 (top 46.2%)

  ✗OshaughnessyTop 10% of eligible cross-section