UNIFI INC

Where It Passes

Where It Falls Short

• Valuation0% pass✓ 9✗ 19▾

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

  Price / 3-yr avg EPS

  ✗Graham<= 15x

  Price-to-Book Ratio0.5x

  ✓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-9.5%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=-9.5%, ROC=-3.0%

  ✗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 Share0.5x

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

  Valuation ReasonablenessOE Yield=-4.6%

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

  P/E or FCF YieldFCF Yield=-25.8%

  ✗PabraiP/E < 15 or FCF Yield > 10%

  P/B or P/E vs. Historical AverageP/B=0.5x

  ✓MarksP/E < 15 or P/B < 2.0

  Discount to Intrinsic ValueN/A (negative normalized EPS)

  ✗Marks>= 20% below intrinsic value

  Price / FCF per ShareN/A (negative FCF)

  ✗Ackman<= 25

  Price vs. Trailing Low190% of trailing low ($3.49)

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

  Net income / market capitalization-12.37%; #4282/6340 (top 67.5%)

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

  Positive book equity / market capitalization+1.8789; #715/6449 (top 11.1%)

  ✓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 Share0.49x

  ✓SchlossP/TBV <= 1.00x (app cutoff)

  Book Value per Share Change-29.8%

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

  Revenue / market capitalization+4.2545; #620/5247 (top 11.8%)

  ✗OshaughnessyTop 10% of eligible cross-section

  (Operating cash flow - capex) / market capitalization+28.41%; #191/4519 (top 4.2%)

  ✓OshaughnessyTop 10% of eligible cross-section

  Trailing six-month price return through the evaluation date+77.01%; #449/6202 (top 7.2%)

  ✓OshaughnessyTop 10% of eligible cross-section
• Profitability6% pass✓ 3✗ 32▾

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

  Positive EPS (10 years)13/28 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)23/28 years positive

  ✗BuffettPositive every year for 10+ years

  ROE (up to 5-year arithmetic mean)-4.4%

  ✗Buffett> 15% arithmetic mean (app rule)

  Operating Margin (10-yr trend)-1.7% (latest)

  ✗BuffettStable or rising over 10 years

  Free Cash Flow Proxy$-5.6M

  ✗BuffettPositive and growing

  Earnings Variance (10-yr CoV)3.13

  ✗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-6.6%

  ✗Lynch> 15%

  EBIT / Enterprise Value-9.5%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=-9.5%, ROC=-3.0%

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Net Income / Total Assets-4.77%

  ✗PiotroskiROA > 0

  ROA Change YoY-4.77% -> -4.77% (delta: +0.00%)

  ✗PiotroskiCurrent ROA > Prior ROA

  (CFO / Total Assets) vs ROACFO/Assets=-4.99%, ROA=-4.77%

  ✗PiotroskiCFO/Assets > ROA

  Gross Margin Change YoY1.5% -> 1.5%

  ✗PiotroskiImproved YoY

  Pre-Tax Income / Revenue-1.9%

  ✗Dreman>= 8%

  Net Income / Shareholders' Equity-6.6%

  ✗Dreman> 12%

  Margin of SafetyP/B=0.5x

  ✓PabraiP/B < 1.5 or P/E < 15

  Return on Equity-11.4% (3-yr avg)

  ✗AkreROE > 20% (3-year avg)

  Discount to Intrinsic ValueN/A (negative normalized EPS)

  ✗Marks>= 20% below intrinsic value

  Positive Net Income Frequency23/27 years positive

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

  Operating Income / Revenue-1.0%

  ✗Ackman>= 15%

  Net Income / Shareholders Equity-6.6%

  ✗Ackman>= 15%

  5-Year EPS CAGR

  ✗Templeton> 0% (5-year EPS CAGR)

  Operating Margin Trend-6.4% (2023) -> -1.7% (2025)

  ✓TempletonNon-negative operating-margin trend over 3 years

  Revenue growth vs. gross and operating margin trendgross margin 2.9% -> 1.5%, operating margin -6.4% -> -1.7%

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

  Net income / market capitalization-12.37%; #4282/6340 (top 67.5%)

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

  Gross profit / total assets+10.18%; #2790/3702 (top 75.4%)

  ✗AsnessTop 30% of eligible cross-section

  Net income / positive book equity-6.58%; #3282/5226 (top 62.8%)

  ✗AsnessTop 30% of eligible cross-section

  Negative 5-year standard deviation of ROA-0.0554; #2703/5884 (top 45.9%)

  ✗AsnessTop 30% of eligible cross-section

  3-5 Year Diluted EPS CAGR-14.0% over 5 years

  ✗Neff7%-20% annualized

  Positive Diluted-EPS Years6/10 years positive

  ✗Schloss>= 70% positive over 5-10 observed years (app rule)
• Verdicts6% pass✓ 1✗ 15▾

  Split decision: 14 FAIL · 1 PASS · 1 NEUTRAL

  Overall verdict

  ✗GrahamFAIL (3/9)✗BuffettFAIL (0/9)✗LynchFAIL (2/7)✗GreenblattRank #2062✗PiotroskiFAIL (F-Score 2)✗DremanFAIL (3/11)✗MungerFAIL (1/4)✗PabraiFAIL (1/3)✗AkreFAIL (1/6)✗MarksFAIL (3/5)✗AckmanFAIL (3/9)✓TempletonPASS (4/8)✗SleepFAIL (2/6)✗AsnessFAIL (Rank #893/2370 (Top 37.7%))✗NeffFAIL (1/6)•SchlossNEUTRAL (4/7)✗OshaughnessyFAIL (Rank #368/963 (Top 38.2%))
• Growth13% pass✓ 2✗ 11▾

  7 of 8 flag UFI'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: -12.2% vs Rev: -6.4%

  ✓LynchInventory growth < Revenue growth

  EPS Growth Direction$0.52 (2009) -> $-1.11 (2025)

  ✗DremanPositive over recent years

  EPS CAGR3.4% CAGR over 13 years

  ✗Dreman> 5% annualized

  Positive Net Income Frequency23/27 years positive

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

  3yr Median Revenue Growth-1.9%

  ✗Ackman>= 5%

  Positive EPS Growth Frequency1/5 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 2.9% -> 1.5%, operating margin -6.4% -> -1.7%

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

  5-year Revenue CAGR-3.1%

  ✗SleepCAGR > 7%

  3-5 Year Diluted EPS CAGR-14.0% over 5 years

  ✗Neff7%-20% annualized
• Efficiency25% pass✓ 2✗ 9▾

  6 of 8 flag UFI's efficiency — Buffett, Greenblatt, Piotroski +3 more

  Current Ratio3.22

  ✓Graham>= 2.0

  ROIC (3-5 yr avg)0.3%

  ✗Buffett> 10%

  ROIC - WACC-9.7%

  ✗BuffettPositive (WACC = 10%)

  EBIT / (NWC + Net Fixed Assets)-3.0%

  ✗Greenblatt> 25%

  Current Ratio Change YoY3.32 -> 3.32

  ✗PiotroskiIncreased YoY

  Revenue / Total Assets Change YoY1.34x -> 1.34x

  ✗PiotroskiImproved YoY

  Current Assets / Current Liabilities3.22

  ✓Dreman> 1.5

  Return on Invested Capital-1.2%

  ✗Munger> 15%

  ROIC (high and growing)FY2023: ROIC=-7.5%; FY2024: ROIC=-2.1%; FY2025: ROIC=unavailable

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

  Reinvestment Rate x ROIC

  ✗AkreReinvestment Rate * ROIC > 10%

  ROIC (5-year)0/3 years above 12% (latest -2.1%)

  ✗SleepROIC > 12% in a majority of years
• Debt & Leverage50% pass✓ 8✗ 7▾

  6 of 12 pass — Graham, Buffett, Lynch +3 more object

  Debt Levels0.39

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

  LT Debt vs Net Current Assets

  ✗GrahamLT Debt <= Net Current Assets

  Debt/Equity & Interest CoverageD/E: 0.39, IC: -0.8x

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

  Total Debt / Equity0.39

  ✗Lynch< 0.33

  Cash - Long-term Debt

  ✗LynchPositive preferred

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

  ✓PiotroskiDecreased YoY

  Current Assets / Current Liabilities3.22

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

  Total Debt / Shareholders' Equity0.39

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

  Interest Coverage & Debt/EBITDAIC=-0.8x, D/EBITDA=4.8x

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

  Total Debt / Shareholders Equity0.39

  ✓Ackman<= 1.0

  Negative debt-to-equity (higher means less debt)-0.3929; #2230/4210 (top 53.0%)

  ✗AsnessTop 30% of eligible cross-section
• Cash Flow50% pass✓ 6✗ 6▾

  5 of 10 pass — Buffett, Piotroski, Dreman +2 more object

  Free Cash Flow Proxy$-5.6M

  ✗BuffettPositive and growing

  FCF Positive and Growing$35.0M

  ✓LynchPositive and growing

  Operating Cash Flow$-21.3M

  ✗PiotroskiCFO > 0

  (CFO / Total Assets) vs ROACFO/Assets=-4.99%, ROA=-4.77%

  ✗PiotroskiCFO/Assets > ROA

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

  ✗Dreman< 8x

  P/E or FCF YieldFCF Yield=-25.8%

  ✗PabraiP/E < 15 or FCF Yield > 10%

  FCF Positive12/19 years FCF positive

  ✓MarksPositive FCF in majority of recent years

  (OCF - CapEx) / Market Cap28.8%

  ✓Ackman>= 4%

  Price / FCF per ShareN/A (negative FCF)

  ✗Ackman<= 25

  Positive Operating Cash Flow frequency23/25 years positive

  ✓SleepPositive OCF in >= 70% of available years

  Operating Cash Flow - Capital Expenditures$35.0M

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

  (Operating cash flow - capex) / market capitalization+28.41%; #191/4519 (top 4.2%)

  ✓OshaughnessyTop 10% of eligible cross-section