Valneva SE

Where It Passes

Where It Falls Short

• Profitability0% pass✓ 2✗ 33▾

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

  Positive EPS (10 years)0/8 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)0/8 years positive

  ✗BuffettPositive every year for 10+ years

  ROE (up to 5-year arithmetic mean)-59.1%

  ✗Buffett> 15% arithmetic mean (app rule)

  Operating Margin (10-yr trend)-47.0% (latest)

  ✗BuffettStable or rising over 10 years

  Free Cash Flow Proxy$-115.0M

  ✗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-108.5%

  ✗Lynch> 15%

  EBIT / Enterprise Value-15.5%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=-15.5%, ROC=-52.3%

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Net Income / Total Assets-28.88%

  ✗PiotroskiROA > 0

  ROA Change YoY-2.45% -> -28.88% (delta: -26.43%)

  ✗PiotroskiCurrent ROA > Prior ROA

  (CFO / Total Assets) vs ROACFO/Assets=-13.26%, ROA=-28.88%

  ✓PiotroskiCFO/Assets > ROA

  Gross Margin Change YoY41.9% -> 38.7%

  ✗PiotroskiImproved YoY

  Pre-Tax Income / Revenue-65.3%

  ✗Dreman>= 8%

  Net Income / Shareholders' Equity-108.5%

  ✗Dreman> 12%

  Margin of SafetyP/B=3.9x

  ✗PabraiP/B < 1.5 or P/E < 15

  Return on Equity-64.8% (3-yr avg)

  ✗AkreROE > 20% (3-year avg)

  Discount to Intrinsic ValueN/A (negative normalized EPS)

  ✗Marks>= 20% below intrinsic value

  Positive Net Income Frequency0/7 years positive

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

  Operating Income / Revenue-47.0%

  ✗Ackman>= 15%

  Net Income / Shareholders Equity-108.5%

  ✗Ackman>= 15%

  5-Year EPS CAGR

  ✗Templeton> 0% (5-year EPS CAGR)

  Operating Margin Trend-53.4% (2023) -> -47.0% (2025)

  ✓TempletonNon-negative operating-margin trend over 3 years

  Revenue growth vs. gross and operating margin trendgross margin 34.4% -> 38.7%, operating margin -53.4% -> -47.0%

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

  Net income / market capitalization-25.13%; #4699/6340 (top 74.1%)

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

  Gross profit / total assets+16.93%; #2284/3702 (top 61.7%)

  ✗AsnessTop 30% of eligible cross-section

  Net income / positive book equity-108.50%; #4628/5226 (top 88.6%)

  ✗AsnessTop 30% of eligible cross-section

  Negative 5-year standard deviation of ROA-0.1005; #3492/5884 (top 59.3%)

  ✗AsnessTop 30% of eligible cross-section

  3-5 Year Diluted EPS CAGR

  ✗Neff7%-20% annualized

  Positive Diluted-EPS Years0/7 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 $189.4M vs NCA $151.8M

  ✗GrahamLT Debt <= Net Current Assets

  Debt/Equity & Interest CoverageD/E: 1.69, IC: -2.0x

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

  Total Debt / Equity1.69

  ✗Lynch< 0.33

  Cash - Long-term Debt$-60.6M

  ✗LynchPositive preferred

  LT Debt / Total Assets Change33.30% -> 40.43%

  ✗PiotroskiDecreased YoY

  Current Assets / Current Liabilities2.38

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

  Total Debt / Shareholders' Equity1.69

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

  Debt Levels1.69

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

  Interest Coverage & Debt/EBITDAIC=-2.0x, D/EBITDA=N/A

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

  Total Debt / Shareholders Equity1.69

  ✗Ackman<= 1.0

  Negative debt-to-equity (higher means less debt)-1.6876; #3676/4210 (top 87.3%)

  ✗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 Ratio3.9x

  ✗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-15.5%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=-15.5%, ROC=-52.3%

  ✗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 Share3.9x

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

  Valuation ReasonablenessOE Yield=-23.4%

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

  P/E or FCF YieldFCF Yield=-12.5%

  ✗PabraiP/E < 15 or FCF Yield > 10%

  P/B or P/E vs. Historical AverageP/B=3.9x

  ✗MarksP/E < 15 or P/B < 2.0

  Discount to Intrinsic ValueN/A (negative normalized EPS)

  ✗Marks>= 20% below intrinsic value

  Price / FCF per ShareN/A (negative FCF)

  ✗Ackman<= 25

  Price vs. Trailing Low105% of trailing low ($2.69)

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

  Net income / market capitalization-25.13%; #4699/6340 (top 74.1%)

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

  Positive book equity / market capitalization+0.2316; #4026/6449 (top 62.4%)

  ✗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 Share4.99x

  ✗SchlossP/TBV <= 1.00x (app cutoff)

  Book Value per Share Change-31.5%

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

  Revenue / market capitalization+0.3811; #2978/5247 (top 56.8%)

  ✗OshaughnessyTop 10% of eligible cross-section

  (Operating cash flow - capex) / market capitalization-12.50%; #3323/4519 (top 73.5%)

  ✗OshaughnessyTop 10% of eligible cross-section

  Trailing six-month price return through the evaluation date+5.20%; #2146/6202 (top 34.6%)

  ✗OshaughnessyTop 10% of eligible cross-section
• Cash Flow0% pass✓ 1✗ 11▾

  No clean pass — all 10 investors flag at least one cash flow criterion

  Free Cash Flow Proxy$-115.0M

  ✗BuffettPositive and growing

  FCF Positive and Growing$-67.3M

  ✗LynchPositive and growing

  Operating Cash Flow$-62.1M

  ✗PiotroskiCFO > 0

  (CFO / Total Assets) vs ROACFO/Assets=-13.26%, ROA=-28.88%

  ✓PiotroskiCFO/Assets > ROA

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

  ✗Dreman< 8x

  P/E or FCF YieldFCF Yield=-12.5%

  ✗PabraiP/E < 15 or FCF Yield > 10%

  FCF Positive1/7 years FCF positive

  ✗MarksPositive FCF in majority of recent years

  (OCF - CapEx) / Market Cap-13.7%

  ✗Ackman>= 4%

  Price / FCF per ShareN/A (negative FCF)

  ✗Ackman<= 25

  Positive Operating Cash Flow frequency3/7 years positive

  ✗SleepPositive OCF in >= 70% of available years

  Operating Cash Flow - Capital Expenditures$-67.3M

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

  (Operating cash flow - capex) / market capitalization-12.50%; #3323/4519 (top 73.5%)

  ✗OshaughnessyTop 10% of eligible cross-section
• Growth0% pass✓ 2✗ 11▾

  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: 5.7% vs Rev: 16.3%

  ✓LynchInventory growth < Revenue growth

  EPS Growth Direction

  ✗DremanPositive over recent years

  EPS CAGR

  ✗Dreman> 5% annualized

  Positive Net Income Frequency0/7 years positive

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

  3yr Median Revenue Growth3.7%

  ✗Ackman>= 5%

  Positive EPS Growth Frequency

  ✗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 34.4% -> 38.7%, operating margin -53.4% -> -47.0%

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

  5-year Revenue CAGR8.6%

  ✓SleepCAGR > 7%

  3-5 Year Diluted EPS CAGR

  ✗Neff7%-20% annualized
• Verdicts0% pass✗ 16▾

  Split decision: 15 FAIL · 1 NEUTRAL

  Overall verdict

  ✗GrahamFAIL (2/9)✗BuffettFAIL (0/9)✗LynchFAIL (1/7)✗GreenblattRank #2435✗PiotroskiFAIL (F-Score 2)✗DremanFAIL (1/11)✗MungerFAIL (0/4)✗PabraiFAIL (0/3)✗AkreFAIL (1/6)✗MarksFAIL (0/5)✗AckmanFAIL (1/9)✗TempletonFAIL (3/8)✗SleepFAIL (2/6)✗AsnessFAIL (Rank #2306/2370 (Top 97.3%))✗NeffFAIL (1/6)✗SchlossFAIL (1/7)•OshaughnessyNEUTRAL (Not ranked)
• Efficiency25% pass✓ 3✗ 8▾

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

  Current Ratio2.38

  ✓Graham>= 2.0

  ROIC (3-5 yr avg)-73.7%

  ✗Buffett> 10%

  ROIC - WACC-83.7%

  ✗BuffettPositive (WACC = 10%)

  EBIT / (NWC + Net Fixed Assets)-52.3%

  ✗Greenblatt> 25%

  Current Ratio Change YoY2.61 -> 2.38

  ✗PiotroskiIncreased YoY

  Revenue / Total Assets Change YoY0.34x -> 0.44x

  ✓PiotroskiImproved YoY

  Current Assets / Current Liabilities2.38

  ✓Dreman> 1.5

  Return on Invested Capital-22.7%

  ✗Munger> 15%

  ROIC (high and growing)FY2023: ROIC=-21.3%; FY2024: ROIC=2.9%; FY2025: ROIC=-22.7%

  ✗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 -22.7%)

  ✗SleepROIC > 12% in a majority of years