Vulcan Infrastructure & Power Inc.

Where It Passes

Where It Falls Short

• Growth0% pass✓ 3✗ 9▾

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

  EPS Growth (3-yr avg, 10-yr window)N/A (negative base EPS)

  ✗Graham>= 33% growth

  Basic earnings-growth PEG (dividends excluded)P/E 2.6x (growth N/A)

  ✗Lynch< 1.0 (ideally < 0.5)

  3-5 Year EPS CAGR

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

  EPS Growth Direction$-1.41 (2021) -> $0.34 (2025)

  ✓DremanPositive over recent years

  EPS CAGR

  ✗Dreman> 5% annualized

  Positive Net Income Frequency1/6 years positive

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

  3yr Median Revenue Growth-15.4%

  ✗Ackman>= 5%

  Positive EPS Growth Frequency3/4 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 trendrevenue flat/down, operating margin -24.0% -> -6.5%

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

  5-year Revenue CAGR23.9%

  ✓SleepCAGR > 7%

  3-5 Year Diluted EPS CAGR

  ✗Neff7%-20% annualized
• Profitability6% pass✓ 5✗ 30▾

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

  Positive EPS (10 years)1/7 years positive

  ✗GrahamPositive EPS every year for 10 years

  EPS Growth (3-yr avg, 10-yr window)N/A (negative base EPS)

  ✗Graham>= 33% growth

  Net Income Positive (10+ years)1/7 years positive

  ✗BuffettPositive every year for 10+ years

  ROE (up to 5-year arithmetic mean)-14.2%

  ✗Buffett> 15% arithmetic mean (app rule)

  Operating Margin (10-yr trend)-6.5% (latest)

  ✓BuffettStable or rising over 10 years

  Free Cash Flow Proxy

  ✗BuffettPositive and growing

  Earnings Variance (10-yr CoV)N/A (negative mean EPS)

  ✗BuffettCoV < 0.3

  Retained Earnings Effectiveness

  ✗Buffett$1 retained -> > $1 market value created

  Basic earnings-growth PEG (dividends excluded)P/E 2.6x (growth N/A)

  ✗Lynch< 1.0 (ideally < 0.5)

  3-5 Year EPS CAGR

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

  ROEN/A (negative equity)

  ✗Lynch> 15%

  Net Income / Total Assets9.87%

  ✓PiotroskiROA > 0

  ROA Change YoY-30.51% -> 9.87% (delta: +40.38%)

  ✓PiotroskiCurrent ROA > Prior ROA

  (CFO / Total Assets) vs ROACFO/Assets=-28.00%, ROA=9.87%

  ✗PiotroskiCFO/Assets > ROA

  Pre-Tax Income / Revenue0.1%

  ✗Dreman>= 8%

  Net Income / Shareholders' Equity

  ✗Dreman> 12%

  Return on Equity-14.2% (3-yr avg)

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

  Margin of SafetyP/E=2.6x

  ✓PabraiP/TBV < 1.5 or P/E < 15

  ROE (high and growing)FY2023: ROE=unavailable; FY2024: ROE=unavailable; FY2025: ROE=unavailable

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

  Discount to Intrinsic ValueN/A (negative normalized EPS)

  ✗Marks>= 20% below intrinsic value

  Positive Net Income Frequency1/6 years positive

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

  Operating Income / Revenue-24.0%

  ✗Ackman>= 15%

  Net Income / Shareholders Equity

  ✗Ackman>= 15%

  5-Year EPS CAGR

  ✗Templeton> 0% (5-year EPS CAGR)

  Operating Margin Trend-24.0% (2023) -> -6.5% (2025)

  ✓TempletonNon-negative operating-margin trend over 3 years

  Revenue growth vs. gross and operating margin trendrevenue flat/down, operating margin -24.0% -> -6.5%

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

  ROE (5-year)0/1 years above 12% (latest -20.9%)

  ✗SleepROE > 12% in a majority of years

  Net income / market capitalization+1.55%; #2839/6340 (top 44.8%)

  ✗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

  ✗AsnessTop 30% of eligible cross-section

  Negative 5-year standard deviation of ROA-0.6121; #5063/5884 (top 86.0%)

  ✗AsnessTop 30% of eligible cross-section

  3-5 Year Diluted EPS CAGR

  ✗Neff7%-20% annualized

  Positive Diluted-EPS Years1/5 years positive

  ✗Schloss>= 70% positive over 5-10 observed years (app rule)
• Verdicts8% pass✓ 1✗ 12▾

  Split decision: 12 FAIL · 3 NEUTRAL · 1 PASS

  Overall verdict

  ✗GrahamFAIL (0/7)✗BuffettFAIL (1/6)✗LynchFAIL (0/4)✓PiotroskiPASS (F-Score 4)✗DremanFAIL (2/9)✗MungerFAIL (1/3)•PabraiNEUTRAL (2/3)✗AkreFAIL (0/5)✗MarksFAIL (1/4)✗AckmanFAIL (2/8)✗TempletonFAIL (3/8)✗SleepFAIL (1/6)•AsnessNEUTRAL (Not ranked)✗NeffFAIL (2/6)✗SchlossFAIL (0/7)•OshaughnessyNEUTRAL (Not ranked)
• Cash Flow10% pass✓ 1✗ 11▾

  9 of 10 flag VIP's cash flow — Buffett, Lynch, Piotroski +6 more

  Free Cash Flow Proxy

  ✗BuffettPositive and growing

  FCF Positive and Growing

  ✗LynchPositive and growing

  Operating Cash Flow$-15.0M

  ✗PiotroskiCFO > 0

  (CFO / Total Assets) vs ROACFO/Assets=-28.00%, ROA=9.87%

  ✗PiotroskiCFO/Assets > ROA

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

  ✗Dreman< 8x

  P/E or FCF YieldP/E=2.6x

  ✓PabraiP/E < 15 or FCF Yield > 10%

  FCF Positive

  ✗MarksPositive FCF in majority of recent years

  (OCF - CapEx) / Market Cap

  ✗Ackman>= 4%

  Price / FCF per Share

  ✗Ackman<= 25

  Positive Operating Cash Flow frequency2/6 years positive

  ✗SleepPositive OCF in >= 70% of available years

  Operating Cash Flow - Capital Expenditures

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

  (Operating cash flow - capex) / market capitalization

  ✗OshaughnessyTop 10% of eligible cross-section
• Valuation17% pass✓ 6✗ 20▾

  10 of 12 flag VIP's valuation — Graham, Lynch, Dreman +7 more

  Price / 3-yr avg EPS

  ✗Graham<= 15x

  Price-to-Tangible-Book Ratio

  ✗Graham<= 1.5x

  P/E x P/TBV

  ✗Graham<= 22.5

  Basic earnings-growth PEG (dividends excluded)P/E 2.6x (growth N/A)

  ✗Lynch< 1.0 (ideally < 0.5)

  Price / EPS2.6x

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

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

  ✗Dreman< 8x

  Price / Tangible Book Value per ShareN/A (negative TBVPS)

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

  Valuation ReasonablenessP/E=2.6x, OE Yield=122.9%

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

  P/E or FCF YieldP/E=2.6x

  ✓PabraiP/E < 15 or FCF Yield > 10%

  P/B or P/E vs. Historical AverageP/E=2.6x

  ✓MarksP/E < 15 or P/B < 2.0

  Discount to Intrinsic ValueN/A (negative normalized EPS)

  ✗Marks>= 20% below intrinsic value

  Price / FCF per Share

  ✗Ackman<= 25

  Price vs. Trailing Low121% of trailing low ($0.73)

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

  Price / Book Value per ShareN/A (negative BVPS)

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

  Net income / market capitalization+1.55%; #2839/6340 (top 44.8%)

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

  Positive book equity / market capitalization-1.8311; #6115/6449 (top 94.8%)

  ✗AsnessTop 30% of eligible cross-section

  Price / Diluted EPS2.6x

  ✓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-156.4%

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

  Revenue / market capitalization+1.6210; #1255/5247 (top 23.9%)

  ✗OshaughnessyTop 10% of eligible cross-section

  (Operating cash flow - capex) / market capitalization

  ✗OshaughnessyTop 10% of eligible cross-section

  Trailing six-month price return through the evaluation date-43.23%; #4926/6202 (top 79.4%)

  ✗OshaughnessyTop 10% of eligible cross-section
• Debt & Leverage25% pass✓ 1✗ 4▾

  3 of 4 flag VIP's debt & leverage — Templeton, Asness and Schloss

  LT Debt / Total Assets Change104.95% -> 80.45%

  ✓PiotroskiDecreased YoY

  Total Debt / Shareholders' Equity

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

  Negative debt-to-equity (higher means less debt)

  ✗AsnessTop 30% of eligible cross-section

  Current Assets / Current Liabilities0.41x

  ✗SchlossCurrent ratio >= 1.50x (app cutoff)
• Efficiency33% pass✓ 1✗ 2▾

  2 of 3 flag VIP's efficiency — Akre and Sleep

  Revenue / Total Assets Change YoY0.92x -> 1.10x

  ✓PiotroskiImproved YoY

  Reinvestment Rate x ROIC

  ✗AkreReinvestment Rate * ROIC > 10%

  ROE (5-year)0/1 years above 12% (latest -20.9%)

  ✗SleepROE > 12% in a majority of years