Workhorse Group Inc.

Where It Passes

Where It Falls Short

• Cash Flow0% pass✓ 1✗ 11▾

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

  Free Cash Flow Proxy$-63.5M

  ✗BuffettPositive and growing

  FCF Positive and Growing$-36.2M

  ✗LynchPositive and growing

  Operating Cash Flow$-35.6M

  ✗PiotroskiCFO > 0

  (CFO / Total Assets) vs ROACFO/Assets=-30.16%, ROA=-54.36%

  ✓PiotroskiCFO/Assets > ROA

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

  ✗Dreman< 8x

  P/E or FCF YieldFCF Yield=-114.9%

  ✗PabraiP/E < 15 or FCF Yield > 10%

  FCF Positive0/16 years FCF positive

  ✗MarksPositive FCF in majority of recent years

  (OCF - CapEx) / Market Cap-225.5%

  ✗Ackman>= 4%

  Price / FCF per ShareN/A (negative FCF)

  ✗Ackman<= 25

  Positive Operating Cash Flow frequency0/16 years positive

  ✗SleepPositive OCF in >= 70% of available years

  Operating Cash Flow - Capital Expenditures$-63.0M

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

  (Operating cash flow - capex) / market capitalization-200.13%; #4203/4519 (top 93.0%)

  ✗OshaughnessyTop 10% of eligible cross-section
• Growth0% pass✓ 3✗ 10▾

  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: 16.5% vs Rev: 112.1%

  ✓LynchInventory growth < Revenue growth

  EPS Growth Direction

  ✗DremanPositive over recent years

  EPS CAGR

  ✗Dreman> 5% annualized

  Positive Net Income Frequency1/18 years positive

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

  3yr Median Revenue Growth160.7%

  ✓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 -192.9% -> -45.0%, operating margin -804.1% -> -223.7%

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

  5-year Revenue CAGR72.4%

  ✓SleepCAGR > 7%

  3-5 Year Diluted EPS CAGR

  ✗Neff7%-20% annualized
• Efficiency0% pass✓ 1✗ 10▾

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

  Current Ratio1.28

  ✗Graham>= 2.0

  ROIC (3-5 yr avg)-276.9%

  ✗Buffett> 10%

  ROIC - WACC-286.9%

  ✗BuffettPositive (WACC = 10%)

  EBIT / (NWC + Net Fixed Assets)-274.2%

  ✗Greenblatt> 25%

  Current Ratio Change YoY0.44 -> 1.54

  ✓PiotroskiIncreased YoY

  Revenue / Total Assets Change YoY0.19x -> 0.18x

  ✗PiotroskiImproved YoY

  Current Assets / Current Liabilities1.28

  ✗Dreman> 1.5

  Return on Invested Capital-111.2%

  ✗Munger> 15%

  ROIC (high and growing)FY2023: ROIC=-403.0%; FY2024: ROIC=-118.5%; FY2025: ROIC=-64.1%

  ✗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 -64.1%)

  ✗SleepROIC > 12% in a majority of years
• Profitability6% pass✓ 6✗ 29▾

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

  Positive EPS (10 years)1/19 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)1/19 years positive

  ✗BuffettPositive every year for 10+ years

  ROE (up to 5-year arithmetic mean)-328.5%

  ✗Buffett> 15% arithmetic mean (app rule)

  Operating Margin (10-yr trend)-223.7% (latest)

  ✓BuffettStable or rising over 10 years

  Free Cash Flow Proxy$-63.5M

  ✗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-957.3%

  ✗Lynch> 15%

  EBIT / Enterprise Value-105.0%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=-105.0%, ROC=-274.2%

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Net Income / Total Assets-54.36%

  ✗PiotroskiROA > 0

  ROA Change YoY-137.91% -> -54.36% (delta: +83.55%)

  ✓PiotroskiCurrent ROA > Prior ROA

  (CFO / Total Assets) vs ROACFO/Assets=-30.16%, ROA=-54.36%

  ✓PiotroskiCFO/Assets > ROA

  Gross Margin Change YoY-87.3% -> -45.0%

  ✓PiotroskiImproved YoY

  Pre-Tax Income / Revenue-301.6%

  ✗Dreman>= 8%

  Net Income / Shareholders' Equity-957.3%

  ✗Dreman> 12%

  Margin of SafetyP/B=0.6x

  ✓PabraiP/B < 1.5 or P/E < 15

  Return on Equity-162.2% (3-yr avg)

  ✗AkreROE > 20% (3-year avg)

  Discount to Intrinsic Value

  ✗Marks>= 20% below intrinsic value

  Positive Net Income Frequency1/18 years positive

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

  Operating Income / Revenue-266.1%

  ✗Ackman>= 15%

  Net Income / Shareholders Equity-957.3%

  ✗Ackman>= 15%

  5-Year EPS CAGR

  ✗Templeton> 0% (5-year EPS CAGR)

  Operating Margin Trend-804.1% (2023) -> -223.7% (2025)

  ✓TempletonNon-negative operating-margin trend over 3 years

  Revenue growth vs. gross and operating margin trendgross margin -192.9% -> -45.0%, operating margin -804.1% -> -223.7%

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

  Net income / market capitalization-218.32%; #5695/6340 (top 89.8%)

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

  Gross profit / total assets-11.44%; #3644/3702 (top 98.4%)

  ✗AsnessTop 30% of eligible cross-section

  Net income / positive book equity-957.28%; #5159/5226 (top 98.7%)

  ✗AsnessTop 30% of eligible cross-section

  Negative 5-year standard deviation of ROA-0.4614; #4887/5884 (top 83.1%)

  ✗AsnessTop 30% of eligible cross-section

  3-5 Year Diluted EPS CAGR

  ✗Neff7%-20% annualized

  Positive Diluted-EPS Years1/9 years positive

  ✗Schloss>= 70% positive over 5-10 observed years (app rule)
• Debt & Leverage8% pass✓ 1✗ 14▾

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

  LT Debt vs Net Current AssetsLT Debt $35.9M vs NCA $12.2M

  ✗GrahamLT Debt <= Net Current Assets

  Debt/Equity & Interest CoverageD/E: 0.36, IC: N/A

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

  Total Debt / Equity5

  ✗Lynch< 0.33

  Cash - Long-term Debt$-26.3M

  ✗LynchPositive preferred

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

  ✓PiotroskiDecreased YoY

  Current Assets / Current Liabilities1.28

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

  Total Debt / Shareholders' Equity5

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

  Debt Levels5

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

  Interest Coverage & Debt/EBITDA

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

  Total Debt / Shareholders Equity5

  ✗Ackman<= 1.0

  Negative debt-to-equity (higher means less debt)-5.0035; #4075/4210 (top 96.8%)

  ✗AsnessTop 30% of eligible cross-section
• Valuation8% pass✓ 8✗ 20▾

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

  Price / 3-yr avg EPS

  ✗Graham<= 15x

  Price-to-Book Ratio0.6x

  ✓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-105.0%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=-105.0%, ROC=-274.2%

  ✗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 Share0.6x

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

  Valuation ReasonablenessOE Yield=-227.1%

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

  P/E or FCF YieldFCF Yield=-114.9%

  ✗PabraiP/E < 15 or FCF Yield > 10%

  P/B or P/E vs. Historical AverageP/B=0.6x

  ✓MarksP/E < 15 or P/B < 2.0

  Discount to Intrinsic Value

  ✗Marks>= 20% below intrinsic value

  Price / FCF per ShareN/A (negative FCF)

  ✗Ackman<= 25

  Price vs. Trailing Low118% of trailing low ($2.44)

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

  Net income / market capitalization-218.32%; #5695/6340 (top 89.8%)

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

  Positive book equity / market capitalization+0.2281; #4049/6449 (top 62.8%)

  ✗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 Share0.94x

  ✓SchlossP/TBV <= 1.00x (app cutoff)

  Book Value per Share Change+38.7%

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

  Revenue / market capitalization+0.7241; #2159/5247 (top 41.1%)

  ✗OshaughnessyTop 10% of eligible cross-section

  (Operating cash flow - capex) / market capitalization-200.13%; #4203/4519 (top 93.0%)

  ✗OshaughnessyTop 10% of eligible cross-section

  Trailing six-month price return through the evaluation date+18.03%; #1445/6202 (top 23.3%)

  ✗OshaughnessyTop 10% of eligible cross-section
• Verdicts13% pass✓ 2✗ 14▾

  Split decision: 13 FAIL · 2 PASS · 1 NEUTRAL

  Overall verdict

  ✗GrahamFAIL (1/9)✗BuffettFAIL (1/9)✗LynchFAIL (1/7)✗GreenblattRank #2970✓PiotroskiPASS (F-Score 5)✗DremanFAIL (1/11)✗MungerFAIL (0/4)✗PabraiFAIL (1/3)✗AkreFAIL (1/6)✗MarksFAIL (1/5)✗AckmanFAIL (1/9)✓TempletonPASS (4/8)✗SleepFAIL (1/6)✗AsnessFAIL (Rank #2367/2370 (Top 99.9%))✗NeffFAIL (1/6)✗SchlossFAIL (3/7)•OshaughnessyNEUTRAL (Not ranked)