X3 Holdings Co., Ltd.

Where It Passes

Where It Falls Short

• Profitability0% pass✓ 3✗ 32▾

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

  Positive EPS (10 years)3/11 years positive

  ✗GrahamPositive EPS every year for 10 years

  EPS Growth (3-yr avg, 10-yr window)-14915.4%

  ✗Graham>= 33% growth

  Net Income Positive (10+ years)3/11 years positive

  ✗BuffettPositive every year for 10+ years

  ROE (up to 5-year arithmetic mean)-70.9%

  ✗Buffett> 15% arithmetic mean (app rule)

  Operating Margin (10-yr trend)-510.9% (latest)

  ✗BuffettStable or rising over 10 years

  Free Cash Flow Proxy$-23.7M

  ✗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)

  ✗Lynch< 1.0 (ideally < 0.5)

  3-5 Year EPS CAGR

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

  ROE-73.8%

  ✗Lynch> 15%

  EBIT / Enterprise Value-1428.5%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=-1428.5%, ROC=-1578.4%

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Net Income / Total Assets-42.50%

  ✗PiotroskiROA > 0

  ROA Change YoY-88.24% -> -42.50% (delta: +45.74%)

  ✓PiotroskiCurrent ROA > Prior ROA

  (CFO / Total Assets) vs ROACFO/Assets=-5.26%, ROA=-42.50%

  ✓PiotroskiCFO/Assets > ROA

  Gross Margin Change YoY39.8% -> 64.3%

  ✓PiotroskiImproved YoY

  Pre-Tax Income / Revenue-446.1%

  ✗Dreman>= 8%

  Net Income / Shareholders' Equity-73.8%

  ✗Dreman> 12%

  Margin of Safety

  ✗PabraiP/B < 1.5 or P/E < 15

  Return on Equity-107.4% (3-yr avg)

  ✗AkreROE > 20% (3-year avg)

  Discount to Intrinsic ValueN/A (negative normalized EPS)

  ✗Marks>= 20% below intrinsic value

  Positive Net Income Frequency3/10 years positive

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

  Operating Income / Revenue-510.9%

  ✗Ackman>= 15%

  Net Income / Shareholders Equity-73.8%

  ✗Ackman>= 15%

  5-Year EPS CAGR

  ✗Templeton> 0% (5-year EPS CAGR)

  Operating Margin Trend-318.4% (2023) -> -510.9% (2025)

  ✗TempletonNon-negative operating-margin trend over 3 years

  Revenue growth vs. gross and operating margin trendgross margin 20.3% -> 64.3%, operating margin -318.4% -> -510.9%

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

  Net income / market capitalization-1967.96%; #6147/6340 (top 97.0%)

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

  Gross profit / total assets+6.56%; #3018/3702 (top 81.5%)

  ✗AsnessTop 30% of eligible cross-section

  Net income / positive book equity-73.84%; #4436/5226 (top 84.9%)

  ✗AsnessTop 30% of eligible cross-section

  Negative 5-year standard deviation of ROA-0.2945; #4589/5884 (top 78.0%)

  ✗AsnessTop 30% of eligible cross-section

  3-5 Year Diluted EPS CAGR

  ✗Neff7%-20% annualized

  Positive Diluted-EPS Years3/10 years positive

  ✗Schloss>= 70% positive over 5-10 observed years (app rule)
• Valuation0% pass✓ 2✗ 26▾

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

  Price / 3-yr avg EPS

  ✗Graham<= 15x

  Price-to-Book Ratio

  ✗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-1428.5%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=-1428.5%, ROC=-1578.4%

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Price / EPS

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

  Price / (CFO / Shares)

  ✗Dreman< 8x

  Price / Book Value per Share

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

  Valuation Reasonableness

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

  P/E or FCF YieldFCF Yield=-260.5%

  ✗PabraiP/E < 15 or FCF Yield > 10%

  P/B or P/E vs. Historical Average

  ✗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 Low

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

  Net income / market capitalization-1967.96%; #6147/6340 (top 97.0%)

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

  Positive book equity / market capitalization+26.6502; #114/6449 (top 1.8%)

  ✓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 Share

  ✗SchlossP/TBV <= 1.00x (app cutoff)

  Book Value per Share Change+354.4%

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

  Revenue / market capitalization+4.7260; #564/5247 (top 10.7%)

  ✗OshaughnessyTop 10% of eligible cross-section

  (Operating cash flow - capex) / market capitalization-260.53%; #4255/4519 (top 94.2%)

  ✗OshaughnessyTop 10% of eligible cross-section

  Trailing six-month price return through the evaluation date

  ✗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$-23.7M

  ✗BuffettPositive and growing

  FCF Positive and Growing$-3.5M

  ✗LynchPositive and growing

  Operating Cash Flow$-3.2M

  ✗PiotroskiCFO > 0

  (CFO / Total Assets) vs ROACFO/Assets=-5.26%, ROA=-42.50%

  ✓PiotroskiCFO/Assets > ROA

  Price / (CFO / Shares)

  ✗Dreman< 8x

  P/E or FCF YieldFCF Yield=-260.5%

  ✗PabraiP/E < 15 or FCF Yield > 10%

  FCF Positive2/10 years 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 frequency4/10 years positive

  ✗SleepPositive OCF in >= 70% of available years

  Operating Cash Flow - Capital Expenditures$-3.5M

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

  (Operating cash flow - capex) / market capitalization-260.53%; #4255/4519 (top 94.2%)

  ✗OshaughnessyTop 10% of eligible cross-section
• Growth0% pass✓ 1✗ 12▾

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

  EPS Growth (3-yr avg, 10-yr window)-14915.4%

  ✗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 GrowthN/A (no inventory)

  ✓LynchInventory growth < Revenue growth

  EPS Growth Direction$0.50 (2016) -> $-202.46 (2025)

  ✗DremanPositive over recent years

  EPS CAGR-33.7% CAGR over 2 years

  ✗Dreman> 5% annualized

  Positive Net Income Frequency3/10 years positive

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

  3yr Median Revenue Growth-31.0%

  ✗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 20.3% -> 64.3%, operating margin -318.4% -> -510.9%

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

  5-year Revenue CAGR-25.1%

  ✗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 Ratio0.93

  ✗Graham>= 2.0

  ROIC (3-5 yr avg)-56.1%

  ✗Buffett> 10%

  ROIC - WACC-66.1%

  ✗BuffettPositive (WACC = 10%)

  EBIT / (NWC + Net Fixed Assets)-1578.4%

  ✗Greenblatt> 25%

  Current Ratio Change YoY0.74 -> 0.93

  ✓PiotroskiIncreased YoY

  Revenue / Total Assets Change YoY0.13x -> 0.10x

  ✗PiotroskiImproved YoY

  Current Assets / Current Liabilities0.93

  ✗Dreman> 1.5

  Return on Invested Capital-65.8%

  ✗Munger> 15%

  ROIC (high and growing)FY2023: ROIC=-30.7%; FY2024: ROIC=-141.6%; FY2025: ROIC=-65.8%

  ✗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 -65.8%)

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

  Split decision: 12 FAIL · 2 PASS · 2 NEUTRAL

  Overall verdict

  ✗GrahamFAIL (0/9)✗BuffettFAIL (0/9)✗LynchFAIL (2/7)✗GreenblattRank #3089✓PiotroskiPASS (F-Score 4)✗DremanFAIL (1/11)✓MungerPASS (2/4)✗PabraiFAIL (0/3)✗AkreFAIL (2/6)✗MarksFAIL (0/5)✗AckmanFAIL (2/9)✗TempletonFAIL (2/8)✗SleepFAIL (1/6)•AsnessNEUTRAL (Not ranked)✗NeffFAIL (0/6)✗SchlossFAIL (2/7)•OshaughnessyNEUTRAL (Not ranked)
• Debt & Leverage42% pass✓ 8✗ 7▾

  7 of 12 flag XTKG's debt & leverage — Graham, Buffett, Lynch +4 more

  LT Debt vs Net Current AssetsLT Debt $3.1M vs NCA $-1.5M

  ✗GrahamLT Debt <= Net Current Assets

  Debt/Equity & Interest CoverageD/E: 0.09, IC: -43.4x

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

  Total Debt / Equity0.09

  ✓Lynch< 0.33

  Cash - Long-term Debt$-0.9M

  ✗LynchPositive preferred

  LT Debt / Total Assets Change0.00% -> 5.08%

  ✗PiotroskiDecreased YoY

  Current Assets / Current Liabilities0.93

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

  Total Debt / Shareholders' Equity0.09

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

  Debt Levels0.09

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

  Interest Coverage & Debt/EBITDAIC=-43.4x, D/EBITDA=N/A

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

  Total Debt / Shareholders Equity0.09

  ✓Ackman<= 1.0

  Negative debt-to-equity (higher means less debt)-0.0883; #1220/4210 (top 29.0%)

  ✓AsnessTop 30% of eligible cross-section