YORK WATER CO

Where It Passes

Where It Falls Short

• Profitability6% pass✓ 11✗ 24▾

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

  Net income / market capitalization+4.97%; #1697/6340 (top 26.8%)

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

  Positive EPS (10 years)12/18 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)17/18 years positive

  ✗BuffettPositive every year for 10+ years

  ROE (up to 5-year arithmetic mean)9.7%

  ✗Buffett> 15% arithmetic mean (app rule)

  Operating Margin (10-yr trend)35.8% (latest)

  ✗BuffettStable or rising over 10 years

  Free Cash Flow Proxy$3.5M

  ✗BuffettPositive and growing

  Earnings Variance (10-yr CoV)0.19

  ✓BuffettCoV < 0.3

  Retained Earnings Effectiveness

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

  Basic earnings-growth PEG (dividends excluded)12.44

  ✗Lynch< 1.0 (ideally < 0.5)

  3-5 Year EPS CAGR1.8%

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

  ROE8.5%

  ✗Lynch> 15%

  EBIT / Enterprise Value4.7%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=4.7%, ROC=977.2%

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Net Income / Total Assets2.95%

  ✓PiotroskiROA > 0

  ROA Change YoY3.21% -> 2.95% (delta: -0.26%)

  ✗PiotroskiCurrent ROA > Prior ROA

  (CFO / Total Assets) vs ROACFO/Assets=4.39%, ROA=2.95%

  ✓PiotroskiCFO/Assets > ROA

  Gross Margin Change YoY

  ✗PiotroskiImproved YoY

  Pre-Tax Income / Revenue29.1%

  ✓Dreman>= 8%

  Net Income / Shareholders' Equity8.5%

  ✗Dreman> 12%

  Margin of SafetyP/E=22.7x, P/B=1.9x

  ✗PabraiP/B < 1.5 or P/E < 15

  Return on Equity9.3% (3-yr avg)

  ✗AkreROE > 20% (3-year avg)

  Discount to Intrinsic Value-40.9% (IV=$22.35 vs Price=$31.50)

  ✗Marks>= 20% below intrinsic value

  Positive Net Income Frequency17/17 years positive

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

  Operating Income / Revenue37.9%

  ✓Ackman>= 15%

  Net Income / Shareholders Equity8.5%

  ✗Ackman>= 15%

  5-Year EPS CAGR1.8% CAGR over 5 years

  ✓Templeton> 0% (5-year EPS CAGR)

  Operating Margin Trend41.6% (2023) -> 35.8% (2025)

  ✗TempletonNon-negative operating-margin trend over 3 years

  Revenue growth vs. gross and operating margin trendrevenue up, operating margin 41.6% -> 35.8%

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

  Gross profit / total assets

  ✗AsnessTop 30% of eligible cross-section

  Net income / positive book equity+8.50%; #2035/5226 (top 38.9%)

  ✗AsnessTop 30% of eligible cross-section

  Negative 5-year standard deviation of ROA-0.0041; #420/5884 (top 7.1%)

  ✓AsnessTop 30% of eligible cross-section

  3-5 Year Diluted EPS CAGR1.8% over 5 years

  ✗Neff7%-20% annualized

  Positive Diluted-EPS Years10/10 years positive

  ✓Schloss>= 70% positive over 5-10 observed years (app rule)
• Valuation8% pass✓ 5✗ 23▾

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

  Net income / market capitalization+4.97%; #1697/6340 (top 26.8%)

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

  Price / 3-yr avg EPS21.1x

  ✗Graham<= 15x

  Price-to-Book Ratio1.9x

  ✗Graham<= 1.5x

  P/E x P/B40.00

  ✗Graham<= 22.5

  Basic earnings-growth PEG (dividends excluded)12.44

  ✗Lynch< 1.0 (ideally < 0.5)

  EBIT / Enterprise Value4.7%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=4.7%, ROC=977.2%

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Price / EPS22.7x

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

  Price / (CFO / Shares)15.2x

  ✗Dreman< 8x

  Price / Book Value per Share1.9x

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

  Valuation ReasonablenessP/E=22.7x, OE Yield=7.5%

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

  P/E or FCF YieldP/E=22.7x

  ✗PabraiP/E < 15 or FCF Yield > 10%

  P/B or P/E vs. Historical AverageP/E=22.7x, P/B=1.9x

  ✓MarksP/E < 15 or P/B < 2.0

  Discount to Intrinsic Value-40.9% (IV=$22.35 vs Price=$31.50)

  ✗Marks>= 20% below intrinsic value

  Price / FCF per Share

  ✗Ackman<= 25

  Price vs. Trailing Low109% of trailing low ($29.02)

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

  Positive book equity / market capitalization+0.5840; #2563/6449 (top 39.7%)

  ✗AsnessTop 30% of eligible cross-section

  Price / Diluted EPS22.7x

  ✗NeffP/E <= 15x (app proxy for a P/E 40%-60% below the market)

  (EPS CAGR % + Dividend Yield %) / P/E0.20

  ✗Neff> 0.7 (Neff's published traditional edge)

  Price / Tangible Book Value per Share1.89x

  ✗SchlossP/TBV <= 1.00x (app cutoff)

  Book Value per Share Change+51.7%

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

  Revenue / market capitalization+0.1708; #3925/5247 (top 74.8%)

  ✗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+8.55%; #1934/6202 (top 31.2%)

  ✗OshaughnessyTop 10% of eligible cross-section
• Efficiency13% pass✓ 1✗ 10▾

  7 of 8 flag YORW's efficiency — Graham, Buffett, Piotroski +4 more

  Current Ratio1.09

  ✗Graham>= 2.0

  ROIC (3-5 yr avg)5.5%

  ✗Buffett> 10%

  ROIC - WACC-4.5%

  ✗BuffettPositive (WACC = 10%)

  EBIT / (NWC + Net Fixed Assets)977.2%

  ✓Greenblatt> 25%

  Current Ratio Change YoY0.90 -> 0.67

  ✗PiotroskiIncreased YoY

  Revenue / Total Assets Change YoY0.12x -> 0.11x

  ✗PiotroskiImproved YoY

  Current Assets / Current Liabilities1.09

  ✗Dreman> 1.5

  Return on Invested Capital5.3%

  ✗Munger> 15%

  ROIC (high and growing)FY2023: ROIC=5.8%; FY2024: ROIC=5.1%; FY2025: ROIC=4.7%

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

  Reinvestment Rate x ROIC2.5% (RR=47% x ROIC=5.3%)

  ✗AkreReinvestment Rate * ROIC > 10%

  ROIC (5-year)0/5 years above 12% (latest 4.7%)

  ✗SleepROIC > 12% in a majority of years
• Valuation models13% pass✓ 1✗ 7▾

  Models split on YORW at $31.50 — fair values range $2.53–$34.45

  Graham fair value$22.81

  ✗Graham-38.1% margin vs $31.50

  Lynch fair value$2.53

  ✗Lynch-1145.1% margin vs $31.50

  Greenblatt fair value$15.54

  ✗Greenblatt-102.7% margin vs $31.50

  Dreman fair value$22.35

  ✗Dreman-40.9% margin vs $31.50

  Pabrai fair value$14.68

  ✗Pabrai-114.6% margin vs $31.50

  Akre fair value$34.45

  ✓Akre+8.6% margin vs $31.50

  Marks fair value$18.78

  ✗Marks-67.7% margin vs $31.50

  Templeton fair value$21.51

  ✗Templeton-46.4% margin vs $31.50
• Debt & Leverage17% pass✓ 4✗ 11▾

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

  LT Debt vs Net Current AssetsLT Debt $194.3M vs NCA $1.6M

  ✗GrahamLT Debt <= Net Current Assets

  Debt/Equity & Interest CoverageD/E: 0.65, IC: 3.3x

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

  Total Debt / Equity0.65

  ✗Lynch< 0.33

  Cash - Long-term Debt$-194.3M

  ✗LynchPositive preferred

  LT Debt / Total Assets Change32.45% -> 32.59%

  ✗PiotroskiDecreased YoY

  Current Assets / Current Liabilities1.09

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

  Total Debt / Shareholders' Equity0.65

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

  Debt Levels0.65

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

  Interest Coverage & Debt/EBITDAIC=3.3x, D/EBITDA=4.1x

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

  Total Debt / Shareholders Equity0.65

  ✓Ackman<= 1.0

  Negative debt-to-equity (higher means less debt)-0.6513; #2749/4210 (top 65.3%)

  ✗AsnessTop 30% of eligible cross-section
• Verdicts31% pass✓ 4✗ 9▾

  Split decision: 9 FAIL · 4 NEUTRAL · 3 PASS

  Overall verdict

  ✗GrahamFAIL (1/9)✗BuffettFAIL (1/9)✗LynchFAIL (3/7)✓GreenblattRank #374✗PiotroskiFAIL (F-Score 3)✗DremanFAIL (3/11)✓MungerPASS (2/4)✗PabraiFAIL (0/3)✗AkreFAIL (0/6)✗MarksFAIL (3/5)✓AckmanPASS (5/9)•TempletonNEUTRAL (5/8)✓SleepPASS (3/6)•AsnessNEUTRAL (Not ranked)✗NeffFAIL (2/6)•SchlossNEUTRAL (4/7)•OshaughnessyNEUTRAL (Not ranked)
• Growth38% pass✓ 8✗ 5▾

  5 of 8 flag YORW's growth — Graham, Lynch, Dreman +2 more

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

  ✗Graham>= 33% growth

  Basic earnings-growth PEG (dividends excluded)12.44

  ✗Lynch< 1.0 (ideally < 0.5)

  3-5 Year EPS CAGR1.8%

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

  Inventory Growth vs Revenue GrowthN/A (no inventory)

  ✓LynchInventory growth < Revenue growth

  EPS Growth Direction$0.89 (2014) -> $1.39 (2025)

  ✓DremanPositive over recent years

  EPS CAGR4.1% CAGR over 11 years

  ✗Dreman> 5% annualized

  Positive Net Income Frequency17/17 years positive

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

  3yr Median Revenue Growth5.5%

  ✓Ackman>= 5%

  Positive EPS Growth Frequency3/5 years with positive EPS growth

  ✓AckmanPositive EPS growth in >= 3 of last 5 years

  5-Year EPS CAGR1.8% CAGR over 5 years

  ✓Templeton> 0% (5-year EPS CAGR)

  Revenue growth vs. gross and operating margin trendrevenue up, operating margin 41.6% -> 35.8%

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

  5-year Revenue CAGR7.5%

  ✓SleepCAGR > 7%

  3-5 Year Diluted EPS CAGR1.8% over 5 years

  ✗Neff7%-20% annualized
• Cash Flow40% pass✓ 5✗ 7▾

  6 of 10 flag YORW's cash flow — Buffett, Dreman, Pabrai +3 more

  Free Cash Flow Proxy$3.5M

  ✗BuffettPositive and growing

  FCF Positive and Growing$1.5M

  ✓LynchPositive and growing

  Operating Cash Flow$29.9M

  ✓PiotroskiCFO > 0

  (CFO / Total Assets) vs ROACFO/Assets=4.39%, ROA=2.95%

  ✓PiotroskiCFO/Assets > ROA

  Price / (CFO / Shares)15.2x

  ✗Dreman< 8x

  P/E or FCF YieldP/E=22.7x

  ✗PabraiP/E < 15 or FCF Yield > 10%

  FCF Positive9/10 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 frequency17/17 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