Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin37.7%
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin22.6%
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Financial Health
A
Years to Pay Off Debt0.9 yrs
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt$129M
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital$398M
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Valuation
N/A
Cash Flow
C
Free Cash Flow$310M
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
CapEx % of Net Income78.5%
Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.
Owner Earnings$740M
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
Metric Explanations
What each dimension measures and where the thresholds come from.
Gross Profit Margin
Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Years to Pay Off Debt
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Free Cash Flow
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
CapEx % of Net Income
Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.
Owner Earnings
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
Market Data
Key Margins
Gross Profit43.7%
Operating Margin37.7%
Net Margin22.6%
Company Info
Showing Key Metrics
Income Highlights
Metric
2025
2024
2023
2022
2021
Gross Profit %
43.7%▲
21.3%▲
15.7%▼
16.2%•
N/A
Operating Margin %
37.7%▲
18.4%▲
5.4%▲
2.8%•
N/A
Net Income %
22.6%▲
3.8%▲
-11.7%▼
-5.2%•
N/A
Diluted EPS
0.49▲
0.06▲
-0.14▼
-0.00•
N/A
Balance Sheet Highlights
Metric
2025
2024
2023
2022
2021
Total Assets
$3.6B
$3.0B
$3.0B
$2.9B
N/A
Total Debt
$276M▼
$551M▼
$663M▲
$527M•
N/A
Working Capital
$398M▲
$16M▼
$103M▲
$89M•
N/A
Years to Pay Debt
0.86
15.38
-7.87
-14.12
N/A
Cash Flow Highlights
Metric
2025
2024
2023
2022
2021
Free Cash Flow
$310M▲
$4M▲
-$148M▼
-$59M•
N/A
Owner Earnings
$740M
$441M
$303M
$257M
N/A
CapEx % of Net Income
78.5%
599.1%
N/A
N/A
N/A
Income Statement
2025
2024
2023
2022
2021
Tax Effect Of Unusual Items
-5,010
-12,469
-17,790
-5,171
Tax Rate For Calcs
0
0
0
0
Normalized EBITDA
701,511
365,897
208,708
173,445
Total Unusual Items
-15,181
-59,376
-84,712
-30,419
Total Unusual Items Excluding Goodwill
-15,181
-59,376
-84,712
-30,419
Net Income From Continuing Operation Net Minority Interest
321,712
35,802
-84,217
-37,348
Reconciled Depreciation
165,570
190,471
163,672
145,147
Reconciled Cost Of Revenue
800,816
731,715
607,278
602,749
EBITDA
686,330
306,521
123,996
143,026
EBIT
520,760
116,050
-39,676
-2,121
Net Interest Income
-41,581
-49,834
-43,319
-42,793
Interest Expense
41,581
49,834
43,319
42,793
Normalized Income
331,883
82,709
-17,295
-12,100
Net Income From Continuing And Discontinued Operation
321,712
35,802
-84,217
-37,348
Total Expenses
886,352
758,925
681,074
698,436
Total Operating Income As Reported
514,795
106,276
-44,674
-12,438
Diluted Average Shares
655,768
622,535
605,668
557,344
Basic Average Shares
651,965
620,848
605,668
557,344
Diluted EPS
0
0
0
0
Basic EPS
0
0
0
0
Diluted NI Availto Com Stockholders
321,160
35,250
-84,769
-37,900
Net Income Common Stockholders
321,160
35,250
-84,769
-37,900
Preferred Stock Dividends
552
552
552
552
Net Income
321,712
35,802
-84,217
-37,348
Net Income Including Noncontrolling Interests
321,712
35,802
-84,217
-37,348
Net Income Continuous Operations
321,712
35,802
-84,217
-37,348
Tax Provision
157,467
30,414
1,222
-7,566
Pretax Income
479,179
66,216
-82,995
-44,914
Other Income Expense
-15,907
-54,950
-78,829
-22,590
Other Non Operating Income Expenses
-726
4,426
5,883
7,829
Special Income Charges
-21,872
-64,724
-83,827
-32,907
Gain On Sale Of Ppe
-87
Gain On Sale Of Business
-7,867
-6,843
-7,575
-8,793
Other Special Charges
14,005
43,307
76,252
24,114
Impairment Of Capital Assets
0
14,574
0
0
Restructuring And Mergern Acquisition
7,575
8,793
14,571
Gain On Sale Of Security
6,691
5,348
-885
2,488
Net Non Operating Interest Income Expense
-41,581
-49,834
-43,319
-42,793
Interest Expense Non Operating
41,581
49,834
43,319
42,793
Operating Income
536,667
171,000
39,153
20,469
Operating Expense
85,536
27,210
73,796
95,687
Other Operating Expenses
27,910
-18,195
31,074
52,303
Selling General And Administration
57,626
45,405
42,722
43,384
General And Administrative Expense
57,626
45,405
42,722
43,384
Other Gand A
57,626
45,405
42,722
43,384
Gross Profit
622,203
198,210
112,949
116,156
Cost Of Revenue
800,816
731,715
607,278
602,749
Total Revenue
1,423,019
929,925
720,227
718,905
Operating Revenue
1,423,019
929,925
720,227
718,905
Balance Sheet
2025
2024
2023
2022
2021
Treasury Shares Number
8,920
8,813
8,535
8,133
Preferred Shares Number
158
158
158
158
Ordinary Shares Number
670,300
631,735
616,112
599,487
Share Issued
679,220
640,548
624,647
607,619
Net Debt
27,069
515,676
546,689
412,999
Total Debt
275,800
550,713
662,815
527,225
Tangible Book Value
2,591,607
2,039,475
1,968,065
1,978,928
Invested Capital
2,860,234
2,582,019
2,621,128
2,496,670
Working Capital
397,780
16,314
102,802
89,261
Net Tangible Assets
2,591,646
2,039,514
1,968,104
1,978,967
Capital Lease Obligations
7,173
8,169
9,752
9,483
Common Stock Equity
2,591,607
2,039,475
1,968,065
1,978,928
Preferred Stock Equity
39
39
39
39
Total Capitalization
2,860,273
2,548,441
2,621,167
2,496,709
Total Equity Gross Minority Interest
2,591,646
2,039,514
1,968,104
1,978,967
Stockholders Equity
2,591,646
2,039,514
1,968,104
1,978,967
Gains Losses Not Affecting Retained Earnings
-3,334
-10,266
5,837
2,448
Other Equity Adjustments
-3,334
-10,266
5,837
2,448
Treasury Stock
35,816
34,931
33,734
31,698
Retained Earnings
-182,143
-493,529
-503,861
-403,931
Additional Paid In Capital
2,643,211
2,418,149
2,343,747
2,260,290
Capital Stock
169,728
160,091
156,115
151,858
Common Stock
169,689
160,052
156,076
151,819
Preferred Stock
39
39
39
39
Total Liabilities Net Minority Interest
968,999
941,546
1,043,000
948,205
Total Non Current Liabilities Net Minority Interest
737,435
743,708
885,540
769,739
Other Non Current Liabilities
33,912
11,332
16,481
11,677
Derivative Product Liabilities
0
2,021
364
6,066
Employee Benefits
0
4,673
Non Current Pension And Other Postretirement Benefit Plans
0
4,673
Non Current Deferred Liabilities
246,425
110,266
104,835
125,846
Non Current Deferred Taxes Liabilities
246,425
110,266
104,835
125,846
Long Term Debt And Capital Lease Obligation
268,627
508,927
653,063
517,742
Long Term Capital Lease Obligation
17,726
Long Term Debt
268,627
508,927
653,063
517,742
Long Term Provisions
188,471
111,162
110,797
108,408
Current Liabilities
231,564
197,838
157,460
178,466
Other Current Liabilities
39,107
9,885
10,303
19,582
Current Debt And Capital Lease Obligation
7,173
41,786
9,752
9,483
Current Capital Lease Obligation
7,173
8,169
9,752
9,483
Current Debt
33,617
Current Notes Payable
0
33,617
0
Current Provisions
13,795
13,748
9,660
8,591
Payables And Accrued Expenses
171,489
132,419
127,745
140,810
Current Accrued Expenses
45,797
37,150
42,645
52,033
Interest Payable
7,678
14,316
14,405
14,454
Payables
125,692
95,269
85,100
88,777
Total Tax Payable
23,410
6,312
3,501
4,030
Accounts Payable
102,282
88,957
81,599
84,747
Total Assets
3,560,645
2,981,060
3,011,104
2,927,172
Total Non Current Assets
2,931,301
2,766,908
2,750,842
2,659,445
Other Non Current Assets
33,773
31,348
39,636
33,468
Non Current Deferred Assets
0
2,883
21,105
45,562
Non Current Deferred Taxes Assets
0
2,883
21,105
45,562
Investments And Advances
47,842
33,897
33,724
24,018
Other Investments
47,842
33,897
33,724
24,018
Investmentin Financial Assets
47,842
33,897
33,724
24,018
Available For Sale Securities
47,842
33,897
33,724
24,018
Net PPE
2,849,686
2,701,663
2,674,599
2,580,854
Accumulated Depreciation
-2,167,004
-2,010,007
-1,862,260
-1,745,946
Gross PPE
5,016,690
4,711,670
4,536,859
4,326,800
Construction In Progress
864,178
738,307
751,413
722,898
Other Properties
8,859
7,544
8,349
11,064
Machinery Furniture Equipment
1,879,231
1,805,236
1,666,577
1,514,906
Land And Improvements
32,962
35,680
35,112
35,644
Current Assets
629,344
214,152
260,262
267,727
Other Current Assets
26,017
33,295
27,125
16,471
Inventory
114,785
104,936
93,647
90,672
Raw Materials
114,785
104,936
93,647
90,672
Receivables
187,340
49,053
33,116
55,841
Other Receivables
17,110
17,538
13,691
8,149
Accounts Receivable
170,230
31,515
19,425
55,841
Cash Cash Equivalents And Short Term Investments
301,202
26,868
106,374
104,743
Other Short Term Investments
59,644
0
Cash And Cash Equivalents
241,558
26,868
106,374
104,743
Cash Equivalents
106,374
104,743
Cash Flow
2025
2024
2023
2022
2021
Free Cash Flow
310,249
3,785
-148,388
-59,488
Repayment Of Debt
-435,960
-394,664
-121,605
-33,169
Issuance Of Debt
153,000
279,000
239,000
25,000
Issuance Of Capital Stock
216,225
58,368
56,684
17,278
Capital Expenditure
-252,389
-214,492
-223,887
-149,378
Interest Paid Supplemental Data
45,052
46,061
37,744
37,200
Income Tax Paid Supplemental Data
8,725
6,571
8,907
14,405
End Cash Position
242,732
28,045
107,539
105,907
Beginning Cash Position
28,045
107,539
105,907
211,063
Effect Of Exchange Rate Changes
544
-1,076
1,095
-273
Changes In Cash
214,143
-78,418
537
-104,883
Financing Cash Flow
-77,995
-83,824
156,330
-7,500
Cash Flow From Continuing Financing Activities
-77,995
-83,824
156,330
-7,500
Net Other Financing Charges
-536
-116
Proceeds From Stock Option Exercised
-885
-1,197
-2,036
-3,677
Cash Dividends Paid
-10,375
-25,331
-15,713
-12,932
Net Common Stock Issuance
216,225
58,368
56,684
17,278
Common Stock Issuance
216,225
58,368
56,684
17,278
Net Issuance Payments Of Debt
-282,960
-115,664
117,395
-8,169
Net Long Term Debt Issuance
-282,960
-115,664
117,395
-8,169
Long Term Debt Payments
-435,960
-394,664
-121,605
-33,169
Long Term Debt Issuance
153,000
279,000
239,000
25,000
Investing Cash Flow
-270,500
-212,871
-231,292
-187,273
Cash Flow From Continuing Investing Activities
-270,500
-212,871
-231,292
-187,273
Net Other Investing Changes
734
1,694
1,329
748
Net Investment Purchase And Sale
-18,845
-73
-8,962
-22,596
Sale Of Investment
28,087
0
0
9,375
Purchase Of Investment
-46,932
-73
-8,962
-31,971
Net Business Purchase And Sale
0
0
228
-16,047
Sale Of Business
0
0
228
8,953
Purchase Of Business
0
0
-25,000
0
Net Intangibles Purchase And Sale
0
0
-869
Purchase Of Intangibles
0
0
-869
Net PPE Purchase And Sale
-252,389
-214,492
-223,887
-149,378
Sale Of PPE
1,329
748
1,077
Purchase Of PPE
-252,389
-214,492
-223,887
-149,378
Operating Cash Flow
562,638
218,277
75,499
89,890
Cash Flow From Continuing Operating Activities
562,638
218,277
75,499
89,890
Change In Working Capital
-96,034
-68,352
-38,895
-29,301
Change In Other Current Assets
30,915
-12,517
-32,456
-12,388
Change In Payables And Accrued Expense
31,355
-5,841
-7,537
-7,352
Change In Accrued Expense
15,142
-5,832
-7,564
25,556
Change In Payable
16,213
-9
27
-32,908
Change In Account Payable
-765
-2,826
598
-24,981
Change In Tax Payable
16,978
2,817
-571
-7,927
Change In Income Tax Payable
16,978
2,817
-571
-7,927
Change In Inventory
-21,469
-32,835
-24,035
-18,230
Change In Receivables
-136,835
-17,159
25,133
8,669
Changes In Account Receivables
-136,835
-17,159
25,133
8,669
Other Non Cash Items
24,241
24,987
30,646
40,136
Stock Based Compensation
10,918
8,659
6,598
6,012
Provisionand Write Offof Assets
9,658
9,572
11,514
Asset Impairment Charge
0
14,574
0
0
Deferred Tax
130,467
19,688
-6,115
-25,546
Deferred Income Tax
130,467
19,688
-6,115
-25,546
Depreciation Amortization Depletion
165,570
190,471
163,672
145,147
Operating Gains Losses
5,764
-7,552
3,810
-9,210
Gain Loss On Investment Securities
2,204
-2,925
24,182
Net Foreign Currency Exchange Gain Loss
5,764
-7,552
3,810
-9,210
Gain Loss On Sale Of PPE
87
Net Income From Continuing Operations
321,712
35,802
-84,217
-37,348
2/5
Graham Score
Speculative Investor
Fails most of Graham's safety criteria. Treat with caution.
Graham's Fair Value
N/A
N/A — requires
positive EPS and positive book value per share. Check the Financials tab for earnings history.
Margin of Safety
—
Market Cap / Net Assets
N/A
Net Assets: $2.6B
Warren's Owner Earnings
$740M
Latest fiscal year
Graham's 7 Criteria
Defensive Investor Checklist
2/5 — Speculative Investor
❌
Adequate Size
Graham required companies large enough to withstand economic downturns. This threshold ($1.5B) is inflation-adjusted from Graham's original $100M — virtually all S&P 500 companies pass this today.
$1.4B
vs > $1.5B revenue
✅
Strong Financial Condition
Current assets must be at least twice current liabilities. Note: highly profitable companies (Apple, Domino's) often run negative or low working capital deliberately — they collect cash fast and stretch payables. A failing score here is not always a warning sign.
2.72x
vs Current Ratio > 2.0x
❌
Earnings Stability
Graham required uninterrupted positive earnings. Any loss year is a red flag for defensive investors. Growth companies and cyclicals may show occasional losses during investment cycles or downturns without being fundamentally unsound.
2 loss years (4 yrs data)
vs No negative EPS years
❌
Dividend Record
Graham valued dividends as evidence of financial discipline and shareholder alignment. Many excellent modern businesses (Alphabet, Amazon, Berkshire Hathaway) pay no dividend, preferring to reinvest cash at high rates of return. Failing this criterion does not indicate a poor business — it may indicate a high-growth one.
No dividend
vs Uninterrupted dividends
✅
Earnings Growth
EPS grew from $0.06 to $0.49 over 1 years. Graham's 33% threshold was set over a 10-year period. Measured over fewer years (as here), the bar is proportionally lower. Share buybacks can also inflate EPS growth without reflecting underlying business improvement.
+716.7% EPS growth
vs > 33% EPS growth
Graham's 7 Criteria — Explained
What each criterion measures and why it matters.
❌ Adequate Size — $1.4Bvs > $1.5B revenue
Graham required companies large enough to withstand economic downturns. This threshold ($1.5B) is inflation-adjusted from Graham's original $100M — virtually all S&P 500 companies pass this today.
"The minimum size of an enterprise should be not less than $100 million of annual sales."
✅ Strong Financial Condition — 2.72xvs Current Ratio > 2.0x
Current assets must be at least twice current liabilities. Note: highly profitable companies (Apple, Domino's) often run negative or low working capital deliberately — they collect cash fast and stretch payables. A failing score here is not always a warning sign.
"For industrial companies, current assets should be at least twice current liabilities."
❌ Earnings Stability — 2 loss years (4 yrs data)vs No negative EPS years
Graham required uninterrupted positive earnings. Any loss year is a red flag for defensive investors. Growth companies and cyclicals may show occasional losses during investment cycles or downturns without being fundamentally unsound.
"The company should have shown no deficit in the past ten years."
❌ Dividend Record — No dividendvs Uninterrupted dividends
Graham valued dividends as evidence of financial discipline and shareholder alignment. Many excellent modern businesses (Alphabet, Amazon, Berkshire Hathaway) pay no dividend, preferring to reinvest cash at high rates of return. Failing this criterion does not indicate a poor business — it may indicate a high-growth one.
"Some current dividend payments — for at least the past 20 years."
EPS grew from $0.06 to $0.49 over 1 years. Graham's 33% threshold was set over a 10-year period. Measured over fewer years (as here), the bar is proportionally lower. Share buybacks can also inflate EPS growth without reflecting underlying business improvement.
"A minimum increase of at least one-third in per-share earnings over ten years."
These metrics estimate what HL is worth based on fundamentals — independent of what the market prices it at.
Graham's Fair Value and NCAV are conservative floors.
EPV assumes zero growth. These are reference points, not price targets.
Net Current Asset Value
N/A
"Buy at two-thirds of net current assets." — Graham
Earnings Power Value
N/A
Per share, no-growth floor. Compare to current price.
ROIC — Return on Invested Capital
12.7%
Return on Invested Capital — Buffett's preferred measure for asset-light businesses. ROIC > 15% consistently signals a durable competitive advantage (moat). More meaningful than P/B for software, pharma, and consumer brand companies where most value is intangible and off-balance-sheet.
Cash Flow Analysis
Metric
2025
2024
2023
2022
2021
Capital Expenditure % of Net Income
78.5%
599.1%
N/A
N/A
N/A
Repurchase of Capital Stock
N/A
N/A
N/A
N/A
N/A
Free Cash Flow
$310M▲
$4M▲
-$148M▼
-$59M•
N/A•
Warren's Owner Earnings
$740M
$441M
$303M
$257M
N/A
Peers & Industry
No auto-detected peers for this industry. You can manually compare HL against any stock using the Compare tool.
"The management of a business is its most important single factor — more important than market position, patents, or financial structure."
— Benjamin Graham
No management data available.
Risk Analysis
HL (HL) fundamental analysis — Overall grade A based on profitability, financial health, valuation and cash flow. Graham's
Fair Value: N/A. Gross profit margin: 43.7%. Operating margin: 37.7%. Net margin: 22.6%. Analysis powered by 360investing — free fundamental stock analysis based on Benjamin Graham and Warren Buffett
principles.
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