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 Margin12.4%
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-2.6%
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
C
Years to Pay Off Debt-5.1 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$93.0B
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$917.4B
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
A
Free Cash Flow$1,487.9B
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.
Owner Earnings$1,311.5B
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.
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 Profit30.8%
Operating Margin12.4%
Net Margin-2.6%
Company Info
Showing Key Metrics
Income Highlights
Metric
2026
2025
2024
2023
2022
Gross Profit %
30.8%▲
29.3%▲
28.2%▼
29.5%•
N/A
Operating Margin %
12.4%▲
10.6%▲
9.0%▼
11.6%•
N/A
Net Income %
-2.6%▼
9.5%▲
8.6%▼
9.2%•
N/A
Diluted EPS
-54.70▼
187.92▲
157.14▲
150.99•
N/A
Balance Sheet Highlights
Metric
2026
2025
2024
2023
2022
Total Assets
$15,683.5B
$35,293.2B
$34,107.5B
$31,154.1B
N/A
Total Debt
$1,669.7B▼
$4,198.2B▲
$4,088.4B▲
$3,870.6B•
N/A
Working Capital
$917.4B▲
-$3,233.8B▲
-$3,415.2B▲
-$3,595.9B•
N/A
Years to Pay Debt
-5.11
3.68
4.21
3.85
N/A
Cash Flow Highlights
Metric
2026
2025
2024
2023
2022
Free Cash Flow
$1,487.9B▼
$1,700.7B▲
$767.4B▲
-$298.9B•
N/A
Owner Earnings
$1,311.5B
$2,888.2B
$2,693.6B
$2,623.5B
N/A
CapEx % of Net Income
N/A
54.4%
62.4%
61.0%
N/A
Income Statement
2026
2025
2024
2023
2022
Tax Effect Of Unusual Items
-17,167,062
15,604,477
16,903,287
-2,243,134
Tax Rate For Calcs
0
0
0
0
Normalized EBITDA
2,705,143,000
2,428,258,000
2,175,958,000
2,316,373,000
Total Unusual Items
-66,539,000
81,404,000
77,416,000
-10,889,000
Total Unusual Items Excluding Goodwill
-66,539,000
81,404,000
77,416,000
-10,889,000
Net Income From Continuing Operation Net Minority Interest
1,030,893,000
1,067,431,000
846,060,000
1,005,277,000
Reconciled Depreciation
1,180,655,000
1,125,588,000
1,117,292,000
1,004,590,000
Reconciled Cost Of Revenue
8,635,225,000
8,504,810,000
8,089,317,000
7,739,284,000
EBITDA
2,638,604,000
2,509,662,000
2,253,374,000
2,305,484,000
EBIT
1,457,949,000
1,384,074,000
1,136,082,000
1,300,894,000
Net Interest Income
-583,000
-10,680,000
-5,703,000
-12,269,000
Interest Expense
35,575,000
40,876,000
40,996,000
26,398,000
Interest Income
62,872,000
50,925,000
37,580,000
22,399,000
Normalized Income
1,080,264,938
1,001,631,477
785,547,287
1,013,922,866
Net Income From Continuing And Discontinued Operation
-326,865,000
1,141,600,000
970,573,000
1,005,277,000
Total Expenses
10,925,930,000
10,754,578,000
10,247,221,000
9,701,168,000
Total Operating Income As Reported
1,447,507,000
1,276,635,000
1,035,255,000
1,302,389,000
Diluted Average Shares
6,013,190
6,075,064
6,176,655
6,206,885
Basic Average Shares
5,975,984
6,049,652
6,156,210
6,178,505
Diluted EPS
0
0
0
0
Basic EPS
0
0
0
0
Diluted NI Availto Com Stockholders
-326,865,000
1,141,600,000
970,573,000
1,005,328,000
Average Dilution Earnings
0
0
51,000
163,000
Net Income Common Stockholders
-326,865,000
1,141,600,000
970,573,000
1,005,277,000
Net Income
-326,865,000
1,141,600,000
970,573,000
1,005,277,000
Minority Interests
-24,373,000
-18,287,000
-9,921,000
-6,496,000
Net Income Including Noncontrolling Interests
-302,492,000
1,159,887,000
980,494,000
1,011,773,000
Net Income Discontinuous Operations
-1,357,758,000
74,169,000
124,513,000
Net Income Continuous Operations
1,055,266,000
1,085,718,000
855,981,000
1,011,773,000
Tax Provision
367,108,000
257,480,000
239,105,000
262,723,000
Pretax Income
1,422,374,000
1,343,198,000
1,095,086,000
1,274,496,000
Other Income Expense
-130,733,000
73,539,000
87,973,000
13,560,000
Other Non Operating Income Expenses
69,217,000
Special Income Charges
-41,989,000
4,161,000
11,882,000
4,735,000
Gain On Sale Of Ppe
-118,690,000
-14,265,000
4,977,000
417,000
Gain On Sale Of Business
-1,860,000
18,426,000
6,905,000
4,318,000
Other Special Charges
-34,662,000
Restructuring And Mergern Acquisition
-43,899,000
0
0
Earnings From Equity Interest
-64,194,000
-7,865,000
10,557,000
24,449,000
Gain On Sale Of Security
-24,550,000
77,243,000
65,534,000
-15,624,000
Net Non Operating Interest Income Expense
-583,000
-10,680,000
-5,703,000
-12,269,000
Total Other Finance Cost
27,880,000
20,729,000
2,287,000
8,270,000
Interest Expense Non Operating
35,575,000
40,876,000
40,996,000
26,398,000
Interest Income Non Operating
62,872,000
50,925,000
37,580,000
22,399,000
Operating Income
1,553,690,000
1,280,339,000
1,012,816,000
1,273,205,000
Operating Expense
2,290,705,000
2,249,768,000
2,157,904,000
1,961,884,000
Other Operating Expenses
-7,933,000
-7,061,000
1,748,000
-7,286,000
Selling General And Administration
2,298,638,000
2,256,829,000
2,156,156,000
1,969,170,000
Gross Profit
3,844,395,000
3,530,107,000
3,170,720,000
3,235,089,000
Cost Of Revenue
8,635,225,000
8,504,810,000
8,089,317,000
7,739,284,000
Total Revenue
12,479,620,000
12,034,917,000
11,260,037,000
10,974,373,000
Operating Revenue
12,479,620,000
12,034,917,000
11,260,037,000
10,974,373,000
Balance Sheet
2026
2025
2024
2023
2022
Treasury Shares Number
242,143
124,807
198,915
132,921
Ordinary Shares Number
5,907,667
6,025,004
6,107,244
6,172,488
Share Issued
6,149,811
6,149,811
6,306,159
6,305,409
Net Debt
617,820,000
2,181,320,000
2,389,672,000
1,301,972,000
Total Debt
1,669,669,000
4,198,246,000
4,088,433,000
3,870,572,000
Tangible Book Value
3,226,912,000
3,750,764,000
3,556,362,000
3,197,701,000
Invested Capital
9,160,997,000
11,778,521,000
11,675,610,000
10,469,109,000
Working Capital
917,367,000
-3,233,800,000
-3,415,239,000
-3,595,877,000
Net Tangible Assets
3,226,912,000
3,750,764,000
3,556,362,000
3,197,701,000
Capital Lease Obligations
627,683,000
599,470,000
192,952,000
220,113,000
Common Stock Equity
8,119,011,000
8,179,745,000
7,587,177,000
6,598,537,000
Total Capitalization
8,943,404,000
9,737,612,000
9,645,294,000
8,366,233,000
Total Equity Gross Minority Interest
8,513,589,000
8,510,151,000
7,756,105,000
6,657,150,000
Minority Interest
394,578,000
330,406,000
168,928,000
58,613,000
Stockholders Equity
8,119,011,000
8,179,745,000
7,587,177,000
6,598,537,000
Gains Losses Not Affecting Retained Earnings
1,229,371,000
-566,447,000
-376,063,000
-614,570,000
Other Equity Adjustments
1,229,371,000
-566,447,000
-376,063,000
-614,570,000
Treasury Stock
752,106,000
296,860,000
403,934,000
223,507,000
Retained Earnings
5,294,890,000
6,678,168,000
6,002,407,000
5,092,442,000
Additional Paid In Capital
1,465,499,000
1,483,527,000
1,483,410,000
1,463,807,000
Capital Stock
881,357,000
881,357,000
881,357,000
880,365,000
Common Stock
881,357,000
881,357,000
881,357,000
880,365,000
Total Liabilities Net Minority Interest
7,169,901,000
26,783,022,000
26,351,385,000
24,496,945,000
Total Non Current Liabilities Net Minority Interest
2,137,277,000
16,094,234,000
16,159,340,000
15,178,536,000
Other Non Current Liabilities
402,953,000
925,917,000
755,221,000
692,125,000
Employee Benefits
165,017,000
236,941,000
247,583,000
236,121,000
Non Current Pension And Other Postretirement Benefit Plans
165,017,000
236,941,000
247,583,000
236,121,000
Non Current Deferred Liabilities
211,391,000
12,864,534,000
13,098,419,000
12,482,594,000
Non Current Deferred Revenue
0
12,689,306,000
12,931,995,000
12,364,973,000
Non Current Deferred Taxes Liabilities
211,391,000
175,228,000
166,424,000
117,621,000
Long Term Debt And Capital Lease Obligation
1,357,916,000
2,066,842,000
2,058,117,000
1,767,696,000
Long Term Capital Lease Obligation
533,523,000
508,975,000
192,952,000
220,113,000
Long Term Debt
824,393,000
1,557,867,000
2,058,117,000
1,767,696,000
Current Liabilities
5,032,624,000
10,688,788,000
10,192,045,000
9,318,409,000
Other Current Liabilities
1,689,969,000
1,795,843,000
2,274,183,000
2,031,652,000
Current Deferred Liabilities
594,336,000
4,571,912,000
3,670,567,000
3,163,237,000
Current Deferred Revenue
594,336,000
4,571,912,000
3,670,567,000
3,163,237,000
Current Debt And Capital Lease Obligation
311,753,000
2,131,404,000
2,030,316,000
2,102,876,000
Current Capital Lease Obligation
94,160,000
90,495,000
Current Debt
217,593,000
2,040,909,000
2,030,316,000
2,102,876,000
Other Current Borrowings
217,593,000
2,040,909,000
2,030,316,000
2,102,876,000
Payables And Accrued Expenses
2,436,566,000
2,189,629,000
2,216,979,000
2,020,644,000
Payables
2,436,566,000
2,189,629,000
2,216,979,000
2,020,644,000
Total Tax Payable
196,000,000
89,485,000
152,074,000
154,543,000
Income Tax Payable
196,000,000
89,485,000
152,074,000
154,543,000
Accounts Payable
2,240,566,000
2,100,144,000
2,064,905,000
1,866,101,000
Total Assets
15,683,490,000
35,293,173,000
34,107,490,000
31,154,095,000
Total Non Current Assets
9,733,499,000
27,838,185,000
27,330,684,000
25,431,563,000
Other Non Current Assets
644,922,000
3,363,123,000
2,893,770,000
2,846,814,000
Non Current Deferred Assets
560,800,000
559,284,000
499,550,000
393,107,000
Non Current Deferred Taxes Assets
560,800,000
559,284,000
499,550,000
393,107,000
Investments And Advances
1,657,528,000
17,451,452,000
17,880,514,000
16,967,879,000
Investmentin Financial Assets
1,173,819,000
17,103,734,000
17,456,770,000
16,642,659,000
Available For Sale Securities
1,173,819,000
17,103,734,000
17,456,770,000
16,642,659,000
Long Term Equity Investment
483,709,000
347,718,000
423,744,000
325,220,000
Goodwill And Other Intangible Assets
4,892,099,000
4,428,981,000
4,030,815,000
3,400,836,000
Other Intangible Assets
3,218,193,000
2,920,260,000
2,543,715,000
2,125,724,000
Goodwill
1,673,906,000
1,508,721,000
1,487,100,000
1,275,112,000
Net PPE
1,978,150,000
2,035,345,000
2,026,035,000
1,822,927,000
Accumulated Depreciation
-2,778,198,000
-2,547,708,000
-2,333,562,000
-2,058,892,000
Gross PPE
4,756,348,000
4,583,053,000
4,359,597,000
3,881,819,000
Construction In Progress
140,944,000
159,963,000
185,287,000
201,299,000
Other Properties
47,760,000
56,147,000
64,072,000
49,762,000
Machinery Furniture Equipment
2,831,795,000
2,719,283,000
2,551,174,000
2,202,010,000
Buildings And Improvements
1,640,653,000
1,539,713,000
1,458,266,000
1,334,219,000
Land And Improvements
95,196,000
107,947,000
100,798,000
94,529,000
Current Assets
5,949,991,000
7,454,988,000
6,776,806,000
5,722,532,000
Other Current Assets
663,678,000
621,209,000
669,335,000
563,334,000
Restricted Cash
0
131,544,000
100,551,000
85,494,000
Inventory
1,227,351,000
1,310,770,000
1,518,644,000
1,468,042,000
Finished Goods
791,272,000
837,759,000
1,028,359,000
1,028,614,000
Work In Process
266,712,000
314,011,000
314,020,000
244,140,000
Raw Materials
169,367,000
159,000,000
176,265,000
195,288,000
Receivables
1,821,916,000
1,943,184,000
2,158,196,000
1,770,948,000
Accounts Receivable
1,821,916,000
1,943,184,000
2,158,196,000
1,770,948,000
Cash Cash Equivalents And Short Term Investments
2,237,046,000
3,448,281,000
2,330,080,000
1,834,714,000
Other Short Term Investments
28,167,000
467,325,000
422,967,000
353,814,000
Cash And Cash Equivalents
2,208,879,000
2,980,956,000
1,907,113,000
1,480,900,000
Cash Equivalents
1,081,766,000
1,095,844,000
371,637,000
253,359,000
Cash Financial
1,127,113,000
1,885,112,000
1,535,476,000
1,227,541,000
Cash Flow
2026
2025
2024
2023
2022
Free Cash Flow
1,487,936,000
1,700,690,000
767,434,000
-298,944,000
Repurchase Of Capital Stock
-522,089,000
-285,548,000
-202,974,000
-99,248,000
Repayment Of Debt
-221,308,000
-159,578,000
-116,840,000
-132,198,000
Issuance Of Debt
28,774,000
139,298,000
225,176,000
361,776,000
Capital Expenditure
-457,681,000
-620,985,000
-605,779,000
-613,635,000
Interest Paid Supplemental Data
68,989,000
113,260,000
97,524,000
39,015,000
End Cash Position
2,208,879,000
2,980,956,000
1,907,113,000
1,480,900,000
Beginning Cash Position
2,980,956,000
1,907,113,000
1,480,900,000
2,049,636,000
Effect Of Exchange Rate Changes
95,609,000
-19,469,000
82,595,000
84,937,000
Changes In Cash
-867,686,000
1,093,312,000
343,618,000
-653,673,000
Financing Cash Flow
-842,761,000
-298,243,000
-210,709,000
84,300,000
Cash From Discontinued Financing Activities
-9,253,000
-20,940,000
-13,326,000
Cash Flow From Continuing Financing Activities
-833,508,000
-277,303,000
-197,383,000
84,300,000
Net Other Financing Charges
13,193,000
172,325,000
13,922,000
8,147,000
Cash Dividends Paid
-135,028,000
-115,253,000
-98,620,000
-86,568,000
Common Stock Dividend Paid
-135,028,000
-115,253,000
-98,620,000
-86,568,000
Net Common Stock Issuance
-522,089,000
-285,548,000
-202,974,000
-99,248,000
Common Stock Payments
-522,089,000
-285,548,000
-202,974,000
-99,248,000
Net Issuance Payments Of Debt
-189,584,000
-48,827,000
90,289,000
261,969,000
Net Short Term Debt Issuance
2,950,000
-28,547,000
-18,047,000
32,391,000
Short Term Debt Issuance
32,391,000
408,000
Net Long Term Debt Issuance
-192,534,000
-20,280,000
108,336,000
229,578,000
Long Term Debt Payments
-221,308,000
-159,578,000
-116,840,000
-132,198,000
Long Term Debt Issuance
28,774,000
139,298,000
225,176,000
361,776,000
Investing Cash Flow
-1,970,542,000
-930,120,000
-818,886,000
-1,052,664,000
Cash From Discontinued Investing Activities
-1,186,349,000
-26,924,000
-25,727,000
Cash Flow From Continuing Investing Activities
-784,193,000
-903,196,000
-793,159,000
-1,052,664,000
Net Other Investing Changes
-5,453,000
48,718,000
3,131,000
9,138,000
Net Investment Purchase And Sale
-166,622,000
-51,996,000
-2,827,000
-177,581,000
Sale Of Investment
13,028,000
46,540,000
92,679,000
13,548,000
Purchase Of Investment
-179,650,000
-98,536,000
-95,506,000
-191,129,000
Net Business Purchase And Sale
-174,157,000
-294,417,000
-199,255,000
-282,181,000
Sale Of Business
11,198,000
0
0
1,221,000
Purchase Of Business
-185,355,000
-294,417,000
-199,255,000
-283,402,000
Net PPE Purchase And Sale
-437,961,000
-605,501,000
-594,208,000
-602,040,000
Sale Of PPE
19,720,000
15,484,000
11,571,000
11,595,000
Purchase Of PPE
-457,681,000
-620,985,000
-605,779,000
-613,635,000
Operating Cash Flow
1,945,617,000
2,321,675,000
1,373,213,000
314,691,000
Cash From Discontinued Operating Activities
-20,675,000
350,326,000
269,568,000
Cash Flow From Continuing Operating Activities
1,966,292,000
1,971,349,000
1,103,645,000
314,691,000
Taxes Refund Paid
-234,338,000
-308,392,000
-231,545,000
-297,881,000
Change In Working Capital
-283,105,000
-139,731,000
-705,026,000
-1,543,894,000
Change In Other Working Capital
974,763,000
1,907,268,000
630,855,000
112,899,000
Change In Other Current Liabilities
79,709,000
41,563,000
13,364,000
241,456,000
Change In Other Current Assets
-680,196,000
-700,360,000
-507,266,000
-1,682,407,000
Change In Payables And Accrued Expense
37,896,000
91,486,000
-63,615,000
-103,067,000
Change In Payable
37,896,000
91,486,000
-63,615,000
-103,067,000
Change In Account Payable
70,541,000
105,643,000
-40,737,000
-107,250,000
Change In Tax Payable
-32,645,000
-14,157,000
-22,878,000
4,183,000
Change In Income Tax Payable
-32,645,000
-14,157,000
-22,878,000
4,183,000
Change In Inventory
155,382,000
199,916,000
75,641,000
-560,382,000
Change In Receivables
124,104,000
227,664,000
-223,150,000
-70,349,000
Other Non Cash Items
-234,888,000
11,763,000
-86,344,000
-104,658,000
Deferred Tax
4,183,000
17,840,000
Deferred Income Tax
4,183,000
17,840,000
Depreciation Amortization Depletion
1,180,655,000
1,125,588,000
1,117,292,000
1,004,590,000
Depreciation And Amortization
1,180,655,000
1,125,588,000
1,117,292,000
1,004,590,000
Depreciation
835,233,000
Operating Gains Losses
115,594,000
-61,077,000
-85,818,000
-17,962,000
Earnings Losses From Equity Investments
74,467,000
18,826,000
-770,000
-17,696,000
Gain Loss On Investment Securities
-862,000
-75,742,000
-73,166,000
4,469,000
Gain Loss On Sale Of PPE
-43,899,000
0
0
-417,000
Gain Loss On Sale Of Business
-32,802,000
-18,426,000
-6,905,000
-4,318,000
Net Income From Continuing Operations
1,422,374,000
1,343,198,000
1,095,086,000
1,274,496,000
1/5
Graham Score
Speculative Investor
Fails most of Graham's safety criteria. Treat with caution.
Graham's Fair Value
N/A (negative EPS)
Margin of Safety
—
Market Cap / Net Assets
N/A
Net Assets: $8,513.6B
Warren's Owner Earnings
$1,311.5B
Latest fiscal year
Graham's 7 Criteria
Defensive Investor Checklist
1/5 — 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.
$12,479.6B
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.
1.18x
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.
1 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 $150.99 to $187.92 over 2 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.
+24.5% EPS growth
vs > 33% EPS growth
Graham's 7 Criteria — Explained
What each criterion measures and why it matters.
✅ Adequate Size — $12,479.6Bvs > $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 — 1.18xvs 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 — 1 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 $150.99 to $187.92 over 2 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 SONY 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
11.5%
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
2026
2025
2024
2023
2022
Capital Expenditure % of Net Income
N/A
54.4%
62.4%
61.0%
N/A
Repurchase of Capital Stock
-$522.1B
-$285.5B
-$203.0B
-$99.2B
N/A
Free Cash Flow
$1,487.9B▼
$1,700.7B▲
$767.4B▲
-$298.9B•
N/A•
Warren's Owner Earnings
$1,311.5B
$2,888.2B
$2,693.6B
$2,623.5B
N/A
Peers & Industry
No auto-detected peers for this industry. You can manually compare SONY 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
SONY (SONY) fundamental analysis — Overall grade B based on profitability, financial health, valuation and cash flow. Graham's
Fair Value: N/A (negative EPS). Gross profit margin: 30.8%. Operating margin: 12.4%. Net margin: -2.6%. Analysis powered by 360investing — free fundamental stock analysis based on Benjamin Graham and Warren Buffett
principles.
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and may be delayed, inaccurate, or incomplete. Past performance is not indicative of future results. Analysis, scores, and valuations are algorithmic and do not represent professional investment recommendations. Always conduct your own due
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