Biglari Holdings Inc. — Earnings Quality Grade F
BH · Consumer Cyclical
Major red flags
Screening Summary
Management Signals
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 22 days, change -4 days YoY
AR growth -7.5% vs revenue growth 9.2%
Revenue 9.2%, CFFO 115.4%. Cash follows revenue
Expense Quality
Inventory -6.5% vs COGS 10.0%. Normal
CapEx growth -0.8% vs revenue 9.2%. Normal
SG&A/Gross Profit = 58.1%. Normal
Gross margin 37.8%, change -0.5pp. Stable
Cash Flow Quality
CFFO/NI = -2.85. Below 1.0
FCF $0.1B, FCF/NI = -2.04
Accruals ratio = -14.1%. Low accruals
Cash $0.3B covers 94% of debt $0.4B
Balance Sheet Health
Goodwill+Intangibles $0.1B = 15% of equity. Manageable
Debt/EBITDA = 53.3x (>4x). Interest coverage = 1.6x (<2x). Financial stress
Other assets 16.5% vs revenue 9.2%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions negative for 3 years
Small-cap context: A single acquisition on a small balance sheet can trip serial-acquirer logic.
Goodwill+Intangibles change 1% YoY. Normal
Manipulation Score
M-Score = -3.64 (< -2.22). Unlikely manipulator
Portfolio monitoring
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Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25