Buffett Brain · Research note
Score updated 23 Oct 2026 · analysis from 5 Oct 2026
P· Industrials
Everpure
Everpure's high gross margins don't compensate for its weak returns and excessive valuation, making it an unattractive investment.
Buffett fit
Weak fit
Owner
30
Durability
49
Management
79
Price
1
Score updated 23 Oct 2026 · analysis from 5 Oct 2026
Buffett's checklist
Each number against Buffett's bar, and where it ranks among Industrials stocks in our database.
How much profit the business makes on each dollar invested in it. Higher is better.
What is left of each sale after the cost of making the product. A high number often means pricing power.
The cash the business earns for its owners, compared with the price of the whole company.
How fast sales grew each year over the last five years.
How many years of today's profit you pay for at today's price. Lower means cheaper.
How much the company owes compared with what it owns outright. Lower is safer.
The four pillars
How the business measures up on each of Buffett's four tests.
Owning 100% of Everpure would involve managing a business with a 5.14% net margin and a of 3.43%, both below industry standards.
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Everpure's durability is questionable due to its low of 3.5% over five years, indicating weak competitive positioning.
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Management's appears inefficient, with a share count CAGR of 3.69%, suggesting dilution.
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Everpure's valuation is extremely stretched, with a of 139.6 and an EV/ of 224.5, far above acceptable levels.
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- The full reasoning behind all four pillars
- The 5-year price target and the return it implies
- What would change the call
- Graham, Lynch and Greenblatt on the same stock
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For and against
The strongest points on each side, with the numbers behind them.
In its favor
5- 170.4% is top-quintile within the Industrials sector.
- 2Debt/Equity ratio of 0.15 indicates conservative .
- 3Net debt/EBITDA of -1.71 shows a strong net cash position.
- 4Interest coverage of 15.1 suggests robust ability to service debt.
Concerns
7- 1 of 3.43% is significantly below the sector top-quintile cutoff of 13.6%.
- 2 of 3.1% is below the sector top-quintile cutoff of 17.8%.
- 3Net margin of 5.14% is below the sector top-quintile cutoff of 13.9%.
- 4 ratio of 139.6 suggests substantial overvaluation.
Price history
$121+351.2%· 5-year return
Weekly closing prices. Touch or hover the line for a date.
The business
How the business works
Everpure, Inc. provides innovative data storage products and services, aiming to simplify data consumption and interaction. With $3.66B in revenue, it operates at a 70.4% , indicating strong product pricing. However, its of 3.1% suggests high costs that erode profitability. The unit economics show high gross margins but low net margins, reflecting inefficiencies.
How this analysis has moved
The call has held across 3 reviews.
Oct 11, 2026 → Oct 23, 2026
What other investors would say
The same company, judged by three other documented playbooks.
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