Katapult Holdings (Katapult Holdings) Predictability Rank

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What is Katapult Holdings Predictability Rank?

Not Rated

Warren Buffett said many times that the companies he likes are:

1. Simple businesses that he understands
2. that have predictable and proven earnings and
3. with economic moat
4. those can be bought at a reasonable price.

It is hard to quantify "simple businesses that he (Buffett) understands", so we will focus on the other three characteristics instead. In GuruFocus Research: What worked in the market from 1998-2008? Part I: Introduction of Predictability Rank, we will show that the businesses that have predictable and proven earnings are usually also simple businesses that an average person could understand.

GuruFocus conducted a back test study of Warren Buffett's strategy of "buying good companies at fair prices" for the years from 1998-2008.

Katapult Holdings Predictability Rank Calculation

In our database there are 2403 stocks that have been traded from Jan. 2, 1998 to Aug. 31, 2008. We have the complete 10-year financial data and trading prices of these companies for this period. We rank the predictability of these companies based on the consistency of their revenue per share and EBITDA (earning before interest, tax, depreciation and amortization) per share over the past ten fiscal years, and study the correlation between the stock performances and the predictability of the business.

Our study may be subject to these biases and assumptions:

Dividend yields are not counted for investment returns
Effects of price changes due to spin-offs may not be fully adjusted
Study is subjected to survivorship bias due to de-listing, bankruptcy, LBO, M&A, etc.

The correlation between business predictability and investment returns of a company is showed below.

Correlation Between Business Predictability and Investment Returns

	Predictables	Non-Predictable	All stocks
Total Number of stocks	570	1833	2403
Total Lost Money	61	830	891
Total Lost More Than 50%	18	412	430
Total Lost More Than 90%	4	86	90
Average Gain	260.6%	100.0%	138.1%
Median Gain	150.0%	13.0%	39.0%
Maximum Gain	2852.0%	11483.0%	11483.0%
Maximum Loss	-100.0%	-100.0%	-100.0%
Annualized Average Gain	12.7%	6.7%	8.4%
Annualized Median Gain	8.9%	1.1%	3.1%

For the 570 predictable companies, we have seen strong correlation between the predictability of businesses and the stock performances over the past 10 years, regardless of the valuation of business at 1998. Accordingly, we have ranked the business predictability from 5-star to 1-star, as shown in this table.

Predictability Rank	5-Star	4.5-Star	4-Star	3.5-Star	3-Star	2.5-Star	2-Star	1-Star (non-predictable)	Average among all
% Out of All 2403 Stocks	3.3%	2.9%	3.7%	3.3%	3.3%	3.7%	3.3%	76.3%	100%
% that are in Loss (10y)	3%	10%	8%	9%	11%	18%	16%	45%	37%
Average Gain (10y)	364.6%	330.9%	278.0%	235.1%	243.5%	227.8%	154.8%	100.0%	138.1%
Median Gain (10y)	238.5%	193.5%	171.0%	159.0%	132.5%	113.5%	87.0%	13.0%	39.0%
Maximum Gainer	2228.0%	2547.0%	2452.0%	2852.0%	2432.0%	1892.0%	1807.0%	11483.0%	11483.0%
Maximum Loser	-82.0%	-53.0%	-67.0%	-100.0%	-83.0%	-100.0%	-78.0%	-100.0%	-100.0%
Annualized Average Gain	15.4%	14.6%	13.2%	12.0%	12.2%	11.7%	9.1%	6.7%	8.4%
Annualized Median Gain	12.1%	10.6%	9.8%	9.3%	8.2%	7.3%	6.0%	1.1%	3.1%

For detailed information about each predictability rank, please go to GuruFocus Research: What worked in the market from 1998-2008? Part I: Introduction of Predictability Rank

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Katapult Holdings (Katapult Holdings) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Katapult Holdings Inc (NAS:KPLT) » Definitions » Predictability Rank

Comparable Companies

SNCR AUID APCX LIDR MRDB APGT USIO GRRR SOS CISO MSFT ORCL ADBE PANW SNPS VMW FTNT CRWD PLTR SQ

Traded in Other Exchanges

N/A

Address

5204 Tennyson Parkway, Suite 500, Plano, TX, USA, 75024

Website

https://www.katapult.com

Katapult Holdings Inc is a technology driven lease-to-own platform that integrates with omni-channel retailers and e-commerce platforms to power the purchase of everyday durable goods for underserved U.S. non-prime consumers. It is an eCommerce-focused FinTech company offering an innovative lease-purchase solution to consumers and enabling essential transactions at the merchant point of sale. Katapult is associated with hundreds of retailers across the United States.

Executives

Orlando Zayas	director, officer: Chief Executive Officer	5204 TENNYSON PKWY, SUITE 500, PLANO TX 75024
Chandan Chopra	officer: CHIEF TECHNOLOGY OFFICER	5204 TENNYSON PKWY, SUITE 500, PLANO TX 75024
Bruce Taragin	director	5204 TENNYSON PKWY, SUITE 500, PLANO TX 75024
Nancy A Walsh	officer: Chief Financial Officer	LL FLOORING HOLDINGS, INC., 4901 BAKERS MILL LANE, RICHMOND VA 23230
Jane J. Thompson	director	628 GREEN VALLEY ROAD, SUITE 500, GREENSBORO NC 27408
Brian Hirsch	director	C/O ACV AUCTIONS INC., 640 ELLICOTT STREET, #321, BUFFALO NY 14203
Lee Einbinder	director, officer: CEO	1345 AVENUE OF THE AMERICAS, NEW YORK NY 10105
Fangqui Sun	officer: CHIEF RISK OFFICER	5204 TENNYSON PKWY, SUITE 500, PLANO TX 75024
Karissa Cupito	officer: Chief Financial Officer	5204 TENNYSON PKWY, SUITE 500, PLANO TX 75024
Joyce Ann Phillips	director	1370 TIMBERLAKE MANOR PARKWAY, CHESTERFIELD MO 63017
Curo Financial Technologies Corp.	director, 10 percent owner	3615 N. RIDGE ROAD, WICHITA KS 67205
Donald Gayhardt	director	DOLLAR FINANCIAL CORP., 1436 LANCASTER AVE., BERWYN PA 19312
Christopher A Masto	director	C/O FREIDMAN FLEISCHER & LOWE, ONE MARITIME PLZ 10TH PLZ, SAN FRANCISCO CA 94111
Christopher Towers	officer: CHIEF ACCOUNTING OFFICER	1981 MARCUS AVENUE, SUITE 130, LAKE SUCCESS NY 11042
Maloney Tahmineh	officer: GENERAL COUNSEL	5204 TENNYSON PKWY, SUITE 500, PLANO TX 75024