MeritValue

Rich Sparkle Holdings Ltd

ANPAdata completeness 88%3 fiscal years on file

Data notes: no data for concept 'totalDebt'; no data for concept 'interestExpense'

The thesis, from the filings

Rich Sparkle Holdings Ltd earns about 32% on invested capital, but has diluted owners by 3% over 3 years — worth asking whether the growth reaches owners. The applicable estimate puts fair value near $0.72 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2023FY 2024FY 2025
Revenue$6.27M1$5.88M1$6.25M1
Net income$806,2962$820,3932$132,9342
Operating cash flow−$330,7033$803,9103$372,4733
Capital expenditure$37,7414—$551,5444
Free cash flow (derived)−$368,4443—−$179,0713
Total debt———
Cash & equivalents$184,2645$320,1615$3.78M5
Diluted shares11.3M11.3M11.5M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$4.89
your share of equity
Profit it earned you last year
$0.12
Free cash flow it threw off
−$0.16
Debt you’d be carrying
—

10 shares is a claim on $4.89 of net worth that earned you $0.12 and generated −$0.16 of cash last year.

iii. Is this a good business?
Moat signal · return on invested capital
32% avg · 3y
FY23 53%FY24 37%FY25 7%

It earned an average 32% on invested capital over 3 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+3% shares · 3y

Share count is up 3% over 3 years — owners have been diluted. Worth asking what they got for it.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
only 2 years of FCF (need ≥3) — model not applicable
DCF · Growth Exit 5Y
not applicable
only 2 years of FCF (need ≥3) — model not applicable
Earnings Power Value
$0.72
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$806,296
  • growthAssumed0.0%
Graham Number
$0.36
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 20-F · period ending 2023-09-30 · accession 0001213900-26-013131 (Revenues)
  2. 20-F · period ending 2023-09-30 · accession 0001213900-26-013131 (NetIncomeLoss)
  3. 20-F · period ending 2023-09-30 · accession 0001213900-26-013131 (NetCashProvidedByUsedInOperatingActivities)
  4. 20-F · period ending 2023-09-30 · accession 0001213900-26-013131 (PaymentsToAcquirePropertyPlantAndEquipment)
  5. 20-F · period ending 2023-09-30 · accession 0001213900-26-013131 (CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents)