MeritValue

ATIF Holdings Ltd

AUCdata completeness 88%8 fiscal years on file

Data notes: no data for concept 'totalDebt'

The thesis, from the filings

ATIF Holdings Ltd earns about -184% on invested capital, and has bought back 78% of its shares over 5 years. The cash-flow models don't apply cleanly here — the ledger says why below.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 2020FY 2021FY 2022FY 2023FY 2024
Revenue$6.3M1$2.4M2$20,7853$20,7853$70,0003
Net income−$14.9M4−$9M5−$2.91M6−$2.88M7−$3.19M7
Operating cash flow−$5.89M8−$2.67M9−$146,94410−$2.33M11−$120,48311
Capital expenditure$874,42512$106,50513$101,95014$1,44415$5,08615
Free cash flow (derived)−$6.77M8−$2.77M9−$248,89410−$2.34M11−$125,56911
Total debt—————
Cash & equivalents$409,65716$5.6M17$1.75M18$606,02219$1.25M19
Diluted shares47.0M9.5M9.5M9.6M10.2M

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
$1.71
your share of equity
Profit it earned you last year
−$3.11
Free cash flow it threw off
−$0.12
Debt you’d be carrying
—

10 shares is a claim on $1.71 of net worth that earned you −$3.11 and generated −$0.12 of cash last year.

iii. Is this a good business?
Moat signal · return on invested capital
-184% avg · 5y
FY20 -29%FY21 -47%FY22 -102%FY23 -241%FY24 -499%

It earned an average -184% on invested capital over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
−78% shares · 5y

Share count is down 78% over 5 years — management has been buying back stock, quietly handing owners a bigger slice.

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
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
DCF · Growth Exit 5Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
Earnings Power Value
not applicable
normalized (5y-median) earnings non-positive — EPV undefined
Graham Number
not applicable
diluted EPS missing or non-positive — Graham Number undefined

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 20-F · period ending 2020-07-31 · accession 0001213900-21-064404 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2021-07-31 · accession 0001213900-22-068638 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2022-07-31 · accession 0001213900-24-097579 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 20-F · period ending 2020-07-31 · accession 0001104659-20-140671 (NetIncomeLoss)
  5. 10-K · period ending 2021-07-31 · accession 0001213900-22-068638 (ProfitLoss)
  6. 10-K · period ending 2022-07-31 · accession 0001213900-23-086177 (NetIncomeLoss)
  7. 10-K · period ending 2023-07-31 · accession 0001213900-24-097579 (NetIncomeLoss)
  8. 20-F · period ending 2020-07-31 · accession 0001213900-21-064404 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2021-07-31 · accession 0001213900-22-068638 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2022-07-31 · accession 0001213900-23-086177 (NetCashProvidedByUsedInOperatingActivities)
  11. 10-K · period ending 2023-07-31 · accession 0001213900-24-097579 (NetCashProvidedByUsedInOperatingActivities)
  12. 20-F · period ending 2020-07-31 · accession 0001213900-21-064404 (PaymentsToAcquirePropertyPlantAndEquipment)
  13. 10-K · period ending 2021-07-31 · accession 0001213900-22-068638 (PaymentsToAcquirePropertyPlantAndEquipment)
  14. 10-K · period ending 2022-07-31 · accession 0001213900-23-086177 (PaymentsToAcquirePropertyPlantAndEquipment)
  15. 10-K · period ending 2023-07-31 · accession 0001213900-24-097579 (PaymentsToAcquirePropertyPlantAndEquipment)
  16. 20-F · period ending 2020-07-31 · accession 0001213900-21-064404 (CashAndCashEquivalentsAtCarryingValue)
  17. 10-K · period ending 2021-07-31 · accession 0001213900-22-068638 (CashAndCashEquivalentsAtCarryingValue)
  18. 10-K · period ending 2022-07-31 · accession 0001213900-23-086177 (CashAndCashEquivalentsAtCarryingValue)
  19. 10-K · period ending 2023-07-31 · accession 0001213900-24-097579 (CashAndCashEquivalentsAtCarryingValue)