MeritValue

Borqs Technologies, Inc.

BRQSFdata completeness 88%13 fiscal years on file
The thesis, from the filings

Borqs Technologies, Inc. earns about 80% on equity, but has diluted owners by 5264% over 5 years — worth asking whether the growth reaches owners. 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 2021FY 2022FY 2023FY 2024FY 2025
Revenue$29.6M1$41.2M2$20.6M3$27.7M3$13.6M3
Net income−$55.9M4−$34M5−$26.5M6$16.7M6$5.37M6
Operating cash flow−$28.7M7−$5.52M8−$6.79M9−$2.77M9−$27.9M9
Capital expenditure$781,00010$718,00011$250,00012$114,00012$37,00012
Free cash flow (derived)−$29.5M7−$6.24M8−$7.04M9−$2.88M9−$27.9M9
Total debt$29.5M13$1.69M14$3.1M15$417,00016—
Cash & equivalents$6.12M17$11.3M18$800,00019$2.03M20$2.62M20
Diluted shares614,2271.9M13.1M30.5M32.9M

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
$2.04
your share of equity
Profit it earned you last year
$1.63
Free cash flow it threw off
−$8.48
Debt you’d be carrying
—

10 shares is a claim on $2.04 of net worth that earned you $1.63 and generated −$8.48 of cash last year.

iii. Is this a good business?
Moat signal · return on equity
80% avg · 5y
FY21 —FY22 —FY23 —FY24 —FY25 80%

It earned an average 80% on equity over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+5264% shares · 5y

Share count is up 5264% over 5 years — owners have been diluted. Worth asking what they got for it. Total debt has fallen 99% — deleveraging.

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
$0.86
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 20-F · period ending 2021-12-31 · accession 0001213900-24-042975 (Revenues)
  2. 20-F · period ending 2022-12-31 · accession 0001213900-25-043752 (Revenues)
  3. 20-F · period ending 2023-12-31 · accession 0001213900-26-057706 (Revenues)
  4. 20-F · period ending 2021-12-31 · accession 0001213900-24-042975 (NetIncomeLoss)
  5. 20-F · period ending 2022-12-31 · accession 0001213900-25-043752 (NetIncomeLoss)
  6. 20-F · period ending 2023-12-31 · accession 0001213900-26-057706 (NetIncomeLoss)
  7. 20-F · period ending 2021-12-31 · accession 0001213900-24-042975 (NetCashProvidedByUsedInOperatingActivities)
  8. 20-F · period ending 2022-12-31 · accession 0001213900-25-043752 (NetCashProvidedByUsedInOperatingActivities)
  9. 20-F · period ending 2023-12-31 · accession 0001213900-26-057706 (NetCashProvidedByUsedInOperatingActivities)
  10. 20-F · period ending 2021-12-31 · accession 0001213900-24-042975 (PaymentsToAcquirePropertyPlantAndEquipment)
  11. 20-F · period ending 2022-12-31 · accession 0001213900-25-043752 (PaymentsToAcquirePropertyPlantAndEquipment)
  12. 20-F · period ending 2023-12-31 · accession 0001213900-26-057706 (PaymentsToAcquirePropertyPlantAndEquipment)
  13. 20-F · period ending 2021-12-31 · accession 0001213900-23-039729 (LongTermDebt)
  14. 20-F · period ending 2022-12-31 · accession 0001213900-24-042975 (LongTermDebt)
  15. 20-F · period ending 2023-12-31 · accession 0001213900-25-043752 (LongTermDebt)
  16. 20-F · period ending 2024-12-31 · accession 0001213900-26-057706 (ShortTermBorrowings)
  17. 20-F · period ending 2021-12-31 · accession 0001213900-23-039729 (CashAndCashEquivalentsAtCarryingValue)
  18. 20-F · period ending 2022-12-31 · accession 0001213900-24-042975 (CashAndCashEquivalentsAtCarryingValue)
  19. 20-F · period ending 2023-12-31 · accession 0001213900-25-043752 (CashAndCashEquivalentsAtCarryingValue)
  20. 20-F · period ending 2024-12-31 · accession 0001213900-26-057706 (CashAndCashEquivalentsAtCarryingValue)