MeritValue

CDT Environmental Technology Investment Holdings Ltd

CDTGdata completeness 88%5 fiscal years on file

Data notes: no data for concept 'totalDebt'

The thesis, from the filings

CDT Environmental Technology Investment Holdings Ltd earns about 10% on invested capital, but has diluted owners by 32% over 5 years — worth asking whether the growth reaches owners. The applicable estimate puts fair value near $4.93 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 2021FY 2022FY 2023FY 2024FY 2025
Revenue$23.6M1$28.8M2$34.2M3$29.8M3$18.2M3
Net income$6.78M4$5.78M5$7.42M6$1.45M6−$10.2M6
Operating cash flow−$129,6397−$4.47M8−$3.13M9−$1.99M9−$1.49M9
Capital expenditure$101,27910$53,18711$21,55012$3,89312$2,23312
Free cash flow (derived)−$230,9187−$4.53M8−$3.15M9−$1.99M9−$1.49M9
Total debt—————
Cash & equivalents$1.13M13$199,86414$268,10215$124,37916$66,68616
Diluted shares9.2M9.2M9.2M10.3M12.1M

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
$25.21
your share of equity
Profit it earned you last year
−$8.4
Free cash flow it threw off
−$1.23
Debt you’d be carrying
—

10 shares is a claim on $25.21 of net worth that earned you −$8.4 and generated −$1.23 of cash last year.

iii. Is this a good business?
Moat signal · return on invested capital
10% avg · 5y
FY21 31%FY22 21%FY23 22%FY24 4%FY25 -30%

It earned an average 10% 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
+32% shares · 5y

Share count is up 32% over 5 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
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
$4.93
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$5.78M
  • growthAssumed0.0%
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 2021-12-31 · accession 0001731122-24-000803 (Revenues)
  2. 20-F/A · period ending 2022-12-31 · accession 0001731122-25-001219 (Revenues)
  3. 20-F · period ending 2023-12-31 · accession 0001731122-26-000740 (Revenues)
  4. 20-F · period ending 2021-12-31 · accession 0001731122-24-000803 (NetIncomeLoss)
  5. 20-F/A · period ending 2022-12-31 · accession 0001731122-25-001219 (NetIncomeLoss)
  6. 20-F · period ending 2023-12-31 · accession 0001731122-26-000740 (NetIncomeLoss)
  7. 20-F · period ending 2021-12-31 · accession 0001731122-24-000803 (NetCashProvidedByUsedInOperatingActivities)
  8. 20-F/A · period ending 2022-12-31 · accession 0001731122-25-001219 (NetCashProvidedByUsedInOperatingActivities)
  9. 20-F · period ending 2023-12-31 · accession 0001731122-26-000740 (NetCashProvidedByUsedInOperatingActivities)
  10. 20-F · period ending 2021-12-31 · accession 0001731122-24-000803 (PaymentsToAcquirePropertyPlantAndEquipment)
  11. 20-F/A · period ending 2022-12-31 · accession 0001731122-25-001219 (PaymentsToAcquirePropertyPlantAndEquipment)
  12. 20-F · period ending 2023-12-31 · accession 0001731122-26-000740 (PaymentsToAcquirePropertyPlantAndEquipment)
  13. 20-F/A · period ending 2021-12-31 · accession 0001731122-25-001219 (CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents)
  14. 20-F · period ending 2022-12-31 · accession 0001731122-26-000740 (CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents)
  15. 20-F/A · period ending 2023-12-31 · accession 0001731122-25-001219 (CashAndCashEquivalentsAtCarryingValue)
  16. 20-F · period ending 2024-12-31 · accession 0001731122-26-000740 (CashAndCashEquivalentsAtCarryingValue)