MeritValue

EURO TECH HOLDINGS CO LTD

CLWTdata completeness 88%17 fiscal years on file

Data notes: no data for concept 'interestExpense'

The thesis, from the filings

EURO TECH HOLDINGS CO LTD earns about 9% on invested capital, and has bought back 100% of its shares over 5 years. The applicable estimate puts fair value near $1.15 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$21.4M1$14.9M2$17.9M3$15.4M3$13.3M3
Net income$989,0004$539,0005$1.65M6$845,0006$167,0006
Operating cash flow$2.2M7$461,0008−$80,0009$781,0009−$1.42M9
Capital expenditure$4,00010$7,00011$5,00012$5,00012$7,00012
Free cash flow (derived)$2.2M7$454,0008−$85,0009$776,0009−$1.42M9
Total debt$376,00013————
Cash & equivalents$5.27M14$5.63M15$5.45M16$5.81M17$4.28M17
Diluted shares7.73B7.7M7.7M7.7M7.6M

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
$20.54
your share of equity
Profit it earned you last year
$0.22
Free cash flow it threw off
−$1.87
Debt you’d be carrying
—

10 shares is a claim on $20.54 of net worth that earned you $0.22 and generated −$1.87 of cash last year.

iii. Is this a good business?
Moat signal · return on invested capital
9% avg · 5y
FY21 13%FY22 7%FY23 17%FY24 9%FY25 1%

It earned an average 9% 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
−100% shares · 5y

Share count is down 100% over 5 years — management has been buying back stock, quietly handing owners a bigger slice. Total debt has held roughly steady.

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
$1.15
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$845,000
  • growthAssumed0.0%
Graham Number
$0.96
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 0001654954-24-005302 (RevenueFromContractWithCustomerIncludingAssessedTax)
  2. 20-F · period ending 2022-12-31 · accession 0001654954-25-004888 (RevenueFromContractWithCustomerIncludingAssessedTax)
  3. 20-F · period ending 2023-12-31 · accession 0001654954-26-004167 (RevenueFromContractWithCustomerIncludingAssessedTax)
  4. 20-F · period ending 2021-12-31 · accession 0001654954-24-005302 (NetIncomeLoss)
  5. 20-F · period ending 2022-12-31 · accession 0001654954-25-004888 (NetIncomeLoss)
  6. 20-F · period ending 2023-12-31 · accession 0001654954-26-004167 (NetIncomeLoss)
  7. 20-F · period ending 2021-12-31 · accession 0001654954-24-005302 (NetCashProvidedByUsedInOperatingActivities)
  8. 20-F · period ending 2022-12-31 · accession 0001654954-25-004888 (NetCashProvidedByUsedInOperatingActivities)
  9. 20-F · period ending 2023-12-31 · accession 0001654954-26-004167 (NetCashProvidedByUsedInOperatingActivities)
  10. 20-F/A · period ending 2021-12-31 · accession 0001654954-23-001295 (PaymentsToAcquirePropertyPlantAndEquipment)
  11. 20-F · period ending 2022-12-31 · accession 0001654954-25-004888 (PaymentsToAcquirePropertyPlantAndEquipment)
  12. 20-F · period ending 2023-12-31 · accession 0001654954-26-004167 (PaymentsToAcquirePropertyPlantAndEquipment)
  13. 20-F/A · period ending 2021-12-31 · accession 0001654954-23-001295 (ShortTermBorrowings)
  14. 20-F · period ending 2021-12-31 · accession 0001654954-23-006376 (CashAndCashEquivalentsAtCarryingValue)
  15. 20-F · period ending 2022-12-31 · accession 0001654954-24-005302 (CashAndCashEquivalentsAtCarryingValue)
  16. 20-F · period ending 2023-12-31 · accession 0001654954-25-004888 (CashAndCashEquivalentsAtCarryingValue)
  17. 20-F · period ending 2024-12-31 · accession 0001654954-26-004167 (CashAndCashEquivalentsAtCarryingValue)