MeritValue

ZKGC New Energy Ltd

DAZSFdata completeness 88%2 fiscal years on file

Data notes: no data for concept 'totalDebt'

The thesis, from the filings

ZKGC New Energy Ltd earns about 24% on invested capital, but has diluted owners by 12% over 2 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 2022FY 2023
Revenue$1.66M1$945,4931
Net income$39,1132$73,2102
Operating cash flow$269,5963−$43,6153
Capital expenditure$454,5924$440,8784
Free cash flow (derived)−$184,9963−$484,4933
Total debt——
Cash & equivalents$115,2705$41,8925
Diluted shares11.6M13.0M

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
$0.29
your share of equity
Profit it earned you last year
$0.06
Free cash flow it threw off
−$0.37
Debt you’d be carrying
—

10 shares is a claim on $0.29 of net worth that earned you $0.06 and generated −$0.37 of cash last year.

iii. Is this a good business?
Moat signal · return on invested capital
24% avg · 2y
FY22 22%FY23 25%

It earned an average 24% on invested capital over 2 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+12% shares · 2y

Share count is up 12% over 2 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
not applicable
only 2 years of net income (need ≥3)
Graham Number
$0.08
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 20-F · period ending 2022-05-31 · accession 0001013762-23-004045 (RevenueFromContractWithCustomerIncludingAssessedTax)
  2. 20-F · period ending 2022-05-31 · accession 0001013762-23-004045 (NetIncomeLoss)
  3. 20-F · period ending 2022-05-31 · accession 0001013762-23-004045 (NetCashProvidedByUsedInOperatingActivities)
  4. 20-F · period ending 2022-05-31 · accession 0001013762-23-004045 (PaymentsToAcquirePropertyPlantAndEquipment)
  5. 20-F · period ending 2022-05-31 · accession 0001013762-23-004045 (CashAndCashEquivalentsAtCarryingValue)