MeritValue

Decent Holding Inc.

DXSTdata completeness 88%4 fiscal years on file

Data notes: no data for concept 'totalDebt'; no data for concept 'interestExpense'

The thesis, from the filings

Decent Holding Inc. earns about 56% on invested capital, but has diluted owners by 8% over 4 years — worth asking whether the growth reaches owners. The applicable estimate puts fair value near $0.71 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 2022FY 2023FY 2024FY 2025
Revenue$3.59M1$9.45M2$11.5M2$12.9M2
Net income$372,4353$1.86M4$2.1M4−$322,2024
Operating cash flow$1.39M5$1.58M6−$362,3226−$3.46M6
Capital expenditure$241,2117$153,7948$78,1338$5898
Free cash flow (derived)$1.15M5$1.43M6−$440,4556−$3.46M6
Total debt————
Cash & equivalents$1.97M9$1.33M10$407,03111$572,80711
Diluted shares15.0M15.0M15.0M16.3M

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
$4.76
your share of equity
Profit it earned you last year
−$0.2
Free cash flow it threw off
−$2.13
Debt you’d be carrying
—

10 shares is a claim on $4.76 of net worth that earned you −$0.2 and generated −$2.13 of cash last year.

iii. Is this a good business?
Moat signal · return on invested capital
56% avg · 4y
FY22 —FY23 125%FY24 46%FY25 -1%

It earned an average 56% on invested capital over 4 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+8% shares · 4y

Share count is up 8% over 4 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
$0.71
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$1.12M
  • 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 2022-10-31 · accession 0001213900-25-021825 (RevenueFromContractWithCustomerIncludingAssessedTax)
  2. 20-F · period ending 2023-10-31 · accession 0001185185-26-000710 (RevenueFromContractWithCustomerIncludingAssessedTax)
  3. 20-F · period ending 2022-10-31 · accession 0001213900-25-021825 (NetIncomeLoss)
  4. 20-F · period ending 2023-10-31 · accession 0001185185-26-000710 (NetIncomeLoss)
  5. 20-F · period ending 2022-10-31 · accession 0001213900-25-021825 (NetCashProvidedByUsedInOperatingActivities)
  6. 20-F · period ending 2023-10-31 · accession 0001185185-26-000710 (NetCashProvidedByUsedInOperatingActivities)
  7. 20-F · period ending 2022-10-31 · accession 0001213900-25-021825 (PaymentsToAcquirePropertyPlantAndEquipment)
  8. 20-F · period ending 2023-10-31 · accession 0001185185-26-000710 (PaymentsToAcquirePropertyPlantAndEquipment)
  9. 20-F · period ending 2022-10-31 · accession 0001185185-26-000710 (CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents)
  10. 20-F · period ending 2023-10-31 · accession 0001213900-25-021825 (CashAndCashEquivalentsAtCarryingValue)
  11. 20-F · period ending 2024-10-31 · accession 0001185185-26-000710 (CashAndCashEquivalentsAtCarryingValue)