MeritValue

EShallGo Inc.

EHGOdata completeness 100%5 fiscal years on file

Data notes: no data for concept 'investmentsAtFairValue'; no data for concept 'netInvestmentIncome'; no data for concept 'gainsOnRealEstateSales'; no data for concept 'realEstateImpairment'; no data for concept 'dividendsPaid'; no data for concept 'interestExpense'

The thesis, from the filings

EShallGo Inc. earns about -85% on invested capital, and has bought back 90% of its shares over 5 years. The applicable estimate puts fair value near $0.04 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 2025FY 2026
Revenue$18.3M1$15.1M2$13.6M3$11M3$14.5M3
Net income$1.83M4$477,6895$8,6526−$10.8M6−$11.3M6
Operating cash flow$216,4557$783,9408$2.22M9−$1.28M9−$5.68M9
Capital expenditure$919,54110$353,97411$55,21612$98,23712$137,53312
Free cash flow (derived)−$703,0867$429,9668$2.17M9−$1.38M9−$5.81M9
Total debt—$145,60313—$014$21,78114
Cash & equivalents$2.67M15$4.95M15$5.36M15$7.6M16$3.78M16
Diluted shares20.0M20.1M1.3M1.4M2.1M

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
$42.08
your share of equity
Profit it earned you last year
−$53.94
Free cash flow it threw off
−$27.69
Debt you’d be carrying
$0.1

10 shares is a claim on $42.08 of net worth that earned you −$53.94 and generated −$27.69 of cash last year, against $0.1 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
-85% avg · 5y
FY22 22%FY23 21%FY24 16%FY25 -297%FY26 -187%

It earned an average -85% 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
−90% shares · 5y

Share count is down 90% over 5 years — management has been buying back stock, quietly handing owners a bigger slice. Total debt has fallen 85% — 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 v0.5.0
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
$0.04
assumptions (8)
  • riskFreeRate4.8%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$8,652
  • 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/A · period ending 2022-03-31 · accession 0001410578-24-002094 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 20-F · period ending 2023-03-31 · accession 0001410578-25-001818 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 20-F · period ending 2024-03-31 · accession 0001185185-26-003210 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 20-F/A · period ending 2022-03-31 · accession 0001410578-24-002094 (NetIncomeLoss)
  5. 20-F · period ending 2023-03-31 · accession 0001410578-25-001818 (NetIncomeLoss)
  6. 20-F · period ending 2024-03-31 · accession 0001185185-26-003210 (NetIncomeLoss)
  7. 20-F/A · period ending 2022-03-31 · accession 0001410578-24-002094 (NetCashProvidedByUsedInOperatingActivities)
  8. 20-F · period ending 2023-03-31 · accession 0001410578-25-001818 (NetCashProvidedByUsedInOperatingActivities)
  9. 20-F · period ending 2024-03-31 · accession 0001185185-26-003210 (NetCashProvidedByUsedInOperatingActivities)
  10. 20-F/A · period ending 2022-03-31 · accession 0001410578-24-002094 (PaymentsToAcquirePropertyPlantAndEquipment)
  11. 20-F · period ending 2023-03-31 · accession 0001410578-25-001818 (PaymentsToAcquirePropertyPlantAndEquipment)
  12. 20-F · period ending 2024-03-31 · accession 0001185185-26-003210 (PaymentsToAcquirePropertyPlantAndEquipment)
  13. 20-F/A · period ending 2023-03-31 · accession 0001410578-24-002094 (ShortTermBorrowings)
  14. 20-F · period ending 2025-03-31 · accession 0001185185-26-003210 (LongTermDebtNoncurrent)
  15. 20-F · period ending 2022-03-31 · accession 0001410578-25-001818 (CashAndCashEquivalentsAtCarryingValue)
  16. 20-F · period ending 2025-03-31 · accession 0001185185-26-003210 (CashAndCashEquivalentsAtCarryingValue)