MeritValue

Eastern International Ltd.

ELOGdata completeness 88%3 fiscal years on file

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

The thesis, from the filings

Eastern International Ltd. earns about 7% on invested capital, but has diluted owners by 3% over 3 years — worth asking whether the growth reaches owners. The applicable estimate puts fair value near $0.98 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 2024FY 2025FY 2026
Revenue$40.4M1$40M1$45.6M1
Net income$1.08M2$1.78M2−$1.15M2
Operating cash flow−$629,7613−$2.16M3−$2.58M3
Capital expenditure$7,4334$397,4414$878,9494
Free cash flow (derived)−$637,1943−$2.56M3−$3.46M3
Total debt—$3.77M5$11.1M6
Cash & equivalents———
Diluted shares11.0M11.4M11.4M

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
$13.33
your share of equity
Profit it earned you last year
−$1.01
Free cash flow it threw off
−$3.03
Debt you’d be carrying
$9.76

10 shares is a claim on $13.33 of net worth that earned you −$1.01 and generated −$3.03 of cash last year, against $9.76 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
7% avg · 3y
FY24 11%FY25 12%FY26 -3%

It earned an average 7% on invested capital over 3 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+3% shares · 3y

Share count is up 3% over 3 years — owners have been diluted. Worth asking what they got for it. Total debt has risen 195% over the same window.

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 v0.2.0
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
$0.98
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$1.08M
  • 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 2024-03-31 · accession 0001493152-26-035476 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 20-F · period ending 2024-03-31 · accession 0001493152-26-035476 (NetIncomeLoss)
  3. 20-F · period ending 2024-03-31 · accession 0001493152-26-035476 (NetCashProvidedByUsedInOperatingActivities)
  4. 20-F · period ending 2024-03-31 · accession 0001493152-26-035476 (PaymentsToAcquirePropertyPlantAndEquipment)
  5. 20-F · period ending 2025-03-31 · accession 0001493152-26-035476 (DebtCurrent)
  6. 20-F · period ending 2026-03-31 · accession 0001493152-26-035476 (LongTermDebtNoncurrent)