MeritValue

ENDI Corp.

ENDIdata completeness 88%3 fiscal years on file

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

The thesis, from the filings

ENDI Corp. earns about 93% on equity, but has diluted owners by 52% over 3 years — worth asking whether the growth reaches owners. The applicable estimate puts fair value near $4.52 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 2023
Revenue$4.29M1$7.64M2$9.59M2
Net income$1.51M3$2.38M4$2.53M4
Operating cash flow$1.2M5$1.73M6$2.71M6
Capital expenditure——$108,5017
Free cash flow (derived)——$2.6M6
Total debt———
Cash & equivalents$1.27M8$10.7M9$8.98M9
Diluted shares—3.6M5.5M

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
$42.29
your share of equity
Profit it earned you last year
$4.63
Free cash flow it threw off
$4.75
Debt you’d be carrying
—

10 shares is a claim on $42.29 of net worth that earned you $4.63 and generated $4.75 of cash last year.

iii. Is this a good business?
Moat signal · return on equity
93% avg · 3y
FY21 255%FY22 12%FY23 11%

It earned an average 93% on equity over 3 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+52% shares · 3y

Share count is up 52% over 3 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 1 years of FCF (need ≥3) — model not applicable
DCF · Growth Exit 5Y
not applicable
only 1 years of FCF (need ≥3) — model not applicable
Earnings Power Value
$4.52
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$2.38M
  • growthAssumed0.0%
Graham Number
$6.62
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0001437749-23-008614 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2022-12-31 · accession 0001493152-24-012465 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2021-12-31 · accession 0001437749-23-008614 (NetIncomeLoss)
  4. 10-K · period ending 2022-12-31 · accession 0001493152-24-012465 (NetIncomeLoss)
  5. 10-K · period ending 2021-12-31 · accession 0001437749-23-008614 (NetCashProvidedByUsedInOperatingActivities)
  6. 10-K · period ending 2022-12-31 · accession 0001493152-24-012465 (NetCashProvidedByUsedInOperatingActivities)
  7. 10-K · period ending 2023-12-31 · accession 0001493152-24-012465 (PaymentsToAcquirePropertyPlantAndEquipment)
  8. 10-K · period ending 2021-12-31 · accession 0001437749-23-008614 (CashAndCashEquivalentsAtCarryingValue)
  9. 10-K · period ending 2022-12-31 · accession 0001493152-24-012465 (CashAndCashEquivalentsAtCarryingValue)