MeritValue

ENANTA PHARMACEUTICALS INC

ENTAdata completeness 88%15 fiscal years on file

Data notes: no data for concept 'totalDebt'

The thesis, from the filings

ENANTA PHARMACEUTICALS INC earns about -88% on invested capital, but has diluted owners by 6% over 5 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 2021FY 2022FY 2023FY 2024FY 2025
Revenue$97.1M1$86.2M2$79.2M3$67.6M3$65.3M3
Net income−$79M4−$121.8M5−$133.8M6−$116M6−$81.9M6
Operating cash flow−$70M7−$84.8M8−$103.2M9−$78.8M9−$19.3M9
Capital expenditure$750,00010$2.13M11$9.06M12$17.9M12$12.9M12
Free cash flow (derived)−$70.7M7−$86.9M8−$112.2M9−$96.7M9−$32.2M9
Total debt—————
Cash & equivalents$57.2M13$44M14$85.4M15$37.2M16$32.3M16
Diluted shares20,17120,60320,96921,15721,336

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
$30,332.3
your share of equity
Profit it earned you last year
−$38,380.67
Free cash flow it threw off
−$15,076.87
Debt you’d be carrying
—

10 shares is a claim on $30,332.3 of net worth that earned you −$38,380.67 and generated −$15,076.87 of cash last year.

iii. Is this a good business?
Moat signal · return on invested capital
-88% avg · 5y
FY21 -25%FY22 -35%FY23 -76%FY24 -102%FY25 -204%

It earned an average -88% 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
+6% shares · 5y

Share count is up 6% over 5 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
not applicable
normalized (5y-median) earnings non-positive — EPV undefined
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. 10-K · period ending 2021-09-30 · accession 0000950170-23-065884 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2022-09-30 · accession 0000950170-24-131260 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2023-09-30 · accession 0001193125-25-288121 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K · period ending 2021-09-30 · accession 0000950170-23-065884 (NetIncomeLoss)
  5. 10-K · period ending 2022-09-30 · accession 0000950170-24-131260 (NetIncomeLoss)
  6. 10-K · period ending 2023-09-30 · accession 0001193125-25-288121 (NetIncomeLoss)
  7. 10-K · period ending 2021-09-30 · accession 0000950170-23-065884 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2022-09-30 · accession 0000950170-24-131260 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2023-09-30 · accession 0001193125-25-288121 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2021-09-30 · accession 0000950170-23-065884 (PaymentsToAcquirePropertyPlantAndEquipment)
  11. 10-K · period ending 2022-09-30 · accession 0000950170-24-131260 (PaymentsToAcquirePropertyPlantAndEquipment)
  12. 10-K · period ending 2023-09-30 · accession 0001193125-25-288121 (PaymentsToAcquirePropertyPlantAndEquipment)
  13. 10-K · period ending 2021-09-30 · accession 0000950170-22-025667 (CashAndCashEquivalentsAtCarryingValue)
  14. 10-K · period ending 2022-09-30 · accession 0000950170-23-065884 (CashAndCashEquivalentsAtCarryingValue)
  15. 10-K · period ending 2023-09-30 · accession 0000950170-24-131260 (CashAndCashEquivalentsAtCarryingValue)
  16. 10-K · period ending 2024-09-30 · accession 0001193125-25-288121 (CashAndCashEquivalentsAtCarryingValue)