MeritValue

ESG Inc.

ESGHdata completeness 100%6 fiscal years on file

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

The thesis, from the filings

ESG Inc. earns about -22% on invested capital, but has diluted owners by 67% 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 2022FY 2023FY 2023FY 2024FY 2025
Revenue——$7.45M1$12.7M2$6.12M2
Net income−$54,9133−$37,5843−$324,7134$944,6335−$1.95M5
Operating cash flow−$40,1766−$39,6906$119,9347$1.55M8$101,2468
Capital expenditure$1,2899——$685,05610$178,22710
Free cash flow (derived)−$41,4656——$861,4688−$76,9818
Total debt——$1.42M11$1.25M11$1.32M12
Cash & equivalents$86,13913$6,44913$342,34214$110,34315$42,97815
Diluted shares15.5M15.5M25.9M25.9M25.9M

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
$3.38
your share of equity
Profit it earned you last year
−$0.75
Free cash flow it threw off
−$0.03
Debt you’d be carrying
$0.51

10 shares is a claim on $3.38 of net worth that earned you −$0.75 and generated −$0.03 of cash last year, against $0.51 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
-22% avg · 5y
FY22 —FY23 -75%FY23 -3%FY24 9%FY25 -20%

It earned an average -22% 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
+67% shares · 5y

Share count is up 67% over 5 years — owners have been diluted. Worth asking what they got for it. Total debt has held roughly steady.

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 2023-12-31 · accession 0001520138-25-000120 (RevenueFromContractWithCustomerIncludingAssessedTax)
  2. 10-K · period ending 2024-12-31 · accession 0001520138-26-000093 (RevenueFromContractWithCustomerIncludingAssessedTax)
  3. 10-K · period ending 2022-08-31 · accession 0001520138-23-000465 (NetIncomeLoss)
  4. 10-K · period ending 2023-12-31 · accession 0001520138-25-000120 (NetIncomeLoss)
  5. 10-K · period ending 2024-12-31 · accession 0001520138-26-000093 (NetIncomeLoss)
  6. 10-K · period ending 2022-08-31 · accession 0001520138-23-000465 (NetCashProvidedByUsedInOperatingActivities)
  7. 10-K · period ending 2023-12-31 · accession 0001520138-25-000120 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2024-12-31 · accession 0001520138-26-000093 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2022-08-31 · accession 0001520138-23-000465 (PaymentsToAcquirePropertyPlantAndEquipment)
  10. 10-K · period ending 2024-12-31 · accession 0001520138-26-000093 (PaymentsToAcquirePropertyPlantAndEquipment)
  11. 10-K · period ending 2023-12-31 · accession 0001520138-25-000120 (LongTermDebt)
  12. 10-K · period ending 2025-12-31 · accession 0001520138-26-000093 (LongTermDebtCurrent)
  13. 10-K · period ending 2022-08-31 · accession 0001520138-23-000465 (CashAndCashEquivalentsAtCarryingValue)
  14. 10-K · period ending 2023-12-31 · accession 0001520138-25-000120 (CashAndCashEquivalentsAtCarryingValue)
  15. 10-K · period ending 2024-12-31 · accession 0001520138-26-000093 (CashAndCashEquivalentsAtCarryingValue)