MeritValue

Edgewise Therapeutics, Inc.

EWTXdata completeness 75%6 fiscal years on file

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

The thesis, from the filings

Edgewise Therapeutics, Inc. earns about -29% on invested capital, but has diluted owners by 174% 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—————
Net income−$42.8M1−$67.6M2−$100.2M3−$133.8M3−$167.8M3
Operating cash flow−$33.5M4−$52.6M5−$91.9M6−$109M6−$143.8M6
Capital expenditure$668,0007$5.55M8$5.75M9$1.31M9$256,0009
Free cash flow (derived)−$34.2M4−$58.2M5−$97.7M6−$110.3M6−$144.1M6
Total debt—————
Cash & equivalents$15.6M10$22M11$86.1M12$41.7M13$61.1M13
Diluted shares37.5M53.6M63.7M92.4M102.9M

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
$50.74
your share of equity
Profit it earned you last year
−$16.3
Free cash flow it threw off
−$14
Debt you’d be carrying
—

10 shares is a claim on $50.74 of net worth that earned you −$16.3 and generated −$14 of cash last year.

iii. Is this a good business?
Moat signal · return on invested capital
-29% avg · 5y
FY21 —FY22 —FY23 -34%FY24 -25%FY25 -29%

It earned an average -29% 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
+174% shares · 5y

Share count is up 174% 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 2021-12-31 · accession 0001558370-23-001895 (NetIncomeLoss)
  2. 10-K · period ending 2022-12-31 · accession 0001558370-24-001467 (NetIncomeLoss)
  3. 10-K · period ending 2023-12-31 · accession 0001104659-26-020112 (NetIncomeLoss)
  4. 10-K · period ending 2021-12-31 · accession 0001558370-23-001895 (NetCashProvidedByUsedInOperatingActivities)
  5. 10-K · period ending 2022-12-31 · accession 0001558370-24-001467 (NetCashProvidedByUsedInOperatingActivities)
  6. 10-K · period ending 2023-12-31 · accession 0001104659-26-020112 (NetCashProvidedByUsedInOperatingActivities)
  7. 10-K · period ending 2021-12-31 · accession 0001558370-23-001895 (PaymentsToAcquirePropertyPlantAndEquipment)
  8. 10-K · period ending 2022-12-31 · accession 0001558370-24-001467 (PaymentsToAcquirePropertyPlantAndEquipment)
  9. 10-K · period ending 2023-12-31 · accession 0001104659-26-020112 (PaymentsToAcquirePropertyPlantAndEquipment)
  10. 10-K · period ending 2021-12-31 · accession 0001558370-23-001895 (CashAndCashEquivalentsAtCarryingValue)
  11. 10-K · period ending 2022-12-31 · accession 0001558370-24-001467 (CashAndCashEquivalentsAtCarryingValue)
  12. 10-K · period ending 2023-12-31 · accession 0001558370-25-002006 (CashAndCashEquivalentsAtCarryingValue)
  13. 10-K · period ending 2024-12-31 · accession 0001104659-26-020112 (CashAndCashEquivalentsAtCarryingValue)