MeritValue

5E Advanced Materials, Inc.

FEAMdata completeness 88%5 fiscal years on file

Data notes: no data for concept 'revenue'

The thesis, from the filings

5E Advanced Materials, Inc. earns about -63% on invested capital, and has bought back 77% of its shares over 5 years. 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−$19.3M1−$66.7M2−$30.6M3−$62M4−$31.6M4
Operating cash flow−$10.9M5−$28.6M6−$30.7M7−$26.9M8−$23.6M8
Capital expenditure$39,0009$1.22M10$352,00011$88,00012$124,00012
Free cash flow (derived)−$10.9M5−$29.8M6−$31M7−$27M8−$23.8M8
Total debt$186,00013$334,00014$99.5M15$136.6M16$88,00016
Cash & equivalents$40.8M17$31.1M18$20.3M19$4.9M20$3.84M20
Diluted shares34.2M40.8M43.8M2.3M8.0M

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
$79.03
your share of equity
Profit it earned you last year
−$39.46
Free cash flow it threw off
−$29.72
Debt you’d be carrying
$0.11

10 shares is a claim on $79.03 of net worth that earned you −$39.46 and generated −$29.72 of cash last year, against $0.11 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
-63% avg · 5y
FY21 -70%FY22 -165%FY23 -14%FY24 -31%FY25 -33%

It earned an average -63% 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
−77% shares · 5y

Share count is down 77% over 5 years — management has been buying back stock, quietly handing owners a bigger slice. Total debt has fallen 53% — deleveraging.

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 2021-06-30 · accession 0001193125-22-253257 (NetIncomeLoss)
  2. 10-K · period ending 2022-06-30 · accession 0000950170-23-045509 (NetIncomeLoss)
  3. 10-K · period ending 2023-06-30 · accession 0000950170-24-104782 (NetIncomeLoss)
  4. 10-K · period ending 2024-06-30 · accession 0001193125-25-223170 (NetIncomeLoss)
  5. 10-K · period ending 2021-06-30 · accession 0001193125-22-253257 (NetCashProvidedByUsedInOperatingActivities)
  6. 10-K · period ending 2022-06-30 · accession 0000950170-23-045509 (NetCashProvidedByUsedInOperatingActivities)
  7. 10-K · period ending 2023-06-30 · accession 0000950170-24-104782 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2024-06-30 · accession 0001193125-25-223170 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2021-06-30 · accession 0001193125-22-253257 (PaymentsToAcquirePropertyPlantAndEquipment)
  10. 10-K · period ending 2022-06-30 · accession 0000950170-23-045509 (PaymentsToAcquirePropertyPlantAndEquipment)
  11. 10-K · period ending 2023-06-30 · accession 0000950170-24-104782 (PaymentsToAcquirePropertyPlantAndEquipment)
  12. 10-K · period ending 2024-06-30 · accession 0001193125-25-223170 (PaymentsToAcquirePropertyPlantAndEquipment)
  13. 10-K · period ending 2021-06-30 · accession 0001193125-22-253257 (LongTermDebtNoncurrent)
  14. 10-K · period ending 2022-06-30 · accession 0000950170-23-045509 (LongTermDebtNoncurrent)
  15. 10-K · period ending 2023-06-30 · accession 0000950170-24-104782 (LongTermDebtNoncurrent)
  16. 10-K · period ending 2024-06-30 · accession 0001193125-25-223170 (LongTermDebtNoncurrent)
  17. 10-K · period ending 2021-06-30 · accession 0001193125-22-253257 (CashAndCashEquivalentsAtCarryingValue)
  18. 10-K · period ending 2022-06-30 · accession 0000950170-23-045509 (CashAndCashEquivalentsAtCarryingValue)
  19. 10-K · period ending 2023-06-30 · accession 0000950170-24-104782 (CashAndCashEquivalentsAtCarryingValue)
  20. 10-K · period ending 2024-06-30 · accession 0001193125-25-223170 (CashAndCashEquivalentsAtCarryingValue)