MeritValue

FEC Resources Inc.

FECOFdata completeness 50%6 fiscal years on file

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

The thesis, from the filings

FEC Resources Inc. earns about -6% on invested capital, but has diluted owners by 44% over 5 years — worth asking whether the growth reaches owners. The applicable estimate puts fair value near $0 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 2020FY 2021FY 2022FY 2023FY 2024
Revenue—————
Net income−$187,0521$168,2082$193,1823$191,7953$244,4373
Operating cash flow−$271,6684−$191,7965−$180,9306−$158,1626−$156,9366
Capital expenditure—————
Free cash flow (derived)—————
Total debt—————
Cash & equivalents$181,2377$113,9987———
Diluted shares598.1M861.1M861.1M861.1M861.1M

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
$0.09
your share of equity
Profit it earned you last year
$0
Free cash flow it threw off
—
Debt you’d be carrying
—

10 shares is a claim on $0.09 of net worth that earned you $0 last year.

iii. Is this a good business?
Moat signal · return on invested capital
-6% avg · 5y
FY20 -7%FY21 -6%FY22 -8%FY23 -8%FY24 -3%

It earned an average -6% 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
+44% shares · 5y

Share count is up 44% 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
only 0 years of FCF (need ≥3) — model not applicable
DCF · Growth Exit 5Y
not applicable
only 0 years of FCF (need ≥3) — model not applicable
Earnings Power Value
$0
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$191,795
  • growthAssumed0.0%
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. 20-F · period ending 2020-12-31 · accession 0001477932-23-001956 (ProfitLoss)
  2. 20-F · period ending 2021-12-31 · accession 0001477932-24-001773 (ProfitLoss)
  3. 20-F · period ending 2022-12-31 · accession 0001477932-25-005053 (ProfitLoss)
  4. 20-F · period ending 2020-12-31 · accession 0001477932-23-001956 (CashFlowsFromUsedInOperatingActivities)
  5. 20-F · period ending 2021-12-31 · accession 0001477932-24-001773 (CashFlowsFromUsedInOperatingActivities)
  6. 20-F · period ending 2022-12-31 · accession 0001477932-25-005053 (CashFlowsFromUsedInOperatingActivities)
  7. 20-F · period ending 2020-12-31 · accession 0001477932-22-001954 (CashAndCashEquivalents)