MeritValue

FRANKLIN WIRELESS CORP

FKWLdata completeness 88%15 fiscal years on file
The thesis, from the filings

FRANKLIN WIRELESS CORP earns about -14% on invested capital, with a roughly flat share count. 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$184.1M1$24M2$45.9M3$30.8M4$46.1M4
Net income$17.7M5−$3.76M6−$2.86M7−$3.96M8−$243,1018
Operating cash flow$12.1M9−$7.41M10−$1.88M11−$773,36012$1.84M12
Capital expenditure$21,04313$42,08514$47,10615$55,02516$32,76516
Free cash flow (derived)$12.1M9−$7.45M10−$1.93M11−$828,38512$1.81M12
Total debt—————
Cash & equivalents$45.8M17$26.3M18$12.2M19$12.3M19$14.7M20
Diluted shares11.6M11.6M11.7M11.8M11.8M

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
$29.31
your share of equity
Profit it earned you last year
−$0.21
Free cash flow it threw off
$1.54
Debt you’d be carrying
—

10 shares is a claim on $29.31 of net worth that earned you −$0.21 and generated $1.54 of cash last year.

iii. Is this a good business?
Moat signal · return on invested capital
-14% avg · 5y
FY21 —FY22 -25%FY23 -11%FY24 -18%FY25 -1%

It earned an average -14% 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
+2% shares · 5y

Share count is roughly flat over 5 years — little dilution, little buyback.

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 0001683168-22-006358 (Revenues)
  2. 10-K · period ending 2022-06-30 · accession 0001683168-23-006813 (Revenues)
  3. 10-K · period ending 2023-06-30 · accession 0001683168-24-006754 (Revenues)
  4. 10-K · period ending 2024-06-30 · accession 0001683168-25-007288 (Revenues)
  5. 10-K · period ending 2021-06-30 · accession 0001683168-22-006358 (NetIncomeLoss)
  6. 10-K · period ending 2022-06-30 · accession 0001683168-23-006813 (NetIncomeLoss)
  7. 10-K · period ending 2023-06-30 · accession 0001683168-24-006754 (NetIncomeLoss)
  8. 10-K · period ending 2024-06-30 · accession 0001683168-25-007288 (NetIncomeLoss)
  9. 10-K · period ending 2021-06-30 · accession 0001683168-22-006358 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2022-06-30 · accession 0001683168-23-006813 (NetCashProvidedByUsedInOperatingActivities)
  11. 10-K · period ending 2023-06-30 · accession 0001683168-24-006754 (NetCashProvidedByUsedInOperatingActivities)
  12. 10-K · period ending 2024-06-30 · accession 0001683168-25-007288 (NetCashProvidedByUsedInOperatingActivities)
  13. 10-K · period ending 2021-06-30 · accession 0001683168-22-006358 (PaymentsToAcquirePropertyPlantAndEquipment)
  14. 10-K · period ending 2022-06-30 · accession 0001683168-23-006813 (PaymentsToAcquirePropertyPlantAndEquipment)
  15. 10-K · period ending 2023-06-30 · accession 0001683168-24-006754 (PaymentsToAcquirePropertyPlantAndEquipment)
  16. 10-K · period ending 2024-06-30 · accession 0001683168-25-007288 (PaymentsToAcquirePropertyPlantAndEquipment)
  17. 10-K · period ending 2021-06-30 · accession 0001683168-22-006358 (CashAndCashEquivalentsAtCarryingValue)
  18. 10-K · period ending 2022-06-30 · accession 0001683168-23-006813 (CashAndCashEquivalentsAtCarryingValue)
  19. 10-K · period ending 2023-06-30 · accession 0001683168-24-006754 (CashAndCashEquivalentsAtCarryingValue)
  20. 10-K · period ending 2025-06-30 · accession 0001683168-25-007288 (CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents)