MeritValue

FLEXIBLE SOLUTIONS INTERNATIONAL INC

FSIdata completeness 88%16 fiscal years on file
The thesis, from the filings

FLEXIBLE SOLUTIONS INTERNATIONAL INC earns about 12% on invested capital, but has diluted owners by 9% over 5 years — worth asking whether the growth reaches owners. The applicable estimate puts fair value near $2.32 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 2021FY 2022FY 2023FY 2024FY 2025
Revenue$34.4M1$45.8M2$38.3M3$38.2M4$38.5M4
Net income$3.45M5$7.02M6$2.78M7$3.04M8$786,8948
Operating cash flow$4.54M9$1.48M10$6.12M11$5.57M12$3.78M12
Capital expenditure$782,21913$1.98M14$4.99M15$4.96M16$4.37M16
Free cash flow (derived)$3.75M9−$504,40410$1.13M11$603,61012−$591,71012
Total debt$4.73M17$12.3M18$15M19$17.5M20$8.88M20
Cash & equivalents$5.71M21—$5.02M22$7.63M22—
Diluted shares12.5M12.5M12.5M12.7M13.6M

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
$28.62
your share of equity
Profit it earned you last year
$0.58
Free cash flow it threw off
−$0.44
Debt you’d be carrying
$6.53

10 shares is a claim on $28.62 of net worth that earned you $0.58 and generated −$0.44 of cash last year, against $6.53 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
12% avg · 5y
FY21 18%FY22 18%FY23 9%FY24 9%FY25 5%

It earned an average 12% 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
+9% shares · 5y

Share count is up 9% over 5 years — owners have been diluted. Worth asking what they got for it. Total debt has risen 88% over the same window.

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
negative equity value — refusing to publish per-share figure
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears10
  • fcfGrowth0.0%
  • fcfBase$603,610
DCF · Growth Exit 5Y
not applicable
negative equity value — refusing to publish per-share figure
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears5
  • fcfGrowth0.0%
  • fcfBase$603,610
Earnings Power Value
$2.32
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$3.04M
  • growthAssumed0.0%
Graham Number
$1.97
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0001493152-23-010222 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K/A · period ending 2022-12-31 · accession 0001493152-24-031588 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2023-12-31 · accession 0001641172-25-001675 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K · period ending 2024-12-31 · accession 0001493152-26-016796 (RevenueFromContractWithCustomerExcludingAssessedTax)
  5. 10-K · period ending 2021-12-31 · accession 0001493152-23-010222 (NetIncomeLoss)
  6. 10-K/A · period ending 2022-12-31 · accession 0001493152-24-031588 (NetIncomeLoss)
  7. 10-K · period ending 2023-12-31 · accession 0001641172-25-001675 (NetIncomeLoss)
  8. 10-K · period ending 2024-12-31 · accession 0001493152-26-016796 (NetIncomeLoss)
  9. 10-K · period ending 2021-12-31 · accession 0001493152-23-010222 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K/A · period ending 2022-12-31 · accession 0001493152-24-031588 (NetCashProvidedByUsedInOperatingActivities)
  11. 10-K · period ending 2023-12-31 · accession 0001641172-25-001675 (NetCashProvidedByUsedInOperatingActivities)
  12. 10-K · period ending 2024-12-31 · accession 0001493152-26-016796 (NetCashProvidedByUsedInOperatingActivities)
  13. 10-K · period ending 2021-12-31 · accession 0001493152-23-010222 (PaymentsToAcquirePropertyPlantAndEquipment)
  14. 10-K/A · period ending 2022-12-31 · accession 0001493152-24-031588 (PaymentsToAcquirePropertyPlantAndEquipment)
  15. 10-K · period ending 2023-12-31 · accession 0001641172-25-001675 (PaymentsToAcquirePropertyPlantAndEquipment)
  16. 10-K · period ending 2024-12-31 · accession 0001493152-26-016796 (PaymentsToAcquirePropertyPlantAndEquipment)
  17. 10-K · period ending 2021-12-31 · accession 0001493152-23-010222 (LongTermDebtNoncurrent)
  18. 10-K/A · period ending 2022-12-31 · accession 0001493152-24-031588 (LongTermDebtNoncurrent)
  19. 10-K · period ending 2023-12-31 · accession 0001641172-25-001675 (LongTermDebtNoncurrent)
  20. 10-K · period ending 2024-12-31 · accession 0001493152-26-016796 (LongTermDebtNoncurrent)
  21. 10-K/A · period ending 2021-12-31 · accession 0001493152-22-013262 (CashAndCashEquivalentsAtCarryingValue)
  22. 10-K · period ending 2023-12-31 · accession 0001641172-25-001675 (CashAndCashEquivalentsAtCarryingValue)