MeritValue

FULLNET COMMUNICATIONS INC

FULOdata completeness 88%14 fiscal years on file

Data notes: no data for concept 'totalDebt'

The thesis, from the filings

FULLNET COMMUNICATIONS INC earns about 90% on equity, far above its ~9% cost of capital, but has diluted owners by 17% over 5 years — a real edge showing up in the numbers. The estimate methods put fair value between $0.35 and $2.36 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 2019FY 2020FY 2021FY 2022FY 2023
Revenue$2.42M1$3.5M2$4.14M3$4.27M4$4.19M4
Net income$317,2905$1.07M6$892,9777$672,2367$532,1397
Operating cash flow$426,4598$988,0979$1.42M10$774,36411$690,29311
Capital expenditure$14,54312$14,18513$5,84714$49,51915$015
Free cash flow (derived)$411,9168$973,9129$1.41M10$724,84511$690,29311
Total debt—————
Cash & equivalents$612,00516$1.41M16$2.66M17$2.75M18$3.13M18
Diluted shares16.8M17.5M19.2M18.9M19.6M

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
$0.83
your share of equity
Profit it earned you last year
$0.27
Free cash flow it threw off
$0.35
Debt you’d be carrying
—

10 shares is a claim on $0.83 of net worth that earned you $0.27 and generated $0.35 of cash last year.

iii. Is this a good business?
Moat signal · return on equity
90% avg · 5y
FY19 —FY20 214%FY21 66%FY22 48%FY23 33%

It earned about 90% on equity, year after year, against a ~9% cost of capital — the footprint of real pricing power. Competition usually drags returns like this back down; here it hasn't.

seeing a moat in the numbers →
Management signal · capital allocation
+17% shares · 5y

Share count is up 17% 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

The 3 estimate methods that apply put fair value between $0.35 and $2.36 a share. They rest on different assumptions, so where they diverge is the story.

DCF · Growth Exit 10Y
$2.36
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears10
  • fcfGrowth20.0%
  • fcfBase$724,845
DCF · Growth Exit 5Y
$1.36
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears5
  • fcfGrowth20.0%
  • fcfBase$724,845
Earnings Power Value
$0.35
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$672,236
  • growthAssumed0.0%
Graham Number
not applicable
diluted EPS missing or non-positive — Graham Number undefined

Different models answer different questions — which to trust when →

v. The price question — last, on purpose
Is today’s price fair?
See live price ↗
Type a price. The ledger answers.
Or set your own belief
FCF growth, next 5 years20.0%
Discount rate (WACC)8.93%
Terminal growth2.5%
At your growth, a share is worth $1.36
The three cases
Bear0.0%$0.69
Base20.0%$1.36
Bull20.0%$1.36

Bear/base/bull growth = 0% / filed history / history + 5pp. Type a price to see the return each case implies.

Default growth 20.0%= this company’s own filed history (median-to-median FCF CAGR, clamped 0–20%). Your adjustments are recorded anonymously. They become the “what do owners actually believe” dataset.

Sources — the receipts
  1. 10-K · period ending 2019-12-31 · accession 0001376474-21-000113 (Revenues)
  2. 10-K · period ending 2020-12-31 · accession 0001376474-22-000177 (Revenues)
  3. 10-K · period ending 2021-12-31 · accession 0001376474-23-000185 (Revenues)
  4. 10-K · period ending 2022-12-31 · accession 0001376474-24-000151 (Revenues)
  5. 10-K · period ending 2019-12-31 · accession 0001376474-21-000113 (NetIncomeLoss)
  6. 10-K · period ending 2020-12-31 · accession 0001376474-22-000177 (NetIncomeLoss)
  7. 10-K · period ending 2021-12-31 · accession 0001376474-24-000151 (NetIncomeLoss)
  8. 10-K · period ending 2019-12-31 · accession 0001376474-21-000113 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2020-12-31 · accession 0001376474-22-000177 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2021-12-31 · accession 0001376474-23-000185 (NetCashProvidedByUsedInOperatingActivities)
  11. 10-K · period ending 2022-12-31 · accession 0001376474-24-000151 (NetCashProvidedByUsedInOperatingActivities)
  12. 10-K · period ending 2019-12-31 · accession 0001376474-21-000113 (PaymentsToAcquirePropertyPlantAndEquipment)
  13. 10-K · period ending 2020-12-31 · accession 0001376474-22-000177 (PaymentsToAcquirePropertyPlantAndEquipment)
  14. 10-K · period ending 2021-12-31 · accession 0001376474-23-000185 (PaymentsToAcquirePropertyPlantAndEquipment)
  15. 10-K · period ending 2022-12-31 · accession 0001376474-24-000151 (PaymentsToAcquirePropertyPlantAndEquipment)
  16. 10-K · period ending 2019-12-31 · accession 0001376474-22-000177 (CashAndCashEquivalentsAtCarryingValue)
  17. 10-K · period ending 2021-12-31 · accession 0001376474-23-000185 (CashAndCashEquivalentsAtCarryingValue)
  18. 10-K · period ending 2022-12-31 · accession 0001376474-24-000151 (CashAndCashEquivalentsAtCarryingValue)