MeritValue

Fortune Valley Treasures, Inc.

FVTIdata completeness 100%10 fiscal years on file
The thesis, from the filings

Fortune Valley Treasures, Inc. earns about -32% on invested capital, and has bought back 95% 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 2019FY 2020FY 2021FY 2022FY 2023
Revenue$275,2191$5.01M2$8.02M3$9.23M4$4.24M4
Net income−$377,7565−$3.26M6$1.78M7−$1.94M8−$4.05M8
Operating cash flow−$173,6469$1.24M10−$457,14211$6,92712−$179,21012
Capital expenditure—$65,89913$117,07714$2,59915$4,87915
Free cash flow (derived)—$1.17M10−$574,21911$4,32812−$184,08912
Total debt—$254,26616$680,05717$1.38M18$1.8M18
Cash & equivalents$38,13719$249,83720$123,16321$165,68522$288,25522
Diluted shares307.8M15.7M15.7M15.7M15.7M

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
$1.35
your share of equity
Profit it earned you last year
−$2.58
Free cash flow it threw off
−$0.12
Debt you’d be carrying
$1.15

10 shares is a claim on $1.35 of net worth that earned you −$2.58 and generated −$0.12 of cash last year, against $1.15 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
-32% avg · 5y
FY19 —FY20 -37%FY21 21%FY22 -20%FY23 -90%

It earned an average -32% 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
−95% shares · 5y

Share count is down 95% over 5 years — management has been buying back stock, quietly handing owners a bigger slice. Total debt has risen 607% 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
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 2019-12-31 · accession 0001493152-21-009670 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2020-12-31 · accession 0001493152-22-008637 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2021-12-31 · accession 0001493152-23-010415 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K · period ending 2022-12-31 · accession 0001493152-24-014607 (RevenueFromContractWithCustomerExcludingAssessedTax)
  5. 10-K · period ending 2019-12-31 · accession 0001493152-21-009670 (NetIncomeLoss)
  6. 10-K · period ending 2020-12-31 · accession 0001493152-22-008637 (NetIncomeLoss)
  7. 10-K · period ending 2021-12-31 · accession 0001493152-23-010415 (NetIncomeLoss)
  8. 10-K · period ending 2022-12-31 · accession 0001493152-24-014607 (NetIncomeLoss)
  9. 10-K · period ending 2019-12-31 · accession 0001493152-21-009670 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2020-12-31 · accession 0001493152-22-008637 (NetCashProvidedByUsedInOperatingActivities)
  11. 10-K · period ending 2021-12-31 · accession 0001493152-23-010415 (NetCashProvidedByUsedInOperatingActivities)
  12. 10-K · period ending 2022-12-31 · accession 0001493152-24-014607 (NetCashProvidedByUsedInOperatingActivities)
  13. 10-K · period ending 2020-12-31 · accession 0001493152-22-008637 (PaymentsToAcquirePropertyPlantAndEquipment)
  14. 10-K · period ending 2021-12-31 · accession 0001493152-23-010415 (PaymentsToAcquirePropertyPlantAndEquipment)
  15. 10-K · period ending 2022-12-31 · accession 0001493152-24-014607 (PaymentsToAcquirePropertyPlantAndEquipment)
  16. 10-K · period ending 2020-12-31 · accession 0001493152-22-008637 (LongTermDebt)
  17. 10-K · period ending 2021-12-31 · accession 0001493152-23-010415 (LongTermDebtNoncurrent)
  18. 10-K · period ending 2022-12-31 · accession 0001493152-24-014607 (LongTermDebtNoncurrent)
  19. 10-K · period ending 2019-12-31 · accession 0001493152-21-009670 (CashAndCashEquivalentsAtCarryingValue)
  20. 10-K · period ending 2020-12-31 · accession 0001493152-22-008637 (CashAndCashEquivalentsAtCarryingValue)
  21. 10-K · period ending 2021-12-31 · accession 0001493152-23-010415 (CashAndCashEquivalentsAtCarryingValue)
  22. 10-K · period ending 2022-12-31 · accession 0001493152-24-014607 (CashAndCashEquivalentsAtCarryingValue)