MeritValue

Fuse Medical, Inc.

FZMDdata completeness 75%12 fiscal years on file
The thesis, from the filings

Fuse Medical, Inc. earns about 270% on equity, far above its ~9% cost of capital, but has diluted owners by 5% over 5 years — a real edge showing up in the numbers. The applicable estimate puts fair value near $0.04 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 2018FY 2019FY 2020FY 2021FY 2022
Revenue$26.3M1$22.9M2$21.4M3$20.4M4$18.6M4
Net income$3.96M5−$3.32M6−$1.43M7−$1.59M8$3.1M8
Operating cash flow$2.48M9−$4,73910$236,65411−$1.78M12$34,79912
Capital expenditure$41,83813$15,31814$20,75715——
Free cash flow (derived)$2.44M9−$20,05710$215,89711——
Total debt—————
Cash & equivalents$844,31416$1.1M17$1.19M18$553,19019$147,85419
Diluted shares73.9M70.2M70.2M70.3M77.9M

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
−$0.04
your share of equity
Profit it earned you last year
$0.4
Free cash flow it threw off
—
Debt you’d be carrying
—

10 shares is a claim on −$0.04 of net worth that earned you $0.4 last year.

iii. Is this a good business?
Moat signal · return on equity
270% avg · 5y
FY18 270%FY19 —FY20 —FY21 —FY22 —

It earned about 270% 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
+5% shares · 5y

Share count is up 5% 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
$0.04
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears10
  • fcfGrowth0.0%
  • fcfBase$215,897
DCF · Growth Exit 5Y
$0.04
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears5
  • fcfGrowth0.0%
  • fcfBase$215,897
Earnings Power Value
not applicable
normalized (5y-median) earnings non-positive — EPV undefined
Graham Number
not applicable
book value / share count 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 years0.0%
Discount rate (WACC)8.93%
Terminal growth2.5%
At your growth, a share is worth $0.04
The three cases
Bear0.0%$0.04
Base0.0%$0.04
Bull5.0%$0.05

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

Default growth 0.0%= 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 2018-12-31 · accession 0001564590-20-014068 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2019-12-31 · accession 0001564590-21-016781 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2020-12-31 · accession 0001564590-22-013025 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K · period ending 2021-12-31 · accession 0001564590-23-005716 (RevenueFromContractWithCustomerExcludingAssessedTax)
  5. 10-K · period ending 2018-12-31 · accession 0001564590-20-014068 (NetIncomeLoss)
  6. 10-K · period ending 2019-12-31 · accession 0001564590-21-016781 (NetIncomeLoss)
  7. 10-K · period ending 2020-12-31 · accession 0001564590-22-013025 (NetIncomeLoss)
  8. 10-K · period ending 2021-12-31 · accession 0001564590-23-005716 (NetIncomeLoss)
  9. 10-K · period ending 2018-12-31 · accession 0001564590-20-014068 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2019-12-31 · accession 0001564590-21-016781 (NetCashProvidedByUsedInOperatingActivities)
  11. 10-K · period ending 2020-12-31 · accession 0001564590-22-013025 (NetCashProvidedByUsedInOperatingActivities)
  12. 10-K · period ending 2021-12-31 · accession 0001564590-23-005716 (NetCashProvidedByUsedInOperatingActivities)
  13. 10-K · period ending 2018-12-31 · accession 0001564590-20-014068 (PaymentsToAcquirePropertyPlantAndEquipment)
  14. 10-K · period ending 2019-12-31 · accession 0001564590-21-016781 (PaymentsToAcquirePropertyPlantAndEquipment)
  15. 10-K · period ending 2020-12-31 · accession 0001564590-22-013025 (PaymentsToAcquirePropertyPlantAndEquipment)
  16. 10-K · period ending 2018-12-31 · accession 0001564590-20-014068 (CashAndCashEquivalentsAtCarryingValue)
  17. 10-K · period ending 2019-12-31 · accession 0001564590-21-016781 (CashAndCashEquivalentsAtCarryingValue)
  18. 10-K · period ending 2020-12-31 · accession 0001564590-22-013025 (CashAndCashEquivalentsAtCarryingValue)
  19. 10-K · period ending 2021-12-31 · accession 0001564590-23-005716 (CashAndCashEquivalentsAtCarryingValue)