MeritValue

ESPORTS ENTERTAINMENT GROUP, INC.

GMBLdata completeness 88%11 fiscal years on file
The thesis, from the filings

ESPORTS ENTERTAINMENT GROUP, INC. earns about -396% on invested capital, and has bought back 71% 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——$16.8M1$58.4M2$23M2
Net income−$6.38M3−$10.4M4−$26.4M5−$102.2M6−$32.3M6
Operating cash flow−$2.02M7−$2.27M8−$18.9M9−$21M10−$15.7M10
Capital expenditure——$62,38511$137,72912$3,32112
Free cash flow (derived)——−$18.9M9−$21.1M10−$15.7M10
Total debt——$13.5M13$35.1M14—
Cash & equivalents$43,41215$12.4M16$19.9M17$2.52M17$1.75M17
Diluted shares5.8M11.2M15.7M288,8691.7M

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
$27.99
your share of equity
Profit it earned you last year
−$188.41
Free cash flow it threw off
−$91.91
Debt you’d be carrying
—

10 shares is a claim on $27.99 of net worth that earned you −$188.41 and generated −$91.91 of cash last year.

iii. Is this a good business?
Moat signal · return on invested capital
-396% avg · 5y
FY19 —FY20 —FY21 -34%FY22 -381%FY23 -772%

It earned an average -396% 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
−71% shares · 5y

Share count is down 71% over 5 years — management has been buying back stock, quietly handing owners a bigger slice. Total debt has risen 160% 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 2021-06-30 · accession 0001493152-22-028366 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2022-06-30 · accession 0001493152-23-037224 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2019-06-30 · accession 0001493152-20-018724 (NetIncomeLoss)
  4. 10-K · period ending 2020-06-30 · accession 0001493152-21-025333 (NetIncomeLoss)
  5. 10-K · period ending 2021-06-30 · accession 0001493152-22-028366 (NetIncomeLoss)
  6. 10-K · period ending 2022-06-30 · accession 0001493152-23-037224 (NetIncomeLoss)
  7. 10-K · period ending 2019-06-30 · accession 0001493152-20-018724 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2020-06-30 · accession 0001493152-21-025333 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2021-06-30 · accession 0001493152-22-028366 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2022-06-30 · accession 0001493152-23-037224 (NetCashProvidedByUsedInOperatingActivities)
  11. 10-K · period ending 2021-06-30 · accession 0001493152-22-028366 (PaymentsToAcquirePropertyPlantAndEquipment)
  12. 10-K · period ending 2022-06-30 · accession 0001493152-23-037224 (PaymentsToAcquirePropertyPlantAndEquipment)
  13. 10-K · period ending 2021-06-30 · accession 0001493152-22-028366 (LongTermDebtNoncurrent)
  14. 10-K · period ending 2022-06-30 · accession 0001493152-22-028366 (LongTermDebtCurrent)
  15. 10-K · period ending 2019-06-30 · accession 0001493152-20-018724 (CashAndCashEquivalentsAtCarryingValue)
  16. 10-K · period ending 2020-06-30 · accession 0001493152-22-028366 (CashAndCashEquivalentsAtCarryingValue)
  17. 10-K · period ending 2021-06-30 · accession 0001493152-23-037224 (CashAndCashEquivalentsAtCarryingValue)