MeritValue

GYRE THERAPEUTICS, INC.

GYREdata completeness 88%17 fiscal years on file
The thesis, from the filings

GYRE THERAPEUTICS, INC. earns about 27% on invested capital, but has diluted owners by 237% over 5 years — worth asking whether the growth reaches owners. The applicable estimate puts fair value near $0.43 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$7.34M1$102.3M2$113.5M3$105.8M4$116.6M4
Net income−$87.9M5$4.31M6−$85.5M7$17.9M8$9.88M8
Operating cash flow−$83.8M9$10.7M10$25.9M11−$3.64M12$1.01M12
Capital expenditure$839,00013$4.99M14$8.52M15$2.32M16$1.19M16
Free cash flow (derived)−$84.6M9$5.69M10$17.4M11−$5.96M12−$180,00012
Total debt—————
Cash & equivalents$44.3M17$25.2M18$33.5M19$11.8M20$37.1M20
Diluted shares30.6M75.7M65.8M102.3M103.2M

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
$10.28
your share of equity
Profit it earned you last year
$0.96
Free cash flow it threw off
−$0.02
Debt you’d be carrying
—

10 shares is a claim on $10.28 of net worth that earned you $0.96 and generated −$0.02 of cash last year.

iii. Is this a good business?
Moat signal · return on invested capital
27% avg · 5y
FY21 —FY22 29%FY23 —FY24 37%FY25 16%

It earned an average 27% 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
+237% shares · 5y

Share count is up 237% 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
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
$0.43
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$4.31M
  • growthAssumed0.0%
Graham Number
$0.68
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 0001564590-22-012877 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2022-12-31 · accession 0000950170-24-037242 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2023-12-31 · accession 0000950170-25-040279 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K · period ending 2024-12-31 · accession 0001193125-26-106251 (RevenueFromContractWithCustomerExcludingAssessedTax)
  5. 10-K · period ending 2021-12-31 · accession 0001564590-23-004830 (NetIncomeLoss)
  6. 10-K · period ending 2022-12-31 · accession 0000950170-24-037242 (NetIncomeLoss)
  7. 10-K · period ending 2023-12-31 · accession 0000950170-25-040279 (NetIncomeLoss)
  8. 10-K · period ending 2024-12-31 · accession 0001193125-26-106251 (NetIncomeLoss)
  9. 10-K · period ending 2021-12-31 · accession 0001564590-23-004830 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2022-12-31 · accession 0000950170-24-037242 (NetCashProvidedByUsedInOperatingActivities)
  11. 10-K · period ending 2023-12-31 · accession 0000950170-25-040279 (NetCashProvidedByUsedInOperatingActivities)
  12. 10-K · period ending 2024-12-31 · accession 0001193125-26-106251 (NetCashProvidedByUsedInOperatingActivities)
  13. 10-K · period ending 2021-12-31 · accession 0001564590-23-004830 (PaymentsToAcquirePropertyPlantAndEquipment)
  14. 10-K · period ending 2022-12-31 · accession 0000950170-24-037242 (PaymentsToAcquirePropertyPlantAndEquipment)
  15. 10-K · period ending 2023-12-31 · accession 0000950170-25-040279 (PaymentsToAcquirePropertyPlantAndEquipment)
  16. 10-K · period ending 2024-12-31 · accession 0001193125-26-106251 (PaymentsToAcquirePropertyPlantAndEquipment)
  17. 10-K · period ending 2021-12-31 · accession 0001564590-23-004830 (CashAndCashEquivalentsAtCarryingValue)
  18. 10-K · period ending 2022-12-31 · accession 0000950170-24-037242 (CashAndCashEquivalentsAtCarryingValue)
  19. 10-K · period ending 2023-12-31 · accession 0000950170-25-040279 (CashAndCashEquivalentsAtCarryingValue)
  20. 10-K · period ending 2024-12-31 · accession 0001193125-26-106251 (CashAndCashEquivalentsAtCarryingValue)