MeritValue

Happy City Holdings Ltd

HCHLdata completeness 88%3 fiscal years on file

Data notes: no data for concept 'dilutedShares'; no data for concept 'epsDiluted'; no data for concept 'interestExpense'

The thesis, from the filings

Happy City Holdings Ltd earns about -5% on invested capital. 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 2023FY 2024FY 2025
Revenue$6.75M1$8.3M1$6.8M1
Net income−$1.09M2$1.32M2−$2.43M2
Operating cash flow−$676,2243$1.27M3−$1.27M3
Capital expenditure$9,5464$771,7384$908,1854
Free cash flow (derived)−$685,7703$493,2713−$2.18M3
Total debt—$6.96M5$6.32M5
Cash & equivalents$184,7386$2.94M7$3.37M7
Diluted shares———

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

iii. Is this a good business?
Moat signal · return on invested capital
-5% avg · 3y
FY23 —FY24 28%FY25 -38%

It earned an average -5% on invested capital over 3 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
— shares · 3y

Total debt has held roughly steady.

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. 20-F · period ending 2023-08-31 · accession 0001213900-26-004364 (Revenues)
  2. 20-F · period ending 2023-08-31 · accession 0001213900-26-004364 (NetIncomeLoss)
  3. 20-F · period ending 2023-08-31 · accession 0001213900-26-004364 (NetCashProvidedByUsedInOperatingActivities)
  4. 20-F · period ending 2023-08-31 · accession 0001213900-26-004364 (PaymentsToAcquirePropertyPlantAndEquipment)
  5. 20-F · period ending 2024-08-31 · accession 0001213900-26-004364 (LongTermDebtCurrent)
  6. 20-F · period ending 2023-08-31 · accession 0001213900-26-004364 (CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents)
  7. 20-F · period ending 2024-08-31 · accession 0001213900-26-004364 (CashAndCashEquivalentsAtCarryingValue)