MeritValue

HiTek Global Inc.

HKITdata completeness 75%8 fiscal years on file

Data notes: no data for concept 'totalDebt'

The thesis, from the filings

HiTek Global Inc. earns about 7% on invested capital, and has bought back 22% of its shares over 5 years. The applicable estimate puts fair value near $1.26 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$6.46M1$6.43M2$4.56M3$2.9M3$6.54M3
Net income$1.67M4$1.42M5$1.05M6−$896,6906$180,1426
Operating cash flow−$214,5757$3.82M8−$61,9129−$688,5389−$1.54M9
Capital expenditure——$186,49910——
Free cash flow (derived)——−$248,4119——
Total debt—————
Cash & equivalents$2.09M11$1.2M12$9.31M13$7.24M14$3.61M14
Diluted shares11.0M11.0M8.3M8.4M8.6M

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
$41.8
your share of equity
Profit it earned you last year
$0.21
Free cash flow it threw off
—
Debt you’d be carrying
—

10 shares is a claim on $41.8 of net worth that earned you $0.21 last year.

iii. Is this a good business?
Moat signal · return on invested capital
7% avg · 5y
FY21 15%FY22 13%FY23 7%FY24 -2%FY25 1%

It earned an average 7% 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
−22% shares · 5y

Share count is down 22% over 5 years — management has been buying back stock, quietly handing owners a bigger slice.

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
only 1 years of FCF (need ≥3) — model not applicable
DCF · Growth Exit 5Y
not applicable
only 1 years of FCF (need ≥3) — model not applicable
Earnings Power Value
$1.26
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$1.05M
  • growthAssumed0.0%
Graham Number
$1.37
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 20-F · period ending 2021-12-31 · accession 0001213900-24-030818 (RevenueFromContractWithCustomerIncludingAssessedTax)
  2. 20-F · period ending 2022-12-31 · accession 0001213900-25-035602 (RevenueFromContractWithCustomerIncludingAssessedTax)
  3. 20-F · period ending 2023-12-31 · accession 0001213900-26-047560 (RevenueFromContractWithCustomerIncludingAssessedTax)
  4. 20-F · period ending 2021-12-31 · accession 0001213900-24-030818 (NetIncomeLoss)
  5. 20-F · period ending 2022-12-31 · accession 0001213900-25-035602 (NetIncomeLoss)
  6. 20-F · period ending 2023-12-31 · accession 0001213900-26-047560 (NetIncomeLoss)
  7. 20-F · period ending 2021-12-31 · accession 0001213900-24-030818 (NetCashProvidedByUsedInOperatingActivities)
  8. 20-F · period ending 2022-12-31 · accession 0001213900-25-035602 (NetCashProvidedByUsedInOperatingActivities)
  9. 20-F · period ending 2023-12-31 · accession 0001213900-26-047560 (NetCashProvidedByUsedInOperatingActivities)
  10. 20-F · period ending 2023-12-31 · accession 0001213900-26-047560 (PaymentsToAcquirePropertyPlantAndEquipment)
  11. 20-F/A · period ending 2021-12-31 · accession 0001213900-23-069614 (CashAndCashEquivalentsAtCarryingValue)
  12. 20-F · period ending 2022-12-31 · accession 0001213900-24-030818 (CashAndCashEquivalentsAtCarryingValue)
  13. 20-F · period ending 2023-12-31 · accession 0001213900-25-035602 (CashAndCashEquivalentsAtCarryingValue)
  14. 20-F · period ending 2024-12-31 · accession 0001213900-26-047560 (CashAndCashEquivalentsAtCarryingValue)