Innovaro, Inc.

INNIdata completeness 100%3 fiscal years on file

The thesis, from the filings

Innovaro, Inc. earns about -47% on invested capital, but has diluted owners by 6% over 3 years — worth asking whether the growth reaches owners. 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

Figure	FY 2010	FY 2011	FY 2012
Revenue	$13.1M¹	$435,425²	$530,834²
Net income	−$19.1M³	−$4.62M⁴	−$9.99M⁴
Operating cash flow	−$4.91M⁵	−$2.83M⁶	−$1.68M⁶
Capital expenditure	$80,063⁷	$39,218⁸	$1,279⁸
Free cash flow (derived)	−$4.99M⁵	−$2.87M⁶	−$1.68M⁶
Total debt	$5.79M⁹	$11.3M¹⁰	$10.5M¹⁰
Cash & equivalents	$262,619¹¹	$268,170¹¹	$75,910¹¹
Diluted shares	14.6M	15.0M	15.5M

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

Net assets behind them

$0.98

your share of equity

Profit it earned you last year

−$6.46

Free cash flow it threw off

−$1.08

Debt you’d be carrying

$6.77

10 shares is a claim on $0.98 of net worth that earned you −$6.46 and generated −$1.08 of cash last year, against $6.77 of debt.

iii. Is this a good business?

Moat signal · return on invested capital

-47% avg · 3y

FY10 -77%FY11 -21%FY12 -42%

It earned an average -47% 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

+6% shares · 3y

Share count is up 6% over 3 years — owners have been diluted. Worth asking what they got for it. Total debt has risen 81% 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

10-K · period ending 2010-12-31 · accession 0001193125-12-158864 (Revenues)
10-K · period ending 2011-12-31 · accession 0001193125-13-155023 (Revenues)
10-K · period ending 2010-12-31 · accession 0001193125-12-158864 (NetIncomeLoss)
10-K · period ending 2011-12-31 · accession 0001193125-13-155023 (NetIncomeLoss)
10-K · period ending 2010-12-31 · accession 0001193125-12-158864 (NetCashProvidedByUsedInOperatingActivities)
10-K · period ending 2011-12-31 · accession 0001193125-13-155023 (NetCashProvidedByUsedInOperatingActivities)
10-K · period ending 2010-12-31 · accession 0001193125-12-158864 (PaymentsToAcquireProductiveAssets)
10-K · period ending 2011-12-31 · accession 0001193125-13-155023 (PaymentsToAcquirePropertyPlantAndEquipment)
10-K · period ending 2010-12-31 · accession 0001193125-12-158864 (LongTermDebtNoncurrent)
10-K · period ending 2011-12-31 · accession 0001193125-13-155023 (LongTermDebtNoncurrent)
10-K · period ending 2010-12-31 · accession 0001193125-13-155023 (CashAndCashEquivalentsAtCarryingValue)