MeritValue

KORU Medical Systems, Inc.

KRMDdata completeness 88%15 fiscal years on file
The thesis, from the filings

KORU Medical Systems, Inc. earns about -57% on invested capital, but has diluted owners by 4% over 5 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
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$23.5M1$27.9M2$28.5M3$33.6M4$41.1M4
Net income−$4.56M5−$8.66M6−$13.7M7−$6.07M8−$2.64M8
Operating cash flow−$4.32M9−$5.4M10−$4.89M11−$319,71812$462,40512
Capital expenditure$346,17813$2.76M14$782,94915$1.3M16$932,51716
Free cash flow (derived)−$4.67M9−$8.17M10−$5.68M11−$1.62M12−$470,11212
Total debt—————
Cash & equivalents$25.3M17$17.4M18$11.5M19$9.58M20$8.87M20
Diluted shares44.4M45.0M45.6M45.8M46.2M

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
$3.69
your share of equity
Profit it earned you last year
−$0.57
Free cash flow it threw off
−$0.1
Debt you’d be carrying
—

10 shares is a claim on $3.69 of net worth that earned you −$0.57 and generated −$0.1 of cash last year.

iii. Is this a good business?
Moat signal · return on invested capital
-57% avg · 5y
FY21 -45%FY22 -61%FY23 -87%FY24 -66%FY25 -25%

It earned an average -57% 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
+4% shares · 5y

Share count is up 4% 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
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 2021-12-31 · accession 0001161697-23-000158 (Revenues)
  2. 10-K · period ending 2022-12-31 · accession 0001161697-24-000139 (Revenues)
  3. 10-K · period ending 2023-12-31 · accession 0001161697-25-000103 (Revenues)
  4. 10-K · period ending 2024-12-31 · accession 0001161697-26-000052 (Revenues)
  5. 10-K · period ending 2021-12-31 · accession 0001161697-23-000158 (NetIncomeLoss)
  6. 10-K · period ending 2022-12-31 · accession 0001161697-24-000139 (NetIncomeLoss)
  7. 10-K · period ending 2023-12-31 · accession 0001161697-25-000103 (NetIncomeLoss)
  8. 10-K · period ending 2024-12-31 · accession 0001161697-26-000052 (NetIncomeLoss)
  9. 10-K · period ending 2021-12-31 · accession 0001161697-23-000158 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2022-12-31 · accession 0001161697-24-000139 (NetCashProvidedByUsedInOperatingActivities)
  11. 10-K · period ending 2023-12-31 · accession 0001161697-25-000103 (NetCashProvidedByUsedInOperatingActivities)
  12. 10-K · period ending 2024-12-31 · accession 0001161697-26-000052 (NetCashProvidedByUsedInOperatingActivities)
  13. 10-K · period ending 2021-12-31 · accession 0001161697-23-000158 (PaymentsToAcquireProductiveAssets)
  14. 10-K · period ending 2022-12-31 · accession 0001161697-24-000139 (PaymentsToAcquireProductiveAssets)
  15. 10-K · period ending 2023-12-31 · accession 0001161697-25-000103 (PaymentsToAcquireProductiveAssets)
  16. 10-K · period ending 2024-12-31 · accession 0001161697-26-000052 (PaymentsToAcquireProductiveAssets)
  17. 10-K · period ending 2021-12-31 · accession 0001161697-23-000158 (CashAndCashEquivalentsAtCarryingValue)
  18. 10-K · period ending 2022-12-31 · accession 0001161697-24-000139 (CashAndCashEquivalentsAtCarryingValue)
  19. 10-K · period ending 2023-12-31 · accession 0001161697-25-000103 (CashAndCashEquivalentsAtCarryingValue)
  20. 10-K · period ending 2024-12-31 · accession 0001161697-26-000052 (CashAndCashEquivalentsAtCarryingValue)