MeritValue

KUSTOM ENTERTAINMENT, INC.

KUSTdata completeness 100%16 fiscal years on file
The thesis, from the filings

KUSTOM ENTERTAINMENT, INC. earns about -328% on invested capital, and has bought back 85% of its shares over 5 years. 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$21.4M1$37M2$28.2M3$13.5M4$13.8M4
Net income$25.5M5−$18.9M5−$25.5M6−$19.8M7−$6.67M7
Operating cash flow−$17.8M8−$18.6M9−$9.89M10−$5.11M10−$8.41M11
Capital expenditure$6.43M12$2.07M12—$28,79513$258,05013
Free cash flow (derived)−$24.3M8−$20.6M9—−$5.14M10−$8.67M11
Total debt$2.62M14$2.34M15$12.2M16$10.2M17$1.69M17
Cash & equivalents$32M18$3.53M19$680,54920$219,31121$757,36921
Diluted shares2.5M2.5M2.8M593387,144

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
$61.22
your share of equity
Profit it earned you last year
−$172.33
Free cash flow it threw off
−$223.92
Debt you’d be carrying
$43.67

10 shares is a claim on $61.22 of net worth that earned you −$172.33 and generated −$223.92 of cash last year, against $43.67 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
-328% avg · 5y
FY21 76%FY22 -42%FY23 -77%FY24 -1454%FY25 -142%

It earned an average -328% 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
−85% shares · 5y

Share count is down 85% over 5 years — management has been buying back stock, quietly handing owners a bigger slice. Total debt has fallen 36% — deleveraging.

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 0001493152-23-010358 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2022-12-31 · accession 0001493152-24-012365 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2023-12-31 · accession 0001641172-25-008420 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K · period ending 2024-12-31 · accession 0001493152-26-016236 (RevenueFromContractWithCustomerExcludingAssessedTax)
  5. 10-K · period ending 2021-12-31 · accession 0001493152-23-010358 (NetIncomeLoss)
  6. 10-K · period ending 2023-12-31 · accession 0001641172-25-008420 (ProfitLoss)
  7. 10-K · period ending 2024-12-31 · accession 0001493152-26-016236 (NetIncomeLoss)
  8. 10-K · period ending 2021-12-31 · accession 0001493152-23-010358 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2022-12-31 · accession 0001493152-24-012365 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2023-12-31 · accession 0001641172-25-008420 (NetCashProvidedByUsedInOperatingActivities)
  11. 10-K · period ending 2025-12-31 · accession 0001493152-26-016236 (NetCashProvidedByUsedInOperatingActivitiesContinuingOperations)
  12. 10-K · period ending 2021-12-31 · accession 0001493152-23-010358 (PaymentsToAcquirePropertyPlantAndEquipment)
  13. 10-K · period ending 2024-12-31 · accession 0001493152-26-016236 (PaymentsToAcquirePropertyPlantAndEquipment)
  14. 10-K · period ending 2021-12-31 · accession 0001493152-23-010358 (LongTermDebtNoncurrent)
  15. 10-K · period ending 2022-12-31 · accession 0001493152-24-012365 (LongTermDebtNoncurrent)
  16. 10-K · period ending 2023-12-31 · accession 0001641172-25-008420 (LongTermDebtNoncurrent)
  17. 10-K · period ending 2024-12-31 · accession 0001493152-26-016236 (LongTermDebtNoncurrent)
  18. 10-K · period ending 2021-12-31 · accession 0001493152-23-010358 (CashAndCashEquivalentsAtCarryingValue)
  19. 10-K · period ending 2022-12-31 · accession 0001493152-24-012365 (CashAndCashEquivalentsAtCarryingValue)
  20. 10-K · period ending 2023-12-31 · accession 0001641172-25-008420 (CashAndCashEquivalentsAtCarryingValue)
  21. 10-K · period ending 2024-12-31 · accession 0001493152-26-016236 (CashAndCashEquivalentsAtCarryingValue)