MeritValue

Leader Capital Holdings Corp.

LCHDdata completeness 88%5 fiscal years on file

Data notes: no data for concept 'totalDebt'

The thesis, from the filings

Leader Capital Holdings Corp. earns about -1122% on equity, but has diluted owners by 70% 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 2018FY 2019FY 2020FY 2021FY 2022
Revenue—$18,1111$6,6672$95,1663$339,4423
Net income−$541,2394−$902,0945−$9.84M6−$11.7M7−$11.9M7
Operating cash flow−$527,3668−$427,5809−$956,84910−$3.62M11−$2.91M11
Capital expenditure$25,40812$2,36013$37114$71,06815$49,03315
Free cash flow (derived)−$552,7748−$429,9409−$957,22010−$3.69M11−$2.96M11
Total debt—————
Cash & equivalents$839,32316$447,56217$432,08718$787,15419$213,27019
Diluted shares104.3M105.2M135.5M143.7M177.6M

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
−$0.12
your share of equity
Profit it earned you last year
−$0.67
Free cash flow it threw off
−$0.17
Debt you’d be carrying
—

10 shares is a claim on −$0.12 of net worth that earned you −$0.67 and generated −$0.17 of cash last year.

iii. Is this a good business?
Moat signal · return on equity
-1122% avg · 5y
FY18 -61%FY19 -208%FY20 -497%FY21 -3721%FY22 —

It earned an average -1122% on equity over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+70% shares · 5y

Share count is up 70% 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/A · period ending 2019-08-31 · accession 0001493152-21-017193 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2020-08-31 · accession 0001493152-21-031425 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2021-08-31 · accession 0001493152-22-035440 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K · period ending 2018-08-31 · accession 0001493152-19-018573 (NetIncomeLoss)
  5. 10-K/A · period ending 2019-08-31 · accession 0001493152-21-017193 (NetIncomeLoss)
  6. 10-K · period ending 2020-08-31 · accession 0001493152-21-031425 (NetIncomeLoss)
  7. 10-K · period ending 2021-08-31 · accession 0001493152-22-035440 (NetIncomeLoss)
  8. 10-K · period ending 2018-08-31 · accession 0001493152-19-018573 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K/A · period ending 2019-08-31 · accession 0001493152-21-017193 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2020-08-31 · accession 0001493152-21-031425 (NetCashProvidedByUsedInOperatingActivities)
  11. 10-K · period ending 2021-08-31 · accession 0001493152-22-035440 (NetCashProvidedByUsedInOperatingActivities)
  12. 10-K · period ending 2018-08-31 · accession 0001493152-19-018573 (PaymentsToAcquirePropertyPlantAndEquipment)
  13. 10-K/A · period ending 2019-08-31 · accession 0001493152-21-017193 (PaymentsToAcquirePropertyPlantAndEquipment)
  14. 10-K · period ending 2020-08-31 · accession 0001493152-21-031425 (PaymentsToAcquirePropertyPlantAndEquipment)
  15. 10-K · period ending 2021-08-31 · accession 0001493152-22-035440 (PaymentsToAcquirePropertyPlantAndEquipment)
  16. 10-K · period ending 2018-08-31 · accession 0001493152-19-018573 (CashAndCashEquivalentsAtCarryingValue)
  17. 10-K/A · period ending 2019-08-31 · accession 0001493152-21-017193 (CashAndCashEquivalentsAtCarryingValue)
  18. 10-K · period ending 2020-08-31 · accession 0001493152-21-031425 (CashAndCashEquivalentsAtCarryingValue)
  19. 10-K · period ending 2021-08-31 · accession 0001493152-22-035440 (CashAndCashEquivalentsAtCarryingValue)