MeritValue

Leatt Corp

LEATdata completeness 100%15 fiscal years on file
The thesis, from the filings

Leatt Corp earns about 17% on invested capital, comfortably above its ~9% cost of capital, but has diluted owners by 6% over 5 years — a real edge showing up in the numbers. The estimate methods put fair value between $5.09 and $5.35 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$72.5M1$76.3M2$47.2M3$44M4$61.9M4
Net income$12.6M5$9.96M6$803,1597−$2.2M8$3.26M8
Operating cash flow$2.78M9$3.09M10$6.66M11$2.79M12$1.81M12
Capital expenditure$1.14M13$1.14M14$2M15$1.23M16$1.08M16
Free cash flow (derived)$1.64M9$1.94M10$4.66M11$1.56M12$725,88312
Total debt$1.25M17$1.28M18$1.28M19$764,32020$801,80421
Cash & equivalents$5.02M22$7.1M23$11.3M24$12.4M25$13M25
Diluted shares6.1M6.1M6.3M6.5M6.4M

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
$65.5
your share of equity
Profit it earned you last year
$5.06
Free cash flow it threw off
$1.13
Debt you’d be carrying
$1.24

10 shares is a claim on $65.5 of net worth that earned you $5.06 and generated $1.13 of cash last year, against $1.24 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
17% avg · 5y
FY21 51%FY22 29%FY23 3%FY24 -7%FY25 12%

It earned about 17% on invested capital against a ~9% cost of capital — comfortably above the cost of funding, a moderate advantage.

seeing a moat in the numbers →
Management signal · capital allocation
+6% shares · 5y

Share count is up 6% over 5 years — owners have been diluted. Worth asking what they got for it. 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

The 3 estimate methods that apply put fair value between $5.09 and $5.35 a share. They rest on different assumptions, so where they diverge is the story; the Graham Number is a stricter floor, not a target.

DCF · Growth Exit 10Y
$5.09
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears10
  • fcfGrowth0.0%
  • fcfBase$1.56M
DCF · Growth Exit 5Y
$5.35
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears5
  • fcfGrowth0.0%
  • fcfBase$1.56M
Earnings Power Value
$5.25
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$3.26M
  • growthAssumed0.0%
Graham Number
$8.67
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

v. The price question — last, on purpose
Is today’s price fair?
See live price ↗
Type a price. The ledger answers.
Or set your own belief
FCF growth, next 5 years0.0%
Discount rate (WACC)8.93%
Terminal growth2.5%
At your growth, a share is worth $5.35
The three cases
Bear0.0%$5.35
Base0.0%$5.35
Bull5.0%$6.19

Bear/base/bull growth = 0% / filed history / history + 5pp. Type a price to see the return each case implies.

Default growth 0.0%= this company’s own filed history (median-to-median FCF CAGR, clamped 0–20%). Your adjustments are recorded anonymously. They become the “what do owners actually believe” dataset.

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0001062993-23-007846 (Revenues)
  2. 10-K · period ending 2022-12-31 · accession 0001062993-24-006304 (Revenues)
  3. 10-K · period ending 2023-12-31 · accession 0001062993-25-006432 (Revenues)
  4. 10-K · period ending 2024-12-31 · accession 0001062993-26-001584 (Revenues)
  5. 10-K · period ending 2021-12-31 · accession 0001062993-23-007846 (NetIncomeLoss)
  6. 10-K · period ending 2022-12-31 · accession 0001062993-24-006304 (NetIncomeLoss)
  7. 10-K · period ending 2023-12-31 · accession 0001062993-25-006432 (NetIncomeLoss)
  8. 10-K · period ending 2024-12-31 · accession 0001062993-26-001584 (NetIncomeLoss)
  9. 10-K · period ending 2021-12-31 · accession 0001062993-23-007846 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2022-12-31 · accession 0001062993-24-006304 (NetCashProvidedByUsedInOperatingActivities)
  11. 10-K · period ending 2023-12-31 · accession 0001062993-25-006432 (NetCashProvidedByUsedInOperatingActivities)
  12. 10-K · period ending 2024-12-31 · accession 0001062993-26-001584 (NetCashProvidedByUsedInOperatingActivities)
  13. 10-K · period ending 2021-12-31 · accession 0001062993-23-007846 (PaymentsToAcquireProductiveAssets)
  14. 10-K · period ending 2022-12-31 · accession 0001062993-24-006304 (PaymentsToAcquireProductiveAssets)
  15. 10-K · period ending 2023-12-31 · accession 0001062993-25-006432 (PaymentsToAcquireProductiveAssets)
  16. 10-K · period ending 2024-12-31 · accession 0001062993-26-001584 (PaymentsToAcquireProductiveAssets)
  17. 10-K · period ending 2021-12-31 · accession 0001062993-22-007237 (LongTermDebt)
  18. 10-K · period ending 2022-12-31 · accession 0001062993-23-007846 (LongTermDebt)
  19. 10-K · period ending 2023-12-31 · accession 0001062993-24-006304 (LongTermDebt)
  20. 10-K · period ending 2024-12-31 · accession 0001062993-25-006432 (LongTermDebt)
  21. 10-K · period ending 2025-12-31 · accession 0001062993-26-001584 (LongTermDebt)
  22. 10-K · period ending 2021-12-31 · accession 0001062993-23-007846 (CashAndCashEquivalentsAtCarryingValue)
  23. 10-K · period ending 2022-12-31 · accession 0001062993-24-006304 (CashAndCashEquivalentsAtCarryingValue)
  24. 10-K · period ending 2023-12-31 · accession 0001062993-25-006432 (CashAndCashEquivalentsAtCarryingValue)
  25. 10-K · period ending 2024-12-31 · accession 0001062993-26-001584 (CashAndCashEquivalentsAtCarryingValue)