MeritValue

3 E Network Technology Group Ltd

MASKdata completeness 75%3 fiscal years on file

Data notes: no data for concept 'capex'; no data for concept 'totalDebt'; no data for concept 'interestExpense'

The thesis, from the filings

3 E Network Technology Group Ltd earns about 28% on invested capital, but has diluted owners by 6% over 3 years — worth asking whether the growth reaches owners. The applicable estimate puts fair value near $0.97 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 2023FY 2024FY 2025
Revenue$37,1301$859,3441$4.84M1
Net income$996,1572$1.55M2$764,9192
Operating cash flow$901,2883$929,2033$13,8323
Capital expenditure———
Free cash flow (derived)———
Total debt———
Cash & equivalents$19,3964$11,1175$313,5665
Diluted shares10.0M10.0M10.6M

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
$5.05
your share of equity
Profit it earned you last year
$0.72
Free cash flow it threw off
—
Debt you’d be carrying
—

10 shares is a claim on $5.05 of net worth that earned you $0.72 last year.

iii. Is this a good business?
Moat signal · return on invested capital
28% avg · 3y
FY23 —FY24 26%FY25 29%

It earned an average 28% 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.

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
only 0 years of FCF (need ≥3) — model not applicable
DCF · Growth Exit 5Y
not applicable
only 0 years of FCF (need ≥3) — model not applicable
Earnings Power Value
$0.97
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$996,157
  • growthAssumed0.0%
Graham Number
$0.89
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 20-F · period ending 2023-06-30 · accession 0001185185-25-001717 (Revenues)
  2. 20-F · period ending 2023-06-30 · accession 0001185185-25-001717 (NetIncomeLoss)
  3. 20-F · period ending 2023-06-30 · accession 0001185185-25-001717 (NetCashProvidedByUsedInOperatingActivities)
  4. 20-F · period ending 2023-06-30 · accession 0001185185-25-001717 (CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents)
  5. 20-F · period ending 2024-06-30 · accession 0001185185-25-001717 (CashAndCashEquivalentsAtCarryingValue)