MeritValue

Functional Brands Inc.

MEHAdata completeness 100%2 fiscal years on file

Data notes: no data for concept 'interestExpense'; no data for concept 'incomeTaxExpense'; no data for concept 'pretaxIncome'

The thesis, from the filings

Functional Brands Inc. earns about 49% on equity, but has diluted owners by 1171% over 2 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 2024FY 2025
Revenue$6.57M1$6.61M1
Net income−$559,3562$758,4782
Operating cash flow$1,9903−$1.27M3
Capital expenditure$1,8814$8,5134
Free cash flow (derived)$1093−$1.28M3
Total debt—$295,4255
Cash & equivalents$211,6426$2.73M6
Diluted shares6.7M85.1M

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
$0.18
your share of equity
Profit it earned you last year
$0.09
Free cash flow it threw off
−$0.15
Debt you’d be carrying
$0.03

10 shares is a claim on $0.18 of net worth that earned you $0.09 and generated −$0.15 of cash last year, against $0.03 of debt.

iii. Is this a good business?
Moat signal · return on equity
49% avg · 2y
FY24 —FY25 49%

It earned an average 49% on equity over 2 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+1171% shares · 2y

Share count is up 1171% over 2 years — owners have been diluted. Worth asking what they got for it. Total debt has held roughly steady.

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 2 years of FCF (need ≥3) — model not applicable
DCF · Growth Exit 5Y
not applicable
only 2 years of FCF (need ≥3) — model not applicable
Earnings Power Value
not applicable
only 2 years of net income (need ≥3)
Graham Number
$0.06
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2024-12-31 · accession 0001213900-26-035675 (Revenues)
  2. 10-K · period ending 2024-12-31 · accession 0001213900-26-035675 (NetIncomeLoss)
  3. 10-K · period ending 2024-12-31 · accession 0001213900-26-035675 (NetCashProvidedByUsedInOperatingActivities)
  4. 10-K · period ending 2024-12-31 · accession 0001213900-26-035675 (PaymentsToAcquirePropertyPlantAndEquipment)
  5. 10-K · period ending 2025-12-31 · accession 0001213900-26-035675 (LongTermDebt)
  6. 10-K · period ending 2024-12-31 · accession 0001213900-26-035675 (CashAndCashEquivalentsAtCarryingValue)