MeritValue

Mega Fortune Co Ltd

MGRTdata completeness 88%3 fiscal years on file
The thesis, from the filings

Mega Fortune Co Ltd earns about 37% on invested capital, but has diluted owners by 8% over 3 years — worth asking whether the growth reaches owners. The applicable estimate puts fair value near $0.52 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$3.25M1$3.33M1$11.1M1
Net income$536,5542$401,5342$1.79M2
Operating cash flow−$32,7243−$99,7943−$12M3
Capital expenditure$1,7374$7,3604—
Free cash flow (derived)−$34,4613−$107,1543—
Total debt——$661,7465
Cash & equivalents—$371,9186$764,7616
Diluted shares10.0M10.0M10.8M

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
$14.43
your share of equity
Profit it earned you last year
$1.66
Free cash flow it threw off
—
Debt you’d be carrying
$0.61

10 shares is a claim on $14.43 of net worth that earned you $1.66 last year, against $0.61 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
37% avg · 3y
FY23 58%FY24 42%FY25 12%

It earned an average 37% 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
+8% shares · 3y

Share count is up 8% over 3 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
$0.52
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$536,554
  • growthAssumed0.0%
Graham Number
$2.35
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 20-F · period ending 2023-09-30 · accession 0001493152-26-004907 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 20-F · period ending 2023-09-30 · accession 0001493152-26-004907 (NetIncomeLoss)
  3. 20-F · period ending 2023-09-30 · accession 0001493152-26-004907 (NetCashProvidedByUsedInOperatingActivities)
  4. 20-F · period ending 2023-09-30 · accession 0001493152-26-004907 (PaymentsToAcquirePropertyPlantAndEquipment)
  5. 20-F · period ending 2025-09-30 · accession 0001493152-26-004907 (LongTermDebt)
  6. 20-F · period ending 2024-09-30 · accession 0001493152-26-004907 (CashAndCashEquivalentsAtCarryingValue)