MeritValue

FrankSpeech Network, Inc.

MLMCdata completeness 75%4 fiscal years on file

Data notes: no data for concept 'capex'; no data for concept 'incomeTaxExpense'

The thesis, from the filings

FrankSpeech Network, Inc. earns about -2828% on equity, but has diluted owners by 124922% over 4 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 2014FY 2015FY 2016FY 2017
Revenue—$18,9191$39,5032$3,3472
Net income$3.1M3−$34.7M4−$26.6M5−$2.09M5
Operating cash flow—−$96,7706−$269,2237−$350,2767
Capital expenditure————
Free cash flow (derived)————
Total debt————
Cash & equivalents—$1,7908$1,4978$7218
Diluted shares1.0M3,80942.5M1.26B

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
−$0.01
your share of equity
Profit it earned you last year
−$0.02
Free cash flow it threw off
—
Debt you’d be carrying
—

10 shares is a claim on −$0.01 of net worth that earned you −$0.02 last year.

iii. Is this a good business?
Moat signal · return on equity
-2828% avg · 4y
FY14 —FY15 -2828%FY16 —FY17 —

It earned an average -2828% on equity over 4 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+124922% shares · 4y

Share count is up 124922% over 4 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
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 · period ending 2015-12-31 · accession 0001213900-17-003134 (SalesRevenueNet)
  2. 10-K · period ending 2016-12-31 · accession 0001213900-18-007641 (SalesRevenueNet)
  3. 10-K · period ending 2014-12-31 · accession 0001213900-16-017220 (NetIncomeLoss)
  4. 10-K · period ending 2015-12-31 · accession 0001213900-17-003134 (NetIncomeLoss)
  5. 10-K · period ending 2016-12-31 · accession 0001213900-18-007641 (NetIncomeLoss)
  6. 10-K · period ending 2015-12-31 · accession 0001213900-17-003134 (NetCashProvidedByUsedInOperatingActivities)
  7. 10-K · period ending 2016-12-31 · accession 0001213900-18-007641 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2015-12-31 · accession 0001213900-18-007641 (CashAndCashEquivalentsAtCarryingValue)