MeritValue

Mercer Bancorp, Inc.

MSBBdata completeness 88%4 fiscal years on file

Data notes: no data for concept 'totalDebt'

The thesis, from the filings

Mercer Bancorp, Inc. earns about 23% on invested capital, and has bought back 7% of its shares over 4 years. The applicable estimate puts fair value near $9.21 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 2022FY 2023FY 2024FY 2025
Revenue$4.59M1$6M2$8.25M3$9.44M3
Net income$943,5884$743,9645$692,7376$972,3056
Operating cash flow$1.3M7−$1.63M8−$8.13M9$1.87M9
Capital expenditure$382,74210$295,30911$485,15812$2.81M12
Free cash flow (derived)$919,7417−$1.93M8−$8.61M9−$938,2729
Total debt————
Cash & equivalents$14.4M13$6.29M14$5.9M15$5.36M15
Diluted shares—1.0M944,776948,893

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
$259.5
your share of equity
Profit it earned you last year
$10.25
Free cash flow it threw off
−$9.89
Debt you’d be carrying
—

10 shares is a claim on $259.5 of net worth that earned you $10.25 and generated −$9.89 of cash last year.

iii. Is this a good business?
Moat signal · return on invested capital
23% avg · 4y
FY22 —FY23 8%FY24 29%FY25 33%

It earned an average 23% on invested capital over 4 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
−7% shares · 4y

Share count is down 7% over 4 years — management has been buying back stock, quietly handing owners a bigger slice.

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
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
DCF · Growth Exit 5Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
Earnings Power Value
$9.21
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$843,776
  • growthAssumed0.0%
Graham Number
$24.4
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2022-09-30 · accession 0001558370-23-020031 (InterestAndDividendIncomeOperating)
  2. 10-K · period ending 2023-09-30 · accession 0001558370-25-000202 (InterestAndDividendIncomeOperating)
  3. 10-K · period ending 2024-09-30 · accession 0001104659-25-123303 (InterestAndDividendIncomeOperating)
  4. 10-K · period ending 2022-09-30 · accession 0001558370-23-020031 (NetIncomeLoss)
  5. 10-K · period ending 2023-09-30 · accession 0001558370-25-000202 (NetIncomeLoss)
  6. 10-K · period ending 2024-09-30 · accession 0001104659-25-123303 (NetIncomeLoss)
  7. 10-K · period ending 2022-09-30 · accession 0001558370-23-020031 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2023-09-30 · accession 0001558370-25-000202 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2024-09-30 · accession 0001104659-25-123303 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2022-09-30 · accession 0001558370-23-020031 (PaymentsToAcquirePropertyPlantAndEquipment)
  11. 10-K · period ending 2023-09-30 · accession 0001558370-25-000202 (PaymentsToAcquirePropertyPlantAndEquipment)
  12. 10-K · period ending 2024-09-30 · accession 0001104659-25-123303 (PaymentsToAcquirePropertyPlantAndEquipment)
  13. 10-K · period ending 2022-09-30 · accession 0001558370-23-020031 (CashAndCashEquivalentsAtCarryingValue)
  14. 10-K · period ending 2023-09-30 · accession 0001558370-25-000202 (CashAndCashEquivalentsAtCarryingValue)
  15. 10-K · period ending 2024-09-30 · accession 0001104659-25-123303 (CashAndCashEquivalentsAtCarryingValue)