MeritValue

Netcapital Inc.

NCPLdata completeness 88%13 fiscal years on file

Data notes: no data for concept 'capex'

The thesis, from the filings

Netcapital Inc. earns about -34% on equity, and has bought back 16% of its shares over 5 years. The applicable estimate puts fair value near $10.98 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 2021FY 2022FY 2023FY 2024FY 2025
Revenue$4.72M1$5.48M2$8.49M3$4.95M4$869,4604
Net income$1.47M5$3.5M6$2.95M7−$4.99M8−$28.3M8
Operating cash flow−$3.25M9−$3.01M10−$4.62M11−$4.88M12−$5.34M12
Capital expenditure—————
Free cash flow (derived)—————
Total debt$10.7M13$8.29M14$7.46M15$6.73M16$7.25M16
Cash & equivalents$2.47M17$473,92518$569,44119$863,18219$289,42819
Diluted shares1.6M2.7M4.7M172,9371.4M

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
$107.42
your share of equity
Profit it earned you last year
−$203.95
Free cash flow it threw off
—
Debt you’d be carrying
$52.27

10 shares is a claim on $107.42 of net worth that earned you −$203.95 last year, against $52.27 of debt.

iii. Is this a good business?
Moat signal · return on equity
-34% avg · 5y
FY21 10%FY22 14%FY23 8%FY24 -13%FY25 -190%

It earned an average -34% on equity over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
−16% shares · 5y

Share count is down 16% over 5 years — management has been buying back stock, quietly handing owners a bigger slice. Total debt has fallen 32% — deleveraging.

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
$10.98
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$1.47M
  • growthAssumed0.0%
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 2021-04-30 · accession 0001903596-22-000497 (Revenues)
  2. 10-K · period ending 2022-04-30 · accession 0001903596-23-000560 (Revenues)
  3. 10-K · period ending 2023-04-30 · accession 0001493152-24-029454 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K · period ending 2024-04-30 · accession 0001641172-25-023248 (RevenueFromContractWithCustomerExcludingAssessedTax)
  5. 10-K · period ending 2021-04-30 · accession 0001903596-22-000497 (NetIncomeLoss)
  6. 10-K · period ending 2022-04-30 · accession 0001903596-23-000560 (NetIncomeLoss)
  7. 10-K · period ending 2023-04-30 · accession 0001493152-24-029454 (NetIncomeLoss)
  8. 10-K · period ending 2024-04-30 · accession 0001641172-25-023248 (NetIncomeLoss)
  9. 10-K · period ending 2021-04-30 · accession 0001903596-22-000497 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2022-04-30 · accession 0001903596-23-000560 (NetCashProvidedByUsedInOperatingActivities)
  11. 10-K · period ending 2023-04-30 · accession 0001493152-24-029454 (NetCashProvidedByUsedInOperatingActivities)
  12. 10-K · period ending 2024-04-30 · accession 0001641172-25-023248 (NetCashProvidedByUsedInOperatingActivities)
  13. 10-K · period ending 2021-04-30 · accession 0001903596-22-000497 (LongTermDebtCurrent)
  14. 10-K · period ending 2022-04-30 · accession 0001903596-23-000560 (LongTermDebtCurrent)
  15. 10-K · period ending 2023-04-30 · accession 0001493152-24-029454 (LongTermDebtCurrent)
  16. 10-K · period ending 2024-04-30 · accession 0001641172-25-023248 (LongTermDebtCurrent)
  17. 10-K · period ending 2021-04-30 · accession 0001903596-23-000560 (CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents)
  18. 10-K · period ending 2022-04-30 · accession 0001493152-24-029454 (CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents)
  19. 10-K · period ending 2023-04-30 · accession 0001641172-25-023248 (CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents)