MeritValue

NextSource Materials Inc.

NSRCFdata completeness 75%17 fiscal years on file

Data notes: no data for concept 'totalDebt'; no data for concept 'pretaxIncome'

The thesis, from the filings

NextSource Materials Inc. earns about -241% on equity, and has bought back 78% of its shares over 5 years. 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 2017FY 2019FY 2020FY 2021FY 2022
Revenue$01$02$03$03$03
Net income−$4M4−$3.21M5−$977,6356−$42M6$16.1M6
Operating cash flow−$3.36M7−$2.24M8−$1.39M9−$1.36M9−$1.63M9
Capital expenditure$27,80510$011$011−$4.33M11—
Free cash flow (derived)−$3.39M7−$2.24M8−$1.39M9$2.97M9—
Total debt—————
Cash & equivalents$1.96M12$529,33113$222,30513$22.4M14$9.79M14
Diluted shares461.0M49.4M52.7M98.2M101.9M

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
−$0.3
your share of equity
Profit it earned you last year
$1.58
Free cash flow it threw off
—
Debt you’d be carrying
—

10 shares is a claim on −$0.3 of net worth that earned you $1.58 last year.

iii. Is this a good business?
Moat signal · return on equity
-241% avg · 5y
FY17 -241%FY19 —FY20 —FY21 —FY22 —

It earned an average -241% 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
−78% shares · 5y

Share count is down 78% over 5 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
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 2017-06-30 · accession 0001437749-17-016410 (Revenues)
  2. 20-F · period ending 2019-06-30 · accession 0001568276-21-001985 (Revenue)
  3. 40-F · period ending 2020-06-30 · accession 0001654954-23-009587 (Revenue)
  4. 10-K · period ending 2017-06-30 · accession 0001437749-17-016410 (NetIncomeLoss)
  5. 20-F · period ending 2019-06-30 · accession 0001568276-21-001985 (ProfitLoss)
  6. 40-F · period ending 2020-06-30 · accession 0001654954-23-009587 (ProfitLoss)
  7. 10-K · period ending 2017-06-30 · accession 0001437749-17-016410 (NetCashProvidedByUsedInOperatingActivitiesContinuingOperations)
  8. 20-F · period ending 2019-06-30 · accession 0001568276-21-001985 (CashFlowsFromUsedInOperatingActivities)
  9. 40-F · period ending 2020-06-30 · accession 0001654954-23-009587 (CashFlowsFromUsedInOperatingActivities)
  10. 10-K · period ending 2017-06-30 · accession 0001437749-17-016410 (PaymentsToAcquireProductiveAssets)
  11. 20-F · period ending 2019-06-30 · accession 0001568276-21-001985 (PurchaseOfPropertyPlantAndEquipmentClassifiedAsInvestingActivities)
  12. 10-K · period ending 2017-06-30 · accession 0001437749-17-016410 (CashAndCashEquivalentsAtCarryingValue)
  13. 20-F · period ending 2019-06-30 · accession 0001654954-22-014395 (CashAndCashEquivalents)
  14. 40-F · period ending 2021-06-30 · accession 0001654954-23-009587 (CashAndCashEquivalents)