MeritValue

NetClass Technology Inc

NTCLdata completeness 100%4 fiscal years on file
The thesis, from the filings

NetClass Technology Inc earns about -46% on invested capital, but has diluted owners by 20% 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 2022FY 2023FY 2024FY 2025
Revenue$9.26M1$11.1M2$10.1M2$9.81M2
Net income$132,6873$162,2294−$1.48M4−$10.8M4
Operating cash flow−$571,4495$391,8766−$135,6466−$5.72M6
Capital expenditure———$6,4667
Free cash flow (derived)———−$5.73M6
Total debt———$1.59M8
Cash & equivalents$208,2069$524,60110$410,71610$1.76M10
Diluted shares15.0M15.0M15.8M18.0M

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
$3.21
your share of equity
Profit it earned you last year
−$6.02
Free cash flow it threw off
−$3.18
Debt you’d be carrying
$0.88

10 shares is a claim on $3.21 of net worth that earned you −$6.02 and generated −$3.18 of cash last year, against $0.88 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
-46% avg · 4y
FY22 3%FY23 5%FY24 -40%FY25 -152%

It earned an average -46% 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
+20% shares · 4y

Share count is up 20% over 4 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 1 years of FCF (need ≥3) — model not applicable
DCF · Growth Exit 5Y
not applicable
only 1 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. 20-F · period ending 2022-09-30 · accession 0001410578-25-000153 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 20-F · period ending 2023-09-30 · accession 0001104659-26-008806 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 20-F · period ending 2022-09-30 · accession 0001410578-25-000153 (NetIncomeLoss)
  4. 20-F · period ending 2023-09-30 · accession 0001104659-26-008806 (NetIncomeLoss)
  5. 20-F · period ending 2022-09-30 · accession 0001410578-25-000153 (NetCashProvidedByUsedInOperatingActivities)
  6. 20-F · period ending 2023-09-30 · accession 0001104659-26-008806 (NetCashProvidedByUsedInOperatingActivities)
  7. 20-F · period ending 2025-09-30 · accession 0001104659-26-008806 (PaymentsToAcquirePropertyPlantAndEquipment)
  8. 20-F · period ending 2025-09-30 · accession 0001104659-26-008806 (ShortTermBorrowings)
  9. 20-F · period ending 2022-09-30 · accession 0001410578-25-000153 (CashAndCashEquivalentsAtCarryingValue)
  10. 20-F · period ending 2023-09-30 · accession 0001104659-26-008806 (CashAndCashEquivalentsAtCarryingValue)