MeritValue

Paranovus Entertainment Technology Ltd.

PAVSdata completeness 75%8 fiscal years on file
The thesis, from the filings

Paranovus Entertainment Technology Ltd. earns about -25% on invested capital, but has diluted owners by 223% over 5 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 2021FY 2022FY 2023FY 2024FY 2025
Revenue$71.5M1$20.8M2$03$03$71,5423
Net income$786,3564−$48.8M5−$71.7M6−$10.1M6−$7.89M6
Operating cash flow$2.9M7−$10.5M8−$20.7M9−$13.1M9−$2.67M9
Capital expenditure$2.78M10$273,65011$011$011—
Free cash flow (derived)$121,0267−$10.8M8−$20.7M9−$13.1M9—
Total debt$2.24M12$2.27M13$2.24M13——
Cash & equivalents$36.6M14$19.7M15$3.36M15$341,77916$261,35516
Diluted shares26.2M40.5M5.7M4.7M84.5M

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
$2.87
your share of equity
Profit it earned you last year
−$0.93
Free cash flow it threw off
—
Debt you’d be carrying
—

10 shares is a claim on $2.87 of net worth that earned you −$0.93 last year.

iii. Is this a good business?
Moat signal · return on invested capital
-25% avg · 5y
FY21 1%FY22 -13%FY23 -25%FY24 -64%FY25 -22%

It earned an average -25% on invested capital over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+223% shares · 5y

Share count is up 223% over 5 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
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. 20-F/A · period ending 2021-03-31 · accession 0001213900-23-079694 (Revenues)
  2. 20-F · period ending 2022-03-31 · accession 0001929980-24-000320 (Revenues)
  3. 20-F · period ending 2023-03-31 · accession 0001929980-25-000590 (Revenues)
  4. 20-F/A · period ending 2021-03-31 · accession 0001213900-23-079694 (NetIncomeLoss)
  5. 20-F · period ending 2022-03-31 · accession 0001929980-24-000320 (NetIncomeLoss)
  6. 20-F · period ending 2023-03-31 · accession 0001929980-25-000590 (NetIncomeLoss)
  7. 20-F/A · period ending 2021-03-31 · accession 0001213900-23-079694 (NetCashProvidedByUsedInOperatingActivities)
  8. 20-F · period ending 2022-03-31 · accession 0001929980-24-000320 (NetCashProvidedByUsedInOperatingActivities)
  9. 20-F · period ending 2023-03-31 · accession 0001929980-25-000590 (NetCashProvidedByUsedInOperatingActivities)
  10. 20-F/A · period ending 2021-03-31 · accession 0001213900-23-079694 (PaymentsToAcquirePropertyPlantAndEquipment)
  11. 20-F · period ending 2022-03-31 · accession 0001929980-24-000320 (PaymentsToAcquirePropertyPlantAndEquipment)
  12. 20-F/A · period ending 2021-03-31 · accession 0001213900-23-026272 (ShortTermBorrowings)
  13. 20-F/A · period ending 2022-03-31 · accession 0001213900-23-079694 (ShortTermBorrowings)
  14. 20-F/A · period ending 2021-03-31 · accession 0001213900-23-026272 (CashAndCashEquivalentsAtCarryingValue)
  15. 20-F/A · period ending 2022-03-31 · accession 0001213900-23-079694 (CashAndCashEquivalentsAtCarryingValue)
  16. 20-F · period ending 2024-03-31 · accession 0001929980-25-000590 (CashAndCashEquivalentsAtCarryingValue)