MeritValue

ProPhase Labs, Inc.

PRPHdata completeness 88%17 fiscal years on file
The thesis, from the filings

ProPhase Labs, Inc. earns about -173% on invested capital, and has bought back 54% 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 2021FY 2022FY 2023FY 2024FY 2025
Revenue$79M1$122.6M2$35M3$6.77M4$4.35M4
Net income$6.27M5$18.5M6−$16.8M7−$53.4M8−$14.7M8
Operating cash flow−$13.6M9$28.6M10−$11.9M11−$17.5M12−$8.34M12
Capital expenditure$4.23M13$3.92M14$2.08M15$906,00016$016
Free cash flow (derived)−$17.9M9$24.6M10−$14M11−$18.4M12−$8.34M12
Total debt—$017$2.92M17$3.21M18—
Cash & equivalents$8.41M19$9.11M20$1.61M21$678,00022$90,00022
Diluted shares18.4M18.7M17.2M2.0M8.5M

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
$4.13
your share of equity
Profit it earned you last year
−$17.37
Free cash flow it threw off
−$9.83
Debt you’d be carrying
—

10 shares is a claim on $4.13 of net worth that earned you −$17.37 and generated −$9.83 of cash last year.

iii. Is this a good business?
Moat signal · return on invested capital
-173% avg · 5y
FY21 13%FY22 35%FY23 -33%FY24 -338%FY25 -541%

It earned an average -173% 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
−54% shares · 5y

Share count is down 54% 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 2021-12-31 · accession 0000868278-23-000004 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2022-12-31 · accession 0000868278-24-000004 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2023-12-31 · accession 0000868278-25-000003 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K · period ending 2024-12-31 · accession 0000868278-26-000005 (RevenueFromContractWithCustomerExcludingAssessedTax)
  5. 10-K · period ending 2021-12-31 · accession 0000868278-23-000004 (NetIncomeLoss)
  6. 10-K · period ending 2022-12-31 · accession 0000868278-24-000004 (NetIncomeLoss)
  7. 10-K · period ending 2023-12-31 · accession 0000868278-25-000003 (NetIncomeLoss)
  8. 10-K · period ending 2024-12-31 · accession 0000868278-26-000005 (NetIncomeLoss)
  9. 10-K · period ending 2021-12-31 · accession 0000868278-23-000004 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2022-12-31 · accession 0000868278-24-000004 (NetCashProvidedByUsedInOperatingActivities)
  11. 10-K · period ending 2023-12-31 · accession 0000868278-25-000003 (NetCashProvidedByUsedInOperatingActivities)
  12. 10-K · period ending 2024-12-31 · accession 0000868278-26-000005 (NetCashProvidedByUsedInOperatingActivities)
  13. 10-K · period ending 2021-12-31 · accession 0000868278-23-000004 (PaymentsToAcquireProductiveAssets)
  14. 10-K · period ending 2022-12-31 · accession 0000868278-24-000004 (PaymentsToAcquireProductiveAssets)
  15. 10-K · period ending 2023-12-31 · accession 0000868278-25-000003 (PaymentsToAcquireProductiveAssets)
  16. 10-K · period ending 2024-12-31 · accession 0000868278-26-000005 (PaymentsToAcquireProductiveAssets)
  17. 10-K · period ending 2022-12-31 · accession 0000868278-24-000004 (LongTermDebtNoncurrent)
  18. 10-K · period ending 2024-12-31 · accession 0000868278-25-000003 (ShortTermBorrowings)
  19. 10-K · period ending 2021-12-31 · accession 0000868278-23-000004 (CashAndCashEquivalentsAtCarryingValue)
  20. 10-K · period ending 2022-12-31 · accession 0000868278-24-000004 (CashAndCashEquivalentsAtCarryingValue)
  21. 10-K · period ending 2023-12-31 · accession 0000868278-25-000003 (CashAndCashEquivalentsAtCarryingValue)
  22. 10-K · period ending 2024-12-31 · accession 0000868278-26-000005 (CashAndCashEquivalentsAtCarryingValue)