MeritValue

Priority Technology Holdings, Inc.

PRTHdata completeness 100%10 fiscal years on file
The thesis, from the filings

Priority Technology Holdings, Inc. earns about 7% on invested capital, below its ~9% cost of capital, but has diluted owners by 13% over 5 years — no moat visible in the numbers. The estimate methods put fair value between $0.18 and $22.22 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$514.9M1$663.6M2$755.6M3$879.7M3$953M3
Net income$1.39M4−$2.15M5−$1.31M6$24M6$55.7M6
Operating cash flow$9.38M7$70.5M8$81.3M9$85.6M9$100M9
Capital expenditure$9.72M10$18.9M11$21.3M12$21.7M12$24.9M12
Free cash flow (derived)−$342,0007$51.6M8$60M9$63.9M9$75.1M9
Total debt$1.21B13$605.1M14$638.7M15$1.85B16$2.08B16
Cash & equivalents$20.3M17$18.5M18$39.6M19$58.6M19$77.2M19
Diluted shares71.9M78.2M78.3M78.0M81.5M

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
−$12.33
your share of equity
Profit it earned you last year
$6.83
Free cash flow it threw off
$9.22
Debt you’d be carrying
$255.16

10 shares is a claim on −$12.33 of net worth that earned you $6.83 and generated $9.22 of cash last year, against $255.16 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
7% avg · 5y
FY21 —FY22 —FY23 9%FY24 5%FY25 7%

It earned about 7% on invested capital against a ~9% cost of capital — below the cost of funding. The numbers show no moat.

seeing a moat in the numbers →
Management signal · capital allocation
+13% shares · 5y

Share count is up 13% over 5 years — owners have been diluted. Worth asking what they got for it. Total debt has risen 71% over the same window.

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

The 3 estimate methods that apply put fair value between $0.18 and $22.22 a share. They rest on different assumptions, so where they diverge is the story.

DCF · Growth Exit 10Y
$22.22
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears10
  • fcfGrowth20.0%
  • fcfBase$63.9M
DCF · Growth Exit 5Y
$1.01
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears5
  • fcfGrowth20.0%
  • fcfBase$63.9M
Earnings Power Value
$0.18
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$1.39M
  • growthAssumed0.0%
Graham Number
not applicable
book value / share count missing or non-positive — Graham Number undefined

Different models answer different questions — which to trust when →

v. The price question — last, on purpose
Is today’s price fair?
See live price ↗
Type a price. The ledger answers.
Or set your own belief
FCF growth, next 5 years20.0%
Discount rate (WACC)8.93%
Terminal growth2.5%
At your growth, a share is worth $1.01
The three cases
Bear0.0%−$13.36
Base20.0%$1.01
Bull20.0%$1.01

Bear/base/bull growth = 0% / filed history / history + 5pp. Type a price to see the return each case implies.

Default growth 20.0%= this company’s own filed history (median-to-median FCF CAGR, clamped 0–20%). Your adjustments are recorded anonymously. They become the “what do owners actually believe” dataset.

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0001653558-24-000039 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2022-12-31 · accession 0001653558-25-000039 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2023-12-31 · accession 0001653558-26-000066 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K · period ending 2021-12-31 · accession 0001653558-24-000039 (ProfitLoss)
  5. 10-K · period ending 2022-12-31 · accession 0001653558-25-000039 (ProfitLoss)
  6. 10-K · period ending 2023-12-31 · accession 0001653558-26-000066 (ProfitLoss)
  7. 10-K · period ending 2021-12-31 · accession 0001653558-24-000039 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2022-12-31 · accession 0001653558-25-000039 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2023-12-31 · accession 0001653558-26-000066 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2021-12-31 · accession 0001653558-24-000039 (PaymentsToAcquirePropertyPlantAndEquipment)
  11. 10-K · period ending 2022-12-31 · accession 0001653558-25-000039 (PaymentsToAcquirePropertyPlantAndEquipment)
  12. 10-K · period ending 2023-12-31 · accession 0001653558-26-000066 (PaymentsToAcquirePropertyPlantAndEquipment)
  13. 10-K · period ending 2021-12-31 · accession 0001653558-23-000030 (LongTermDebtNoncurrent)
  14. 10-K · period ending 2022-12-31 · accession 0001653558-24-000039 (LongTermDebtNoncurrent)
  15. 10-K · period ending 2023-12-31 · accession 0001653558-25-000039 (LongTermDebtNoncurrent)
  16. 10-K · period ending 2024-12-31 · accession 0001653558-26-000066 (LongTermDebtNoncurrent)
  17. 10-K · period ending 2021-12-31 · accession 0001653558-24-000039 (CashAndCashEquivalentsAtCarryingValue)
  18. 10-K · period ending 2022-12-31 · accession 0001653558-25-000039 (CashAndCashEquivalentsAtCarryingValue)
  19. 10-K · period ending 2023-12-31 · accession 0001653558-26-000066 (CashAndCashEquivalentsAtCarryingValue)