Pattern Group Inc.

PTRNdata completeness 88%3 fiscal years on file

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

The thesis, from the filings

Pattern Group Inc. earns about 54% on equity, far above its ~9% cost of capital, but has diluted owners by 27% over 3 years — a real edge showing up in the numbers. The estimate methods put fair value between $3.72 and $10.87 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 2023FY 2024FY 2025
Revenue$1.37B1$1.8B1$2.5B1
Net income$41.3M2$67.9M2$16.2M2
Operating cash flow$41.5M3$70.3M3$99.4M3
Capital expenditure$14.5M4$20.5M4$20.5M4
Free cash flow (derived)$27M3$49.9M3$78.9M3
Total debt
Cash & equivalents$127.2M5$175.6M6$289M6
Diluted shares90.8M90.8M115.0M

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
$50.52
your share of equity
Profit it earned you last year
$1.41
Free cash flow it threw off
$6.86
Debt you’d be carrying

10 shares is a claim on $50.52 of net worth that earned you $1.41 and generated $6.86 of cash last year.

iii. Is this a good business?
Moat signal · return on equity
54% avg · 3y
FY23 97%FY24 62%FY25 3%

It earned about 54% on equity, year after year, against a ~9% cost of capital — the footprint of real pricing power. Competition usually drags returns like this back down; here it hasn't.

seeing a moat in the numbers →
Management signal · capital allocation
+27% shares · 3y

Share count is up 27% over 3 years — owners have been diluted. Worth asking what they got for it.

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 $3.72 and $10.87 a share. They rest on different assumptions, so where they diverge is the story.

DCF · Growth Exit 10Y
$10.87
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears10
  • fcfGrowth5.0%
  • fcfBase$49.9M
DCF · Growth Exit 5Y
$10.21
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears5
  • fcfGrowth5.0%
  • fcfBase$49.9M
Earnings Power Value
$3.72
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$41.3M
  • growthAssumed0.0%
Graham Number
not applicable
diluted EPS 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 years5.0%
Discount rate (WACC)8.93%
Terminal growth2.5%
At your growth, a share is worth $10.21
The three cases
Bear0.0%$8.71
Base5.0%$10.21
Bull10.0%$12.01

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

Default growth 5.0%= 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 2023-12-31 · accession 0001811935-26-000013 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2023-12-31 · accession 0001811935-26-000013 (NetIncomeLoss)
  3. 10-K · period ending 2023-12-31 · accession 0001811935-26-000013 (NetCashProvidedByUsedInOperatingActivities)
  4. 10-K · period ending 2023-12-31 · accession 0001811935-26-000013 (PaymentsToAcquirePropertyPlantAndEquipment)
  5. 10-K · period ending 2023-12-31 · accession 0001811935-26-000013 (CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents)
  6. 10-K · period ending 2024-12-31 · accession 0001811935-26-000013 (CashAndCashEquivalentsAtCarryingValue)