MeritValue

Erayak Power Solution Group Inc.

RAYAdata completeness 100%6 fiscal years on file

Data notes: no data for concept 'epsDiluted'

The thesis, from the filings

Erayak Power Solution Group Inc. earns about 8% on invested capital, and has bought back 96% of its shares over 5 years. The applicable estimate puts fair value near $247.83 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$18.6M1$26.9M2$20.3M3$30.3M3$22.9M3
Net income$3.39M4$3.48M5$1.22M6−$1.12M6−$1.39M6
Operating cash flow$4.64M7−$4.15M8$6.73M9−$15.9M9−$3.17M9
Capital expenditure$244,01710$694,81311$684,21012$517,81312$5.24M12
Free cash flow (derived)$4.4M7−$4.85M8$6.05M9−$16.4M9−$8.41M9
Total debt$10.5M13$11M14$4.04M15$9.04M16$15.9M16
Cash & equivalents—$7.07M17$5.88M18$1.32M19$436,78819
Diluted shares1.4M9.1M5,45511,34850,958

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
$6,920.58
your share of equity
Profit it earned you last year
−$272.76
Free cash flow it threw off
−$1,649.45
Debt you’d be carrying
$3,118.39

10 shares is a claim on $6,920.58 of net worth that earned you −$272.76 and generated −$1,649.45 of cash last year, against $3,118.39 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
8% avg · 5y
FY21 22%FY22 17%FY23 9%FY24 -3%FY25 -2%

It earned an average 8% 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
−96% shares · 5y

Share count is down 96% over 5 years — management has been buying back stock, quietly handing owners a bigger slice. Total debt has risen 52% 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
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
$247.83
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$1.22M
  • growthAssumed0.0%
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 2021-12-31 · accession 0001213900-24-033441 (Revenues)
  2. 20-F · period ending 2022-12-31 · accession 0001213900-25-034605 (Revenues)
  3. 20-F/A · period ending 2023-12-31 · accession 0001185185-26-002809 (Revenues)
  4. 20-F · period ending 2021-12-31 · accession 0001213900-24-033441 (NetIncomeLoss)
  5. 20-F · period ending 2022-12-31 · accession 0001213900-25-034605 (NetIncomeLoss)
  6. 20-F/A · period ending 2023-12-31 · accession 0001185185-26-002809 (NetIncomeLoss)
  7. 20-F · period ending 2021-12-31 · accession 0001213900-24-033441 (NetCashProvidedByUsedInOperatingActivities)
  8. 20-F · period ending 2022-12-31 · accession 0001213900-25-034605 (NetCashProvidedByUsedInOperatingActivities)
  9. 20-F/A · period ending 2023-12-31 · accession 0001185185-26-002809 (NetCashProvidedByUsedInOperatingActivities)
  10. 20-F · period ending 2021-12-31 · accession 0001213900-24-033441 (PaymentsToAcquirePropertyPlantAndEquipment)
  11. 20-F · period ending 2022-12-31 · accession 0001213900-25-034605 (PaymentsToAcquirePropertyPlantAndEquipment)
  12. 20-F/A · period ending 2023-12-31 · accession 0001185185-26-002809 (PaymentsToAcquirePropertyPlantAndEquipment)
  13. 20-F · period ending 2021-12-31 · accession 0001213900-23-039841 (LongTermDebt)
  14. 20-F · period ending 2022-12-31 · accession 0001213900-24-033441 (LongTermDebtNoncurrent)
  15. 20-F · period ending 2023-12-31 · accession 0001213900-25-034605 (LongTermDebtNoncurrent)
  16. 20-F/A · period ending 2024-12-31 · accession 0001185185-26-002809 (LongTermDebtNoncurrent)
  17. 20-F · period ending 2022-12-31 · accession 0001213900-24-033441 (CashAndCashEquivalentsAtCarryingValue)
  18. 20-F · period ending 2023-12-31 · accession 0001213900-25-034605 (CashAndCashEquivalentsAtCarryingValue)
  19. 20-F/A · period ending 2024-12-31 · accession 0001185185-26-002809 (CashAndCashEquivalentsAtCarryingValue)