MeritValue

RadNet, Inc.

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

RadNet, Inc. earns about 4% on invested capital, but has diluted owners by 41% over 5 years — worth asking whether the growth reaches owners. The applicable estimate puts fair value near $0.42 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$1.32B1$1.43B2$1.62B3$1.83B3$2.04B3
Net income$24.7M4$10.7M5$3.04M6$2.79M6−$18.7M6
Operating cash flow$149.5M7$146.4M8$220.9M9$233M9$298.8M9
Capital expenditure—————
Free cash flow (derived)—————
Total debt$1.51B10$1.7B11$1.66B12$2.03B13$2.18B13
Cash & equivalents$134.6M14$127.8M15$342.6M16$740M17$767.2M17
Diluted shares53.4M57.3M64.7M74.8M75.2M

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
$144.95
your share of equity
Profit it earned you last year
−$2.48
Free cash flow it threw off
—
Debt you’d be carrying
$289.91

10 shares is a claim on $144.95 of net worth that earned you −$2.48 last year, against $289.91 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
4% avg · 5y
FY21 5%FY22 4%FY23 4%FY24 5%FY25 2%

It earned an average 4% 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
+41% shares · 5y

Share count is up 41% over 5 years — owners have been diluted. Worth asking what they got for it. Total debt has risen 44% 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
only 0 years of FCF (need ≥3) — model not applicable
DCF · Growth Exit 5Y
not applicable
only 0 years of FCF (need ≥3) — model not applicable
Earnings Power Value
$0.42
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$3.04M
  • 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. 10-K · period ending 2021-12-31 · accession 0001628280-24-008035 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2022-12-31 · accession 0001628280-25-009481 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2023-12-31 · accession 0001628280-26-013337 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K · period ending 2021-12-31 · accession 0001628280-24-008035 (NetIncomeLoss)
  5. 10-K · period ending 2022-12-31 · accession 0001628280-25-009481 (NetIncomeLoss)
  6. 10-K · period ending 2023-12-31 · accession 0001628280-26-013337 (NetIncomeLoss)
  7. 10-K · period ending 2021-12-31 · accession 0001628280-24-008035 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2022-12-31 · accession 0001628280-25-009481 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2023-12-31 · accession 0001628280-26-013337 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2021-12-31 · accession 0000790526-23-000003 (LongTermDebtNoncurrent)
  11. 10-K · period ending 2022-12-31 · accession 0001628280-24-008035 (LongTermDebtNoncurrent)
  12. 10-K · period ending 2023-12-31 · accession 0001628280-25-009481 (LongTermDebtNoncurrent)
  13. 10-K · period ending 2024-12-31 · accession 0001628280-26-013337 (LongTermDebtNoncurrent)
  14. 10-K · period ending 2021-12-31 · accession 0000790526-23-000003 (CashAndCashEquivalentsAtCarryingValue)
  15. 10-K · period ending 2022-12-31 · accession 0001628280-24-008035 (CashAndCashEquivalentsAtCarryingValue)
  16. 10-K · period ending 2023-12-31 · accession 0001628280-25-009481 (CashAndCashEquivalentsAtCarryingValue)
  17. 10-K · period ending 2024-12-31 · accession 0001628280-26-013337 (CashAndCashEquivalentsAtCarryingValue)