MeritValue

REE Automotive Ltd.

REEAFdata completeness 100%7 fiscal years on file

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

The thesis, from the filings

REE Automotive Ltd. earns about -344% on equity, but has diluted owners by 309% over 5 years — worth asking whether the growth reaches owners. 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$6,0001$02$1.61M3$183,0003$1.3M3
Net income−$505.3M4−$107.4M5−$114.2M6−$111.8M6−$55.8M6
Operating cash flow−$59.1M7−$112.6M8−$89.3M9−$69M9−$68.7M9
Capital expenditure$2.42M10$11.1M11$3.75M12$7.53M12$6.31M12
Free cash flow (derived)−$61.6M7−$123.6M8−$93M9−$76.5M9−$75M9
Total debt—$013$15M14$18M15$015
Cash & equivalents$275.8M16$56.8M17$41.2M18$72.3M18$14.2M18
Diluted shares7.9M9.8M10.1M15.9M32.1M

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
$2.1
your share of equity
Profit it earned you last year
−$17.36
Free cash flow it threw off
−$23.34
Debt you’d be carrying
$0

10 shares is a claim on $2.1 of net worth that earned you −$17.36 and generated −$23.34 of cash last year, against $0 of debt.

iii. Is this a good business?
Moat signal · return on equity
-344% avg · 5y
FY21 -202%FY22 -61%FY23 -146%FY24 -483%FY25 -827%

It earned an average -344% on equity over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+309% shares · 5y

Share count is up 309% over 5 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
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. 20-F · period ending 2021-12-31 · accession 0001628280-24-013211 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 20-F · period ending 2022-12-31 · accession 0001628280-25-025661 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 20-F · period ending 2023-12-31 · accession 0001628280-26-035308 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 20-F · period ending 2021-12-31 · accession 0001628280-24-013211 (NetIncomeLoss)
  5. 20-F · period ending 2022-12-31 · accession 0001628280-25-025661 (NetIncomeLoss)
  6. 20-F · period ending 2023-12-31 · accession 0001628280-26-035308 (NetIncomeLoss)
  7. 20-F · period ending 2021-12-31 · accession 0001628280-24-013211 (NetCashProvidedByUsedInOperatingActivities)
  8. 20-F · period ending 2022-12-31 · accession 0001628280-25-025661 (NetCashProvidedByUsedInOperatingActivities)
  9. 20-F · period ending 2023-12-31 · accession 0001628280-26-035308 (NetCashProvidedByUsedInOperatingActivities)
  10. 20-F · period ending 2021-12-31 · accession 0001628280-24-013211 (PaymentsToAcquirePropertyPlantAndEquipment)
  11. 20-F · period ending 2022-12-31 · accession 0001628280-25-025661 (PaymentsToAcquirePropertyPlantAndEquipment)
  12. 20-F · period ending 2023-12-31 · accession 0001628280-26-035308 (PaymentsToAcquirePropertyPlantAndEquipment)
  13. 20-F · period ending 2022-12-31 · accession 0001628280-24-013211 (ShortTermBorrowings)
  14. 20-F · period ending 2023-12-31 · accession 0001628280-25-025661 (ShortTermBorrowings)
  15. 20-F · period ending 2024-12-31 · accession 0001628280-26-035308 (ShortTermBorrowings)
  16. 20-F · period ending 2021-12-31 · accession 0001628280-24-013211 (CashAndCashEquivalentsAtCarryingValue)
  17. 20-F · period ending 2022-12-31 · accession 0001628280-25-025661 (CashAndCashEquivalentsAtCarryingValue)
  18. 20-F · period ending 2023-12-31 · accession 0001628280-26-035308 (CashAndCashEquivalentsAtCarryingValue)