MeritValue

SCI Engineered Materials, Inc.

SCIAdata completeness 88%16 fiscal years on file

Data notes: no data for concept 'totalDebt'

The thesis, from the filings

SCI Engineered Materials, Inc. earns about 44% on invested capital, far above its ~9% cost of capital, with a roughly flat share count — a real edge showing up in the numbers. The estimate methods put fair value between $4.22 and $7.62 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$13.4M1$23.5M2$28M3$22.9M4$19.6M4
Net income$1.68M5$1.96M6$2.19M7$1.86M8$1.75M8
Operating cash flow$2.61M9$2.4M10$2.28M11$2.37M12$3.3M12
Capital expenditure$706,24213$536,31314$453,67115$499,80516$1.01M16
Free cash flow (derived)$1.9M9$1.86M10$1.83M11$1.87M12$2.29M12
Total debt—————
Cash & equivalents$4.14M17$3.95M18$5.67M19$6.75M20$7.94M20
Diluted shares4.5M4.5M4.6M4.6M4.6M

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
$31.03
your share of equity
Profit it earned you last year
$3.82
Free cash flow it threw off
$5.02
Debt you’d be carrying
—

10 shares is a claim on $31.03 of net worth that earned you $3.82 and generated $5.02 of cash last year.

iii. Is this a good business?
Moat signal · return on invested capital
44% avg · 5y
FY21 64%FY22 41%FY23 46%FY24 35%FY25 33%

It earned about 44% on invested capital, 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
+1% shares · 5y

Share count is roughly flat over 5 years — little dilution, little buyback.

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 $4.22 and $7.62 a share. They rest on different assumptions, so where they diverge is the story; the Graham Number is a stricter floor, not a target.

DCF · Growth Exit 10Y
$7.2
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears10
  • fcfGrowth0.1%
  • fcfBase$1.87M
DCF · Growth Exit 5Y
$7.62
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears5
  • fcfGrowth0.1%
  • fcfBase$1.87M
Earnings Power Value
$4.22
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$1.86M
  • growthAssumed0.0%
Graham Number
$5.15
assumptions (1)
  • grahamMultiplier2250.0%

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 years0.1%
Discount rate (WACC)8.93%
Terminal growth2.5%
At your growth, a share is worth $7.62
The three cases
Bear0.0%$7.58
Base0.1%$7.62
Bull5.1%$9.05

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

Default growth 0.1%= 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 0001558370-23-000808 (RevenueFromContractWithCustomerIncludingAssessedTax)
  2. 10-K · period ending 2022-12-31 · accession 0001558370-24-000916 (RevenueFromContractWithCustomerIncludingAssessedTax)
  3. 10-K · period ending 2023-12-31 · accession 0001558370-25-000969 (RevenueFromContractWithCustomerIncludingAssessedTax)
  4. 10-K · period ending 2024-12-31 · accession 0001104659-26-015820 (RevenueFromContractWithCustomerIncludingAssessedTax)
  5. 10-K · period ending 2021-12-31 · accession 0001558370-23-000808 (NetIncomeLoss)
  6. 10-K · period ending 2022-12-31 · accession 0001558370-24-000916 (NetIncomeLoss)
  7. 10-K · period ending 2023-12-31 · accession 0001558370-25-000969 (NetIncomeLoss)
  8. 10-K · period ending 2024-12-31 · accession 0001104659-26-015820 (NetIncomeLoss)
  9. 10-K · period ending 2021-12-31 · accession 0001558370-23-000808 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2022-12-31 · accession 0001558370-24-000916 (NetCashProvidedByUsedInOperatingActivities)
  11. 10-K · period ending 2023-12-31 · accession 0001558370-25-000969 (NetCashProvidedByUsedInOperatingActivities)
  12. 10-K · period ending 2024-12-31 · accession 0001104659-26-015820 (NetCashProvidedByUsedInOperatingActivities)
  13. 10-K · period ending 2021-12-31 · accession 0001558370-23-000808 (PaymentsToAcquirePropertyPlantAndEquipment)
  14. 10-K · period ending 2022-12-31 · accession 0001558370-24-000916 (PaymentsToAcquirePropertyPlantAndEquipment)
  15. 10-K · period ending 2023-12-31 · accession 0001558370-25-000969 (PaymentsToAcquirePropertyPlantAndEquipment)
  16. 10-K · period ending 2024-12-31 · accession 0001104659-26-015820 (PaymentsToAcquirePropertyPlantAndEquipment)
  17. 10-K · period ending 2021-12-31 · accession 0001410578-22-000072 (CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents)
  18. 10-K · period ending 2022-12-31 · accession 0001558370-24-000916 (CashAndCashEquivalentsAtCarryingValue)
  19. 10-K · period ending 2023-12-31 · accession 0001558370-25-000969 (CashAndCashEquivalentsAtCarryingValue)
  20. 10-K · period ending 2024-12-31 · accession 0001104659-26-015820 (CashAndCashEquivalentsAtCarryingValue)