MeritValue

Smart Digital Group Ltd

SDMdata completeness 88%3 fiscal years on file

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

The thesis, from the filings

Smart Digital Group Ltd earns about -91% on invested capital, but has diluted owners by 8% over 3 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 2023FY 2024FY 2025
Revenue$9.7M1$21.5M1$37.2M1
Net income$1.99M2$1.7M2−$37.8M2
Operating cash flow−$179,9383−$412,3673−$5.55M3
Capital expenditure$38,8674—$43,6114
Free cash flow (derived)−$218,8053—−$5.6M3
Total debt———
Cash & equivalents$144,6235$57,8176$251,4366
Diluted shares25.0M25.0M27.1M

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
$3.31
your share of equity
Profit it earned you last year
−$13.97
Free cash flow it threw off
−$2.07
Debt you’d be carrying
—

10 shares is a claim on $3.31 of net worth that earned you −$13.97 and generated −$2.07 of cash last year.

iii. Is this a good business?
Moat signal · return on invested capital
-91% avg · 3y
FY23 45%FY24 27%FY25 -344%

It earned an average -91% on invested capital over 3 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+8% shares · 3y

Share count is up 8% 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 —

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 20-F · period ending 2023-09-30 · accession 0001213900-26-015670 (RevenueFromContractWithCustomerIncludingAssessedTax)
  2. 20-F · period ending 2023-09-30 · accession 0001213900-26-015670 (NetIncomeLoss)
  3. 20-F · period ending 2023-09-30 · accession 0001213900-26-015670 (NetCashProvidedByUsedInOperatingActivities)
  4. 20-F · period ending 2023-09-30 · accession 0001213900-26-015670 (PaymentsToAcquirePropertyPlantAndEquipment)
  5. 20-F · period ending 2023-09-30 · accession 0001213900-26-015670 (CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents)
  6. 20-F · period ending 2024-09-30 · accession 0001213900-26-015670 (CashAndCashEquivalentsAtCarryingValue)