MeritValue

SHENGFENG DEVELOPMENT Ltd

SFWLdata completeness 88%6 fiscal years on file
The thesis, from the filings

SHENGFENG DEVELOPMENT Ltd earns about 6% on invested capital, but has diluted owners by 2% 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$346.7M1$370.3M2$404.1M3$504.2M3$572.5M3
Net income$6.64M4$7.79M5$10.3M6$10.9M6$11.9M6
Operating cash flow$20.4M7$4.81M8$14.1M9$15M9$16.1M9
Capital expenditure$22.6M10$6.91M11$10.8M12$29.5M12$19M12
Free cash flow (derived)−$2.19M7−$2.1M8$3.36M9−$14.5M9−$2.88M9
Total debt$91.9M13$95.3M13$72.3M13$111.6M14$162.5M14
Cash & equivalents$18.9M15$21.3M16$26.7M17$34.7M17$35.3M17
Diluted shares80.0M80.0M81.8M——

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

iii. Is this a good business?
Moat signal · return on invested capital
6% avg · 5y
FY21 5%FY22 6%FY23 8%FY24 6%FY25 6%

It earned an average 6% 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
+2% shares · 5y

Share count is up 2% over 5 years — owners have been diluted. Worth asking what they got for it. Total debt has risen 77% 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
not applicable
no diluted share count
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 0001213900-24-028073 (Revenues)
  2. 20-F · period ending 2022-12-31 · accession 0001013762-25-003699 (Revenues)
  3. 20-F · period ending 2023-12-31 · accession 0001213900-26-035301 (Revenues)
  4. 20-F · period ending 2021-12-31 · accession 0001213900-24-028073 (ProfitLoss)
  5. 20-F · period ending 2022-12-31 · accession 0001013762-25-003699 (NetIncomeLoss)
  6. 20-F · period ending 2023-12-31 · accession 0001213900-26-035301 (NetIncomeLoss)
  7. 20-F · period ending 2021-12-31 · accession 0001213900-24-028073 (NetCashProvidedByUsedInOperatingActivities)
  8. 20-F · period ending 2022-12-31 · accession 0001013762-25-003699 (NetCashProvidedByUsedInOperatingActivities)
  9. 20-F · period ending 2023-12-31 · accession 0001213900-26-035301 (NetCashProvidedByUsedInOperatingActivities)
  10. 20-F · period ending 2021-12-31 · accession 0001213900-24-028073 (PaymentsToAcquirePropertyPlantAndEquipment)
  11. 20-F · period ending 2022-12-31 · accession 0001013762-25-003699 (PaymentsToAcquirePropertyPlantAndEquipment)
  12. 20-F · period ending 2023-12-31 · accession 0001213900-26-035301 (PaymentsToAcquirePropertyPlantAndEquipment)
  13. 20-F · period ending 2021-12-31 · accession 0001013762-25-003699 (LongTermDebt)
  14. 20-F · period ending 2024-12-31 · accession 0001213900-26-035301 (LongTermDebtNoncurrent)
  15. 20-F · period ending 2021-12-31 · accession 0001013762-25-003699 (CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents)
  16. 20-F · period ending 2022-12-31 · accession 0001013762-25-003699 (CashAndCashEquivalentsAtCarryingValue)
  17. 20-F · period ending 2023-12-31 · accession 0001213900-26-035301 (CashAndCashEquivalentsAtCarryingValue)