MeritValue

SHOULDER INNOVATIONS, INC.

SIdata completeness 100%2 fiscal years on file

Data notes: no data for concept 'interestExpense'

The thesis, from the filings

SHOULDER INNOVATIONS, INC. earns about -25% on invested capital, but has diluted owners by 13340% over 2 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 2024FY 2025
Revenue$31.6M1$47.3M1
Net income−$15.6M2−$40.4M2
Operating cash flow−$14.1M3−$28.6M3
Capital expenditure$4.02M4$7.41M4
Free cash flow (derived)−$18.2M3−$36M3
Total debt$14.7M5$14.9M5
Cash & equivalents$6.12M6$26.9M6
Diluted shares64,5308.7M

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
$162.28
your share of equity
Profit it earned you last year
−$46.53
Free cash flow it threw off
−$41.53
Debt you’d be carrying
$17.19

10 shares is a claim on $162.28 of net worth that earned you −$46.53 and generated −$41.53 of cash last year, against $17.19 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
-25% avg · 2y
FY24 —FY25 -25%

It earned an average -25% on invested capital over 2 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+13340% shares · 2y

Share count is up 13340% over 2 years — owners have been diluted. Worth asking what they got for it. Total debt has held roughly steady.

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 2 years of FCF (need ≥3) — model not applicable
DCF · Growth Exit 5Y
not applicable
only 2 years of FCF (need ≥3) — model not applicable
Earnings Power Value
not applicable
only 2 years of net income (need ≥3)
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 2024-12-31 · accession 0001699350-26-000011 (Revenues)
  2. 10-K · period ending 2024-12-31 · accession 0001699350-26-000011 (NetIncomeLoss)
  3. 10-K · period ending 2024-12-31 · accession 0001699350-26-000011 (NetCashProvidedByUsedInOperatingActivities)
  4. 10-K · period ending 2024-12-31 · accession 0001699350-26-000011 (PaymentsToAcquirePropertyPlantAndEquipment)
  5. 10-K · period ending 2024-12-31 · accession 0001699350-26-000011 (LongTermDebtNoncurrent)
  6. 10-K · period ending 2024-12-31 · accession 0001699350-26-000011 (CashAndCashEquivalentsAtCarryingValue)