MeritValue

SKK Holdings Ltd

SKKdata completeness 88%4 fiscal years on file

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

The thesis, from the filings

SKK Holdings Ltd earns about 17% on invested capital, but has diluted owners by 35% over 4 years — worth asking whether the growth reaches owners. The applicable estimate puts fair value near $0.16 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 2022FY 2023FY 2024FY 2025
Revenue$9.62M1$9.66M2$11.1M2$12.9M2
Net income$1.45M3$198,0004$382,0004−$2.92M4
Operating cash flow$2.61M5$194,0006$3.33M6−$512,0006
Capital expenditure$1.17M7$3.04M8$7.81M8$5.14M8
Free cash flow (derived)$1.44M5−$2.85M6−$4.48M6−$5.65M6
Total debt————
Cash & equivalents—$350,0009$2.93M10$732,00010
Diluted shares13.9M13.9M15.6M18.8M

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
$3.86
your share of equity
Profit it earned you last year
−$1.56
Free cash flow it threw off
−$3.01
Debt you’d be carrying
—

10 shares is a claim on $3.86 of net worth that earned you −$1.56 and generated −$3.01 of cash last year.

iii. Is this a good business?
Moat signal · return on invested capital
17% avg · 4y
FY22 80%FY23 12%FY24 9%FY25 -34%

It earned an average 17% on invested capital over 4 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+35% shares · 4y

Share count is up 35% over 4 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
$0.16
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$290,000
  • growthAssumed0.0%
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 2022-12-31 · accession 0001641172-25-011043 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 20-F · period ending 2023-12-31 · accession 0001493152-26-016229 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 20-F · period ending 2022-12-31 · accession 0001641172-25-011043 (NetIncomeLoss)
  4. 20-F · period ending 2023-12-31 · accession 0001493152-26-016229 (NetIncomeLoss)
  5. 20-F · period ending 2022-12-31 · accession 0001641172-25-011043 (NetCashProvidedByUsedInOperatingActivities)
  6. 20-F · period ending 2023-12-31 · accession 0001493152-26-016229 (NetCashProvidedByUsedInOperatingActivities)
  7. 20-F · period ending 2022-12-31 · accession 0001641172-25-011043 (PaymentsToAcquirePropertyPlantAndEquipment)
  8. 20-F · period ending 2023-12-31 · accession 0001493152-26-016229 (PaymentsToAcquirePropertyPlantAndEquipment)
  9. 20-F · period ending 2023-12-31 · accession 0001641172-25-011043 (CashAndCashEquivalentsAtCarryingValue)
  10. 20-F · period ending 2024-12-31 · accession 0001493152-26-016229 (CashAndCashEquivalentsAtCarryingValue)