MeritValue

Summit Therapeutics Inc.

SMMTdata completeness 75%8 fiscal years on file

Data notes: no data for concept 'totalDebt'

The thesis, from the filings

Summit Therapeutics Inc. earns about -2102% on invested capital, but has diluted owners by 468% 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$1.81M1$705,0002$02$02—
Net income−$88.6M3−$78.8M4−$614.9M5−$221.3M5−$1.08B5
Operating cash flow−$72.6M6−$41.6M7−$76.8M8−$142.1M8−$322.9M8
Capital expenditure$306,0009$624,00010$128,00011$139,00011$657,00011
Free cash flow (derived)−$72.9M6−$42.2M7−$76.9M8−$142.2M8−$323.6M8
Total debt—————
Cash & equivalents$71.8M12$348.6M13$71.4M14$104.9M14$225.3M14
Diluted shares131.7M193.3M619.6M718.5M747.7M

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
$8.81
your share of equity
Profit it earned you last year
−$14.44
Free cash flow it threw off
−$4.33
Debt you’d be carrying
—

10 shares is a claim on $8.81 of net worth that earned you −$14.44 and generated −$4.33 of cash last year.

iii. Is this a good business?
Moat signal · return on invested capital
-2102% avg · 5y
FY21 -607%FY22 —FY23 -7544%FY24 -62%FY25 -197%

It earned an average -2102% 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
+468% shares · 5y

Share count is up 468% over 5 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
not applicable
normalized (5y-median) earnings non-positive — EPV undefined
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 2021-12-31 · accession 0001599298-23-000034 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2022-12-31 · accession 0001599298-25-000048 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2021-12-31 · accession 0001599298-23-000034 (NetIncomeLoss)
  4. 10-K · period ending 2022-12-31 · accession 0001599298-25-000048 (NetIncomeLoss)
  5. 10-K · period ending 2023-12-31 · accession 0001599298-26-000015 (NetIncomeLoss)
  6. 10-K · period ending 2021-12-31 · accession 0001599298-23-000034 (NetCashProvidedByUsedInOperatingActivities)
  7. 10-K · period ending 2022-12-31 · accession 0001599298-25-000048 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2023-12-31 · accession 0001599298-26-000015 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2021-12-31 · accession 0001599298-23-000034 (PaymentsToAcquirePropertyPlantAndEquipment)
  10. 10-K · period ending 2022-12-31 · accession 0001599298-25-000048 (PaymentsToAcquirePropertyPlantAndEquipment)
  11. 10-K · period ending 2023-12-31 · accession 0001599298-26-000015 (PaymentsToAcquirePropertyPlantAndEquipment)
  12. 10-K · period ending 2021-12-31 · accession 0001599298-23-000034 (CashAndCashEquivalentsAtCarryingValue)
  13. 10-K · period ending 2022-12-31 · accession 0001599298-25-000048 (CashAndCashEquivalentsAtCarryingValue)
  14. 10-K · period ending 2023-12-31 · accession 0001599298-26-000015 (CashAndCashEquivalentsAtCarryingValue)