MeritValue

SOLITRON DEVICES INC

SODIdata completeness 100%14 fiscal years on file
The thesis, from the filings

SOLITRON DEVICES INC earns about 11051% on invested capital, far above its ~9% cost of capital, with a roughly flat share count — a real edge showing up in the numbers. The estimate methods put fair value between $4.07 and $9.43 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 2025FY 2026
Revenue$12.3M1$6.41M2$12.8M3$14M4$17M4
Net income$3.51M5$826,0006$5.8M7$815,0008$807,0008
Operating cash flow$3.33M9$962,00010$1.92M11$2.4M12$1.35M12
Capital expenditure$4.89M13$2.19M14$355,00015$1.84M16$327,00016
Free cash flow (derived)−$1.56M9−$1.23M10$1.56M11$560,00012$1.02M12
Total debt——$2.65M17$3.92M17$3.77M18
Cash & equivalents$4.09M19$1.45M19$2.22M20$4.1M21$3.91M21
Diluted shares2.1M2.1M2.1M2.1M2.1M

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
$94.1
your share of equity
Profit it earned you last year
$3.83
Free cash flow it threw off
$4.86
Debt you’d be carrying
$17.89

10 shares is a claim on $94.1 of net worth that earned you $3.83 and generated $4.86 of cash last year, against $17.89 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
11051% avg · 5y
FY22 55220%FY23 10%FY24 17%FY25 5%FY26 4%

It earned about 11051% on invested capital, year after year, against a ~9% cost of capital — the footprint of real pricing power. Competition usually drags returns like this back down; here it hasn't.

seeing a moat in the numbers →
Management signal · capital allocation
+1% shares · 5y

Share count is roughly flat over 5 years — little dilution, little buyback. Total debt has risen 42% 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

The 3 estimate methods that apply put fair value between $4.07 and $9.43 a share. They rest on different assumptions, so where they diverge is the story.

DCF · Growth Exit 10Y
$9.43
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears10
  • fcfGrowth5.0%
  • fcfBase$1.02M
DCF · Growth Exit 5Y
$8.7
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears5
  • fcfGrowth5.0%
  • fcfBase$1.02M
Earnings Power Value
$4.07
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$826,000
  • growthAssumed0.0%
Graham Number
not applicable
diluted EPS missing or non-positive — Graham Number undefined

Different models answer different questions — which to trust when →

v. The price question — last, on purpose
Is today’s price fair?
See live price ↗
Type a price. The ledger answers.
Or set your own belief
FCF growth, next 5 years5.0%
Discount rate (WACC)8.93%
Terminal growth2.5%
At your growth, a share is worth $8.7
The three cases
Bear0.0%$7.02
Base5.0%$8.7
Bull10.0%$10.71

Bear/base/bull growth = 0% / filed history / history + 5pp. Type a price to see the return each case implies.

Default growth 5.0%= this company’s own filed history (median-to-median FCF CAGR, clamped 0–20%). Your adjustments are recorded anonymously. They become the “what do owners actually believe” dataset.

Sources — the receipts
  1. 10-K · period ending 2022-02-28 · accession 0001654954-23-008351 (Revenues)
  2. 10-K · period ending 2023-02-28 · accession 0001654954-24-008904 (RevenueFromContractWithCustomerIncludingAssessedTax)
  3. 10-K · period ending 2024-02-29 · accession 0001437749-25-018346 (RevenueFromContractWithCustomerIncludingAssessedTax)
  4. 10-K · period ending 2025-02-28 · accession 0001437749-26-018779 (RevenueFromContractWithCustomerIncludingAssessedTax)
  5. 10-K · period ending 2022-02-28 · accession 0001654954-23-008351 (NetIncomeLoss)
  6. 10-K · period ending 2023-02-28 · accession 0001654954-24-008904 (NetIncomeLoss)
  7. 10-K · period ending 2024-02-29 · accession 0001437749-25-018346 (NetIncomeLoss)
  8. 10-K · period ending 2025-02-28 · accession 0001437749-26-018779 (NetIncomeLoss)
  9. 10-K · period ending 2022-02-28 · accession 0001654954-23-008351 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2023-02-28 · accession 0001654954-24-008904 (NetCashProvidedByUsedInOperatingActivities)
  11. 10-K · period ending 2024-02-29 · accession 0001437749-25-018346 (NetCashProvidedByUsedInOperatingActivities)
  12. 10-K · period ending 2025-02-28 · accession 0001437749-26-018779 (NetCashProvidedByUsedInOperatingActivities)
  13. 10-K · period ending 2022-02-28 · accession 0001654954-23-008351 (PaymentsToAcquirePropertyPlantAndEquipment)
  14. 10-K · period ending 2023-02-28 · accession 0001654954-24-008904 (PaymentsToAcquirePropertyPlantAndEquipment)
  15. 10-K · period ending 2024-02-29 · accession 0001437749-25-018346 (PaymentsToAcquirePropertyPlantAndEquipment)
  16. 10-K · period ending 2025-02-28 · accession 0001437749-26-018779 (PaymentsToAcquirePropertyPlantAndEquipment)
  17. 10-K · period ending 2024-02-29 · accession 0001437749-25-018346 (LongTermDebt)
  18. 10-K · period ending 2026-02-28 · accession 0001437749-26-018779 (LongTermDebt)
  19. 10-K · period ending 2022-02-28 · accession 0001654954-23-008351 (CashAndCashEquivalentsAtCarryingValue)
  20. 10-K · period ending 2024-02-29 · accession 0001437749-25-018346 (CashAndCashEquivalentsAtCarryingValue)
  21. 10-K · period ending 2025-02-28 · accession 0001437749-26-018779 (CashAndCashEquivalentsAtCarryingValue)