MeritValue

SuperCom Ltd

SPCBdata completeness 100%17 fiscal years on file

Data notes: no data for concept 'interestExpense'

The thesis, from the filings

SuperCom Ltd earns about -10% on invested capital, but has diluted owners by 90% 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$12.3M1$17.6M2$26.6M3$27.6M3$27.9M3
Net income−$10.1M4−$7.46M5−$4.02M6$661,0006$3.75M6
Operating cash flow−$9.7M7−$4.65M8−$2.37M9−$1.29M9−$5.49M9
Capital expenditure$949,00010$524,00011$1.71M12$1.6M12$880,00012
Free cash flow (derived)−$10.6M7−$5.18M8−$4.08M9−$2.89M9−$6.37M9
Total debt$30.7M13$33.5M14$34.7M15$30.2M16$19.1M16
Cash & equivalents$3.54M17$4.04M18$5.21M19$3.15M20$9.83M20
Diluted shares2.6M184,561338,1021.7M5.0M

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
$87.65
your share of equity
Profit it earned you last year
$7.55
Free cash flow it threw off
−$12.83
Debt you’d be carrying
$38.42

10 shares is a claim on $87.65 of net worth that earned you $7.55 and generated −$12.83 of cash last year, against $38.42 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
-10% avg · 5y
FY21 -25%FY22 -19%FY23 -9%FY24 1%FY25 3%

It earned an average -10% 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
+90% shares · 5y

Share count is up 90% over 5 years — owners have been diluted. Worth asking what they got for it. Total debt has fallen 38% — deleveraging.

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
$12.16
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 20-F/A · period ending 2021-12-31 · accession 0001178913-24-002619 (RevenueFromContractWithCustomerIncludingAssessedTax)
  2. 20-F · period ending 2022-12-31 · accession 0001178913-25-001468 (RevenueFromContractWithCustomerIncludingAssessedTax)
  3. 20-F · period ending 2023-12-31 · accession 0001178913-26-002268 (RevenueFromContractWithCustomerIncludingAssessedTax)
  4. 20-F/A · period ending 2021-12-31 · accession 0001178913-24-002619 (NetIncomeLoss)
  5. 20-F · period ending 2022-12-31 · accession 0001178913-25-001468 (NetIncomeLoss)
  6. 20-F · period ending 2023-12-31 · accession 0001178913-26-002268 (NetIncomeLoss)
  7. 20-F/A · period ending 2021-12-31 · accession 0001178913-24-002619 (NetCashProvidedByUsedInOperatingActivities)
  8. 20-F · period ending 2022-12-31 · accession 0001178913-25-001468 (NetCashProvidedByUsedInOperatingActivities)
  9. 20-F · period ending 2023-12-31 · accession 0001178913-26-002268 (NetCashProvidedByUsedInOperatingActivities)
  10. 20-F/A · period ending 2021-12-31 · accession 0001178913-24-002619 (PaymentsToAcquirePropertyPlantAndEquipment)
  11. 20-F · period ending 2022-12-31 · accession 0001178913-25-001468 (PaymentsToAcquirePropertyPlantAndEquipment)
  12. 20-F · period ending 2023-12-31 · accession 0001178913-26-002268 (PaymentsToAcquirePropertyPlantAndEquipment)
  13. 20-F · period ending 2021-12-31 · accession 0001178913-23-001460 (LongTermDebtNoncurrent)
  14. 20-F/A · period ending 2022-12-31 · accession 0001178913-24-002619 (LongTermDebtNoncurrent)
  15. 20-F · period ending 2023-12-31 · accession 0001178913-25-001468 (LongTermDebtNoncurrent)
  16. 20-F · period ending 2024-12-31 · accession 0001178913-26-002268 (LongTermDebtNoncurrent)
  17. 20-F · period ending 2021-12-31 · accession 0001178913-23-001460 (CashAndCashEquivalentsAtCarryingValue)
  18. 20-F/A · period ending 2022-12-31 · accession 0001178913-24-002619 (CashAndCashEquivalentsAtCarryingValue)
  19. 20-F · period ending 2023-12-31 · accession 0001178913-25-001468 (CashAndCashEquivalentsAtCarryingValue)
  20. 20-F · period ending 2024-12-31 · accession 0001178913-26-002268 (CashAndCashEquivalentsAtCarryingValue)