MeritValue

TAITRON COMPONENTS INC

TAITdata completeness 88%15 fiscal years on file
The thesis, from the filings

TAITRON COMPONENTS INC earns about 18% on invested capital, far above its ~9% cost of capital, but has diluted owners by 3% over 5 years — a real edge showing up in the numbers. The estimate methods put fair value between $3.18 and $4.71 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 2020FY 2021FY 2022FY 2023FY 2024
Revenue$6.7M1$8.64M2$8.42M3$6.11M4$4.14M4
Net income$1.36M5$2.01M6$3.21M7$1.85M8$902,0008
Operating cash flow$2.05M9$1.74M10$1.69M11$3.15M12−$258,00012
Capital expenditure$17,00013$18,00014$2,00015$215,00016$232,00016
Free cash flow (derived)$2.04M9$1.72M10$1.69M11$2.94M12−$490,00012
Total debt$163,00017$017———
Cash & equivalents$6.65M18$5.97M19$5.22M20$6.21M21$4.21M21
Diluted shares5.9M5.9M6.0M6.0M6.0M

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
$27.51
your share of equity
Profit it earned you last year
$1.5
Free cash flow it threw off
−$0.81
Debt you’d be carrying
—

10 shares is a claim on $27.51 of net worth that earned you $1.5 and generated −$0.81 of cash last year.

iii. Is this a good business?
Moat signal · return on invested capital
18% avg · 5y
FY20 21%FY21 24%FY22 17%FY23 19%FY24 9%

It earned about 18% 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
+3% shares · 5y

Share count is up 3% over 5 years — owners have been diluted. Worth asking what they got for it. Total debt has fallen 100% — 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

The 3 estimate methods that apply put fair value between $3.18 and $4.71 a share. They rest on different assumptions, so where they diverge is the story.

DCF · Growth Exit 10Y
$4.4
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears10
  • fcfGrowth0.0%
  • fcfBase$1.69M
DCF · Growth Exit 5Y
$4.71
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears5
  • fcfGrowth0.0%
  • fcfBase$1.69M
Earnings Power Value
$3.18
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$1.85M
  • 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 years0.0%
Discount rate (WACC)8.93%
Terminal growth2.5%
At your growth, a share is worth $4.71
The three cases
Bear0.0%$4.71
Base0.0%$4.71
Bull5.0%$5.68

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

Default growth 0.0%= 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 2020-12-31 · accession 0001185185-22-000366 (Revenues)
  2. 10-K · period ending 2021-12-31 · accession 0001185185-23-000299 (Revenues)
  3. 10-K · period ending 2022-12-31 · accession 0001185185-24-000345 (Revenues)
  4. 10-K · period ending 2023-12-31 · accession 0001185185-25-000256 (Revenues)
  5. 10-K · period ending 2020-12-31 · accession 0001185185-22-000366 (NetIncomeLoss)
  6. 10-K · period ending 2021-12-31 · accession 0001185185-23-000299 (NetIncomeLoss)
  7. 10-K · period ending 2022-12-31 · accession 0001185185-24-000345 (NetIncomeLoss)
  8. 10-K · period ending 2023-12-31 · accession 0001185185-25-000256 (NetIncomeLoss)
  9. 10-K · period ending 2020-12-31 · accession 0001185185-22-000366 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2021-12-31 · accession 0001185185-23-000299 (NetCashProvidedByUsedInOperatingActivities)
  11. 10-K · period ending 2022-12-31 · accession 0001185185-24-000345 (NetCashProvidedByUsedInOperatingActivities)
  12. 10-K · period ending 2023-12-31 · accession 0001185185-25-000256 (NetCashProvidedByUsedInOperatingActivities)
  13. 10-K · period ending 2020-12-31 · accession 0001185185-22-000366 (PaymentsToAcquirePropertyPlantAndEquipment)
  14. 10-K · period ending 2021-12-31 · accession 0001185185-23-000299 (PaymentsToAcquirePropertyPlantAndEquipment)
  15. 10-K · period ending 2022-12-31 · accession 0001185185-24-000345 (PaymentsToAcquirePropertyPlantAndEquipment)
  16. 10-K · period ending 2023-12-31 · accession 0001185185-25-000256 (PaymentsToAcquirePropertyPlantAndEquipment)
  17. 10-K · period ending 2020-12-31 · accession 0001185185-22-000366 (LongTermDebtNoncurrent)
  18. 10-K · period ending 2020-12-31 · accession 0001185185-22-000366 (CashAndCashEquivalentsAtCarryingValue)
  19. 10-K · period ending 2021-12-31 · accession 0001185185-23-000299 (CashAndCashEquivalentsAtCarryingValue)
  20. 10-K · period ending 2022-12-31 · accession 0001185185-24-000345 (CashAndCashEquivalentsAtCarryingValue)
  21. 10-K · period ending 2023-12-31 · accession 0001185185-25-000256 (CashAndCashEquivalentsAtCarryingValue)