MeritValue

VERDE RESOURCES, INC.

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

VERDE RESOURCES, INC. earns about -7% on invested capital, but has diluted owners by 549% 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$01$38,1692$100,7773$96,5844$133,2024
Net income−$793,0075−$3.95M6−$4M7−$3.19M8−$4.78M8
Operating cash flow−$126,0119−$1.6M10−$1.66M11−$2.09M12−$3.41M12
Capital expenditure$013$1.07M14$497,30215$16,64616$37816
Free cash flow (derived)−$126,0119−$2.67M10−$2.15M11−$2.1M12−$3.41M12
Total debt—$109,80117—$591,17018—
Cash & equivalents$2.12M19$418,91719$200,40920$279,13721$1.02M21
Diluted shares191.3M812.8M1.02B1.19B1.24B

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
$0.3
your share of equity
Profit it earned you last year
−$0.04
Free cash flow it threw off
−$0.03
Debt you’d be carrying
—

10 shares is a claim on $0.3 of net worth that earned you −$0.04 and generated −$0.03 of cash last year.

iii. Is this a good business?
Moat signal · return on invested capital
-7% avg · 5y
FY21 -3%FY22 -11%FY23 -5%FY24 -6%FY25 -10%

It earned an average -7% 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
+549% shares · 5y

Share count is up 549% over 5 years — owners have been diluted. Worth asking what they got for it. Total debt has risen 438% 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
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 2021-06-30 · accession 0001640334-22-002348 (Revenues)
  2. 10-K/A · period ending 2022-06-30 · accession 0001640334-24-000245 (Revenues)
  3. 10-K · period ending 2023-06-30 · accession 0001640334-24-001530 (Revenues)
  4. 10-K/A · period ending 2024-06-30 · accession 0001493152-26-027105 (RevenueFromContractWithCustomerExcludingAssessedTax)
  5. 10-K · period ending 2021-06-30 · accession 0001640334-22-002348 (NetIncomeLoss)
  6. 10-K/A · period ending 2022-06-30 · accession 0001640334-24-000245 (NetIncomeLoss)
  7. 10-K · period ending 2023-06-30 · accession 0001640334-24-001530 (NetIncomeLoss)
  8. 10-K/A · period ending 2024-06-30 · accession 0001493152-26-027105 (NetIncomeLoss)
  9. 10-K · period ending 2021-06-30 · accession 0001640334-22-002348 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K/A · period ending 2022-06-30 · accession 0001640334-24-000245 (NetCashProvidedByUsedInOperatingActivities)
  11. 10-K · period ending 2023-06-30 · accession 0001640334-24-001530 (NetCashProvidedByUsedInOperatingActivities)
  12. 10-K/A · period ending 2024-06-30 · accession 0001493152-26-027105 (NetCashProvidedByUsedInOperatingActivities)
  13. 10-K · period ending 2021-06-30 · accession 0001640334-22-002348 (PaymentsToAcquirePropertyPlantAndEquipment)
  14. 10-K/A · period ending 2022-06-30 · accession 0001640334-24-000245 (PaymentsToAcquirePropertyPlantAndEquipment)
  15. 10-K · period ending 2023-06-30 · accession 0001640334-24-001530 (PaymentsToAcquirePropertyPlantAndEquipment)
  16. 10-K/A · period ending 2024-06-30 · accession 0001493152-26-027105 (PaymentsToAcquirePropertyPlantAndEquipment)
  17. 10-K · period ending 2022-06-30 · accession 0001640334-22-002348 (DebtCurrent)
  18. 10-K/A · period ending 2024-06-30 · accession 0001493152-26-027105 (LongTermDebtCurrent)
  19. 10-K · period ending 2021-06-30 · accession 0001640334-22-002348 (CashAndCashEquivalentsAtCarryingValue)
  20. 10-K · period ending 2023-06-30 · accession 0001640334-25-001876 (CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents)
  21. 10-K/A · period ending 2024-06-30 · accession 0001493152-26-027105 (CashAndCashEquivalentsAtCarryingValue)