MeritValue

Wearable Devices Ltd.

WLDSdata completeness 88%6 fiscal years on file

Data notes: no data for concept 'totalDebt'; no data for concept 'interestExpense'

The thesis, from the filings

Wearable Devices Ltd. earns about -330% on invested capital, and has bought back 87% of its shares over 5 years. 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$142,0001$45,0002$82,0003$522,0003$647,0003
Net income−$2.61M4−$6.5M5−$7.81M6−$7.88M6−$8.11M6
Operating cash flow−$2.1M7−$5.71M8−$8.43M9−$7.61M9−$6.6M9
Capital expenditure$36,00010$48,00011$194,00012$43,00012$20,00012
Free cash flow (derived)−$2.14M7−$5.76M8−$8.63M9−$7.66M9−$6.62M9
Total debt—————
Cash & equivalents$1.27M13$10.4M14$810,00015$3.09M16$6.5M16
Diluted shares9.7M153,46567,505108,5631.2M

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
$149.78
your share of equity
Profit it earned you last year
−$65.45
Free cash flow it threw off
−$53.43
Debt you’d be carrying
—

10 shares is a claim on $149.78 of net worth that earned you −$65.45 and generated −$53.43 of cash last year.

iii. Is this a good business?
Moat signal · return on invested capital
-330% avg · 5y
FY21 —FY22 —FY23 -131%FY24 -807%FY25 -53%

It earned an average -330% 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
−87% shares · 5y

Share count is down 87% over 5 years — management has been buying back stock, quietly handing owners a bigger slice.

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. 20-F · period ending 2021-12-31 · accession 0001213900-24-023073 (Revenues)
  2. 20-F · period ending 2022-12-31 · accession 0001213900-25-025602 (Revenues)
  3. 20-F · period ending 2023-12-31 · accession 0001213900-26-026977 (RevenueFromContractWithCustomerIncludingAssessedTax)
  4. 20-F · period ending 2021-12-31 · accession 0001213900-24-023073 (NetIncomeLoss)
  5. 20-F · period ending 2022-12-31 · accession 0001213900-25-025602 (NetIncomeLoss)
  6. 20-F · period ending 2023-12-31 · accession 0001213900-26-026977 (NetIncomeLoss)
  7. 20-F · period ending 2021-12-31 · accession 0001213900-24-023073 (NetCashProvidedByUsedInOperatingActivities)
  8. 20-F · period ending 2022-12-31 · accession 0001213900-25-025602 (NetCashProvidedByUsedInOperatingActivities)
  9. 20-F · period ending 2023-12-31 · accession 0001213900-26-026977 (NetCashProvidedByUsedInOperatingActivities)
  10. 20-F · period ending 2021-12-31 · accession 0001213900-24-023073 (PaymentsToAcquirePropertyPlantAndEquipment)
  11. 20-F · period ending 2022-12-31 · accession 0001213900-25-025602 (PaymentsToAcquirePropertyPlantAndEquipment)
  12. 20-F · period ending 2023-12-31 · accession 0001213900-26-026977 (PaymentsToAcquirePropertyPlantAndEquipment)
  13. 20-F · period ending 2021-12-31 · accession 0001213900-23-022124 (CashAndCashEquivalentsAtCarryingValue)
  14. 20-F · period ending 2022-12-31 · accession 0001213900-24-023073 (CashAndCashEquivalentsAtCarryingValue)
  15. 20-F · period ending 2023-12-31 · accession 0001213900-25-025602 (CashAndCashEquivalentsAtCarryingValue)
  16. 20-F · period ending 2024-12-31 · accession 0001213900-26-026977 (CashAndCashEquivalentsAtCarryingValue)