MeritValue

Waton Financial Ltd

WTFdata completeness 88%4 fiscal years on file

Data notes: no data for concept 'totalDebt'; no data for concept 'investmentsAtFairValue'; no data for concept 'netInvestmentIncome'; no data for concept 'gainsOnRealEstateSales'; no data for concept 'realEstateImpairment'; no data for concept 'dividendsPaid'; no data for concept 'interestExpense'

The thesis, from the filings

Waton Financial Ltd earns about -83% on invested capital, but has diluted owners by 39% over 4 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 2023FY 2024FY 2025FY 2026
Revenue$5.74M1$10.1M2$7.45M2$11.1M2
Net income$3.08M3$2.5M4−$12M4−$15.2M4
Operating cash flow$12M5−$1.85M6$359,9656−$7.06M6
Capital expenditure$4,9787$262,0918$13,7448$323,5748
Free cash flow (derived)$12M5−$2.11M6$346,2216−$7.38M6
Total debt————
Cash & equivalents$19.1M9$4.95M10$7.72M10$10.4M10
Diluted shares34.7M62.8M41.8M48.2M

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
$4.51
your share of equity
Profit it earned you last year
−$3.14
Free cash flow it threw off
−$1.53
Debt you’d be carrying
—

10 shares is a claim on $4.51 of net worth that earned you −$3.14 and generated −$1.53 of cash last year.

iii. Is this a good business?
Moat signal · return on invested capital
-83% avg · 4y
FY23 —FY24 43%FY25 -185%FY26 -106%

It earned an average -83% on invested capital over 4 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+39% shares · 4y

Share count is up 39% over 4 years — owners have been diluted. Worth asking what they got for it.

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 v0.5.0
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 2023-03-31 · accession 0001140361-25-027147 (Revenues)
  2. 20-F · period ending 2024-03-31 · accession 0001140361-26-030310 (Revenues)
  3. 20-F · period ending 2023-03-31 · accession 0001140361-25-027147 (NetIncomeLoss)
  4. 20-F · period ending 2024-03-31 · accession 0001140361-26-030310 (NetIncomeLoss)
  5. 20-F · period ending 2023-03-31 · accession 0001140361-25-027147 (NetCashProvidedByUsedInOperatingActivities)
  6. 20-F · period ending 2024-03-31 · accession 0001140361-26-030310 (NetCashProvidedByUsedInOperatingActivities)
  7. 20-F · period ending 2023-03-31 · accession 0001140361-25-027147 (PaymentsToAcquirePropertyPlantAndEquipment)
  8. 20-F · period ending 2024-03-31 · accession 0001140361-26-030310 (PaymentsToAcquirePropertyPlantAndEquipment)
  9. 20-F · period ending 2023-03-31 · accession 0001140361-25-027147 (CashAndCashEquivalentsAtCarryingValue)
  10. 20-F · period ending 2024-03-31 · accession 0001140361-26-030310 (CashAndCashEquivalentsAtCarryingValue)