MeritValue

XCHG Ltd

XCHdata completeness 88%4 fiscal years on file

Data notes: no data for concept 'capex'

The thesis, from the filings

XCHG Ltd earns about -139% on invested capital, but has diluted owners by 326% 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 2022FY 2023FY 2024FY 2025
Revenue$29.4M1$38.5M2$42.2M2$25.1M2
Net income$1.61M3−$8.08M4−$11.9M4−$32.5M4
Operating cash flow$848,6995−$5.58M6−$7.2M6−$7.53M6
Capital expenditure————
Free cash flow (derived)————
Total debt—$5.56M7$8.81M8$6.4M8
Cash & equivalents—$15.7M9$26.8M10$11.4M10
Diluted shares656.2M713.3M1.29B2.80B

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
$0.06
your share of equity
Profit it earned you last year
−$0.12
Free cash flow it threw off
—
Debt you’d be carrying
$0.02

10 shares is a claim on $0.06 of net worth that earned you −$0.12 last year, against $0.02 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
-139% avg · 4y
FY22 —FY23 —FY24 -80%FY25 -198%

It earned an average -139% 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
+326% shares · 4y

Share count is up 326% over 4 years — owners have been diluted. Worth asking what they got for it. Total debt has risen 15% 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
only 0 years of FCF (need ≥3) — model not applicable
DCF · Growth Exit 5Y
not applicable
only 0 years of FCF (need ≥3) — model not applicable
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 2022-12-31 · accession 0000950170-25-056976 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 20-F · period ending 2023-12-31 · accession 0001193125-26-182198 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 20-F · period ending 2022-12-31 · accession 0000950170-25-056976 (NetIncomeLoss)
  4. 20-F · period ending 2023-12-31 · accession 0001193125-26-182198 (NetIncomeLoss)
  5. 20-F · period ending 2022-12-31 · accession 0000950170-25-056976 (NetCashProvidedByUsedInOperatingActivities)
  6. 20-F · period ending 2023-12-31 · accession 0001193125-26-182198 (NetCashProvidedByUsedInOperatingActivities)
  7. 20-F · period ending 2023-12-31 · accession 0000950170-25-056976 (ShortTermBorrowings)
  8. 20-F · period ending 2024-12-31 · accession 0001193125-26-182198 (ShortTermBorrowings)
  9. 20-F · period ending 2023-12-31 · accession 0000950170-25-056976 (CashAndCashEquivalentsAtCarryingValue)
  10. 20-F · period ending 2024-12-31 · accession 0001193125-26-182198 (CashAndCashEquivalentsAtCarryingValue)