MeritValue

Zhongchao Inc.

ZCMDdata completeness 75%9 fiscal years on file
The thesis, from the filings

Zhongchao Inc. earns about -28% on invested capital, but has diluted owners by 37% 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$16.3M1$14.2M2$19.4M3$15.9M3$11.4M3
Net income$238,6654−$2.94M5−$11.3M6−$643,2296−$6.31M6
Operating cash flow$2.86M7−$661,7408$54,2299−$1.47M9$845,3919
Capital expenditure—————
Free cash flow (derived)—————
Total debt—————
Cash & equivalents$13.9M10$11.5M11$7.55M12$7.84M13$8.1M13
Diluted shares2.5M2.6M325,419650,6783.4M

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
$54.5
your share of equity
Profit it earned you last year
−$18.46
Free cash flow it threw off
—
Debt you’d be carrying
—

10 shares is a claim on $54.5 of net worth that earned you −$18.46 last year.

iii. Is this a good business?
Moat signal · return on invested capital
-28% avg · 5y
FY21 0%FY22 -10%FY23 -89%FY24 1%FY25 -41%

It earned an average -28% 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
+37% shares · 5y

Share count is up 37% over 5 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 v0.1.0
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 2021-12-31 · accession 0001213900-24-037934 (Revenues)
  2. 20-F · period ending 2022-12-31 · accession 0001213900-25-035599 (Revenues)
  3. 20-F · period ending 2023-12-31 · accession 0001213900-26-039923 (Revenues)
  4. 20-F · period ending 2021-12-31 · accession 0001213900-24-037934 (NetIncomeLoss)
  5. 20-F · period ending 2022-12-31 · accession 0001213900-25-035599 (NetIncomeLoss)
  6. 20-F · period ending 2023-12-31 · accession 0001213900-26-039923 (NetIncomeLoss)
  7. 20-F · period ending 2021-12-31 · accession 0001213900-24-037934 (NetCashProvidedByUsedInOperatingActivities)
  8. 20-F · period ending 2022-12-31 · accession 0001213900-25-035599 (NetCashProvidedByUsedInOperatingActivities)
  9. 20-F · period ending 2023-12-31 · accession 0001213900-26-039923 (NetCashProvidedByUsedInOperatingActivities)
  10. 20-F · period ending 2021-12-31 · accession 0001213900-23-038650 (CashAndCashEquivalentsAtCarryingValue)
  11. 20-F · period ending 2022-12-31 · accession 0001213900-24-037934 (CashAndCashEquivalentsAtCarryingValue)
  12. 20-F · period ending 2023-12-31 · accession 0001213900-25-035599 (CashAndCashEquivalentsAtCarryingValue)
  13. 20-F · period ending 2024-12-31 · accession 0001213900-26-039923 (CashAndCashEquivalentsAtCarryingValue)