ROIC
12%low FY2025
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KMRK, K-Tech Solutions Company Limited
Leisure Products consumer brand
A consumer-brand business, where the durable asset is the brand and the pricing power it commands.
The business
What it sells, where the money comes from, the kind of company it is.
Revenue · FY2025
$19M
+8.7% YoY
Vital signs · TTM, with 3-yr average
Revenue $19M 3-yr avg $17M
The business in brief
read the 10-K →What this business is and what moves its needle, from its own SEC filings.
- What moves the needle
- Gross margin has run about 13% and operating margin about 2.8% through the cycle, a thin spread that turns the result on volume and the cost of what it sells far more than on the price it sets. On a spread this thin the operating result swings hard on small moves in cost or volume — it has ranged from 1.5% to 5.1% over the years, so the cost line is where the needle moves. The cash cycle has run negative through the cycle (a median of −12 days): the operation is paid before it pays, so working capital releases cash as the business grows rather than tying it up. On its own account, the filing leans hardest on customer concentration, set against the numbers in what the filing emphasizes, below.
- Is it a good business?
- Return on capital has run in the teens (median 17%, above 15% in 2 of 3 years), though buybacks and expensed R&D and brands shrink the capital base, so the figure overstates the underlying economics. Owner earnings, the cash-based check, have been thin too. Returns like these are solid but short of clear franchise economics; whether they hold is what the 10-K settles, not the multiple.
Every line is arithmetic on the company's filings, shown in full in the sections below.
Where the money comes from
read the 20-F →United States is 69% of revenue, so this is largely a single-region business.
Revenue by geography, FY2025
- United States69%$13M
- Europe23%$4M
- United Kingdom8%$2M
From the segment footnote of the company's own 20-F. Shares are of total revenue; the profit bar shows each segment's share of segment operating profit, before unallocated corporate costs.
The record
Ten years of arithmetic, read across the cycle.
The record, 2023–2025
realized figures from each filing · older years to the left| 2023’23 | 2024’24 | 2025’25 | TTMTTMMar 2025 | |
|---|---|---|---|---|
| Income statement | ||||
| $17M | $17M | $19M | $19M | RevenueRevenue |
| 9% | 13% | 13% | 13% | Gross marginGross mgn |
| $242K | $873K | $526K | $526K | Operating incomeOp. inc. |
| 1.5% | 5.1% | 2.8% | 2.8% | Operating marginOp. mgn |
| $247K | $929K | $488K | $488K | Net incomeNet inc. |
| 6% | 13% | 10% | 10% | Effective tax rateTax rate |
| Cash flow & returns | ||||
| ($230K) | $5M | ($1M) | ($1M) | Operating cash flowOp. cash |
| $93K | $116K | $117K | $117K | DepreciationDeprec. |
| ($570K) | $4M | ($2M) | ($2M) | Working capital & otherWC & other |
| $91K | — | — | $91K | CapexCapex |
| 0.5% | — | — | 0.5% | Capex / revenueCapex/rev |
| ($321K) | — | — | ($1M) | Owner earningsOwner earn. |
| −1.9% | — | — | −7.5% | Owner earnings marginOE mgn |
| ($321K) | — | — | ($1M) | Free cash flowFCF |
| −1.9% | — | — | −7.5% | Free cash flow marginFCF mgn |
| 17% | 26% | 12% | 12% | ROICROIC |
| 18% | 41% | 17% | 17% | Return on equityROE |
| 18% | 41% | 17% | 17% | Retained to equityRetained/eq |
| Balance sheet | ||||
| — | $1M | $1M | $1M | ReceivablesReceiv. |
| — | $988K | $2M | $2M | Accounts payablePayables |
| — | $237K | ($328K) | ($328K) | Operating working capitalOper. WC |
| — | $7M | $6M | $6M | Current assetsCur. assets |
| — | $4M | $3M | $3M | Current liabilitiesCur. liab. |
| — | 1.5× | 2.0× | 2.0× | Current ratioCurr. ratio |
| — | $7M | $7M | $7M | Total assetsAssets |
| — | $621K | $1M | $1M | Total debtDebt |
| — | $621K | $1M | $1M | Net debt / (cash)Net debt |
| 5.2× | 15.7× | 6.9× | 6.9× | Interest coverageInt. cov. |
| $1M | $2M | $3M | $3M | Shareholders’ equityEquity |
| Per share | ||||
| — | 19.5M | 19.5M | 19.5M | Shares out (diluted)Shares |
| — | $0.88 | $0.95 | $0.95 | Revenue / shareRev/sh |
| — | $0.05 | $0.03 | $0.03 | EPS (diluted)EPS |
| — | $0.12 | $0.14 | $0.14 | Book value / shareBVPS |
The record, charted
FY2023–2025Each measure over its full record; the current point and the worst year marked.
Gross margin
13%low FY2023
Net income is the accountant's number; owner earnings is the cash an owner could take out. The walk between them, off the cash-flow statement, and whether the gap is widening or holding.
In fiscal 2023 the business reported $247K of profit but ($321K) of owner earnings: $569K less than the profit line, taken out by capital spending and the timing of cash.
| FY2023 | |
|---|---|
| Reported net income | $247K |
| Depreciation & amortizationnon-cash charge added back | +$93K |
| Working capital & othertiming of cash in and out, other non-cash items | −$570K |
| Cash from operations | ($230K) |
| Capital expenditurecash put back in to keep running and to grow | −$91K |
| Owner earnings | ($321K) |
| Owner-earnings marginowner earnings ÷ revenue | -2% |
Owner earnings is the cash an owner could pull out without starving the business: operating cash less the capital it must spend to hold its position .
Much of fiscal 2023's profit didn't arrive as operating cash; it sits in “working capital & other” above. That can be a real inventory or timing swing, or profit that doesn't run through operating cash at all: a heavy tax year, equity-method earnings, or investment income booked through investing. For a year like this, owner earnings understates the cash earned; the full cash-flow statement carries the rest.
Maintenance capex is estimated as depreciation where a growing business invests above it; free cash flow is the figure the scorecard's free-cash margin reads.
Quality & stewardship
Returns, the balance sheet, capital allocation, and pay.
Owner’s Scorecard
FY2025 20-F · source on SEC EDGAR →
Material weakness in financial controls
“This identified material weakness is associated with a lack of adequately skilled staff possessing U.S.”
The figures below are only as sound as the controls that produced them. read the note →
Will it survive?
- ComfortableOperating income $526K ÷ interest expense $77K
What this means
Operating profit covers interest with the kind of margin Graham wanted for a defensive holding. Necessary, not sufficient, it says solvent, not cheap.
- How heavy is the debt, net of cash? $1M · 2.0× operating profitModest net debtCash $0 − debt $1M
What this means
Netting $0 of cash and short-term investments against $1M of debt leaves $1M owed, about 2.0× a year's operating profit. Net debt is the leverage figure that matters: the cash is already set against the debt. Strategic or illiquid investments aren't counted here.
- Not enough data
What this means
The filing data didn't include the inputs for this check.
Is it a good business?
- High through the cycle3-yr median, range 12%–26%; 12% latest = NOPAT $475K ÷ invested capital $4MIndustry peers: median 12%
What this means
The rate the business earns on the money tied up in it, Buffett's north star, because over time a stock tracks the ROIC beneath it. Above ~15% sustained hints at a moat; a return below the cost of capital (~8%) erodes value as a business grows rather than building it — the test Buffett weighs most. The headline is the median of the last 3 years (it ran 12% most recently), so one peak or trough year doesn't set the verdict. Asset-light businesses (R&D expensed, little capital) read artificially high, pair this with Owner Earnings.
- Consumes cashOwner earnings ($1M) = operating cash ($1M) − maintenance capex $91KIndustry peers: median 7%
What this means
What an owner could take out without starving the business: operating cash less the maintenance capital it must spend to hold its position — Buffett's owner earnings. That's -7% of revenue this year.
- Are earnings backed by cash? -2.66×Thinly cash-backedCash from ops ($1M) ÷ net income $488K
In the filing’s words The filing discloses a material weakness in its financial controls — the reported numbers here, and the record built on them, are only as reliable as the controls that produced them.
What this means
How much of reported profit showed up as operating cash. Above 1× is reassuring; well below suggests earnings lean on accruals. One year is noisy, growth and working-capital swings distort it, and this is operating cash, not free cash. Watch the multi-year trend.
How is the cash used?
- Not enough data
What this means
The filing data didn't include the inputs for this check.
- Investing or harvesting? 0.78×HarvestingCapex $91K ÷ depreciation $117K
What this means
Descriptive, not a grade. Above ~1× means investing faster than assets wear out (growth, or, sustained for years, today's earnings carrying less depreciation than tomorrow's will). Below means spending less than it's wearing out (efficiency, or a melting asset base). The ratio won't tell you which; the filings will.
Graham’s defensive tests · 2 of 3 met
Graham’s numerical criteria for the defensive investor (The Intelligent Investor, ch. 14), run on the filings. A floor of safety, not a buy signal; many fine modern businesses fail his strictest liquidity rules by design.
- Adequate size MissRevenue ≥ $2B · $19M
What this means
Big enough to weather a storm. Graham's 1972 floor was ~$100M of sales (≈ $700M today); we use a $2B revenue line as a conservative modern stand-in.
- Strong liquidity PassCurrent ratio ≥ 2× · 2.02×
What this means
Current assets at least twice current liabilities, near-term bills covered without touching the business. Strict by design: many cash-rich modern firms run leaner and miss it, holding their cushion in longer-dated securities.
- Conservative debt PassDebt ≤ working capital · $1M vs $3M WC
What this means
Graham's rule that borrowings not exceed net current assets. Capital-heavy and buyback-heavy firms routinely fail it, read it next to interest coverage, not alone.
- Moderate price —P/E ≤ 15 and P/E × P/B ≤ 22.5 · decided by the price
What this means
Graham's valuation gate, the wall he kept between a sound business and a sound investment. Three-year average earnings are $0.03/share (latest year $0.03), the averaged base the calculator's gate runs on, and book value is $0.14/share. Enter a price in “What the price implies” just below for the P/E, P/B, and whether it clears. But this is the rule Buffett outgrew: there's no hard P/E law, and a wonderful business can deserve a far richer multiple if the thesis holds, treat it as the bargain-hunter's floor, not a verdict on the price.
Does AI threaten the moat?
Low contestabilityThe moat is physical, regulated or balance-sheet-funded, the kind AI cuts costs within but does not contest.
AI is unlikely to contest a moat that is physical, regulated or balance-sheet-funded; here it reads more as a cost tool than a threat.
Read from the filing's own risk factors, paired with the industry's structure under its SIC code; the durability is read above, the price below.
All figures as filed; the source filing is linked above.
Current Position
as of fiscal year-end, Mar 31, 2025Can the business pay what it owes this year, off the freshest balance sheet: the quality of the assets, the debt actually coming due, and what a low ratio means here.
Current assets$6M
- Receivables$1M
- Other current assets$5M
Current liabilities$3M
- Accounts payable$2M
- Other current liabilities$1M
Current ratio2.02×all current assets ÷ what's due · Graham looked for 2×
Quick ratio—inventory untagged this quarter, so withheld rather than shown equal to the current ratio
Cash ratio0.00×strictest: cash alone against what's due
Working capital$3Mthe cushion left after near-term bills
Deeper floors
Tangible book value$3Mequity stripped of goodwill & intangibles
Net current asset value$2MGraham's net-net: current assets less all liabilities
Debt incl. operating leases$1Mno operating-lease liability tagged this quarter, so debt alone
Deferred revenue$431Kcustomer cash collected before delivery; operating float
From the company's latest filing.
Peers, Leisure Products
The same industry, side by side on owner economics. Each figure is a through-cycle median, so a peak or trough year can’t distort it; the group median at the foot is the line to read each against.
| Company | Revenue | Gross margin | Op. margin | ROIC | Owner earn. margin |
|---|---|---|---|---|---|
| HASHasbro Inc. | $4.7B | 67% | 10.5% | 12% | 12% |
| GOLFAcushnet Holdings Corp. | $2.6B | 51% | 11.4% | 12% | 7% |
| PTONPeloton Interactive Inc. | $2.5B | 43% | -15.3% | -10% | -5% |
| CALYCallaway Golf Company | $2.1B | 44% | 6.9% | 7% | 8% |
| YETIYETI Holdings | $1.9B | 54% | 11.4% | 30% | 12% |
| FNKOFunko Inc. | $908M | 36% | 4.7% | 6% | 5% |
| JOUTJohnson Outdoors Inc. | $592M | 42% | 9.1% | 16% | 6% |
| KMRKK-Tech Solutions Company Limited | $19M | 13% | 2.8% | 17% | -7% |
| Group median | — | 43% | 8.0% | 12% | 7% |
The price
What a price has to assume.
What the price implies
reverse-DCFEnter the home-market price, not the US ADR quote. K-Tech Solutions Company Limited reports in USD, and every figure here (owner earnings, book value, the share count) is on that ordinary-share basis. Enter the price on the same basis: the local-exchange quote per ordinary share. A US ADR price in dollars bundles the ADR-to-ordinary ratio, so it will not reconcile with these figures and would throw the multiple off.
K-Tech Solutions Company Limited is profitable, but owner earnings are negative this year because capital spending currently outruns operating cash, a build-out, so the owner-earnings reverse-DCF has no positive base to grow. We read the price from both ends instead: type a price to see the steady-state profitability it demands, then set the mature margin you would believe and weigh the two against each other. Nothing leaves your browser unless you enter it in your notebook.
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The assumptions
Enter a price to run it.
Owner earnings it must reach—
Margin the price demands—
Owner-earnings margin today−7%
A dated snapshot of the price you typed, the assumptions you set, and what the page showed for them. A snapshot is never edited after it is saved. Your notebook is yours alone — the commitment states what is stored and what we will never do.
Two reads of one future. From your price: the owner earnings the company must reach, valued at a mature multiple and discounted back at your rate, expressed as the margin it implies on revenue grown at your rate. From your belief: the mature margin you would credit, set on the dial above. When the margin the price demands runs above the one you would believe, you are paying for a future taken on faith. For a deep cyclical at a trough, normalized through-cycle earnings are the better lens; this mode is for the genuinely unprofitable, and for the profitable business whose capital spending currently outruns its cash.
Cite: Owner Scorecard, "K-Tech Solutions Company Limited (KMRK), the owner's record," https://ownerscorecard.com/c/KMRK, data as of 2026-07-09.
Manual order: ← KMDA its page in the Manual KNDI →
Industry order: ← KBSX the Leisure Products chapter MAT →