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PHOE, Phoenix Asia Holdings Limited
A capital-intensive business, run on heavy physical assets that must be kept working and earn a return above what they cost to maintain.
The business
What it sells, where the money comes from, the kind of company it is.
The business in brief
read the 10-K →What this business is and what moves its needle, from its own SEC filings.
- Situation
- Net current asset value. Current assets alone exceed every liability combined, and the surplus is most of the balance sheet: the shape Graham called a net-net.
- What moves the needle
- Gross margin has run about 26% and operating margin about 17% through the cycle, a solid spread between what it charges and what the product costs to make. The operating margin has swung widely — from −17% to 21% over the years — so the through-cycle figure carries more than any single year, and the worst year more than the best. 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 high across the record (median 90%, above 15% in 3 of 4 years), though buybacks and expensed R&D and brands shrink the capital base, so the figure overstates the underlying economics. The steadier read is owner earnings: roughly 6% of revenue reaches owners as cash, though it swings. Whether these returns reflect real pricing power or an accounting artifact is the judgment the 10-K is for.
Every line is arithmetic on the company's filings, shown in full in the sections below.
The record
Ten years of arithmetic, read across the cycle.
The record, 2023–2026
realized figures from each filing · older years to the left| 2023’23 | 2024’24 | 2025’25 | 2026’26 | TTMTTMMar 2026 | |
|---|---|---|---|---|---|
| Income statement | |||||
| $2M | $6M | $7M | $7M | $7M | RevenueRevenue |
| $565K | $1M | $2M | $330K | $330K | Gross profitGross prof. |
| 25% | 26% | 30% | 5% | 5% | Gross marginGross mgn |
| $377K | $1M | $1M | ($1M) | ($1M) | Operating incomeOp. inc. |
| 16.9% | 21.4% | 17.6% | −16.8% | −16.8% | Operating marginOp. mgn |
| $351K | $1M | $1M | ($1M) | ($1M) | Net incomeNet inc. |
| 10% | 15% | 21% | — | — | Effective tax rateTax rate |
| Cash flow & returns | |||||
| ($57K) | $540K | $1M | ($6M) | ($6M) | Operating cash flowOp. cash |
| $21K | $19K | $31K | $28K | $28K | DepreciationDeprec. |
| ($430K) | ($535K) | $123K | ($5M) | ($5M) | Working capital & otherWC & other |
| $23K | — | $41K | — | $41K | CapexCapex |
| 1.0% | — | 0.6% | — | 0.6% | Capex / revenueCapex/rev |
| ($80K) | — | $1M | — | ($6M) | Owner earningsOwner earn. |
| −3.6% | — | 15.6% | — | −79.9% | Owner earnings marginOE mgn |
| ($80K) | — | $1M | — | ($6M) | Free cash flowFCF |
| −3.6% | — | 15.5% | — | −80.1% | Free cash flow marginFCF mgn |
| 52% | 128% | 140% | -18% | -18% | ROICROIC |
| 54% | 62% | 33% | -20% | -20% | Return on equityROE |
| 54% | 62% | 33% | −20% | −20% | Retained to equityRetained/eq |
| Balance sheet | |||||
| — | $891K | $2M | $893K | $893K | Cash & investmentsCash+inv |
| — | $2M | $2M | $5M | $5M | ReceivablesReceiv. |
| — | $1M | $1M | $570K | $570K | Accounts payablePayables |
| — | $1M | $281K | $4M | $4M | Operating working capitalOper. WC |
| — | $3M | $5M | $6M | $6M | Current assetsCur. assets |
| — | $2M | $2M | $1M | $1M | Current liabilitiesCur. liab. |
| — | 1.8× | 2.2× | 5.5× | 5.5× | Current ratioCurr. ratio |
| — | $52K | $63K | $34K | $34K | Net PP&ENet PP&E |
| — | $4M | $5M | $7M | $7M | Total assetsAssets |
| — | ($891K) | ($2M) | ($893K) | ($893K) | Net debt / (cash)Net debt |
| 331.4× | 1503.3× | 1770.3× | -487.7× | -487.7× | Interest coverageInt. cov. |
| $652K | $2M | $3M | $6M | $6M | Shareholders’ equityEquity |
| Per share | |||||
| 16.1M | 16.1M | 18.1M | 21.5M | 21.6M | Shares out (diluted)Shares |
| $0.14 | $0.36 | $0.41 | $0.34 | $0.33 | Revenue / shareRev/sh |
| $0.02 | $0.07 | $0.06 | $-0.06 | $-0.06 | EPS (diluted)EPS |
| $-0.00 | — | $0.06 | — | $-0.27 | Owner earnings / shareOE/sh |
| $-0.00 | — | $0.06 | — | $-0.27 | Free cash flow / shareFCF/sh |
| $0.00 | — | $0.00 | — | $0.00 | Cap. spending / shareCapex/sh |
| $0.04 | $0.11 | $0.17 | $0.29 | $0.29 | Book value / shareBVPS |
| 3-yr | 5-yr | |
|---|---|---|
| Revenue / share | +34.3%/yr | +34.3%/yr (3-yr) |
| Capital spending / share | +27.1%/yr (2-yr) | +27.1%/yr (2-yr) |
| Book value / share | +92.0%/yr | +92.0%/yr (3-yr) |
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 2025 the business earned $1M of owner earnings, the operating cash left after the $31K it takes just to hold its position. It put $10K more into growth; free cash flow, after that spending, was $1M.
| FY2025 | FY2023 | |
|---|---|---|
| Reported net income | $1M | $351K |
| Depreciation & amortizationnon-cash charge added back | +$31K | +$21K |
| Working capital & othertiming of cash in and out, other non-cash items | +$123K | −$430K |
| Cash from operations | $1M | ($57K) |
| Maintenance capital expenditurethe spending needed just to hold position and volume | −$31K | −$23K |
| Owner earnings | $1M | ($80K) |
| Growth capital expenditurediscretionary; spent to get bigger, not to stand still | −$10K | — |
| Free cash flow | $1M | ($80K) |
| Owner-earnings marginowner earnings ÷ revenue | 16% | -4% |
Owner earnings is the cash an owner could pull out without starving the business: operating cash less the maintenance capital it must spend to hold its position (here about $31K, roughly its depreciation, the rate its assets wear out). The other $10K of its capital spending is growth it chose, not upkeep it owed; charged only with the maintenance it must do, the business earns well more than the year's free cash flow shows.
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
Will it survive?
- Can it pay its interest? -487.7×Does not cover its interestOperating income ($1M) ÷ interest expense $2K
What this means
A full year of operating profit didn't cover the interest bill. This is the zombie zone: the business depends on refinancing, asset sales, or forbearance to service its debt.
- Net cash, debt-freeCash $893K − debt $0
What this means
Cash and short-term investments exceed every dollar of debt by $893K, on net the company owes nothing, and can act from strength when others can't. 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?
- Not enough dataIndustry peers: median 8%
What this means
The filing data didn't include the inputs for this check.
- Consumes cashOwner earnings ($6M) = operating cash ($6M) − maintenance capex $28KIndustry 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 -80% of revenue this year.
- Loss, and burning cashNet income ($1M) · cash from operations ($6M)
In the filing’s words Read against the cash, reported earnings have run ahead of the operating cash the business generated over the record — about 14% of assets a year, among the widest gaps in the catalogue. For an inventory- or content-heavy grower that can be cash tied up in real assets as it expands; elsewhere it can mean the earnings lean on accounting estimates — the cash-flow statement against the income statement is where to tell which.
What this means
The company reported a net loss, so a conversion ratio isn't meaningful. What matters then is whether operations still threw off cash, here, they did not.
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? 1.45×ExpandingCapex $41K ÷ depreciation $28K
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 · 1 of 2 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 · $7M
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× · 5.46×
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.
- 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 $0.01/share (latest year $-0.06), the averaged base the calculator's gate runs on, and book value is $0.29/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.
Durability & moat, 2023–2026
Whether the record’s returns held, and what the capital reinvested earned.
- Profitable years 3 of 4
What this means
Lost money in 1 year(s), look at what happened there before trusting the average.
- Operating margin 19% → 0% (2-yr avg ends)
What this means
Through the cycle the operating margin slipped — about 19% early to 0% lately, median 17% — competition or costs are biting in.
- Owner earnings growth +0%/yr
What this means
Owner earnings grew about 0% a year over the record.
- Worst year 2026 · −16.8% op. margin
What this means
Operations went underwater in 2026, understand why before trusting the good years.
- Share count +10.1%/yr
What this means
The share count is rising, dilution works against you on a per-share basis.
All figures as filed; the source filing is linked above.
Current Position
as of fiscal year-end, Mar 31, 2026Can 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.
- Cash & short-term investments$893K
- Receivables$5M
- Other current assets$586K
- Accounts payable$570K
- Other current liabilities$547K
From the company's latest filing.
What an owner would ask, FY2025
read the 10-K →- How much of the revenue rides on one buyer?≈$4M · 50% of revenue on the largest customers (TTM)
“In the fiscal year ended March 31, 2025, our top five customers, all being construction contractors in Hong Kong, accounted for 50.4%, 25.5%, 9.9%, 5.5% and 2.4% of our total revenue, respectively.”verify →
The questions the record and the charts do not answer on their own; each carries the figure and the place to look.
Peers, Construction & Engineering
The same industry, side by side on owner economics. Each column names the period it is read over, and a median resting on fewer than three years carries that count beside it; the group median at the foot is the line to read each figure against.
| Company | Revenuelatest FY, USD | Gross marginmedian over the record | Op. marginmedian over the record | ROICmedian over the record | Owner earn. marginmedian over the record |
|---|---|---|---|---|---|
| LMBLimbach Holdings Inc. | $647M | 18% | 2.9% | 10% | 6% |
| BBCPConcrete Pumping Holdings Inc. | $393M | 41% | 12.0% | 6% | 10% |
| KAZRSkyline Builders Group Holding Limited | $46M | 6% | 3.4% | 10% | -5%2y |
| JLHLJulong Holding Limited | $37M | 16% | 11.5% | 19%1y | 14%2y |
| PBKPowerBank Corporation | $30M | 25% | -7.6% | -23% | 14%2y |
| WXMWF International Limited | $13M | 16% | 5.5% | 23% | 5%1y |
| ENGSEnergys Group Limited | $9M | 20% | -25.2% | -11%2y | -11% |
| PHOEPhoenix Asia Holdings Limited | $7M | 26% | 17.3% | 90% | 6%2y |
| Group median | — | 19% | 4.5% | 10% | 6% |
The price
What a price has to assume.
What the price implies
reverse-DCFEnter the US price, in dollars: the NYSE/Nasdaq quote you hold. Phoenix Asia Holdings Limited's US listing is the ordinary share itself. The record tables elsewhere on this page remain as filed.
Type today's close and see the owner-earnings growth you'd have to believe to justify it, beside what Phoenix Asia Holdings Limited has delivered.
Phoenix Asia Holdings Limited’s latest year shows negative owner earnings, the mark of a build-out: total capital spending outruns the cash the business throws off today. So the tool opens on the steady-state base (maintenance capex in place of the build-out spend), the cash it would earn at rest; clear the toggle below to read the latest year exactly as reported.
—
9.0% = the 4.71% 10-year Treasury (Aug 18, 2026) + 4.29 points of equity premium. The rate you require is yours to set.
Enter a price above to run it.
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.
Graham capped the multiple at 15×; Buffett and Munger let that rule go: a wonderful business can deserve 50× if the thesis holds. The gate marks the bargain-hunter's floor.
Prefilled with the 10-year Treasury (4.71%, as of Aug 18, 2026). Edit it for today’s exact figure, or a AAA corporate yield.
Graham measured a stock against the bond you could own instead, the heart of his margin of safety. Enter a price above to weigh the owner-earnings yield against this bond.
Free cash flow ($6M) on 22M shares outstanding, per the 20-F cover, as of 2026-03-31; net cash $893K. The base opens on the steady-state figure (the latest year is negative on total capex mid-build-out); clear Steady-state to use the year as filed. Net of stock comp treats option pay as the expense it is. Capex ($41K) runs well above depreciation ($28K), so this is a build-out; Steady-state swaps total capex for maintenance (≈ depreciation), lifting the base to about ($6M), the cash it would throw off if it stopped expanding. The dials set the multiple a growth belief justifies; the price, and every dollar on this page, is yours.
Manual order: ← PHI its page in the Manual PKX →
Industry order: ← PBK the Construction & Engineering chapter PLPC →