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Legion Capital Corporation

LGCP
40
Asset Management · Financial Services
Price
$0.00
+0.00 (+0.00%)
Market Cap
$23,192
Winston Score
40
Winston is serious
Mixed quality — meaningful strengths and weaknesses.

Share count rising — dilution

+15.3% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 15.7M (2019) → 18.1M (2023)

Legion Capital Corporation is a small private lending company based in the United States. It provides loans and financing to small and mid-sized businesses that have trouble getting money from traditional banks. The company operates in the alternative lending space, focusing on borrowers who need flexible financing options.

Legion Capital makes money by charging interest on the loans it issues to business clients. It also raises money from individual investors by selling securities, which it then uses to fund those loans. The company is very small, with a market cap close to zero, and it operates primarily in the U.S. The main risk facing Legion Capital is credit risk — if borrowers cannot repay their loans, the company's income and capital can take a serious hit, which is a significant concern given its focus on businesses that already struggle to access mainstream bank financing.

Winston Score History

Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-14.4% YoY

YoY Growth Rate

Revenue declining

EPS Growth

-418.0% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$0/ year

0.0% of revenue

Below sector average (7%)

Research and development spending

Insider Activity

0.0%ownership

Relatively low insider ownership

Cash Position

Cash flow positive

$1M cash & investments

Quarterly Free Cash Flow

→ Burn rate stable

Company generates more cash than it spends — no dilution risk from fundraising

Revenue declining

Legion Capital Corporation's revenue is actually shrinking. In a growth stock, that removes the core investment thesis. The low Winston Score here may be warranted — unless there's a turnaround story.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

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Quality

Gross Margin
100.0%
Premium pricing power — 100.0% gross margin
Operating Margin
72.9%
Excellent — 72.9% operating margin
ROCE
2.0%
Weak — 2.0% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY
+5.0%
Slow sales growth (5.0% YoY)
EPS YoY
N/A
Data not available
EPS Consistency
0/8 quarters
Earnings rarely grow — volatile business

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Cash Flow

Cash Conversion
480%
Turns 480% of profit into real cash
FCF Margin
67.0%
Converts sales into free cash efficiently (67.0%)

Free cash flow margin above 20%. Out of every $100 in sales, more than $20 is real cash they keep.

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Stability

Debt / Equity
2.41
Heavy debt load (2.41)
Interest Cover
2.48x
Tight — interest eats into profit (2.5x)

Interest coverage between 1 and 3. Profits cover interest, but with little room to spare.

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Valuation

P/E Ratio (TTM)
N/M
Negative earnings — P/E not meaningful
P/E vs Forward
N/A
not available
Data not available

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Dividends

Not applicable for this business.
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