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Lucas GC Limited Ordinary Shares

LGCL
43
Software - Application · Technology
Price
$1.17
-0.10 (-7.87%)
Market Cap
$2.8M
Exchange
NASDAQ Capital Market
Winston Score
43
Winston is serious
Mixed quality — meaningful strengths and weaknesses.

Share count rising — dilution

+21.1% over 4y

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

Diluted shares outstanding: 2.0M (2021) → 2.4M (2025)

Lucas GC Limited is a technology company based in China that provides software and digital services to businesses. Its core offerings include enterprise software solutions and IT services, primarily sold to corporate clients and government-related entities in China. The company operates in the business application software space, helping organizations manage operations and data more efficiently.

Lucas GC generates revenue by selling software licenses and providing related implementation and support services to its clients. It operates almost entirely within China, and with a market cap near zero, it is a very small company by global standards. The thin operating margin of under 2% signals the business has little pricing power and faces intense competition from much larger domestic software providers, which is the central risk — the company must find a way to differentiate its offerings or grow revenue meaningfully before larger rivals crowd it out of the market entirely.

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

+40.5% YoY

YoY Growth Rate

Strong revenue growth

EPS Growth

+43.6% YoY

YoY Growth Rate

Strong earnings growth

R&D Spend

$171M/ year

Flat (+1% vs prior year)

16.8% of revenue

In line with sector average (15%)

Steady R&D investment year-over-year

Insider Activity

86.2%ownership

Insiders own a meaningful stake in the company

Cash Runway

~3 months

$55M cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Short runway — potential dilution ahead through share issuance

Strong grower

Lucas GC Limited Ordinary Shares is growing revenue at 40% year-over-year. The Winston Score penalises unprofitable companies, but revenue at this pace tells a different story — this is a company still in "build mode."

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
33.8%
Modest — 33.8% gross margin
Operating Margin
0.7%
Thin — 0.7% operating margin
ROCE
1.1%
Weak — 1.1% 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
+4.0%
Slow sales growth (4.0% YoY)
EPS YoY
+797.6%
Earnings growing fast (797.6% YoY)

Earnings growing 25%+ a year. The compounder zone.

EPS Consistency
4/8 quarters
Earnings inconsistent quarter-to-quarter

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Cash Flow

Cash Conversion
-33%
Weak — only -33% of profit becomes cash
FCF Margin
-5.1%
Burning cash (-5.1%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

Debt / Equity
0.30
Conservative — low debt load (0.30)
Interest Cover
13.79x
Comfortably covers interest (13.8x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

P/E Ratio (TTM)
0.0x
Attractive valuation — P/E 0.0

P/E under 10. The price tag is small relative to last year's profit.

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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