Sparta Commercial Services (SRCO) Stock Analysis & Winston Score

Sparta Commercial Services is a small technology company that provides software and financial services, primarily focused on the powersports and automotive industries. Its main products include a mobile app platform and financing tools that help dealers and consumers manage vehicle registrations, title processing, and related transactions. The company serves motorcycle, ATV, and recreational vehicle dealers across the United States.

Sparta generates revenue through software subscriptions, transaction fees, and financing arrangements tied to its dealer network. It operates exclusively in the United States and remains a very small company with a market cap near zero, meaning it carries significant financial risk. The company's operating margin is deeply negative, which signals it is spending far more than it earns — the central challenge for Sparta is reaching a scale where its high gross margins can translate into actual profitability before it runs out of runway.

Winston Score History

Growth Profile

For growth stock investors

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

Revenue Growth

+16.7% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

+27.0% YoY

YoY Growth Rate

EPS growth accelerating

Insider Activity

0.3%ownership

→ Flat

Insiders holding steady — not selling despite ability to

Cash Runway

~1 months

$70,116 cash & investments

Short runway — potential dilution ahead through share issuance

Cash watch

Sparta Commercial Services has less than a year of cash at its current burn rate. Growth investors should watch for potential share dilution from future fundraising — that directly reduces your ownership.

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

Every number that matters to educated investors.

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Quality

Gross Margin

94.0%

Premium pricing power — 94.0% gross margin

Operating Margin

-225.9%

Losing money on operations — -225.9%

ROCE

N/A

—

Data not available

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Growth

Sales YoY

+52.2%

Fast-growing sales (52.2% 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

N/A

Data not available

FCF Margin

-179.8%

Burning cash (-179.8%)

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

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Stability

Debt / Equity

N/A

—

Data not available

Interest Cover

N/A

Data not available

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Valuation

P/E Ratio (TTM)

N/M

no trend

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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