Deep Value: cash covers more than 100% of the stock price

This company holds roughly $47M in cash and investments — more than its entire stock-market value, based on its latest quarterly filing. You're paying very little for the actual business. Sometimes that's a genuine bargain or a takeover target, sometimes it's cheap for a reason. Not a buy signal on its own — always ask why it's this cheap.

The LGL Group

LGL

Hardware, Equipment & Parts · Technology

Price

$7.10

-0.25 (-3.40%)

Market Cap

$40.2M

Exchange

New York Stock Exchange Arca

Winston Score

Winston is worried

Below-average fundamentals — multiple weak pillars.

Data as of Aug 9, 2026 · filings through Mar 31, 2026

Share count rising — dilution

+20.1% over 4y

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

Diluted shares outstanding: 5.3M (2021) → 6.4M (2025)

The LGL Group is a small technology holding company based in the United States. Its main operating business makes electronic components called frequency control products — things like oscillators and resonators that help electronic devices keep precise time and stay synchronized. These components are sold to customers in defense, aerospace, and industrial markets.

The company earns revenue by selling these hardware components, and it also holds investments and has explored acquiring other businesses over time. LGL operates primarily in the U.S. and is a very small company, with a market cap under $100 million. Its gross margin is decent at around 52%, but its operating margin is deeply negative, meaning it spends far more than it earns from operations right now. The key risk is that the company needs to significantly grow its revenue or cut costs to reach profitability, and its small size makes it vulnerable to losing even a handful of customers.

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

+36.9% YoY

YoY Growth Rate

Revenue accelerating

EPS Growth

<−1,000% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$0/ year

0.0% of revenue

Below sector average (15%)

Research and development spending

Insider Activity

32.1%ownership

Insiders own a meaningful stake in the company

Cash Position

Cash flow positive

$47M cash & investments

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

Revenue accelerating

The LGL Group grew revenue 37% year-over-year and the growth rate is speeding up. That's the kind of momentum growth investors look for — the question is whether margins can follow.

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.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Gross Margin

51.0%

Healthy — 51.0% gross margin

Operating Margin

-174.2%

Losing money on operations — -174.2%

ROCE

-2.7%

Weak — -2.7% return on capital

Negative ROIC means the business is losing money on every dollar invested in it.

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Growth

Sales YoY

-21.6%

Shrinking sales (-21.6% YoY)

EPS YoY

-66.2%

Earnings shrinking (-66.2% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

EPS Consistency

3/8 quarters

Earnings rarely grow — volatile business

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Cash Flow

Cash Conversion

321%

Turns 321% of profit into real cash

FCF Margin

8.8%

Modest free cash flow (8.8%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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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)

277.3x

Expensive — P/E 277.3

P/E over 35. The market is pricing in heavy, sustained growth.

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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