Legacy Education Inc. Common Stock (LGCY)

FairStock Score: 72/100 — STEADY

Key Financials

Strengths

• Generates $3 million in annual free cash flow (2.1% yield on market cap)
• High return on equity of 20.1% demonstrating efficient capital deployment
• Conservative balance sheet with debt-to-equity of just 0.34, providing financial flexibility
• Altman Z-Score of 4.7 confirms minimal bankruptcy risk and strong solvency
• Revenue growth of 40.7% demonstrates strong top-line momentum

Concerns

• Trades significantly above Graham Number ($7) with negative 77% margin of safety—limited downside protection

AI Analysis

Legacy Education Inc. Common Stock is a micro-cap consumer defensive company valued at $157 million. The business generates $75 million in annual revenue with a 2.7% net margin and $3 million in free cash flow. From a quality standpoint, Legacy shows healthy Altman Z-Score of 4.7 and strong 20% ROE. On valuation, the stock is reasonably priced at 20.6x earnings, with trades above its Graham Number with a negative 77% margin. Growth dynamics show revenue growing at 40.7% and profit growth of 46.0%. Our composite FairStock Score of 72/100 reflects above-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Legacy's 41% revenue growth trajectory could accelerate as it captures additional market share in the consumer defensive sector. With $3 million in annual free cash flow (2.1% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the consumer defensive space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer