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

This company holds roughly $45M 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 logo

The LGL Group

LGL
17
Hardware, Equipment & Parts · Technology
Price
$7.60
+0.00 (+0.00%)
Market Cap
$43.1M
Exchange
New York Stock Exchange Arca
Winston Score
17
Winston is worried
Weak fundamentals across most pillars.
Data as of Aug 23, 2026 · filings through Jun 30, 2026
How the score breaks down
Quality
Weak
Growth
Weak
Cash Flow
Weak
Stability
Data not available
Valuation
Data not available

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)

Winston Score History

The full picture

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.

Growth Profile

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

Revenue Growth

+134.8% YoY

YoY Growth Rate

Revenue accelerating

EPS Growth

-531.6% 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 Runway

5+ years

$45M cash & investments at current burn rate

Revenue accelerating

The LGL Group grew revenue 135% 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

Profit per sale
Gross Margin
0.0%
Thin — 0.0% gross margin
Profit after running costs
Operating Margin
0.0%
Thin — 0.0% operating margin
Return on the money invested
ROCE
-4.1%
Weak — -4.1% return on capital

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

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Growth

Sales growth
Sales YoY
-0.8%
Shrinking sales (-0.8% YoY)
Profit growth
EPS YoY
-161.3%
Earnings shrinking (-161.3% YoY)

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

How steady the profit is
EPS Consistency
2/8 quarters
Earnings rarely grow — volatile business

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Cash Flow

Profit that turns into cash
Cash Conversion
N/A
Data not available
Spare cash per sale
FCF Margin
0.8%
Thin free cash flow (0.8%)

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

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Stability

What it owes vs what it owns
Debt / Equity
N/A
Data not available
Covers its interest
Interest Cover
N/A
Data not available

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Valuation

Price vs profit
P/E Ratio (TTM)
N/M
Negative earnings — P/E not meaningful
Cheaper or dearer next year
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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