Legacy Education Inc.

LGCYdata completeness 100%3 fiscal years on file

Data notes: no data for concept 'interestExpense'

The thesis, from the filings

Legacy Education Inc. earns about 35% on invested capital, far above its ~9% cost of capital, but has diluted owners by 32% over 3 years — a real edge showing up in the numbers. The estimate methods put fair value between $3.51 and $4.18 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2023FY 2024FY 2025
Revenue$35.5M1$46M2$64.2M2
Net income$2.67M3$5.11M4$7.53M4
Operating cash flow$1.77M5$1.65M6$7.77M6
Capital expenditure$195,0767$423,7108$844,3208
Free cash flow (derived)$1.57M5$1.23M6$6.92M6
Total debt$723,5829$2.07M10$3.69M10
Cash & equivalents$9.29M11$10.4M12$20.3M12
Diluted shares9.6M9.7M12.7M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$32.36
your share of equity
Profit it earned you last year
$5.94
Free cash flow it threw off
$5.46
Debt you’d be carrying
$2.91

10 shares is a claim on $32.36 of net worth that earned you $5.94 and generated $5.46 of cash last year, against $2.91 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
35% avg · 3y
FY23 39%FY24 36%FY25 31%

It earned about 35% on invested capital, year after year, against a ~9% cost of capital — the footprint of real pricing power. Competition usually drags returns like this back down; here it hasn't.

seeing a moat in the numbers →
Management signal · capital allocation
+32% shares · 3y

Share count is up 32% over 3 years — owners have been diluted. Worth asking what they got for it. Total debt has risen 410% over the same window.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0

The 3 estimate methods that apply put fair value between $3.51 and $4.18 a share. They rest on different assumptions, so where they diverge is the story; the Graham Number is a stricter floor, not a target.

DCF · Growth Exit 10Y
$3.7
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears10
  • fcfGrowth5.0%
  • fcfBase$1.57M
DCF · Growth Exit 5Y
$3.51
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears5
  • fcfGrowth5.0%
  • fcfBase$1.57M
Earnings Power Value
$4.18
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$5.11M
  • growthAssumed0.0%
Graham Number
$6.55
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

v. The price question — last, on purpose
Is today’s price fair?
See live price ↗
Type a price. The ledger answers.
Or set your own belief
FCF growth, next 5 years5.0%
Discount rate (WACC)8.93%
Terminal growth2.5%
At your growth, a share is worth $3.51
The three cases
Bear0.0%$3.08
Base5.0%$3.51
Bull10.0%$4.03

Bear/base/bull growth = 0% / filed history / history + 5pp. Type a price to see the return each case implies.

Default growth 5.0%= this company’s own filed history (median-to-median FCF CAGR, clamped 0–20%). Your adjustments are recorded anonymously. They become the “what do owners actually believe” dataset.

Sources — the receipts
  1. 10-K · period ending 2023-06-30 · accession 0001493152-24-038926 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2024-06-30 · accession 0001493152-25-014945 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2023-06-30 · accession 0001493152-24-038926 (NetIncomeLoss)
  4. 10-K · period ending 2024-06-30 · accession 0001493152-25-014945 (NetIncomeLoss)
  5. 10-K · period ending 2023-06-30 · accession 0001493152-24-038926 (NetCashProvidedByUsedInOperatingActivities)
  6. 10-K · period ending 2024-06-30 · accession 0001493152-25-014945 (NetCashProvidedByUsedInOperatingActivities)
  7. 10-K · period ending 2023-06-30 · accession 0001493152-24-038926 (PaymentsToAcquirePropertyPlantAndEquipment)
  8. 10-K · period ending 2024-06-30 · accession 0001493152-25-014945 (PaymentsToAcquirePropertyPlantAndEquipment)
  9. 10-K · period ending 2023-06-30 · accession 0001493152-24-038926 (LongTermDebtNoncurrent)
  10. 10-K · period ending 2024-06-30 · accession 0001493152-25-014945 (LongTermDebtNoncurrent)
  11. 10-K · period ending 2023-06-30 · accession 0001493152-24-038926 (CashAndCashEquivalentsAtCarryingValue)
  12. 10-K · period ending 2024-06-30 · accession 0001493152-25-014945 (CashAndCashEquivalentsAtCarryingValue)