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Lucas GC Limited
(NASDAQ:LGCL)
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Rating:45Neutral
Price Target:
$2.50
▲(4066.67% Upside)
Action:Reiterated
Date:10/08/26
The score is primarily held back by weak technicals (bearish momentum and price well below key moving averages) and financial performance concerns, especially the 2024–2025 revenue/profitability reset and persistently negative free cash flow. The balance sheet’s growing equity base and improved operating cash flow provide some support but are outweighed by the recent deterioration and rising debt trend. Valuation cannot be positively assessed with the provided P/E and missing dividend yield.
Positive Factors
AI PaaS margin expansion
The shift from lower-margin outsourcing contracts toward higher-value AI technology services is improving margin quality. If sustained, this mix change can strengthen profitability, make the business more resilient, and support better earnings conversion over the next several quarters.
Negative Factors
Revenue and earnings contraction
The reversal from strong 2021–2023 expansion to declining revenue and sharply lower net income weakens visibility into the company’s earnings trajectory. Continued contraction could reduce operating scale, constrain reinvestment, and make the margin improvement harder to sustain.
Read all positive and negative factors
Positive Factors
Negative Factors
AI PaaS margin expansion
The shift from lower-margin outsourcing contracts toward higher-value AI technology services is improving margin quality. If sustained, this mix change can strengthen profitability, make the business more resilient, and support better earnings conversion over the next several quarters.
Read all positive factors
Lucas GC Limited (LGCL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.20M
Dividend YieldN/A
Average Volume (3M)1.78M
Price to Earnings (P/E)―
Beta (1Y)1.34
Revenue Growth9.06%
EPS Growth-100.87%
CountryUS
Employees311
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)-435.23
Shares Outstanding1,302,294
10 Day Avg. Volume4,622,436
30 Day Avg. Volume1,784,166
Financial Highlights & Ratios
PEG Ratio-0.05
Price to Book (P/B)0.12
Price to Sales (P/S)0.04
P/FCF Ratio-0.79
Enterprise Value/Market Cap23.68
Enterprise Value/Revenue0.09
Enterprise Value/Gross Profit0.25
Enterprise Value/Ebitda1.55
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Lucas GC Limited Business Overview & Revenue Model
Company Description
Lucas GC Limited, through its various subsidiaries, delivers cloud-based human capital management (HCM) services primarily focused on agents, leveraging its Platform-as-a-Service (PaaS) model across the People's Republic of China. The company's tw...
Lucas GC Limited Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
67
Positive
Cash Flow
41
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 889.24M | 1.01B | 1.06B | 1.47B | 766.57M | 652.25M |
| Gross Profit | 304.55M | 342.45M | 357.40M | 418.55M | 215.20M | 179.09M |
| EBITDA | 49.05M | 32.34M | 36.86M | 72.72M | 35.62M | 38.64M |
| Net Income | 8.42M | 9.52M | 39.79M | 77.67M | 36.14M | 39.51M |
Balance Sheet | ||||||
| Total Assets | 848.74M | 454.13M | 403.25M | 291.82M | 241.25M | 226.14M |
| Cash, Cash Equivalents and Short-Term Investments | 15.20M | 35.14M | 33.18M | 30.12M | 48.48M | 74.10M |
| Total Debt | 98.08M | 94.92M | 68.03M | 39.47M | 6.75M | 0.00 |
| Total Liabilities | 238.03M | 139.82M | 137.67M | 95.23M | 123.92M | 256.91M |
| Stockholders Equity | 607.75M | 311.49M | 262.83M | 194.14M | 115.86M | -31.08M |
Cash Flow | ||||||
| Free Cash Flow | -46.13M | -46.05M | -56.98M | -48.51M | -17.16M | 56.88M |
| Operating Cash Flow | 43.73M | 34.92M | 20.19M | -36.41M | -15.12M | 60.63M |
| Investing Cash Flow | -417.72M | -104.34M | -79.95M | -12.10M | 16.82M | -47.85M |
| Financing Cash Flow | 357.28M | 69.20M | 60.75M | 29.42M | 3.42M | 79.16M |
Lucas GC Limited Technical Analysis
Negative
0.06
Price Trends
47.46
Negative
122.56
Negative
177.94
Negative
Market Momentum
-9.96
Negative
26.75
Positive
13.68
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LGCL, the sentiment is Negative. The current price of 0.06 is below the 20-day moving average (MA) of 2.87, below the 50-day MA of 47.46, and below the 200-day MA of 177.94, indicating a bearish trend. The MACD of -9.96 indicates Negative momentum. The RSI at 26.75 is Positive, neither overbought nor oversold. The STOCH value of 13.68 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LGCL.
Lucas GC Limited Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $72.19M | 23.61 | 7.84% | ― | 12.53% | -0.08% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
48 Neutral | $481.01M | -19.10 | -81.68% | ― | ― | 97.42% | |
47 Neutral | $22.69M | -2.59 | -35.20% | 35.00% | 1.75% | -47.10% | |
47 Neutral | $22.75M | 0.33 | 0.51% | ― | 125.00% | ― | |
45 Neutral | $3.20M | -0.04 | 1.83% | ― | 9.06% | -100.87% |
* Technology Sector Average
LGCL
Lucas GC Limited
2.46
-475.04
-99.48%
AWRE
Aware
1.04
-1.31
-55.74%
NTWK
Netsol Technologies
6.04
1.62
36.65%
MTC
MMTec
4.83
3.98
468.24%
HKIT
Hitek Global
2.53
-6,784.97
-99.96%
Lucas GC Limited Corporate Events
Lucas GC Limited Posts 1H 2026 Results as AI PaaS Pivot Lifts Margins Despite Revenue Slide
Oct 7, 2026
On October 7, 2026, Lucas GC Limited reported financial results for the six months ended June 30, 2026, showing revenue of RMB245.3 million (US$35.7 million), down 36.6% year-on-year, mainly due to reduced outsourcing service income. Despite the r...
Lucas GC Limited Shareholders Approve Major Capital Restructuring at October 2026 EGM
Oct 6, 2026
On October 2, 2026, Lucas GC Limited held an extraordinary general meeting via live webcast, with shareholders representing about 61.3% of total voting power in attendance, and approved all resolutions presented. Investors ratified a 125‑for...
Lucas GC Limited Enacts Major Share Capital Restructuring Ahead of Nasdaq Trading Change
Oct 6, 2026
On October 2, 2026, Lucas GC Limited held an extraordinary general meeting at which shareholders approved a comprehensive share capital restructuring, changing the company’s authorized capital from 20 million shares at a par value of US$0.02...
Lucas GC Limited Sets October 2026 EGM to Ratify Share Consolidation and Overhaul Capital Structure
Sep 18, 2026
Lucas GC Limited has called an extraordinary general meeting for October 2, 2026, to be held virtually via live webcast, where shareholders will vote on a series of capital structure and governance changes. The agenda includes ratifying a 125-for-...
Lucas GC Limited Sets September 1, 2026 Effective Date for 125-for-1 Share Consolidation
Aug 28, 2026
Lucas GC Limited, an AI-driven PaaS provider serving the human resources and insurance sectors, has built a sizeable intellectual property portfolio, including 24 patents and over 75 software copyrights. The company’s technology stack spans ...
Lucas GC Limited Launches US$25 Million At-the-Market Share Offering Program
Aug 10, 2026
On August 7, 2026, Lucas GC Limited entered into an at-the-market offering agreement with Pacific Century Securities LLC, enabling the company to issue and sell up to US$25 million of its Class A ordinary shares from time to time through Nasdaq or...
Lucas GC Limited Reassigns CTO Harry Tang to Senior Advisor Role
Jul 10, 2026
Lucas GC Limited reported a leadership change effective July 30, 2026, with chief technology officer Harry Tang stepping down for personal reasons to become a senior advisor. The company emphasized that his transition did not arise from any disagr...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.