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Litigation Capital ManagementLSE:LIT -3.44% Piotroski F-Score is 2 as of Jul. 14, 2026, which is 60% below its 10-year median of 5.00. The stock has 5 warning signs investors should review. Among 532 Credit Services companies, Litigation Capital Management ranks worse than 91.35% on this metric.
Warning Sign:
Piotroski F-Score of 2 is low, which usually implies poor business operation.
The zones of discrimination were as such:
Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3
Litigation Capital Management has an F-score of 2. It is a bad or low score, which usually implies poor business operation.
The historical rank and industry rank for Litigation Capital Management's Piotroski F-Score or its related term are showing as below:
LSE:LIT'
s Piotroski F-Score Range Over the Past 10 Years
Min: 2 Med: 5 Max: 7
Current: 2
During the past 10 years, the highest Piotroski F-Score of Litigation Capital Management was 7. The lowest was 2. And the median was 5.
Litigation Capital Management (LSE:LIT) Piotroski F-Score Explanation
The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.
He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.
He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.
What he found was something that exceeded his most optimistic expectations.
Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.
Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).
Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.
Litigation Capital Management Piotroski F-Score Related Terms
Litigation Capital Management Piotroski F-Score Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Litigation Capital Management Piotroski F-Score Chart
LSE:LIT vs V, MA, AXP: Piotroski F-Score Comparison
For the Credit Services subindustry, Litigation Capital Management's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Litigation Capital Management Piotroski F-Score vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Litigation Capital Management's Piotroski F-Score distribution charts can be found below:
* The bar in red indicates where Litigation Capital Management's Piotroski F-Score falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.
Profitability
Question 1. Return on Assets (ROA)
Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.
Score 1 if positive, 0 if negative.
Litigation Capital Management's current Net Income (TTM) was -34.99.
==> Negative ==> Score 0.
Question 2. Cash Flow Return on Assets (CFROA)
Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.
Score 1 if positive, 0 if negative.
Litigation Capital Management's current Cash Flow from Operations (TTM) was -38.60.
==> Negative ==> Score 0.
Question 3. Change in Return on Assets
Compare this year's return on assets (1) to last year's return on assets.
Litigation Capital Management's return on assets of this year was -0.11326808. Litigation Capital Management's return on assets of last year was 0.02274425.
==> Last year is higher ==> Score 0.
Question 4. Quality of Earnings (Accrual)
Compare Cash flow return on assets (2) to return on assets (1)
Litigation Capital Management's gearing of this year was 0.14274781. Litigation Capital Management's gearing of last year was 0.10760279.
==> Last year is lower than this year ==> Score 0.
Question 6. Change in Working Capital (Liquidity)
Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.
Score 1 if this year's current ratio is higher, 0 if it's lower
Litigation Capital Management's current ratio of this year was 37.72355626. Litigation Capital Management's current ratio of last year was 17.54076254.
==> This year's current ratio is higher. ==> Score 1.
Question 7. Change in Shares in Issue
Compare the number of shares in issue this year, to the number in issue last year.
Score 0 if there is larger number of shares in issue this year, 1 otherwise.
Litigation Capital Management's number of shares in issue this year was 102.943. Litigation Capital Management's number of shares in issue last year was 112.254.
==> There is smaller number of shares in issue this year, or the same. ==> Score 1.
Efficiency
Question 8. Change in Gross Margin
Compare this year's gross margin (Gross Profit divided by sales) to last year's.
Score 1 if this year's gross margin is higher, 0 if it's lower.
Litigation Capital Management's gross margin of this year was 0.51334702. Litigation Capital Management's gross margin of last year was 0.72021581.
==> Last year's gross margin is higher ==> Score 0.
Question 9. Change in asset turnover
Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.
Score 1 if this year's asset turnover ratio is higher, 0 if it's lower
Litigation Capital Management's asset turnover of this year was 0.06779897. Litigation Capital Management's asset turnover of last year was 0.13276735.
==> Last year's asset turnover is higher ==> Score 0.
Evaluation
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Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3
Litigation Capital Management has an F-score of 2. It is a bad or low score, which usually implies poor business operation.
Litigation Capital Management (LSE:LIT) has a Piotroski F-Score of 2 as of Jul. 14, 2026. The Piotroski F-score grades a company's business operating strength from 0-9. View historical data on Litigation Capital Management and its competitors. This is 60% below median its historical median of 5.00. Over the past decade, Litigation Capital Management's Piotroski F-Score has ranged from 2.00 to 7.00. According to the industry distribution chart, Litigation Capital Management ranks #486 out of 532 companies in the Credit Services industry, placing it in the top 91.4%.
Is Litigation Capital Management's Piotroski F-Score too high?
Litigation Capital Management's current Piotroski F-Score of 2 is 60% below median its 10-year median of 5.00. Over the past 10 years, this metric has ranged from a low of 2.00 to a high of 7.00. The Credit Services industry median Piotroski F-Score is 5.00. Litigation Capital Management's value of 2 is 60% below this industry median. Based on the distribution chart, Litigation Capital Management ranks #486 out of 532 companies in the Credit Services industry, which is in the bottom quartile relative to peers.
How does Litigation Capital Management's Piotroski F-Score compare to V and MA?
According to the Credit Services industry distribution chart, Litigation Capital Management ranks #486 out of 532 companies for Piotroski F-Score. This places Litigation Capital Management in the lower half of its industry. The industry median Piotroski F-Score is 5.00. Litigation Capital Management's value of 2 is 60% below this benchmark. Historically, Litigation Capital Management's own Piotroski F-Score has ranged from 2.00 to 7.00 over the past decade. While the company's 10-year median is 5.00 vs. the industry median of 5.00, Litigation Capital Management has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Piotroski F-Score for a Credit Services company?
The median Piotroski F-Score among Credit Services companies is 5.00, based on 532 companies in the industry. Companies in the top quartile (top 25%) have a Piotroski F-Score significantly above this median, while those in the bottom quartile fall well below. However, Piotroski F-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Litigation Capital Management's current Piotroski F-Score of 2 is 60% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Piotroski F-Score mean?
A high Piotroski F-Score can signal that a stock is expensive relative to its fundamentals. The Piotroski F-score grades a company's business operating strength from 0-9. View historical data on Litigation Capital Management and its competitors. For the Credit Services industry, the median Piotroski F-Score is 5.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Litigation Capital Management's current Piotroski F-Score is 2, which is 60% below median its own 10-year median of 5.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Litigation Capital Management stock overvalued right now?
Based on GuruFocus' analysis, Litigation Capital Management (LSE:LIT) is currently considered Possible Value Trap. The stock's GF Value™ is £0.23, compared to a current price of £0.02 — trading 92.9% below its estimated fair value. The current Piotroski F-Score is 2, which is 60% below median its 10-year median of 5.00 and 60% below the Credit Services industry median of 5.00. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Piotroski F-Score calculated?
Piotroski F-Score is calculated from a company's financial statements. For Litigation Capital Management (LSE:LIT), the current Piotroski F-Score is 2 as of Jul. 14, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Litigation Capital Management Business Description
Litigation Capital Management Ltd is an alternative asset manager specialising in dispute financing solutions internationally, which operates two business models. The first is direct investments made from LCM's permanent balance sheet capital, and the second is third-party fund management. Under those two business models, LCM currently pursues three investment strategies: Single-case funding, Portfolio funding, and Acquisitions of claims. LCM generates its income from both its direct investments and performance fees through asset management. The group's operating segments are Fund, which generates maximum income, and LCM.
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