LGCY (Legacy Education) Beneish M-Score: -2.20 (As of Jul. 01, 2026)


LGCY Legacy Education Inc LGCY
48 GF Score
Price $11.85
! 3 Warning Signs
View Full Analysis

What is Legacy Education Beneish M-Score?

Legacy Education LGCY +0.77% 48 Beneish M-Score is -2.20 as of Jul. 01, 2026. GuruFocus rates LGCY with a GF Score™ of 48/100. The stock has 3 warning signs investors should review. Among 241 Education companies, Legacy Education ranks worse than 76.35% on this metric.

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.2 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Legacy Education's Beneish M-Score or its related term are showing as below:

LGCY' s Beneish M-Score Range Over the Past 10 Years
Min: -2.71   Med: -2.11   Max: -1.37
Current: -2.2

During the past 7 years, the highest Beneish M-Score of Legacy Education was -1.37. The lowest was -2.71. And the median was -2.11.

Legacy Education Beneish M-Score Historical Data

* Premium members only.

The historical data trend for Legacy Education's Beneish M-Score can be seen below:

* 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.

Legacy Education Beneish M-Score Chart

Legacy Education Annual Data
Trend Jun19 Jun20 Jun21 Jun22 Jun23 Jun24 Jun25
Beneish M-Score
Get a 7-Day Free Trial 0.00 0.00 -2.71 -1.37 -2.16

Legacy Education Quarterly Data
Jun19 Jun20 Sep20 Jun21 Sep21 Jun22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Beneish M-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -1.39 -2.16 -1.79 -2.11 -2.20

LGCY vs CHGG, COE, STG: Beneish M-Score Comparison

For the Education & Training Services subindustry, Legacy Education's Beneish M-Score, along with its competitors' market caps and Beneish M-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.

Legacy Education Beneish M-Score vs Education Industry

For the Education industry and Consumer Defensive sector, Legacy Education's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Legacy Education's Beneish M-Score falls into.


LGCY
48GF Score
Legacy Education Inc LGCY
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Legacy Education Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Legacy Education for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 0.9027+0.528 * 0.9198+0.404 * 0.929+0.892 * 1.3211+0.115 * 0.651
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1556+4.679 * 0.034681-0.327 * 0.8291
=-2.20

* 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.

This Year (Mar26) TTM:Last Year (Mar25) TTM:
Total Receivables was $19.72 Mil.
Revenue was 21.369 + 19.185 + 19.401 + 17.95 = $77.91 Mil.
Gross Profit was 10.324 + 8.893 + 9.079 + 8.504 = $36.80 Mil.
Total Current Assets was $43.97 Mil.
Total Assets was $75.46 Mil.
Property, Plant and Equipment(Net PPE) was $17.78 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.58 Mil.
Selling, General, & Admin. Expense(SGA) was $25.04 Mil.
Total Current Liabilities was $13.09 Mil.
Long-Term Debt & Capital Lease Obligation was $12.85 Mil.
Net Income was 3.029 + 2.043 + 2.187 + 1.227 = $8.49 Mil.
Non Operating Income was -0.008 + -0.004 + 0 + 0 = $-0.01 Mil.
Cash Flow from Operations was 0.764 + 1.056 + 1.056 + 3.005 = $5.88 Mil.
 Total Receivables was $16.54 Mil.
Revenue was 18.578 + 13.635 + 14.005 + 12.752 = $58.97 Mil.
Gross Profit was 8.461 + 6.156 + 6.801 + 4.204 = $25.62 Mil.
Total Current Assets was $35.28 Mil.
Total Assets was $67.10 Mil.
Property, Plant and Equipment(Net PPE) was $18.70 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.39 Mil.
Selling, General, & Admin. Expense(SGA) was $16.40 Mil.
Total Current Liabilities was $13.32 Mil.
Long-Term Debt & Capital Lease Obligation was $14.50 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(19.719 / 77.905) / (16.535 / 58.97)
=0.253116 / 0.280397
=0.9027

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(25.622 / 58.97) / (36.8 / 77.905)
=0.434492 / 0.47237
=0.9198

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (43.969 + 17.779) / 75.46) / (1 - (35.275 + 18.699) / 67.099)
=0.181712 / 0.195606
=0.929

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=77.905 / 58.97
=1.3211

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(0.392 / (0.392 + 18.699)) / (0.579 / (0.579 + 17.779))
=0.020533 / 0.031539
=0.651

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(25.035 / 77.905) / (16.399 / 58.97)
=0.321353 / 0.278091
=1.1556

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((12.853 + 13.089) / 75.46) / ((14.498 + 13.323) / 67.099)
=0.343785 / 0.414626
=0.8291

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(8.486 - -0.012 - 5.881) / 75.46
=0.034681

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Legacy Education has a M-score of -2.20 suggests that the company is unlikely to be a manipulator.

Frequently Asked Questions Learn more about Beneish M-Score →
What does a Beneish M-Score of -2.20 mean?
Legacy Education (LGCY) has a Beneish M-Score of -2.20 as of Jul. 01, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Legacy Education and its competitors. According to the industry distribution chart, Legacy Education ranks #184 out of 241 companies in the Education industry, placing it in the top 76.3%.
Is Legacy Education's Beneish M-Score too high?
Legacy Education's current Beneish M-Score is -2.20. Based on the distribution chart, Legacy Education ranks #184 out of 241 companies in the Education industry, which is in the bottom quartile relative to peers. Overall, Legacy Education has a GF Score™ of 48/100, reflecting its overall financial health beyond just this single metric.
How does Legacy Education's Beneish M-Score compare to CHGG and COE?
According to the Education industry distribution chart, Legacy Education ranks #184 out of 241 companies for Beneish M-Score. This places Legacy Education in the lower half of its industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Beneish M-Score for an Education company?
A good Beneish M-Score depends on the Education industry context. However, Beneish M-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Beneish M-Score mean?
A high Beneish M-Score can signal that a stock is expensive relative to its fundamentals. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Legacy Education and its competitors. Legacy Education's current Beneish M-Score is -2.20. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Legacy Education stock overvalued right now?
Legacy Education (LGCY) has a current Beneish M-Score of -2.20. The current Beneish M-Score is -2.20. Legacy Education's overall GF Score™ is 48/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Beneish M-Score calculated?
Beneish M-Score is calculated from a company's financial statements. For Legacy Education (LGCY), the current Beneish M-Score is -2.20 as of Jul. 01, 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.

Legacy Education Business Description

Address 701 W Avenue K, Suite 123, Lancaster, CA, USA, 93534
Legacy Education Inc is engaged in career-focused, post-secondary education services to students at all stages of adult life, from recent high school graduates to working parents.
48GF Score

Get the complete analysis for LGCY

Beneish M-Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$11.85
Price