Ledyard Financial Group (LFGP) AI Stock Analysis

• Market Cap: $54.37M
• Dividend Yield: 5.46%
• Average Volume (3M): 1.14K
• Price to Earnings (P/E): 8.8
• Beta (1Y): 0.18
• Revenue Growth: 18.08%
• EPS Growth: 111.18%
• Country: US
• Employees: N/A
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.59
• Shares Outstanding: 3,447,889
• 10 Day Avg. Volume: 812
• 30 Day Avg. Volume: 1,144
• PEG Ratio: 7.49
• Price to Book (P/B): 0.90
• Price to Sales (P/S): 0.93
• P/FCF Ratio: 9.25
• Enterprise Value/Market Cap: 3.05
• Enterprise Value/Revenue: 2.83
• Enterprise Value/Gross Profit: 2.85
• Enterprise Value/Ebitda: 31.06
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: $17.00 ▲(14.25% Upside)

Ledyard Financial Group's overall stock score is driven by its strong valuation, highlighted by an attractive dividend yield and reasonable P/E ratio. However, financial performance is a concern due to declining profit margins and high leverage. Technical analysis suggests a neutral to slightly bearish outlook, which tempers the overall score.

Positive Factors

Strong Revenue Growth

Sustained high revenue growth (~68% latest year) indicates successful client acquisition and/or AUM expansion in core wealth and trust services. This scale supports recurring fee revenue, cross-selling opportunities, and investment in service capabilities, improving long-term revenue visibility and structural growth potential.

Improving Leverage Trend

Material reduction in debt-to-equity shows management executing deleveraging, which lowers interest burden and financial risk over time. Continued progress on leverage enhances flexibility for strategic investments, capital allocation, and resilience to economic shocks if the trend persists over multiple quarters.

Growing Free Cash Flow

Rising free cash flow and a ~68% FCF-to-net-income ratio demonstrate meaningful cash generation capacity in the business. Reliable cash flow supports dividend payments, debt reduction, and reinvestment in advisory and trust services, strengthening balance sheet durability and funding flexibility long-term.

Negative Factors

Declining Profit Margins

Sustained deterioration in gross and net margins suggests rising cost pressure or pricing weakness in advisory and trust businesses. Lower margins compress sustainable profitability, reduce reinvestment and dividend capacity, and make future earnings more sensitive to revenue volatility across quarters.

Balance Sheet Still Highly Levered

Despite improvement, the company retains relatively high leverage and a low equity ratio, leaving it exposed to interest-rate increases and economic downturns. Elevated debt levels constrain strategic flexibility, raise refinancing risk, and limit the firm's ability to pursue inorganic growth without further deleveraging.

Weak Cash Conversion

Low conversion of net income into operating cash flow points to earnings quality and working capital or accrual issues. If profits do not translate reliably into cash, the company may face recurring strain funding operations, dividends, or debt service without sustained deleveraging or operational improvements.

Ledyard Financial Group Business Overview & Revenue Model

Company Description

Ledyard Financial Group, Inc., headquartered in Hanover, New Hampshire, is the holding company for Ledyard National Bank. Ledyard National Bank, founded in 1991, is a full-service community bank offering a broad range of banking, investment, and wealth management services. Stock activity information can be found in the Investor Relations section of our website, which includes a wealth of other information that Ledyard shareholders and prospective shareholders may find of interest. Ledyard Financial Group, Inc. shares can be bought and sold through the NASD sanctioned OTC Markets under the trading symbol LFGP. Shares may be traded through an individual's broker. For more information, please refer to the Investor Relations section of the bank's website at www.ledyardbank.com or contact the Company's Chief Financial Officer, Gregory D. Steverson.

How the Company Makes Money

Ledyard Financial Group generates revenue through multiple streams, primarily from asset management fees, which are charged for managing client portfolios and providing investment advisory services. The company also earns interest income from its banking operations, including loans and deposits. Additional revenue is generated through trust services and financial planning consultations. Significant partnerships with institutional investors and strategic alliances with other financial entities further enhance LFGP's earning potential by expanding its service offerings and client base.

Ledyard Financial Group Financial Statement Overview

Summary

Ledyard Financial Group demonstrates strong revenue growth, but declining profit margins and high leverage pose challenges. Improvements in debt management and cash flow generation are positive signs, but the company needs to focus on enhancing profitability and reducing financial risk to ensure sustainable growth.

Income Statement

Ledyard Financial Group shows a strong revenue growth rate of 67.96% in the latest year, indicating robust expansion. However, the gross profit margin has decreased significantly from previous years, suggesting increased cost pressures. The net profit margin has also declined, reflecting challenges in maintaining profitability. Overall, while revenue growth is impressive, declining margins pose a concern for future profitability.

Balance Sheet

The company's debt-to-equity ratio has improved from 2.31 to 1.31, indicating better leverage management. However, it remains relatively high, suggesting potential financial risk. Return on equity is stable but modest at 5.77%, indicating moderate efficiency in generating profits from equity. The equity ratio is low, reflecting a higher reliance on debt financing. Overall, while there are improvements, the balance sheet still shows significant leverage.

Cash Flow

Free cash flow has shown significant growth, but the operating cash flow to net income ratio remains low, indicating potential issues in converting profits into cash. The free cash flow to net income ratio is relatively healthy at 67.70%, suggesting decent cash generation relative to profits. Overall, while cash flow generation is improving, the low conversion of operating cash flow to net income is a concern.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	58.47M	54.86M	42.61M	31.97M	34.33M	33.41M
Gross Profit	58.26M	32.61M	30.69M	33.53M	33.76M	29.13M
EBITDA	5.34M	4.45M	3.79M	8.44M	9.46M	7.29M
Net Income	4.59M	3.26M	3.17M	6.98M	7.77M	6.73M
Balance Sheet
Total Assets	993.35M	950.47M	856.11M	743.46M	771.14M	684.71M
Cash, Cash Equivalents and Short-Term Investments	0.00	60.91M	189.98M	144.54M	367.32M	279.93M
Total Debt	111.15M	74.30M	99.54M	105.90M	12.25M	12.88M
Total Liabilities	936.82M	893.93M	800.09M	690.47M	698.44M	617.82M
Stockholders Equity	56.52M	56.54M	56.02M	53.00M	72.71M	66.88M
Cash Flow
Free Cash Flow	0.00	5.50M	1.71M	5.66M	9.83M	7.31M
Operating Cash Flow	0.00	8.13M	2.27M	7.98M	10.39M	9.96M
Investing Cash Flow	0.00	-81.03M	-102.91M	-84.58K	-117.58M	-134.64M
Financing Cash Flow	0.00	89.42M	110.45M	-8.50M	76.32M	168.12M

Ledyard Financial Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 14.88
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LFGP, the sentiment is Positive. The current price of 14.88 is below the 20-day moving average (MA) of 15.06, above the 50-day MA of 14.88, and above the 200-day MA of 14.17, indicating a bullish trend. The MACD of 0.22 indicates Negative momentum. The RSI at 83.13 is Negative, neither overbought nor oversold. The STOCH value of 94.55 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LFGP.

Ledyard Financial Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HFBL	78 Outperform	$56.30M	10.77	8.21%	3.21%	0.32%	37.93%
OPHC	75 Outperform	$54.32M	4.84	15.03%	―	14.91%	0.81%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
ASRV	66 Neutral	$54.52M	9.72	4.54%	3.87%	6.89%	―
LFGP	63 Neutral	$54.37M	8.76	9.29%	5.46%	18.08%	111.18%
TCBS	55 Neutral	$48.50M	19.57	4.74%	1.10%	12.12%	―