LGL Group (LGL) AI Stock Analysis

• Market Cap: $35.58M
• Dividend Yield: N/A
• Average Volume (3M): 5.44K
• Price to Earnings (P/E): 83.4
• Beta (1Y): 0.04
• Revenue Growth: 28.82%
• EPS Growth: 60.24%
• Country: US
• Employees: 7
• Sector: Technology
• Sector Strength: 46
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.08
• Shares Outstanding: 5,373,055
• 10 Day Avg. Volume: 4,248
• 30 Day Avg. Volume: 5,439
• PEG Ratio: 1.38
• Price to Book (P/B): N/A
• Price to Sales (P/S): 8.70
• Price to Cash Flow (P/CF): 18.50
• P/FCF Ratio: 12.20
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

LGL Group's overall stock score of 61.3 reflects strong financial recovery and strategic partnerships driving growth potential. However, the high P/E ratio raises concerns about potential overvaluation, and technical indicators suggest cautious optimism with mixed signals. The positive corporate events provide some upside, but historical earnings volatility remains a risk.

LGL Group Business Overview & Revenue Model

Company Description

LGL Group (LGL) is a publicly-traded company that specializes in the design, manufacture, and marketing of highly-engineered electronic components and instruments. The company primarily operates in the frequency control devices sector, offering products such as crystal oscillators, frequency synthesizers, and RF filters which are essential in various applications across telecommunications, aerospace, defense, and other industries that require precise frequency and timing control.

How the Company Makes Money

LGL Group generates revenue through the sale of its frequency control products and related electronic components. The company's key revenue streams include direct sales to original equipment manufacturers (OEMs) in sectors like telecommunications, aerospace, and defense, who integrate these products into their systems. LGL may also engage in long-term contracts or partnerships with larger companies for the supply of these components. Additionally, the company's earnings are influenced by technological innovation, operational efficiency, and its ability to maintain competitive pricing and quality. LGL's financial performance is also subject to market demand in the industries it serves and its capacity to adapt to evolving technological standards and customer needs.

LGL Group Financial Statement Overview

Summary

LGL Group shows solid revenue growth and a strong balance sheet with zero debt, indicating financial stability. However, the company faces operational challenges with negative EBIT and EBITDA margins, impacting profitability. Positive cash flow improvements are promising, but maintaining this trajectory is crucial.

Income Statement

LGL Group shows a mixed performance in income statement metrics. The TTM (Trailing-Twelve-Months) Gross Profit Margin is approximately 50.55%, indicating a healthy margin. However, the company has faced issues with profitability as reflected in negative EBIT and EBITDA margins of -41.93% and -37.49% respectively. Revenue has increased by 16.86% from the previous year, demonstrating positive growth momentum. Despite positive net profit margin of 18.02% in TTM, the volatility in EBIT and EBITDA reveals underlying operational challenges.

Balance Sheet

The balance sheet reflects a strong financial position with zero total debt, resulting in a favorable debt-to-equity ratio. The TTM Return on Equity (ROE) stands at 0.93%, which is modest but shows potential for improvement. The equity ratio is strong at 91.84%, indicating a robust capital structure and low leverage. Overall, the balance sheet is stable with high equity and liquidity levels.

Cash Flow

Cash flow metrics indicate improvement with a positive operating cash flow to net income ratio of 2.26 in TTM, suggesting effective cash generation relative to net income. The free cash flow growth rate is significant at 113.64%, reflecting strong cash flow management. However, reliance on operating cash flow highlights the need for consistent cash flow from operations to sustain long-term growth.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
2.02M	1.73M	1.66M	28.14M	31.16M	31.90M
	Gross Profit
1.02M	932.00K	818.00K	10.07M	10.93M	12.52M
	EBIT
-847.00K	-1.30M	2.48M	58.68M	887.00K	3.44M
	EBITDA
-757.00K	668.00K	-1.51M	16.60M	1.84M	3.93M
	Net Income Common Stockholders
364.00K	269.00K	-4.88M	14.64M	968.00K	7.02M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.98M	40.73M	38.09M	45.18M	24.12M	18.08M
	Total Assets
20.96M	41.85M	39.78M	59.91M	43.45M	39.22M
	Total Debt
5.17M	75.00K	132.00K	178.00K	293.00K	331.00K
	Net Debt
1.19M	-40.64M	-21.38M	-28.84M	-18.04M	-12.12M
	Total Liabilities
10.84M	1.17M	1.29M	5.16M	3.69M	4.32M
	Stockholders Equity
10.12M	38.76M	38.49M	54.74M	39.77M	34.89M
Cash Flow		Free Cash Flow
822.00K	385.00K	-1.48M	253.00K	2.79M	1.50M
	Operating Cash Flow
822.00K	385.00K	-817.00K	1.35M	3.19M	2.67M
	Investing Cash Flow
3.00K	18.82M	-5.83M	9.41M	-428.00K	-6.16M
	Financing Cash Flow
0.00	0.00	-859.00K	-73.00K	3.11M	442.00K

LGL Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.62
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LGL, the sentiment is Positive. The current price of 6.62 is above the 20-day moving average (MA) of 6.61, above the 50-day MA of 6.57, and above the 200-day MA of 6.10, indicating a bullish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 51.29 is Neutral, neither overbought nor oversold. The STOCH value of 55.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LGL.

LGL Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DSWL	79 Outperform	$35.85M	3.47	10.86%	8.89%	-5.68%	67.36%
MIND	72 Outperform	$40.01M	11.04	19.54%	―	16.74%	―
LGL	61 Neutral	$35.58M	83.39	1.11%	―	28.82%	60.24%
Sector *	58 Neutral	$10.03B	9.97	-6.85%	3.09%	7.50%	-11.51%
CPSH	51 Neutral	$21.50M	―	-19.70%	―	-23.33%	-328.22%
NSYS	38 Underperform	$21.18M	6.41	-3.73%	―	-8.04%	-118.60%
REFR	33 Underperform	$34.18M	―	-42.84%	―	46.83%	31.40%

LGL Group Corporate Events

LGL Group Amends Subscription Agreement with Morgan Group

On April 15, 2025, LGL Group entered into an amended subscription agreement with Morgan Group Holding Co., subscribing to 1,000,000 shares for $2 million. This agreement includes a non-exclusivity provision allowing MGHL to seek better offers, with LGL retaining the right to match them. Additionally, LGL announced management changes and appointed Vice Admiral Colin J. Kilrain to its Board, bringing extensive military and strategic expertise. The company also highlighted its fiscal year 2024 financial performance, reporting increased revenues and net income, and emphasized new business developments through its P3 Logistics unit, which is involved in AI-driven technology for defense and agriculture.

Spark’s Take on LGL Stock

According to Spark, TipRanks’ AI Analyst, LGL is a Neutral.

LGL Group’s overall stock score of 62 reflects strong financial recovery and strategic partnerships driving growth potential. However, the high P/E ratio raises concerns about potential overvaluation, and technical indicators suggest cautious optimism with mixed signals.

To see Spark’s full report on LGL stock, click here.

LGL Group Announces CEO Resignation and New Appointments

On April 11, 2025, The LGL Group, Inc. announced the resignation of Timothy Foufas as Co-Chief Executive Officer, effective May 1, 2025, with no disagreements cited as the reason. The company also appointed Nathan Miller as Chief Operating Officer and Tiffany Hayden as Vice President, both bringing extensive experience in their respective fields, potentially strengthening the company’s leadership team.

Spark’s Take on LGL Stock

According to Spark, TipRanks’ AI Analyst, LGL is a Neutral.

LGL Group’s overall stock score of 62 reflects strong financial recovery and strategic partnerships driving growth potential. However, the high P/E ratio raises concerns about potential overvaluation, and technical indicators suggest cautious optimism with mixed signals.

To see Spark’s full report on LGL stock, click here.