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LGL Group (LGL)
:LGL

LGL Group (LGL) AI Stock Analysis

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LG

LGL Group

(NYSE MKT:LGL)

Rating:64Neutral
Price Target:
LGL Group's overall stock score of 64 reflects a strong financial recovery and strategic initiatives driving growth potential. However, the high P/E ratio raises concerns about potential overvaluation. Technical analysis signals a cautious market sentiment, while recent corporate events suggest a proactive growth strategy.

LGL Group (LGL) vs. SPDR S&P 500 ETF (SPY)

LGL Group Business Overview & Revenue Model

Company DescriptionLGL 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 MoneyLGL 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 demonstrates a strong financial recovery with significant revenue growth and robust profit margins in 2024. The balance sheet is solid with no debt and high equity, while cash flow metrics reflect efficient management and strong liquidity. However, historical volatility in earnings remains a concern.
Income Statement
67
Positive
The LGL Group has shown significant revenue growth in 2024 with a Revenue Growth Rate of 148.39%, indicating a strong recovery from previous years. The Gross Profit Margin is robust at 100%, reflecting excellent cost management. The Net Profit Margin improved drastically to 12.16% from a negative margin in the prior year. However, the EBIT Margin and EBITDA Margin are impacted by past volatility, though both are now at 12.16%, indicating a return to profitability.
Balance Sheet
75
Positive
The balance sheet is solid, with a Debt-to-Equity Ratio of 0, signifying no leverage risk and a strong equity base. Return on Equity is healthy at 1.33%, while the Equity Ratio stands strong at 90.93%, reflecting financial stability and low risk. The company's cash reserves are substantial, supporting its operational needs and future investments.
Cash Flow
70
Positive
The cash flow position of LGL is strong, with a notable improvement in Free Cash Flow Growth Rate of 127.01% from 2023 to 2024. The Operating Cash Flow to Net Income Ratio is 1.67, indicating healthy cash generation relative to net income. The Free Cash Flow to Net Income Ratio also stands at 1.67, reflecting efficient cash management.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue3.79M4.29M3.68M1.66M28.14M31.16M
Gross Profit2.71M3.25M2.88M818.00K10.07M10.93M
EBITDA146.00K720.00K668.00K-1.51M16.60M1.84M
Net Income405.00K432.00K269.00K-4.88M14.64M968.00K
Balance Sheet
Total Assets43.30M43.15M41.85M39.78M59.91M43.45M
Cash, Cash Equivalents and Short-Term Investments41.95M41.60M40.73M38.09M45.18M24.12M
Total Debt0.000.0075.00K132.00K178.00K293.00K
Total Liabilities2.04M1.91M1.19M1.29M5.16M3.69M
Stockholders Equity39.23M39.23M38.76M38.49M54.74M39.77M
Cash Flow
Free Cash Flow1.05M874.00K385.00K-1.48M253.00K2.79M
Operating Cash Flow1.05M874.00K385.00K-817.00K1.35M3.19M
Investing Cash Flow0.000.0018.82M-5.83M9.41M-428.00K
Financing Cash Flow0.000.000.00-859.00K-73.00K3.11M

LGL Group Technical Analysis

Technical Analysis Sentiment
Positive
Last Price7.22
Price Trends
50DMA
6.85
Positive
100DMA
6.71
Positive
200DMA
6.43
Positive
Market Momentum
MACD
0.15
Negative
RSI
58.40
Neutral
STOCH
62.23
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 7.22 is above the 20-day moving average (MA) of 7.03, above the 50-day MA of 6.85, and above the 200-day MA of 6.43, indicating a bullish trend. The MACD of 0.15 indicates Negative momentum. The RSI at 58.40 is Neutral, neither overbought nor oversold. The STOCH value of 62.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LGL.

LGL Group Risk Analysis

LGL Group disclosed 48 risk factors in its most recent earnings report. LGL Group reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

LGL Group Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$43.82M3.9411.35%7.27%-5.68%67.36%
68
Neutral
$63.52M42.4212.53%22.59%
LGLGL
64
Neutral
$39.83M96.911.04%28.82%60.24%
64
Neutral
$39.95M-18.07%-13.83%-476.23%
63
Neutral
£507.76M24.89-8.56%178.98%4.03%-28.20%
48
Neutral
$24.88M6.41-9.81%-12.87%-148.14%
47
Neutral
$49.93M-37.98%62.28%44.68%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
LGL
LGL Group
7.42
2.11
39.74%
DSWL
Deswell
2.74
0.48
21.24%
MIND
MIND Technology
8.16
4.15
103.49%
NSYS
Nortech Systems
9.01
-4.34
-32.51%
REFR
Research Frontiers
1.51
-0.38
-20.11%
CPSH
CPS Technologies
2.42
0.74
44.05%

LGL Group Corporate Events

Executive/Board ChangesPrivate Placements and FinancingBusiness Operations and StrategyFinancial Disclosures
LGL Group Amends Subscription Agreement with Morgan Group
Positive
Apr 17, 2025

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.

Executive/Board Changes
LGL Group Announces CEO Resignation and New Appointments
Neutral
Apr 11, 2025

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.

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.Date of analysis: Apr 24, 2025