LGL Group (LGL) AI Stock Analysis

• Market Cap: $31.59M
• Dividend Yield: N/A
• Average Volume (3M): 5.31K
• Price to Earnings (P/E): 34.9
• Beta (1Y): 0.17
• Revenue Growth: 14.07%
• EPS Growth: 153.24%
• Country: US
• Employees: 7
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.14
• Shares Outstanding: 5,531,537
• 10 Day Avg. Volume: 9,606
• 30 Day Avg. Volume: 5,312
• PEG Ratio: 1.22
• Price to Book (P/B): 0.81
• Price to Sales (P/S): 7.45
• P/FCF Ratio: 36.56
• Enterprise Value/Market Cap: -0.06
• Enterprise Value/Revenue: -0.51
• Enterprise Value/Gross Profit: -0.70
• Enterprise Value/Ebitda: -4.67
• 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: 55 Neutral
• Price Target: $6.00 ▲(4.17% Upside)

The score is primarily supported by a strong, low-risk balance sheet, but is held back by declining TTM revenue, uneven core profitability and weakening free cash flow. Technicals are neutral-to-bearish and valuation (P/E ~35) looks demanding given the operating backdrop; the CEO transition adds modest upside optionality but remains unproven.

Positive Factors

Balance Sheet Strength

Near-zero debt and a sizable equity base give LGL durable financial flexibility. Low leverage reduces refinancing and interest risks, enabling the company to fund certification, capital needs, or pursue opportunistic investments in M-tron products or national-security adjacencies without immediate external capital.

Niche, High-Reliability Product Mix

M-tron's focus on engineered timing and frequency components for aerospace, defense and industrial end markets creates structural product differentiation. Custom, high-reliability parts support long sales cycles, higher switching costs and recurring OEM relationships, underpinning steady niche demand and pricing durability.

Positive Free Cash Flow

Despite weakness versus prior year, positive operating and free cash flow indicate the business can self-fund near-term operations and modest investments. This cash generation reduces reliance on external financing and supports continuity of supplier/customer programs over the next several quarters.

Negative Factors

Declining Revenue Trend

A sustained TTM revenue decline signals weakening end-market demand or loss of share, which compresses gross absorption of fixed manufacturing costs. Over the medium term this undermines capacity utilization, limits reinvestment in product development, and pressures margin recovery efforts.

Thin, Uneven Operating Profitability

EBIT near breakeven and reliance on non-operating items for net income reduce earnings quality and predictability. Weak core margins constrain the firm's ability to consistently fund R&D, certifications and scale manufacturing, making long-term margin expansion and sustainable growth more challenging.

Very Small Organizational Scale

An extremely small headcount implies limited manufacturing, engineering and commercial scale. This heightens reliance on key personnel, creates capacity constraints for larger defense/industrial contracts, and increases operational concentration risks that can hamper consistent execution and growth.

LGL Group Business Overview & Revenue Model

Company Description

The LGL Group, Inc., together with its subsidiaries, engages in the design, manufacture, and marketing of frequency and spectrum control products in the United States and internationally. The company operates through two segments, Electronic Components and Electronic Instruments. The Electronic Components segment offers clock oscillators, VCXO, TCXO OCXO, and DOCXO devices; and radio frequency, microwave and millimeter wave filters, diplexers, and solid-state power amplifiers. It also provides filter devices, which includes crystal, ceramic, LC, tubular, combline, cavity, interdigital, and metal insert waveguide, as well as digital, analog and mechanical tunable filters, switched filter arrays, and RF subsystems. This segment's products are used in infrastructure equipment for the telecommunications and network equipment industries; and electronic systems for applications in defense, aerospace, earth-orbiting satellites, down-hole drilling, medical devices, instrumentation, industrial devices, and global positioning systems. The Electronic Instruments segment designs and manufactures frequency and time reference standards, distribution amplifiers, redundancy auto switches, and NTP servers for timing and synchronization in various applications. Its products are used in computer networking, satellite ground stations, electric utilities, broadcasting, and telecommunication systems. The company was formerly known as Lynch Corporation and changed its name to The LGL Group, Inc. The LGL Group, Inc. was founded in 1917 and is based in Orlando, Florida.

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 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

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.66M	2.23M	1.73M	-2.68M	1.45M	31.16M
Gross Profit	2.64M	1.18M	932.00K	-3.52M	735.00K	10.93M
EBITDA	396.00K	720.00K	668.00K	-5.85M	-2.94M	1.84M
Net Income	917.00K	432.00K	269.00K	-2.99M	14.64M	968.00K
Balance Sheet
Total Assets	43.28M	43.15M	41.87M	39.82M	60.85M	43.52M
Cash, Cash Equivalents and Short-Term Investments	41.60M	41.60M	40.73M	38.09M	42.54M	24.12M
Total Debt	0.00	0.00	75.00K	132.00K	178.00K	715.00K
Total Liabilities	1.38M	1.91M	1.19M	1.33M	6.11M	3.76M
Stockholders Equity	39.85M	39.23M	38.76M	38.49M	54.74M	39.77M
Cash Flow
Free Cash Flow	408.00K	874.00K	385.00K	-1.48M	253.00K	2.79M
Operating Cash Flow	408.00K	874.00K	385.00K	-817.00K	1.35M	3.19M
Investing Cash Flow	0.00	0.00	18.82M	-5.83M	9.41M	-428.00K
Financing Cash Flow	-439.00K	0.00	0.00	-859.00K	-73.00K	3.11M

LGL Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.76
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LGL, the sentiment is Negative. The current price of 5.76 is below the 20-day moving average (MA) of 5.78, below the 50-day MA of 5.91, and below the 200-day MA of 6.57, indicating a bearish trend. The MACD of -0.05 indicates Negative momentum. The RSI at 44.65 is Neutral, neither overbought nor oversold. The STOCH value of 49.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	$55.14M	4.38	12.06%	5.63%	-1.72%	20.66%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
CPSH	60 Neutral	$65.08M	-89.16	-3.84%	―	38.22%	70.68%
LGL	55 Neutral	$31.59M	34.90	2.33%	―	14.07%	153.24%
REFR	49 Neutral	$42.73M	-22.60	-87.36%	―	-16.49%	-59.21%
NSYS	48 Neutral	$21.62M	-8.09	-7.61%	―	-13.94%	-157.49%
DAIO	42 Neutral	$30.24M	-8.17	-20.84%	―	-3.22%	-102.88%

LGL Group Corporate Events

LGL Group Appoints Jason Lamb as New CEO

On January 5, 2026, The LGL Group, Inc. appointed Jason Lamb as Chief Executive Officer, marking a leadership transition in which former CEO Marc Gabelli moved into the role of Executive Chairman while remaining Chairman of the Board and an executive officer. Lamb, a former Navy SEAL officer with more than two decades of experience in special operations, intelligence, technology development and private equity, including senior roles at BlackSea Technologies and involvement with Teton Advisors and LGL Systems Acquisition Corporation, is expected to reinforce LGL’s strategic focus on technology and national security–adjacent markets as it pursues growth initiatives across its diversified portfolio; the company confirmed that no new or revised compensation arrangements for Lamb or Gabelli had been put in place as of the announcement, signaling a near-term emphasis on continuity and governance stability for shareholders and other stakeholders.

The most recent analyst rating on (LGL) stock is a Hold with a $6.00 price target. To see the full list of analyst forecasts on LGL Group stock, see the LGL Stock Forecast page.

LGL Group Extends Expiration Date for Outstanding Warrants

On December 29, 2025, The LGL Group, Inc. announced that it had extended the expiration date of warrants granted on November 16, 2020 to purchase its common stock, moving the deadline to 5:00 p.m. Eastern Time on Wednesday, December 31, 2025, from the previously scheduled expiration on Tuesday, December 30, 2025. Trading in these warrants is set to be suspended before markets open on December 30, 2025, a move that clarifies timing for warrant holders and may influence short-term trading dynamics and capital-raising opportunities linked to the exercise of these securities.

LGL Group Extends Warrant Expiration Date to Dec 30

On December 15, 2025, The LGL Group, Inc. announced the extension of the expiration date for its warrants to purchase common stock, originally set to expire on December 16, 2025, now extended to December 30, 2025. This decision, approved by the Board of Directors, maintains all other terms of the warrants unchanged, including the exercise price of $4.75 per share, and allows stakeholders, including the CEO and affiliated stockholders, to exercise their warrants fully and participate in the oversubscription privilege.

LGL Group Extends Warrant Expiration Date to December 16

On December 3, 2025, The LGL Group, Inc. announced the extension of the expiration date for its warrants to purchase common stock from December 9, 2025, to December 16, 2025. This decision, approved by the Board of Directors, maintains all other terms of the warrants, including the exercise price of $4.75 per share, unchanged. This extension provides warrant holders additional time to exercise their rights, potentially impacting the company’s stock market activities and offering stakeholders more flexibility in their investment decisions.

LGL Group Extends Warrant Expiration Date to December

On November 6, 2025, LGL Group announced an extension of the expiration date for its warrants to purchase common stock from November 17, 2025, to December 9, 2025. This decision, approved by the Board of Directors, maintains all other warrant terms, including the exercise price of $4.75 per share, unchanged. The extension provides warrant holders additional time to exercise their rights, potentially impacting the company’s stock market activity and offering stakeholders more flexibility.