LGL Group (LGL) AI Stock Analysis

• Market Cap: $36.16M
• Dividend Yield: N/A
• Average Volume (3M): 4.41K
• Price to Earnings (P/E): 90.1
• Beta (1Y): 0.17
• Revenue Growth: 28.82%
• EPS Growth: 60.24%
• Country: US
• Employees: 7
• Sector: Technology
• Sector Strength: 77
• Industry: Hardware, Equipment & Parts
• EPS (TTM): N/A
• Shares Outstanding: 5,389,211
• 10 Day Avg. Volume: 2,158
• 30 Day Avg. Volume: 4,412
• PEG Ratio: -45.47
• Price to Book (P/B): 0.91
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 34.10
• Enterprise Value/Market Cap: -0.17
• Enterprise Value/Revenue: -0.68
• Enterprise Value/Gross Profit: -6.07
• Enterprise Value/Ebitda: 2.19
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 64 Neutral
• 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 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
2.75M	2.23M	1.73M	1.66M	28.14M	31.16M
	Gross Profit
985.00K	1.18M	932.00K	818.00K	10.07M	10.93M
	EBIT
-469.00K	-1.37M	-1.30M	2.48M	58.68M	887.00K
	EBITDA
-430.00K	-1.35M	668.00K	-1.51M	16.60M	1.84M
	Net Income Common Stockholders
424.00K	432.00K	269.00K	-4.88M	14.64M	968.00K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
41.95M	41.60M	40.73M	38.09M	45.18M	24.12M
	Total Assets
43.30M	43.15M	41.85M	39.78M	59.91M	43.45M
	Total Debt
0.00	0.00	75.00K	132.00K	178.00K	293.00K
	Net Debt
-41.92M	-41.59M	-40.64M	-21.38M	-28.84M	-18.04M
	Total Liabilities
2.04M	1.91M	1.17M	1.29M	5.16M	3.69M
	Stockholders Equity
39.23M	39.23M	38.76M	38.49M	54.74M	39.77M
Cash Flow		Free Cash Flow
1.05M	874.00K	385.00K	-1.48M	253.00K	2.79M
	Operating Cash Flow
1.05M	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
0.00	0.00	0.00	-859.00K	-73.00K	3.11M

LGL Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.74
• 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 6.74 is below the 20-day moving average (MA) of 6.75, above the 50-day MA of 6.67, and above the 200-day MA of 6.27, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 50.92 is Neutral, neither overbought nor oversold. The STOCH value of 69.25 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	78 Outperform	$37.77M	3.66	10.86%	8.62%	-5.68%	67.36%
MIND	71 Outperform	$52.04M	20.20	20.31%	―	18.08%	―
CPSH	68 Neutral	$43.58M	―	-18.07%	―	-13.83%	-476.23%
LGL	64 Neutral	$36.16M	90.05	1.04%	―	28.82%	60.24%
Sector *	61 Neutral	$11.29B	10.17	-6.88%	2.97%	7.41%	-8.93%
REFR	57 Neutral	$56.97M	―	-37.98%	―	62.28%	44.68%
NSYS	47 Neutral	$24.70M	6.41	-9.81%	―	-12.87%	-148.14%

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.