Lakeland Financial (LKFN) AI Stock Analysis

• Market Cap: $1.58B
• Dividend Yield: 3.11%
• Average Volume (3M): 117.97K
• Price to Earnings (P/E): 17.2
• Beta (1Y): 1.06
• Revenue Growth: 9.38%
• EPS Growth: -0.59%
• Country: US
• Employees: 683
• Sector: Financial
• Sector Strength: 77
• Industry: Banking
• EPS (TTM): 3.63
• Shares Outstanding: 26,016,340
• 10 Day Avg. Volume: 139,847
• 30 Day Avg. Volume: 117,971
• PEG Ratio: 1.86
• Price to Book (P/B): N/A
• Price to Sales (P/S): 6.57
• Price to Cash Flow (P/CF): 10.10
• P/FCF Ratio: 5.30
• 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: $74.00
• Price Target Upside: 21.09% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

Lakeland Financial is supported by strong financial performance and positive corporate events, boosting investor confidence. However, technical analysis indicates bearish momentum, and valuation metrics are moderate. The concerning zero equity figure on the balance sheet requires attention, impacting the stock's overall stability.

Lakeland Financial Business Overview & Revenue Model

Company Description

Lakeland Financial Corp. is a bank holding company, which engages in the provision of banking products and services. It offers commercial and consumer banking, trust and wealth management, brokerage, and treasury management commercial services. The company was founded on February 8, 1983 and is headquartered in Warsaw, IN.

How the Company Makes Money

Lakeland Financial makes money primarily through interest income and non-interest income. Interest income is generated from loans extended to individuals and businesses, including commercial, commercial real estate, and consumer loans. The interest differential between the interest paid on deposits and the interest received on loans contributes significantly to its earnings. Non-interest income is derived from various sources such as service charges on deposit accounts, fees from wealth management services, treasury management fees, and gains from the sale of loans. The company also benefits from partnerships with local businesses and community engagement, which help to expand its customer base and enhance revenue generation. Economic factors, such as interest rate fluctuations and regional economic health, can significantly impact Lakeland Financial's profitability.

Lakeland Financial Financial Statement Overview

Summary

Lakeland Financial shows strong revenue and profit growth, with effective cash flow and debt management. However, the zero equity figure on the balance sheet is concerning and warrants further investigation.

Income Statement

Lakeland Financial has shown a solid revenue growth trajectory, increasing from $189.6M in 2019 to $373.2M in 2024, with a significant jump in the latest year. The gross profit margin is consistently strong at 100% due to the nature of the banking industry where total revenue equals gross profit. The Net Profit Margin has also been robust, averaging over 24% in recent years. However, the EBITDA margin has seen some volatility, especially with a negative figure in the 2020 report. Overall, strong growth and profitability are evident, though some inconsistencies in margin metrics warrant attention.

Balance Sheet

The balance sheet shows a strong cash position, with cash and equivalents peaking at $2.08 billion in 2021. The company's debt-to-equity ratio is currently very favorable with zero debt in 2024, indicating strong financial leverage management. However, the equity ratio has been decreasing, which could signal increased liabilities relative to assets. A zero stockholders' equity in the latest report raises a red flag that needs investigation, as it may impact future stability.

Cash Flow

Lakeland Financial demonstrates robust cash flow management, with positive free cash flow in all years and a notable increase in operating cash flow in 2024. The free cash flow to net income ratio is consistently healthy, highlighting strong cash generation efficiency. Despite some fluctuations in investing cash flow, the company's ability to maintain positive free cash flow is a significant strength.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
253.52M	246.89M	231.92M	210.13M	197.99M
	Gross Profit
373.16M	241.04M	231.92M	210.13M	197.99M
	EBIT
89.38M	101.58M	161.84M	117.44M	103.88M
	EBITDA
0.00	0.00	130.99M	121.05M	-1.71M
	Net Income Common Stockholders
93.48M	93.77M	103.82M	95.73M	84.34M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
6.34M	151.82M	1.32B	2.08B	984.77M
	Total Assets
6.68B	6.52B	6.43B	6.56B	5.83B
	Total Debt
0.00	50.00M	275.00M	75.00M	85.50M
	Net Debt
-6.34M	-101.82M	144.72M	-608.24M	-164.43M
	Total Liabilities
5.99B	5.87B	5.86B	5.85B	5.17B
	Stockholders Equity
683.82M	649.70M	568.80M	704.82M	657.10M
Cash Flow		Free Cash Flow
93.85M	107.99M	164.52M	107.60M	81.51M
	Operating Cash Flow
102.48M	113.98M	169.34M	113.77M	87.23M
	Investing Cash Flow
-164.24M	-54.93M	-626.52M	-331.55M	-712.02M
	Financing Cash Flow
-52.30M	-37.51M	-95.78M	651.09M	775.34M

Lakeland Financial Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 61.11
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LKFN, the sentiment is Negative. The current price of 61.11 is below the 20-day moving average (MA) of 65.44, below the 50-day MA of 66.90, and below the 200-day MA of 65.53, indicating a bearish trend. The MACD of -1.60 indicates Positive momentum. The RSI at 28.28 is Positive, neither overbought nor oversold. The STOCH value of 8.79 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LKFN.

Lakeland Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SRCE	75 Outperform	$1.46B	11.17	12.51%	2.35%	12.26%	7.48%
CIVB	70 Outperform	$300.25M	9.82	8.10%	3.41%	11.16%	-26.17%
FFBC	69 Neutral	$2.35B	10.61	9.72%	3.69%	9.95%	-11.02%
HWBK	65 Neutral	$180.96M	10.00	14.14%	2.83%	20.37%	1821.94%
LKFN	64 Neutral	$1.58B	17.19	14.02%	3.11%	9.38%	-0.59%
CHCO	64 Neutral	$1.68B	14.79	16.49%	2.63%	11.10%	3.74%
Sector *	64 Neutral	$13.80B	10.64	9.23%	4.22%	17.66%	-7.66%

Lakeland Financial Corporate Events

Lakeland Financial Appoints New Chief Retail Banking Officer

On February 19, 2025, Lakeland Financial Corporation appointed Stephanie R. Leniski as Executive Vice President and Chief Retail Banking Officer. The appointment included a Change in Control Agreement, aligning with agreements made with other named executive officers, as filed in the company’s proxy statement for the 2024 annual meeting.

Lakeland Financial Revamps Equity Incentive Plan

Lakeland Financial has announced updates to its 2017 Amended and Restated Equity Incentive Plan, introducing agreements for time-based and performance-based restricted stock units. The time-based units vest through continued service, while performance-based units vest upon meeting specific performance goals set by the company, indicating a strategic focus on aligning employee incentives with company performance metrics.

Lakeland Financial Highlights Robust Q4 2024 Performance

In a recent investor presentation, Lakeland Financial Corporation highlighted its robust financial performance and strategic positioning as of the fourth quarter of 2024. The company reported consistent profitability over the past decade and significant growth in tangible book value per share. With a strong capital structure and diversified deposit composition, Lakeland Financial continues to demonstrate resilience and growth potential in a mature and expanding market, particularly in high-growth counties within Indiana.

Lakeland Financial Promotes Stephanie Leniski to Key Role

On January 16, 2025, Lakeland Financial Corporation announced the promotion of Stephanie R. Leniski to Executive Vice President and Chief Retail Banking Officer of Lake City Bank, effective January 15, 2025. Leniski, who has been with the bank since 2002, has a proven track record in retail banking and is set to oversee 54 offices and 286 team members, focusing on retail product innovation and strategic branch expansion. Her leadership is expected to strengthen the bank’s customer relationships and community engagement, as well as drive technological advancements in banking solutions.

Lakeland Financial Announces 4% Dividend Increase

On January 14, 2025, Lakeland Financial Corporation announced a 4% increase in its quarterly cash dividend to $0.50 per share for the first quarter of 2025, payable on February 5, 2025. This dividend increase reflects the company’s strong financial foundation and commitment to shareholder returns, with a compounded annual growth rate of 11% over the past five years. This move is expected to support continued organic loan growth and reinforce its market position.