Lakeland Financial (LKFN) AI Stock Analysis

• Market Cap: $1.61B
• Dividend Yield: 3.18%
• Average Volume (3M): 177.06K
• Price to Earnings (P/E): 17.1
• Beta (1Y): 0.92
• Revenue Growth: -1.41%
• EPS Growth: -6.42%
• Country: US
• Employees: 647
• Sector: Financial
• Sector Strength: 65
• Industry: Banks - Regional
• EPS (TTM): 1.04
• Shares Outstanding: 25,530,150
• 10 Day Avg. Volume: 118,654
• 30 Day Avg. Volume: 177,059
• PEG Ratio: -34.56
• Price to Book (P/B): 2.58
• Price to Sales (P/S): 4.11
• P/FCF Ratio: 18.81
• Enterprise Value/Market Cap: 0.93
• Enterprise Value/Revenue: 3.51
• Enterprise Value/Gross Profit: 6.37
• Enterprise Value/Ebitda: 13.15
• 1Y Price Target: $68.00
• Price Target Upside: 9.25% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 72 Outperform
• Price Target: $68.00 ▲(9.25% Upside)

Lakeland Financial's strong financial performance and positive corporate events are the primary drivers of its score. The company's robust revenue growth, profitability, and cash flow management are significant strengths. However, the zero equity figure and technical indicators suggest caution. The stock's fair valuation and attractive dividend yield add to its appeal.

Lakeland Financial Business Overview & Revenue Model

Company Description

Lakeland Financial Corporation operates as the bank holding company for Lake City Bank that provides various banking products and services. The company accepts various deposit products, such as noninterest bearing, interest-bearing checking, savings, money market, NOW, and demand deposits. Its loan products include commercial and industrial, commercial real estate and multi-family residential, agri-business and agricultural, consumer 1-4 family mortgage, and other consumer loans. The company also offers retail and merchant credit card services; corporate treasury management, wealth advisory, and trust services; retail brokerage services, including various financial and investment products, such as annuities and life insurance; and mobile business banking and on-line treasury management services. It serves commercial real estate, manufacturing, agriculture, construction, retail, wholesale, finance and insurance, accommodation and food services, and health care industries. As of December 31, 2021, the company operated 51 offices in fifteen counties, including 45 offices in northern Indiana and six offices in central Indiana. Lakeland Financial Corporation was founded in 1872 and is headquartered in Warsaw, Indiana.

How the Company Makes Money

Lakeland Financial generates revenue through various streams, primarily focusing on interest income from loans and investments, along with non-interest income from service fees and wealth management services. The company's core revenue model relies on net interest margin, which is the difference between the interest earned on loans and the interest paid on deposits. Key revenue streams include commercial and consumer loans, mortgage loans, and investment securities. Additionally, the bank earns non-interest income from fees associated with deposit accounts, ATM transactions, and wealth management services, contributing to a diversified revenue base. Strategic partnerships with local businesses and community organizations enhance customer acquisition and retention, further bolstering earnings.

Lakeland Financial Financial Statement Overview

Summary

Lakeland Financial shows strong revenue and profit growth with a solid cash flow position. However, the recent zero equity figure is a significant concern that warrants further investigation for long-term stability.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	427.74M	430.00M	393.13M	281.43M	237.94M	228.08M
Gross Profit	235.27M	236.77M	241.04M	235.37M	221.73M	183.22M
EBITDA	114.02M	117.64M	116.51M	131.94M	125.83M	110.69M
Net Income	90.16M	93.48M	93.77M	103.82M	95.73M	84.34M
Balance Sheet
Total Assets	6.85B	6.68B	6.52B	6.43B	6.56B	5.83B
Cash, Cash Equivalents and Short-Term Investments	1.24B	591.05M	1.20B	1.32B	2.08B	984.77M
Total Debt	108.20M	6.78M	50.00M	297.00M	75.00M	85.50M
Total Liabilities	6.16B	5.99B	5.87B	5.86B	5.85B	5.17B
Stockholders Equity	694.42M	683.82M	649.70M	568.80M	704.82M	657.10M
Cash Flow
Free Cash Flow	97.73M	93.85M	107.99M	164.52M	107.60M	81.51M
Operating Cash Flow	106.61M	102.48M	113.98M	169.34M	113.77M	87.23M
Investing Cash Flow	-217.53M	-164.24M	-54.93M	-626.52M	-331.55M	-712.02M
Financing Cash Flow	198.45M	78.13M	-37.51M	-95.78M	651.09M	775.34M

Lakeland Financial Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 62.24
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LKFN, the sentiment is Neutral. The current price of 62.24 is below the 20-day moving average (MA) of 63.24, below the 50-day MA of 62.32, and below the 200-day MA of 63.33, indicating a bearish trend. The MACD of -0.29 indicates Positive momentum. The RSI at 47.95 is Neutral, neither overbought nor oversold. The STOCH value of 83.92 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for LKFN.

Lakeland Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CUBI	79 Outperform	$2.11B	16.29	8.17%	―	-7.45%	-45.67%
NWBI	75 Outperform	$1.78B	10.87	8.96%	6.66%	14.86%	40.09%
FCF	74 Outperform	$1.77B	12.97	9.31%	3.18%	4.57%	-15.68%
LKFN	72 Outperform	$1.61B	17.14	13.86%	3.18%	-1.41%	-6.42%
SRCE	72 Outperform	$1.51B	10.65	12.49%	2.45%	6.43%	11.69%
Sector *	68 Neutral	$17.53B	11.78	10.43%	3.83%	9.94%	1.31%
CLBK	53 Neutral	$1.56B	241.93	0.57%	―	-0.90%	-67.89%

Lakeland Financial Corporate Events

Lakeland Financial Reports Strong Q2 2025 Performance

Lakeland Financial Corporation reported a strong financial performance for the second quarter of 2025, highlighting its long-term success and commitment to shareholder value. The company has maintained a high return on equity and demonstrated consistent profitability over the past decade. With a robust capital structure and a focus on organic growth, Lakeland Financial is well-positioned in the Indiana market, benefiting from the state’s economic strength and expansion in sectors like manufacturing and microelectronics. The company’s net interest margin has expanded, and it continues to focus on managing deposit costs effectively.

The most recent analyst rating on (LKFN) stock is a Buy with a $71.00 price target. To see the full list of analyst forecasts on Lakeland Financial stock, see the LKFN Stock Forecast page.

Lakeland Financial Declares Quarterly Dividend Announcement

On July 8, 2025, Lakeland Financial Corporation’s Board of Directors announced a quarterly cash dividend of $0.50 per share on its common stock, which will be distributed on August 5, 2025, to shareholders recorded by July 25, 2025.

The most recent analyst rating on (LKFN) stock is a Buy with a $71.00 price target. To see the full list of analyst forecasts on Lakeland Financial stock, see the LKFN Stock Forecast page.

Lakeland Financial Appoints New Directors to Board

On May 13, 2025, Lakeland Financial Corporation appointed Dan Starr and Mindy Creighton Truex as directors of both the company and its subsidiary, Lake City Bank. Starr, CEO of Do it Best Corp., joins the Governance Committee, while Creighton Truex, President of Creighton Brothers Farms LLC, joins the Audit Committee. Their appointments are expected to enhance the bank’s governance and community engagement, aligning with its focus on long-term shareholder value and community banking philosophy.

The most recent analyst rating on (LKFN) stock is a Buy with a $71.00 price target. To see the full list of analyst forecasts on Lakeland Financial stock, see the LKFN Stock Forecast page.