Lakeland Financial (LKFN) AI Stock Analysis

• Market Cap: $1.52B
• Dividend Yield: 3.37%
• Average Volume (3M): 159.26K
• Price to Earnings (P/E): 14.9
• Beta (1Y): 0.69
• Revenue Growth: -2.90%
• EPS Growth: -1.47%
• Country: US
• Employees: 647
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 1.16
• Shares Outstanding: 25,528,732
• 10 Day Avg. Volume: 222,204
• 30 Day Avg. Volume: 159,261
• PEG Ratio: 1.35
• Price to Book (P/B): 1.92
• Price to Sales (P/S): 3.47
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.08
• Enterprise Value/Revenue: 3.91
• Enterprise Value/Gross Profit: 6.41
• Enterprise Value/Ebitda: 12.65
• 1Y Price Target: $66.50
• Price Target Upside: 11.58% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 77 Outperform
• Price Target: $67.00 ▲(12.42% Upside)

The score is driven primarily by strong financial performance (healthy profitability, solid TTM growth, and conservative leverage with steady ROE). Valuation is supportive with a mid-teens P/E and an attractive dividend yield, while corporate events are broadly positive (dividend raise and credit leadership emphasis). Technicals are the main offset, showing only mixed-to-neutral trend confirmation with the stock still below longer-term moving averages.

Positive Factors

Profitability & cash generation

Sustained high net margin and near-parity free cash flow to net income indicate durable cash generation. That supports dividend funding, capital accretion and loan growth without heavy external financing, strengthening long-term earnings resilience.

Conservative balance sheet

Very low leverage and reported zero debt in 2024 create structural financial flexibility. Conservative capital structure reduces vulnerability to funding shocks, enables disciplined loan growth and dividend increases, and supports stability across cycles.

Proven long-term organic growth & capital strength

Decades of consistent organic growth in loans, deposits and TBV plus strong capital ratios show a repeatable business model. Combined with a recent dividend raise, this signals management prioritizes sustainable shareholder returns and fortified capital over time.

Negative Factors

Margin and revenue variability

Earnings and margin contraction from peak cycle levels point to sensitivity to interest-rate and competitive dynamics. Persistent variability in top-line and margins could limit predictability of earnings and slow return-to-trend growth absent sustained NIM expansion.

Cash-flow volatility across periods

While recent absolute cash generation is strong, prior-year swings and inconsistent coverage metrics reduce reliability of internally generated funds. That volatility can constrain capital deployment timing and raises execution risk for steady dividend and loan growth plans.

Geographic concentration risk

Heavy regional concentration in Indiana concentrates credit and deposit exposure to local economic cycles. Despite local industrial strengths, limited geographic diversification makes the franchise more vulnerable to regional downturns or sector-specific shocks over the medium term.

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

Strong overall fundamentals: solid TTM revenue growth (~21.6%), healthy profitability (net margin ~24%; EBIT/EBITDA ~29–30%), and a conservative balance sheet with low leverage (TTM debt-to-equity ~0.085; 2024 shows zero debt reported) and steady ROE (~13–14%). Cash flow covers earnings well (TTM FCF ~$108.9M; FCF to net income ~0.99), but cash-flow growth has been volatile across years and margins are below the unusually high 2021–2022 levels.

Income Statement

TTM (Trailing-Twelve-Months) revenue growth is strong (~21.6%) and profitability remains solid, with net margin around ~24% and EBIT/EBITDA margins near ~29–30%. Net income is also up versus 2024. Offsetting this, margins have generally trended lower than the unusually high levels shown in 2021–2022, and revenue dipped slightly in 2024 versus 2023, indicating some volatility in the growth profile.

Balance Sheet

Leverage is low and conservative in the latest periods (TTM debt-to-equity ~0.085; 2024 shows zero debt reported), while equity has grown over time. Returns on equity are steady and healthy (~13–14% in TTM/2024), supporting a strong balance sheet profile. The main watch-out is historical variability in leverage (notably higher debt-to-equity in 2022), which suggests capital structure can shift meaningfully depending on conditions.

Cash Flow

Cash generation is solid: TTM operating cash flow (~$119.9M) and free cash flow (~$108.9M) both cover net income well (free cash flow to net income ~0.99). TTM free cash flow growth is strong, but prior years show noticeable swings (free cash flow declines in 2023 and 2024). Also, the provided operating cash flow coverage metric is inconsistent across periods (including a 0.0 in TTM), so cash-flow strength is assessed mainly from the absolute cash flows and their relationship to earnings.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	421.71M	430.00M	393.13M	281.43M	237.94M
Gross Profit	257.19M	236.77M	241.04M	235.37M	221.73M
EBITDA	130.37M	117.64M	116.51M	131.94M	125.83M
Net Income	103.36M	93.48M	93.77M	103.82M	95.73M
Balance Sheet
Total Assets	6.99B	6.68B	6.52B	6.43B	6.56B
Cash, Cash Equivalents and Short-Term Investments	141.32M	591.05M	1.20B	1.32B	2.08B
Total Debt	184.20M	0.00	50.00M	297.00M	75.00M
Total Liabilities	6.23B	5.99B	5.87B	5.86B	5.85B
Stockholders Equity	762.40M	683.82M	649.70M	568.80M	704.82M
Cash Flow
Free Cash Flow	0.00	93.85M	107.99M	164.52M	107.60M
Operating Cash Flow	0.00	102.48M	113.98M	169.34M	113.77M
Investing Cash Flow	0.00	-164.24M	-54.93M	-626.52M	-331.55M
Financing Cash Flow	0.00	78.13M	-37.51M	-95.78M	651.09M

Lakeland Financial Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 59.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LKFN, the sentiment is Positive. The current price of 59.6 is above the 20-day moving average (MA) of 58.26, above the 50-day MA of 58.23, and below the 200-day MA of 59.89, indicating a neutral trend. The MACD of 0.46 indicates Negative momentum. The RSI at 53.74 is Neutral, neither overbought nor oversold. The STOCH value of 21.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LKFN.

Lakeland Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CASH	80 Outperform	$2.00B	10.99	23.62%	0.27%	7.80%	19.38%
LKFN	77 Outperform	$1.52B	14.86	13.50%	3.37%	-2.90%	-1.47%
STEL	73 Outperform	$1.90B	18.70	6.38%	1.82%	-4.40%	-8.80%
LOB	72 Outperform	$1.83B	17.92	6.31%	0.33%	10.41%	-19.43%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
CCB	62 Neutral	$1.45B	31.47	11.82%	―	-2.11%	6.48%
CLBK	60 Neutral	$1.70B	112.13	1.34%	―	-3.60%	-8.63%

Lakeland Financial Corporate Events

Lakeland Financial Highlights Q4 2025 Strength and Growth

In an investor presentation used in meetings with analysts and shareholders discussing fourth-quarter 2025 performance, Lakeland Financial highlighted its long-term record of profitability and capital strength, including being profitable for the past decade, delivering a more than 8% compound annual growth rate in tangible book value per share over roughly 20 years, and maintaining robust capital ratios such as a 10.86% tangible common equity to tangible assets ratio and a total risk-based capital ratio of 15.92% as of December 31, 2025. Management underscored the bank’s 34-year history of organic balance sheet and earnings growth—driven by double‑digit compound annual growth in loans, deposits, net income and earnings per share since 1991—alongside recent net interest margin expansion and the competitive advantages provided by Indiana’s relatively low unemployment, strong manufacturing and life sciences activity, and major announced projects in data centers, electric vehicles and the LEAP Research and Innovation District, all of which position the company for continued growth and reinforce its “fortress” balance sheet narrative for investors and other stakeholders.

The most recent analyst rating on (LKFN) stock is a Buy with a $65.00 price target. To see the full list of analyst forecasts on Lakeland Financial stock, see the LKFN Stock Forecast page.

Lakeland Financial Promotes Robinson-Gay to Chief Credit Officer

On January 15, 2026, Lakeland Financial Corporation announced that Donald J. Robinson-Gay was promoted to Executive Vice President and Chief Credit Officer of both the company and its subsidiary, Lake City Bank, effective January 14, 2026. Robinson-Gay, who has led Lake City Bank’s credit division since 2023 and previously held a series of senior credit and commercial banking roles within the bank and at institutions including M&I Bank and BMO Harris Bank, will oversee management of the loan portfolio, credit quality and policies, and play a key role on key risk and loan committees; his appointment, supported by a Change in Control Agreement, underscores the bank’s emphasis on disciplined credit oversight and sustainable loan growth as it balances risk management with continued expansion in its Indiana markets.

The most recent analyst rating on (LKFN) stock is a Hold with a $62.00 price target. To see the full list of analyst forecasts on Lakeland Financial stock, see the LKFN Stock Forecast page.

Lakeland Financial Raises Quarterly Dividend, Signals Ongoing Confidence

On January 13, 2026, Lakeland Financial Corporation announced that its board of directors approved a first-quarter 2026 quarterly cash dividend of $0.52 per share, payable on February 5, 2026, to shareholders of record as of January 25, 2026, representing a 4% increase over the $0.50 per share dividend paid in 2025. Management framed the higher payout as a reflection of the company’s strong capital position and long-term disciplined balance sheet strategy, underscoring continued confidence in its financial health and signaling ongoing value returns to shareholders.

The most recent analyst rating on (LKFN) stock is a Buy with a $64.00 price target. To see the full list of analyst forecasts on Lakeland Financial stock, see the LKFN Stock Forecast page.

Lakeland Financial Highlights Q3 2025 Performance in Presentation

In its latest investor presentation for the third quarter of 2025, Lakeland Financial Corporation highlighted its long-term success in shareholder value creation, boasting a return on equity greater than 13% and a compound annual growth rate in tangible book value per share exceeding 8% over 20 years. The company emphasized its strong capital structure and profitability, with a focus on maintaining a low unemployment rate in its operational footprint compared to national averages. The presentation also noted Indiana’s economic growth, driven by new investments in manufacturing and technology sectors, which is expected to benefit the bank’s operations and stakeholders.

The most recent analyst rating on (LKFN) stock is a Buy with a $77.00 price target. To see the full list of analyst forecasts on Lakeland Financial stock, see the LKFN Stock Forecast page.