Lake Shore Bancorp (LSBK) AI Stock Analysis

• Market Cap: $86.26M
• Dividend Yield: 4.71%
• Average Volume (3M): 5.61K
• Price to Earnings (P/E): 17.4
• Beta (1Y): 0.46
• Revenue Growth: 4.44%
• EPS Growth: 3.99%
• Country: US
• Employees: 93
• Sector: Financial
• Sector Strength: 85
• Industry: Banks - Regional
• EPS (TTM): 0.86
• Shares Outstanding: 5,733,075
• 10 Day Avg. Volume: 5,967
• 30 Day Avg. Volume: 5,606
• PEG Ratio: 4.37
• Price to Book (P/B): N/A
• Price to Sales (P/S): 3.95
• Price to Cash Flow (P/CF): 6.70
• P/FCF Ratio: 3.70
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Lake Shore Bancorp demonstrates strong financial health with consistent revenue growth and improved debt levels, but faces liquidity concerns due to declining operating cash flow. Technical indicators suggest positive momentum, and while the stock's valuation is moderate, the suspension of dividends impacts its immediate attractiveness. The corporate decision to amend the conversion plan and suspend dividends is a critical development that affects investor sentiment in the short term.

Lake Shore Bancorp Business Overview & Revenue Model

Company Description

Lake Shore Bancorp, Inc. (LSBK) is a publicly traded financial holding company headquartered in Dunkirk, New York. It operates as the parent company of Lake Shore Savings Bank, a community-oriented financial institution. The bank provides a range of personal and commercial banking services primarily in Western New York. Its core offerings include savings and checking accounts, mortgage and consumer loans, as well as business banking solutions.

How the Company Makes Money

Lake Shore Bancorp generates revenue primarily through interest income from its lending activities, which include residential and commercial mortgage loans, consumer loans, and home equity lines of credit. Additionally, the company earns money through service fees charged on deposit accounts and other financial services. Interest income from investment securities and gains from the sale of loans or securities also contribute to its earnings. The bank balances its financial performance by managing its interest rate margins and maintaining strong customer relationships in its regional market.

Lake Shore Bancorp Financial Statement Overview

Summary

Lake Shore Bancorp exhibits a strong financial position with consistent revenue growth and robust profitability margins. Although the company has improved its debt levels and maintains a strong equity base, the declining operating cash flow poses a potential liquidity risk. The overall financial health of the company is solid, but careful attention is needed to manage cash flow effectively to sustain growth.

Income Statement

Lake Shore Bancorp has shown consistent revenue growth with a notable increase in total revenue from $28 million in 2023 to $34.8 million in 2024, resulting in a revenue growth rate of approximately 24.1%. The gross profit margin remains strong at 100% due to the nature of banking revenues. The net profit margin has slightly increased from 17.2% to 14.2%, indicating efficient cost management. However, the EBIT margin declined significantly from 22.1% to 99.7%, which may indicate increased operational efficiency. Overall, the income statement reflects a healthy financial performance with an upward trend in profitability.

Balance Sheet

The company's balance sheet shows a stable financial position with stockholders' equity increasing to $89.87 million. The debt-to-equity ratio has improved significantly, moving from 0.41 in 2023 to 0.11 in 2024, showing reduced leverage. The equity ratio remains robust at 13.1%, indicating strong equity financing. However, the return on equity has slightly declined, which could suggest less efficient use of equity capital. Overall, the balance sheet reflects good financial health with lowered debt exposure.

Cash Flow

Lake Shore Bancorp's cash flow statement reveals a decline in operating cash flow from $6.2 million in 2023 to $2.5 million in 2024, which is a concerning trend. The free cash flow has decreased as well, indicating potential challenges in generating cash from operations. The free cash flow to net income ratio remains positive, although reduced, suggesting that the company is still generating enough cash flow to cover net income. Overall, the cash flow statement highlights some potential liquidity concerns despite maintaining positive free cash flow.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
34.80M	28.04M	27.04M	25.18M	22.92M
	Gross Profit
34.80M	28.04M	27.04M	25.18M	22.92M
	EBIT
34.71M	6.21M	8.43M	7.47M	5.38M
	EBITDA
0.00	7.03M	7.73M	8.34M	6.22M
	Net Income Common Stockholders
4.93M	4.82M	5.71M	6.19M	4.56M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.71M	53.73M	9.63M	156.76M	122.26M
	Total Assets
685.50M	725.12M	699.91M	714.09M	686.20M
	Total Debt
10.25M	35.25M	37.55M	21.95M	29.75M
	Net Debt
7.54M	-18.48M	27.91M	-46.02M	-13.22M
	Total Liabilities
595.64M	638.85M	618.73M	21.95M	29.75M
	Stockholders Equity
89.87M	86.27M	81.18M	87.98M	85.92M
Cash Flow		Free Cash Flow
2.62M	5.81M	7.73M	7.92M	5.20M
	Operating Cash Flow
2.51M	6.21M	8.14M	8.55M	5.60M
	Investing Cash Flow
21.12M	19.52M	-57.20M	-5.74M	-62.14M
	Financing Cash Flow
-44.22M	18.37M	-8.88M	21.80M	69.22M

Lake Shore Bancorp Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 14.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LSBK, the sentiment is Negative. The current price of 14.5 is below the 20-day moving average (MA) of 15.83, below the 50-day MA of 15.59, and above the 200-day MA of 13.51, indicating a neutral trend. The MACD of 0.10 indicates Positive momentum. The RSI at 50.76 is Neutral, neither overbought nor oversold. The STOCH value of 37.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LSBK.

Lake Shore Bancorp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OSBC	73 Outperform	$688.32M	8.18	13.66%	1.44%	4.19%	-7.40%
FCBC	73 Outperform	$648.40M	12.64	10.02%	3.45%	6.25%	5.16%
LSBK	69 Neutral	$86.26M	17.44	5.60%	4.71%	4.44%	3.99%
BHLB	68 Neutral	$1.12B	17.00	5.60%	2.97%	4.29%	-9.78%
Sector *	63 Neutral	$14.39B	9.81	8.95%	4.37%	16.38%	-11.64%
HIFS	62 Neutral	$485.28M	17.32	6.72%	1.13%	14.02%	5.59%
FVCB	55 Neutral	$183.07M	12.02	6.66%	―	22.60%	284.38%

Lake Shore Bancorp Corporate Events

Lake Shore Bancorp Amends Conversion Plan and Suspends Dividends

On March 11, 2025, Lake Shore Savings Bank entered into an employment agreement with Taylor M. Gilden, its Chief Financial Officer and Treasurer, with terms extending until December 16, 2027, and provisions for annual renewal. The agreement includes a base salary, potential bonuses, and severance packages under specific conditions, along with non-compete clauses. Additionally, Lake Shore, MHC, and the Bank amended their Plan of Conversion and Reorganization to increase purchase limits, and the Board of Directors decided to suspend cash dividends pending the completion of a second-step conversion to prevent dilution of public stockholders’ interests. The company plans to resume dividends post-conversion, subject to various conditions.

Lake Shore Bancorp’s Regulatory Agreement Terminated

On March 4, 2025, Lake Shore Bancorp, Inc. and Lake Shore, MHC were notified by the Federal Reserve Bank of Philadelphia about the termination of a written agreement dated June 28, 2023. This development marks a significant change in the regulatory oversight of the companies, potentially impacting their operational strategies and stakeholder relations.