Lake Shore Bancorp (LSBK) AI Stock Analysis

• Market Cap: $114.38M
• Dividend Yield: 2.11%
• Average Volume (3M): 24.76K
• Price to Earnings (P/E): 16.6
• Beta (1Y): 0.43
• Revenue Growth: 2.27%
• EPS Growth: 66.15%
• Country: US
• Employees: 93
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.32
• Shares Outstanding: 7,825,501
• 10 Day Avg. Volume: 18,865
• 30 Day Avg. Volume: 24,760
• PEG Ratio: 2.39
• Price to Book (P/B): 0.86
• Price to Sales (P/S): 2.03
• P/FCF Ratio: 30.83
• Enterprise Value/Market Cap: 0.83
• Enterprise Value/Revenue: 2.48
• Enterprise Value/Gross Profit: 3.58
• Enterprise Value/Ebitda: 12.54
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: $15.50 ▲(8.16% Upside)

Lake Shore Bancorp's strong financial performance, characterized by consistent revenue growth and a solid balance sheet, is the primary driver of its stock score. Technical indicators suggest bullish momentum, though caution is advised due to overbought signals. Valuation is fair, supporting a stable outlook.

Positive Factors

Revenue Growth

Consistent revenue growth of 9.6% indicates strong market demand and effective business strategies, supporting long-term financial health.

Balance Sheet Health

A low debt-to-equity ratio signifies financial stability and low leverage, providing flexibility for future investments and growth.

Cash Flow Management

Strong free cash flow growth enhances the company's ability to reinvest in operations, pay dividends, and reduce debt, supporting long-term sustainability.

Negative Factors

Operating Cash Flow Conversion

Low conversion of income to operating cash flow may limit liquidity and flexibility, posing risks to funding operational needs and growth initiatives.

Declining Gross Profit Margin

A declining gross profit margin could indicate rising costs or pricing pressures, potentially affecting profitability and competitive positioning.

Declining Return on Equity

A declining return on equity suggests less efficient use of equity capital, which may impact investor confidence and future capital raising.

Lake Shore Bancorp Business Overview & Revenue Model

Company Description

Lake Shore Bancorp, Inc. operates as the savings and loan holding company for Lake Shore Savings Bank that provides banking products and services. It accepts various deposit products, such as regular savings deposits, including Christmas Club and statement savings accounts; money market savings and checking accounts; interest bearing and non-interest bearing checking accounts, such as demand deposits; health savings accounts; retirement accounts; time deposits; interest on lawyer accounts; and accounts for individuals, as well as commercial savings, checking, and money market accounts for small to medium sized businesses. The company's loan portfolio consists of commercial real estate, commercial construction, and home equity loans and lines of credit; commercial loans comprising business installment loans, lines of credit, and other commercial loans; one- to four-family residential mortgages; and consumer loans, such as personal consumer loans, overdraft lines of credit, vehicle loans, secured and unsecured property improvement loans, and other secured loans, as well as loans secured by certificates of deposit. As of February 11, 2022, it had eleven full-service branch locations in Western New York, including five locations in Chautauqua County and six locations in Erie County, New York. The company was founded in 1891 and is headquartered in Dunkirk, New York. Lake Shore Bancorp, Inc. is a subsidiary of Lake Shore, MHC.

How the Company Makes Money

Lake Shore Bancorp generates revenue primarily through interest income from loans and investments, as well as non-interest income from various banking services. The key revenue streams include interest earned on residential and commercial mortgages, home equity lines of credit, and other consumer loans. Additionally, the company earns fees from deposit accounts, ATM services, and transaction services. Significant partnerships with local businesses and real estate developers also contribute to its lending activities, while its focus on community engagement helps to attract and retain a loyal customer base, further enhancing its earnings potential.

Lake Shore Bancorp Financial Statement Overview

Summary

Lake Shore Bancorp demonstrates a robust financial position with consistent revenue growth and stable profitability. The balance sheet is strong with low leverage, enhancing financial stability. However, there is room for improvement in operating cash flow conversion and gross profit margins.

Income Statement

Lake Shore Bancorp shows a solid income statement with consistent revenue growth and stable profitability. The TTM data indicates a revenue growth rate of 9.6%, which is a positive trend. Gross profit margin and net profit margin are healthy, although there is a slight decline in gross profit margin over the years. The EBIT and EBITDA margins are stable, reflecting efficient operations. Overall, the income statement reflects a strong financial performance with room for improvement in gross profit margins.

Balance Sheet

The balance sheet of Lake Shore Bancorp is stable with a low debt-to-equity ratio of 0.044 in the TTM period, indicating low leverage and financial stability. Return on equity is moderate at 6.36%, suggesting efficient use of equity to generate profits. The equity ratio is strong, reflecting a solid capital structure. However, the declining trend in return on equity over the years is a point of concern that needs monitoring.

Cash Flow

Cash flow analysis reveals a positive trend in free cash flow growth, with a significant increase of 26.8% in the TTM period. The operating cash flow to net income ratio is low, indicating potential challenges in converting income into cash flow. The free cash flow to net income ratio is strong, suggesting effective cash management. Overall, cash flow performance is satisfactory, with a need to improve operating cash flow conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	38.30M	38.11M	36.39M	29.46M	27.85M	27.33M
Gross Profit	26.49M	25.85M	28.04M	26.32M	24.53M	21.30M
EBITDA	7.56M	6.61M	7.03M	7.73M	8.34M	6.22M
Net Income	5.78M	4.93M	4.82M	5.71M	6.19M	4.56M
Balance Sheet
Total Assets	734.84M	685.50M	725.12M	699.91M	713.74M	686.20M
Cash, Cash Equivalents and Short-Term Investments	123.11M	89.63M	114.17M	82.68M	156.38M	122.21M
Total Debt	2.00M	10.25M	35.25M	37.55M	21.95M	29.75M
Total Liabilities	641.95M	595.64M	638.85M	618.73M	625.76M	600.28M
Stockholders Equity	92.88M	89.87M	86.27M	81.18M	87.98M	85.92M
Cash Flow
Free Cash Flow	3.95M	2.51M	5.81M	7.80M	7.92M	5.20M
Operating Cash Flow	4.48M	2.51M	6.21M	8.21M	8.55M	5.60M
Investing Cash Flow	-5.41M	21.12M	19.52M	-57.20M	-5.74M	-62.14M
Financing Cash Flow	15.31M	-44.22M	18.37M	-8.95M	21.80M	69.22M

Lake Shore Bancorp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 14.33
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LSBK, the sentiment is Positive. The current price of 14.33 is above the 20-day moving average (MA) of 14.17, above the 50-day MA of 13.44, and above the 200-day MA of 12.10, indicating a bullish trend. The MACD of 0.24 indicates Positive momentum. The RSI at 66.19 is Neutral, neither overbought nor oversold. The STOCH value of 84.74 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LSBK.

Lake Shore Bancorp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MGYR	69 Neutral	$108.50M	10.78	8.51%	1.91%	12.08%	29.55%
LSBK	68 Neutral	$114.38M	16.57	5.94%	2.11%	2.27%	66.15%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
UNB	66 Neutral	$103.29M	9.09	15.11%	6.23%	14.52%	27.90%
PROV	62 Neutral	$101.22M	17.13	4.68%	3.66%	0.99%	-16.23%
RVSB	61 Neutral	$108.94M	23.43	2.90%	1.52%	8.77%	369.81%
PBHC	49 Neutral	$93.33M	84.38	2.26%	2.81%	0.84%	―