Lake Shore Bancorp (LSBK) AI Stock Analysis

• Market Cap: $118.00M
• Dividend Yield: 2.12%
• Average Volume (3M): 5.29K
• Price to Earnings (P/E): 15.8
• Beta (1Y): 0.40
• Revenue Growth: 2.27%
• EPS Growth: 66.15%
• Country: US
• Employees: 93
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.26
• Shares Outstanding: 7,825,501
• 10 Day Avg. Volume: 3,424
• 30 Day Avg. Volume: 5,285
• 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: 0.32
• Enterprise Value/Revenue: 0.98
• Enterprise Value/Gross Profit: 1.37
• Enterprise Value/Ebitda: 4.34
• 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: 78 Outperform
• Price Target: $17.50 ▲(22.12% Upside)

The score is driven primarily by improving financial performance and a very conservative balance sheet, supported by a clear technical uptrend. Valuation is reasonable (mid-teens P/E with a ~2% yield), and the recent dividend announcement is modestly positive but not transformative.

Positive Factors

Very conservative balance sheet / low leverage

Extremely low leverage and a materially stronger equity base increase the bank's resilience to credit losses and rate shocks. Over the next several months this supports lending flexibility, regulatory cushion and capacity to sustain operations without urgent external financing.

Improving revenue and net margins

Sustained TTM revenue growth alongside rising operating and net margins indicates the core banking franchise is regaining profitability. This trend points to structural improvement in loan and fee income generation that can persist across the next 2–6 months if credit and deposit trends remain stable.

Stronger cash generation and free cash flow

A large rebound in operating and free cash flow, nearly matching reported earnings, signals higher earnings quality and internal funding capacity. Durable cash generation supports dividends, loan growth or capital build-up without heavy reliance on external funding in the medium term.

Negative Factors

Profitability below earlier-cycle peaks

Despite recent improvement, profits and margins remain meaningfully below peak-cycle levels seen in 2021–2022. That structural gap limits long-term return potential and suggests the bank may face headwinds restoring prior profitability absent material revenue mix or scale changes.

Year-to-year cash flow volatility

Pronounced annual swings in operating and free cash flow increase uncertainty around sustaining dividends and loan funding. Volatile cash generation reduces predictability of internal capital deployment and heightens reliance on conservative buffers or external liquidity during stress periods.

Modest return on equity / limited scale

A mid-single-digit ROE reflects constrained profitability relative to larger peers and suggests limited scale. Over months this can cap shareholder returns and reinvestment capacity absent efficiency gains, higher margins, or meaningful balance-sheet expansion.

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 through multiple streams primarily centered around interest income and non-interest income. The main revenue source is interest income from loans, which includes residential mortgages, commercial loans, and consumer loans. The bank charges interest on these loans, which constitutes a significant portion of its earnings. Additionally, LSBK earns non-interest income from fees associated with deposit accounts, service charges, and transaction fees. The bank may also engage in investment activities, which could contribute to its revenue through interest and dividends from securities. Strategic partnerships with local businesses and community organizations help enhance its customer base and deepen customer relationships, further supporting revenue growth.

Lake Shore Bancorp Financial Statement Overview

Summary

Strong TTM improvement in revenue and earnings, with better net margin versus 2024 and a notably stronger, low-leverage balance sheet. Offsets are profitability still below earlier-cycle peaks and some year-to-year cash flow volatility.

Income Statement

TTM (Trailing-Twelve-Months) revenue is up strongly versus the prior annual period (about 2.0x), and profitability improved with higher operating and net margins (TTM net margin ~17% vs ~13% in 2024). Earnings also stepped up meaningfully (TTM net income ~$6.8M vs ~$4.9M in 2024). The main weakness is some longer-term margin compression versus 2021–2022 levels, where net margins were notably higher, indicating profitability is not at peak-cycle levels.

Balance Sheet

Leverage looks very conservative in the latest period, with very low debt relative to equity (TTM debt-to-equity ~0.01 vs ~0.11 in 2024 and much higher in 2022–2023), suggesting improved balance sheet resilience. Equity has grown substantially (TTM ~$139M vs ~$90M in 2024). Return on equity is solid and improving (TTM ~6.6% vs ~5.5% in 2024), though still not exceptionally high, which can limit overall returns despite the stronger capitalization.

Cash Flow

Cash generation strengthened materially in TTM (operating cash flow ~$9.2M; free cash flow ~$8.7M) with a very large free cash flow rebound versus 2024. Free cash flow closely matches reported earnings (TTM free cash flow to net income ~0.94), supporting earnings quality. However, cash flow has been volatile year-to-year (notably weaker in 2024), which increases uncertainty around consistency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	39.07M	38.11M	36.39M	29.46M	27.85M	27.33M
Gross Profit	27.77M	25.85M	28.04M	26.32M	24.53M	21.30M
EBITDA	8.79M	6.61M	7.03M	7.73M	8.34M	6.22M
Net Income	6.80M	4.93M	4.82M	5.71M	6.19M	4.56M
Balance Sheet
Total Assets	742.80M	685.50M	725.12M	699.91M	713.74M	686.20M
Cash, Cash Equivalents and Short-Term Investments	131.32M	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	603.50M	595.64M	638.85M	618.73M	625.76M	600.28M
Stockholders Equity	139.31M	89.87M	86.27M	81.18M	87.98M	85.92M
Cash Flow
Free Cash Flow	8.66M	2.51M	5.81M	7.80M	7.92M	5.20M
Operating Cash Flow	9.23M	2.51M	6.21M	8.21M	8.55M	5.60M
Investing Cash Flow	-11.60M	21.12M	19.52M	-57.20M	-5.74M	-62.14M
Financing Cash Flow	36.03M	-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: Neutral

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 below the 20-day moving average (MA) of 15.17, below the 50-day MA of 14.87, and above the 200-day MA of 12.87, indicating a bullish trend. The MACD of 0.17 indicates Positive momentum. The RSI at 57.11 is Neutral, neither overbought nor oversold. The STOCH value of 36.44 is Neutral, 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
LSBK	78 Outperform	$118.00M	15.78	6.28%	2.12%	2.27%	66.15%
UNB	74 Outperform	$114.06M	10.24	15.11%	6.08%	14.52%	27.90%
MGYR	72 Outperform	$114.14M	10.26	8.51%	1.81%	12.08%	27.88%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
PROV	64 Neutral	$104.62M	16.26	4.68%	3.50%	0.99%	-16.23%
RVSB	61 Neutral	$107.28M	22.30	2.90%	1.51%	8.77%	369.81%
PBHC	54 Neutral	$84.47M	-14.35	2.26%	2.86%	0.84%	―

Lake Shore Bancorp Corporate Events

Lake Shore Bancorp Declares Quarterly Cash Dividend to Shareholders

On January 21, 2026, Lake Shore Bancorp’s board of directors declared a cash dividend of $0.09 per share on its outstanding common stock, with payment scheduled for February 11, 2026, to shareholders of record as of February 2, 2026. The announcement underscores the community bank’s continued return of capital to investors and signals management’s confidence in the company’s financial position and ability to maintain shareholder distributions.

The most recent analyst rating on (LSBK) stock is a Buy with a $16.00 price target. To see the full list of analyst forecasts on Lake Shore Bancorp stock, see the LSBK Stock Forecast page.