Lake Shore Bancorp (LSBK) AI Stock Analysis

• Market Cap: $98.11M
• Dividend Yield: 2.81%
• Average Volume (3M): 80.80K
• Price to Earnings (P/E): 16.9
• Beta (1Y): 0.45
• Revenue Growth: 1.49%
• EPS Growth: 33.52%
• Country: US
• Employees: 93
• Sector: Financial
• Sector Strength: 65
• Industry: Banks - Regional
• EPS (TTM): 0.25
• Shares Outstanding: 7,825,501
• 10 Day Avg. Volume: 48,433
• 30 Day Avg. Volume: 80,804
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.18
• Enterprise Value/Revenue: 0.47
• Enterprise Value/Gross Profit: 0.68
• Enterprise Value/Ebitda: 2.66
• 1Y Price Target: $17.50
• Price Target Upside: 38.23% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 73 Outperform
• Price Target: $17.50 ▲(38.23% Upside)

Lake Shore Bancorp demonstrates solid financial performance with a robust balance sheet and consistent revenue growth. Recent strategic corporate events further strengthen its market positioning. However, technical indicators are neutral, and the valuation is reasonable but not particularly compelling.

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 exhibits financial strength with consistent revenue growth and strong operational margins. The balance sheet is solid, demonstrating low leverage and strong liquidity. While cash flow metrics show some variability, the company's overall cash generation remains positive.

Income Statement

Lake Shore Bancorp has demonstrated steady revenue growth over the years, with a notable increase from $27.8M in 2021 to $37.9M in TTM 2025. The gross profit margin remains strong, consistently above 67%, indicating efficient cost management. However, the net profit margin has seen a slight decline from 20.8% in 2021 to 13.1% in TTM 2025, signaling some pressure on profitability. Despite this, EBIT and EBITDA margins have remained fairly stable, suggesting operational efficiency.

Balance Sheet

The company's balance sheet is robust, with a low debt-to-equity ratio of 0.04 in TTM 2025, reflecting conservative leverage. The equity ratio stands at 13.2%, indicating a stable capital structure. Furthermore, the return on equity is strong at 5.5%, although it has slightly decreased from previous years. Overall, the balance sheet portrays financial stability with ample liquidity, evidenced by a consistent increase in cash and short-term investments.

Cash Flow

Lake Shore Bancorp's cash flow position is solid, with free cash flow growth of 24.1% from 2024 to TTM 2025, showcasing effective capital management. The operating cash flow to net income ratio of 0.65 suggests efficient cash conversion. However, the free cash flow to net income ratio has declined slightly, highlighting some volatility in cash flow generation. Despite these fluctuations, the company maintains a positive cash flow trajectory.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	37.88M	38.11M	36.39M	29.46M	27.85M	27.33M
Gross Profit	25.79M	25.85M	28.04M	26.32M	24.53M	21.30M
EBITDA	6.63M	6.61M	7.03M	7.73M	8.34M	6.22M
Net Income	4.97M	4.93M	4.82M	5.71M	6.19M	4.56M
Balance Sheet
Total Assets	689.00M	685.50M	725.12M	699.91M	714.09M	686.20M
Cash, Cash Equivalents and Short-Term Investments	82.31M	89.63M	114.17M	82.68M	156.76M	122.26M
Total Debt	4.00M	10.25M	35.25M	37.55M	21.95M	29.75M
Total Liabilities	598.33M	595.64M	638.85M	618.73M	625.76M	600.28M
Stockholders Equity	90.66M	89.87M	86.27M	81.18M	87.98M	85.92M
Cash Flow
Free Cash Flow	3.11M	2.51M	5.81M	7.80M	7.92M	5.20M
Operating Cash Flow	3.26M	2.51M	6.21M	8.21M	8.55M	5.60M
Investing Cash Flow	7.10M	21.12M	19.52M	-57.20M	-5.74M	-62.14M
Financing Cash Flow	-34.89M	-44.22M	18.37M	-8.95M	21.80M	69.22M

Lake Shore Bancorp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 12.66
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 12.66 is above the 20-day moving average (MA) of 12.26, above the 50-day MA of 11.87, and above the 200-day MA of 10.96, indicating a bullish trend. The MACD of 0.26 indicates Negative momentum. The RSI at 66.53 is Neutral, neither overbought nor oversold. The STOCH value of 71.93 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	73 Outperform	$98.11M	16.92	6.43%	2.81%	1.49%	33.52%
UBCP	73 Outperform	$82.22M	11.16	11.79%	6.34%	5.73%	-12.88%
FUSB	69 Neutral	$67.68M	12.13	5.99%	2.17%	2.84%	-31.20%
IROQ	69 Neutral	$84.46M	24.67	4.35%	1.59%	11.65%	67.39%
MGYR	69 Neutral	$112.76M	11.26	8.68%	1.66%	18.82%	35.00%
Sector *	62 Neutral	AU$10.42B	9.88	13.11%	4.72%	32.06%	21.38%
BSBK	55 Neutral	$114.39M	―	-0.25%	―	-12.23%	83.58%

Lake Shore Bancorp Corporate Events

Lake Shore Bancorp Completes Conversion and Raises $49.5M

On July 18, 2025, Lake Shore Bancorp, Inc. completed the conversion of Lake Shore, MHC from mutual to stock form and transitioned Lake Shore Savings Bank from a federal savings bank to a New York chartered commercial bank. The company raised $49.5 million through a stock offering, selling 4,950,460 shares at $10.00 each. This strategic move is expected to enhance the company’s market positioning and operational flexibility, with its common stock set to begin trading on the Nasdaq Global Market on July 21, 2025.

Lake Shore Bancorp Announces Conversion and Stock Offering

On July 8, 2025, Lake Shore Bancorp, Inc. announced the expected closing of its conversion from mutual to stock form and related stock offering on July 18, 2025, after receiving all regulatory approvals. The company’s common stock is anticipated to start trading on the Nasdaq Global Market on July 21, 2025. The stock offering is expected to raise $49.5 million through the sale of 4,950,460 shares at $10.00 per share. The conversion will result in Lake Shore Federal Bancorp’s public stockholders receiving shares in the new holding company, Lake Shore Bancorp, maintaining their ownership percentage. The transaction is significant for the company’s strategic positioning, allowing it to transition to a New York chartered commercial bank, potentially impacting its operations and market presence.

Lake Shore Bancorp Approves Conversion Plan at Special Meeting

On July 1, 2025, Lake Shore Bancorp, Inc. held a Special Meeting of Stockholders where the Amended and Restated Plan of Conversion and Reorganization was approved. This plan involves converting from a mutual holding company structure to a fully public stock holding company and transitioning the Bank from a federal savings bank to a New York chartered commercial bank. The conversion and stock offering are still subject to final regulatory approvals and customary closing conditions.

Lake Shore Bancorp Announces Stock Offering Conversion

On May 23, 2025, Lake Shore Bancorp, Inc. announced the commencement of a stock offering as part of its conversion from a mutual holding company to a stock holding company. The new Maryland corporation aims to sell up to 5,750,000 shares, with a potential increase to 6,612,500 shares, at $10.00 per share. This move involves converting the bank’s charter to a New York commercial bank and renaming it Lake Shore Bank. The stock offering is primarily available to eligible depositors and the employee stock ownership plan, with any remaining shares offered to the community and public stockholders. The completion of this conversion and offering is contingent upon selling at least 4,250,000 shares and receiving necessary regulatory and stockholder approvals.

Lake Shore Bancorp Holds Annual Shareholder Meeting

On May 21, 2025, Lake Shore Bancorp, Inc. held its Annual Meeting of Shareholders. During this meeting, shareholders elected three Class Two directors to the board for terms expiring in 2028, approved a non-binding resolution on executive compensation, and ratified the appointment of Yount, Hyde & Barbour, P.C. as the independent registered public accounting firm for the fiscal year ending December 31, 2025.

Lake Shore Bancorp Announces Annual Shareholders’ Meeting

Lake Shore Bancorp, Inc. announced its annual shareholders’ meeting scheduled for May 21, 2025, in Dunkirk, New York. The meeting will include the election of directors, a ‘say on pay’ proposal, and the ratification of an independent accounting firm. The company is undergoing a ‘second-step’ conversion to a fully-public stock holding company structure, reflecting its growth strategy. This move is expected to enhance shareholder value and align with its long-term goals of expanding its financial services and market presence.

Lake Shore Bancorp Partners with Raymond James for Stock Offering

On May 14, 2025, Lake Shore Bancorp, Inc. entered into an Agency Agreement with Raymond James & Associates, Inc. to assist in marketing its common stock during the company’s stock offering, related to its conversion from a mutual holding company to a stock holding company. Raymond James will receive a success fee for its services, and the shares are being offered under a Registration Statement declared effective by the SEC.