Lake Shore Bancorp (LSBK) AI Stock Analysis

• Market Cap: $90.35M
• Dividend Yield: 4.52%
• Average Volume (3M): 2.83K
• Price to Earnings (P/E): 18.3
• Beta (1Y): 0.46
• Revenue Growth: 1.62%
• EPS Growth: 21.82%
• Country: US
• Employees: 93
• Sector: Financial
• Sector Strength: 82
• Industry: Banks - Regional
• EPS (TTM): 0.19
• Shares Outstanding: 5,759,172
• 10 Day Avg. Volume: 3,251
• 30 Day Avg. Volume: 2,829
• PEG Ratio: 7.64
• Price to Book (P/B): 0.97
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 28.51
• Enterprise Value/Market Cap: 0.69
• Enterprise Value/Revenue: 0.41
• Enterprise Value/Gross Profit: 2.42
• Enterprise Value/Ebitda: 2.40
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 73 Outperform
• Price Target: $17.50 ▲(9.86%Upside)

Lake Shore Bancorp demonstrates strong financial stability, reinforced by a solid balance sheet and attractive valuation metrics. Technical indicators suggest positive momentum. The absence of recent earnings call data did not affect the overall score significantly. The company's strategic move towards a fully-public structure is seen as a growth opportunity.

Lake Shore Bancorp Business Overview & Revenue Model

Company Description

Lake Shore Bancorp (LSBK) is a publicly-traded financial institution headquartered in Dunkirk, New York. Operating primarily through its wholly-owned subsidiary, Lake Shore Savings Bank, the company provides a comprehensive range of banking products and services. These include personal and business deposit accounts, residential and commercial mortgage loans, consumer loans, and other financial services to individuals and businesses in Western New York. The bank is committed to delivering community-focused banking services while maintaining a strong emphasis on customer relationships and local economic growth.

How the Company Makes Money

Lake Shore Bancorp generates revenue primarily through the interest income it earns on the loans it provides, including residential mortgages, commercial real estate loans, and consumer loans. It also earns income from the interest on its portfolio of investment securities. Additionally, the company derives non-interest income from service charges on deposit accounts, fees from loan originations, and other financial services. Key factors contributing to its earnings include effective interest rate management, maintaining strong relationships with local businesses and consumers, and leveraging its community presence to attract deposits. Partnerships with local businesses and community institutions also play a role in expanding its customer base and enhancing revenue streams.

Lake Shore Bancorp Financial Statement Overview

Summary

Lake Shore Bancorp exhibits strong financial health with consistent revenue growth and robust profitability margins. The improvement in debt levels and a strong equity base are positive, but declining operating cash flow poses potential liquidity risks.

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	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	7.73M	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: 15.93
• 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 15.93 is above the 20-day moving average (MA) of 15.80, above the 50-day MA of 15.41, and above the 200-day MA of 14.46, indicating a bullish trend. The MACD of 0.13 indicates Positive momentum. The RSI at 60.08 is Neutral, neither overbought nor oversold. The STOCH value of 80.01 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
FUSB	74 Outperform	$72.07M	9.77	8.10%	2.23%	5.04%	-6.92%
UBCP	73 Outperform	$82.62M	11.56	11.29%	5.19%	5.81%	-22.37%
LSBK	73 Outperform	$90.35M	18.33	5.61%	4.52%	1.62%	21.82%
IROQ	70 Outperform	$81.38M	23.77	4.35%	1.65%	11.65%	67.39%
MGYR	68 Neutral	$107.74M	11.70	8.11%	1.44%	20.91%	20.30%
Sector *	67 Neutral	$17.01B	11.90	9.70%	3.76%	11.63%	-9.47%
BSBK	56 Neutral	$103.29M	―	-0.73%	―	-9.96%	-23.54%

Lake Shore Bancorp Corporate Events

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.