Lgl Group Inc (NYSE: LGL)

Sector: Technology Industry: Scientific & Technical Instruments CIK: 0000061004
Market Cap 28.78 Mn
P/B 0.72
P/E 31.39
P/S 7.01
ROIC (Qtr) 7.48
Div Yield % 0.00
Rev 1y % (Qtr) -6.02
Total Debt (Qtr) 0.00
Debt/Equity (Qtr) 0.00

About

LGL Group Inc., often referred to as LGL, operates in the manufacturing and investment industries. Incorporated in 1928, LGL has built a reputation for acquiring and divesting businesses with a focus on enhancing shareholder value. LGL's manufacturing operations are conducted through its subsidiary, Precise Time and Frequency, LLC (PTF). PTF specializes in designing, manufacturing, and marketing time and frequency instruments for various industries such as computer networking, satellite ground stations, electric utilities, broadcasting, telecommunication...

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Price action

Investment thesis

Bull case

  • Cash position of 41.57M provides exceptional 569.47x coverage of minority interest expenses 73000, indicating strong liquidity.
  • Tangible assets of 43.26M provide robust 78.09x coverage of other current liabilities 554000, indicating strong asset backing.
  • Operating cash flow of 408000 fully covers other non-current liabilities 297000 by 1.37x, showing strong long-term stability.
  • Strong cash position of 41.57M provides 75.04x coverage of other current liabilities 554000, indicating excellent liquidity.
  • Cash reserves of 41.57M provide solid 139.97x coverage of other non-current liabilities 297000, indicating strong liquidity.

Bear case

  • Operating cash flow of 408000 provides minimal -0.66x coverage of tax expenses of (615000), suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Tangible assets of 43.26M provide limited backing for working capital of 41.77M, which is 1.04x, suggesting increased operational risk in market downturns.
  • R&D investment of 0 represents just 0x of SG&A expenses of 2.71M, indicating potential underinvestment in innovation relative to administrative overhead.
  • Other current liabilities of 554000 represent a high 1.20x of receivables 460000, suggesting potential short-term liquidity pressure.

Peer comparison

Companies in the Scientific & Technical Instruments
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 GRMN Garmin Ltd 38.77 Bn 24.68 5.58 0.16 Bn
2 KEYS Keysight Technologies, Inc. 34.91 Bn 41.07 6.49 2.78 Bn
3 COHR Coherent Corp. 28.91 Bn 244.51 4.78 3.51 Bn
4 TDY Teledyne Technologies Inc 23.87 Bn 29.19 3.98 2.53 Bn
5 TRMB Trimble Inc. 19.54 Bn 54.65 5.43 1.39 Bn
6 FTV Fortive Corp 18.68 Bn 31.02 3.31 3.31 Bn
7 MKSI Mks Inc 10.78 Bn 38.63 2.81 4.55 Bn
8 CGNX Cognex Corp 6.14 Bn 55.76 6.32 0.08 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets -0.30 2.20
EV to Cash from Ops. EV/CFO -31.74 9.84
EV to Debt EV to Debt 0.00 22.70
EV to EBIT EV/EBIT -42.89 15.74
EV to EBITDA EV/EBITDA -34.54 11.58
EV to Free Cash Flow [EV/FCF] EV/FCF -31.74 24.79
EV to Market Cap EV to Market Cap -0.45 -2.78
EV to Revenue EV/Rev -3.15 6.45
Price to Book Value [P/B] P/B 0.72 7.12
Price to Earnings [P/E] P/E 31.39 13.89
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -16.40
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 -7.19
Dividend per Basic Share Div per Share (Qtr) 0.00 0.31
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 6.83
Interest Coverage Int. cover (Qtr) 0.00 -13.61
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 0.00 -21.70
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -0.07 101.63
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 1.97
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 151.92 19.84
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -52.11 17.31
EBIT Growth (1y) % EBIT 1y % (Qtr) -56.42 20.90
EBT Growth (1y) % EBT 1y % (Qtr) -56.42 82.68
EPS Growth (1y) % EPS 1y % (Qtr) 200.00 65.55
FCF Growth (1y) % FCF 1y % (Qtr) -50.36 32.88
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -1.81 34.27
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.09 0.49
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.05
Cash Ratio Cash Ratio (Qtr) 38.46 2.99
Current Ratio Curr Ratio (Qtr) 39.64 4.83
Debt to Equity Ratio Debt/Equity (Qtr) 0.00 0.67
Interest Cover Ratio Int Coverage (Qtr) 0.00 -13.61
Times Interest Earned Times Interest Earned (Qtr) 0.00 -13.61
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 7.40 -296.15
EBIT Margin % EBIT Margin % (Qtr) 7.35 -316.09
EBT Margin % EBT Margin % (Qtr) 7.35 -351.37
Gross Margin % Gross Margin % (Qtr) 75.10 40.05
Net Profit Margin % Net Margin % (Qtr) 22.30 -354.10