Lake Shore Bancorp, Inc. /MD/ (NASDAQ: LSBK)

Sector: Financial Services Industry: Banks - Regional CIK: 0002059653
Market Cap 91.21 Mn
P/B 0.65
P/E 13.41
P/S 3.28
ROIC (Qtr) 5.62
Div Yield % 3.02
Rev 1y % (Qtr) 20.08
Total Debt (Qtr) 3.44 Mn
Debt/Equity (Qtr) 0.02

About

Price action

Investment thesis

Bull case

  • Strong operating cash flow of 9.23M provides robust 2.68x coverage of total debt 3.44M, indicating excellent debt servicing capability and financial flexibility.
  • Strong tangible asset base of 742.80M provides 215.99x coverage of total debt 3.44M, indicating robust asset backing and low credit risk.
  • Operating cash flow of 9.23M provides strong 29.31x coverage of stock compensation 315000, indicating sustainable incentive practices.
  • Robust free cash flow of 8.70M exceeds capital expenditure of 530000 by 16.42x, indicating strong organic growth funding capability.
  • Retained earnings of 87.12M represent substantial 0.63x of equity 139.31M, indicating strong internal capital generation.

Bear case

  • Operating cash flow of 9.23M barely covers its investment activities of (11.60M), with a coverage ratio of -0.80, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 9.23M provides thin coverage of dividend payments of (1.38M) with a -6.69 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Free cash flow of 8.70M represents just -1.03x of debt issuance (8.46M), suggesting concerning reliance on leverage rather than internal cash generation for growth.
  • Retained earnings of 87.12M provide limited buffer against comprehensive income items of (8.59M), which is -10.14x, indicating elevated exposure to market risks.
  • Operating cash flow of 9.23M is outpaced by equity issuance of 43.19M (0.21 ratio), indicating concerning reliance on equity markets for funding operations.

Peer comparison

Companies in the Banks - Regional
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 USB Us Bancorp \De\ 84.44 Bn 12.40 3.25 77.98 Bn
2 PNC Pnc Financial Services Group, Inc. 84.36 Bn 13.61 3.73 62.34 Bn
3 NU Nu Holdings Ltd. 81.47 Bn 32.21 5.79 4.49 Bn
4 NWG NatWest Group plc 66.53 Bn 9.88 3.05 169.04 Bn
5 TFC Truist Financial Corp 64.60 Bn 13.18 3.53 71.11 Bn
6 MTB M&T Bank Corp 32.73 Bn 12.47 3.60 14.99 Bn
7 FITB Fifth Third Bancorp 31.96 Bn 14.15 3.93 18.94 Bn
8 FCNCA First Citizens Bancshares Inc /De/ 28.98 Bn 12.78 3.26 40.00 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.03 0.14
EV to Assets EV to Assets 0.03 0.14
EV to Cash from Ops. EV/CFO 2.26 7.21
EV to Cash from Ops. EV/CFO 2.26 7.21
EV to Debt EV to Debt 6.08 5.20
EV to Debt EV to Debt 6.08 5.20
EV to EBIT EV/EBIT 2.56 14.98
EV to EBIT EV/EBIT 2.56 14.98
EV to EBITDA EV/EBITDA 2.38 8.92
EV to EBITDA EV/EBITDA 2.38 8.92
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 4.93 271.44
Dividend Coverage Ratio Div Coverage (Qtr) 4.93 271.44
Dividend Payout Ratio % Div Payout % (Qtr) 40.50 35.28
Dividend Payout Ratio % Div Payout % (Qtr) 40.50 35.28
Dividend per Basic Share Div per Share (Qtr) 0.36 0.89
Dividend per Basic Share Div per Share (Qtr) 0.36 0.89
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 32.37 34.52
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 32.37 34.52
Interest Coverage Interest Coverage 0.00 -0.05
Interest Coverage Interest Coverage 0.00 -0.05
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -1,506.06 -73.15
Capex Growth (1y) % Capex 1y % (Qtr) -1,506.06 -73.15
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 67.34 15.78
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 67.34 15.78
Dividend Growth (1y) % Div 1y % (Qtr) -33.33 5.32
Dividend Growth (1y) % Div 1y % (Qtr) -33.33 5.32
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 61.58 110.93
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 61.58 110.93
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 41.86 38.80
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 41.86 38.80
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.04 0.04
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.04 0.04
Cash Payout Ratio Cash Payout (Qtr) 0.14 0.26
Cash Payout Ratio Cash Payout (Qtr) 0.14 0.26
Cash Ratio Cash Ratio 0.00 0.00
Cash Ratio Cash Ratio 0.00 0.00
Current Ratio Current Ratio 0.00 0.01
Current Ratio Current Ratio 0.00 0.01
Debt to Equity Ratio Debt/Equity (Qtr) 0.02 0.53
Debt to Equity Ratio Debt/Equity (Qtr) 0.02 0.53
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 31.60 147.97
EBITDA Margin % EBITDA Margin % (Qtr) 31.60 147.97
EBIT Margin % EBIT Margin % (Qtr) 29.36 155.41
EBIT Margin % EBIT Margin % (Qtr) 29.36 155.41
EBT Margin % EBT Margin % (Qtr) 29.36 154.66
EBT Margin % EBT Margin % (Qtr) 29.36 154.66
Gross Margin % Gross Margin % (Qtr) 100.00 97.82
Gross Margin % Gross Margin % (Qtr) 100.00 97.82
Net Profit Margin % Net Margin % (Qtr) 24.50 115.63
Net Profit Margin % Net Margin % (Qtr) 24.50 115.63