Lake Shore Bancorp, Inc. (LSBK) stock analysis

P/E above its 5-year median

Lake Shore Bancorp's P/E of 16.8 is above its own 5-year median of 15.4.

P/E above the industry

Lake Shore Bancorp's P/E of 16.8 is above the Savings Institutions median of 13.7.

P/S above the industry

Lake Shore Bancorp's price-to-sales of 4.89 is above the Savings Institutions median of 3.77.

P/B above the industry

Lake Shore Bancorp's price-to-book of 1.04 is above the Savings Institutions median of 1.04.

Trading above fair value

The share price of $18.82 is above our fair value estimate of $16.79.

Margin of safety under 20%

The price is 12.1% above fair value, so there is no margin of safety.

Revenue growing 10%+ a year

Revenue grew 193% a year over the last three fiscal years.

EPS growing under 10% a year

Diluted EPS grew 0.0% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 22.6% over the last twelve months, against a 5-year average of 9.8% a year.

Growing faster than the industry

Revenue grew 12.3% over the last twelve months; the Savings Institutions median is 9.0%.

Company guidance

No outlook found in earnings releases from the last twelve months.

Gross margin trend

Banks and insurers do not report gross profit.

Return on equity under 15%

Return on equity was 5.9% over the last twelve months and averaged 6.3% over five years; we look for 15% on both.

Return on assets over 1%

Return on assets was 1.1%; for a bank or insurer, 1% or more is considered good.

Return on equity below the industry

Lake Shore Bancorp's return on equity of 5.9% is below the Savings Institutions median of 6.1%.

Earnings grew over 5 years

Net income grew 9.8% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 27.6% over the last twelve months, against a 5-year average of 234%.

Net margin above the industry

Lake Shore Bancorp's net margin of 27.6% is above the Savings Institutions median of 20.3%.

Well capitalized

Equity is 19.3% of total assets; 8% or more is a comfortable cushion.

Loans funded by deposits

Needs loans and deposits.

Adequate loan-loss reserve

The allowance for credit losses is not reported.

High cost base

Non-interest expense takes 65.3% of revenue; under 60% is efficient for a bank.

Deposits shrinking

Deposits fell 1.7% over the past year.

Borrowings

Needs debt and equity figures.

Pays a dividend

Lake Shore Bancorp paid dividends worth 1.9% of the share price over the last twelve months.

Yield below Treasuries

The 1.9% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Lake Shore Bancorp yields 1.9%.

Dividend was cut

The dividend per share fell by more than 10% at least once in the last 9 fiscal years.

Covered by earnings

Dividends take 31.7% of net income.

Cash-flow cover

Needs dividends paid and free cash flow.