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Relative valuation derived from Other sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 44.5GRADE C
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
4.8%
Sector: 7.7%
Dividend Analysis audit
No Dividend
This company does not currently pay a dividend.
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, LAKE SHORE BANCORP, INC. (LSBK) receives a "Hold" rating with a composite score of 47.9/100, ranked #455 out of 4446 stocks. Key factor scores: Quality 45/100, Value 49/100, Momentum 46/100. This is quantitative analysis only — not investment advice.
LAKE SHORE BANCORP, INC. (LSBK) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does LAKE SHORE BANCORP, INC. Do?
LAKE SHORE BANCORP, INC. (LSBK) is a micro-cap company in the Other sector, operating within the Banking industry. The stock has a market capitalization of $120M, making it a notable participant in its sector. Investors researching LSBK stock will find a comprehensive, data-driven analysis below covering valuation, profitability, growth, dividends, and peer comparisons for the Banking space.
LAKE SHORE BANCORP, INC. (LSBK) Stock Rating — Hold (April 2026)
As of April 2026, LAKE SHORE BANCORP, INC. receives a Hold rating with a composite score of 47.9/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.LSBK ranks #455 out of 4,446 stocks in our coverage universe. Within the Other sector, LAKE SHORE BANCORP, INC. ranks #2 of 37 stocks, placing it in the top 10% of its Other peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
LSBK Stock Price and 52-Week Range
LAKE SHORE BANCORP, INC. (LSBK) currently trades at $15.69. The stock lost $0.01 (0.1%) in the most recent trading session. The 52-week high for LSBK is $16.40, which means the stock is currently trading -4.3% from its annual peak. The 52-week low is $11.50, putting the stock 36.4% above its annual trough. Recent trading volume was 4K shares, suggesting relatively thin trading activity.
Is LSBK Overvalued or Undervalued? — Valuation Analysis
LAKE SHORE BANCORP, INC. (LSBK) carries a value factor score of 49/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 18.35x, compared to the Other sector average of 17.96x — a premium of 2%. The price-to-book ratio stands at 0.88x, versus the sector average of 1.35x. The price-to-sales ratio is 3.65x, compared to 1.01x for the average Other stock. On an enterprise value basis, LSBK trades at 15.49x EV/EBITDA, versus 9.83x for the sector.
Overall, LSBK's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
LAKE SHORE BANCORP, INC. Profitability — ROE, Margins, and Quality Score
LAKE SHORE BANCORP, INC. (LSBK) earns a quality factor score of 45/100, signaling below-average profitability metrics relative to the broader market. The return on equity (ROE) is 4.8%, compared to the Other sector average of 7.7%, which is below typical expectations for high-quality companies. Return on assets (ROA) comes in at 0.9% versus the sector average of 2.1%.
On a margin basis, LAKE SHORE BANCORP, INC. reports gross margins of 58.9%, compared to 47.4% for the sector. The operating margin is 24.2% (sector: 2.2%). Net profit margin stands at 20.1%, versus 6.3% for the average Other stock. Revenue growth is running at 6.8% on a trailing basis, compared to 7.8% for the sector. Profitability is below benchmark levels, which may reflect industry headwinds, elevated reinvestment, or structural challenges.
LSBK Debt, Balance Sheet, and Financial Health
LAKE SHORE BANCORP, INC. has a debt-to-equity ratio of 1.0%, compared to the Other sector average of 92.5%. The low leverage indicates a conservative balance sheet with significant financial flexibility. The current ratio is 1.23x, suggesting adequate working capital coverage. Total debt on the balance sheet is $2M. Cash and equivalents stand at $3M.
LSBK has a beta of 0.26, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for LAKE SHORE BANCORP, INC. is 78/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
LAKE SHORE BANCORP, INC. Revenue and Earnings History — Quarterly Trend
In TTM 2026, LAKE SHORE BANCORP, INC. reported revenue of $34M and earnings per share (EPS) of $0.32. Net income for the quarter was $7M. Gross margin was 58.9%. Operating income came in at $8M.
In Q3 2025, LAKE SHORE BANCORP, INC. reported revenue of $9M and earnings per share (EPS) of $0.32. Net income for the quarter was $2M. Revenue grew 5.6% year-over-year compared to Q3 2024. Operating income came in at $3M.
In Q2 2025, LAKE SHORE BANCORP, INC. reported revenue of $7M and earnings per share (EPS) of $0.34. Net income for the quarter was $2M. Gross margin was 58.9%. Revenue grew -20.5% year-over-year compared to Q2 2024. Operating income came in at $2M.
In Q1 2025, LAKE SHORE BANCORP, INC. reported revenue of $8M and earnings per share (EPS) of $0.19. Net income for the quarter was $1M. Revenue grew -2.8% year-over-year compared to Q1 2024. Operating income came in at $1M.
Over the past 8 quarters, LAKE SHORE BANCORP, INC. has demonstrated a growth trajectory, with revenue expanding from $9M to $34M. Investors analyzing LSBK stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
LSBK Dividend Yield and Income Analysis
LAKE SHORE BANCORP, INC. (LSBK) does not currently pay a dividend. This is common among smaller companies in the Banking industry that prefer to reinvest cash flows into business expansion rather than returning capital to shareholders. Income-focused investors looking for Other dividend stocks may want to explore other Other stocks or use the stock screener to filter by dividend yield.
LSBK Momentum and Technical Analysis Profile
LAKE SHORE BANCORP, INC. (LSBK) has a momentum factor score of 46/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 30/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 48/100 reflects moderate short selling activity.
LSBK vs Competitors — Other Sector Ranking and Peer Comparison
Comparing LSBK against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full LSBK vs S&P 500 (SPY) comparison to assess how LAKE SHORE BANCORP, INC. stacks up against the broader market across all factor dimensions.
LSBK Next Earnings Date
No upcoming earnings date has been announced for LAKE SHORE BANCORP, INC. (LSBK) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy LSBK? — Investment Thesis Summary
LAKE SHORE BANCORP, INC. presents a balanced picture with arguments on both sides. Low volatility (stability score 78/100) reduces downside risk.
In summary, LAKE SHORE BANCORP, INC. (LSBK) earns a Hold rating with a composite score of 47.9/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on LSBK stock.
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Institutional Research Dossier
LAKE SHORE BANCORP, INC. (LSBK) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
Lake Shore Bancorp, Inc. (LSBK) is a small regional bank with a Hold rating in our proprietary quant model, scoring 47.2/100 overall. The company's relatively low Investment and Quality scores of 30/100 and 45/100, respectively, reflect its subpar capital allocation and profitability compared to peers. While LSBK exhibits stability and strong operating margins, its high valuation and weak growth make it a less compelling investment opportunity in the banking sector.
Business Strategy & Overview
Lake Shore Bancorp, Inc. is the holding company for Lake Shore Savings Bank, a community bank serving the western New York region. The bank operates 13 branch locations and offers a range of traditional banking products and services, including deposit accounts, commercial and consumer loans, and wealth management services. LSBK's primary focus is on serving retail and small-to-medium sized business customers in its local markets.
The bank's strategy centers on maintaining a strong deposit franchise and using those low-cost funds to generate loan and investment income. LSBK has historically emphasized residential mortgage and commercial real estate lending, though it has also built out its commercial and industrial (C&I) loan portfolio in recent years. The bank's wealth management arm provides additional fee-based revenue streams.
LSBK operates in a highly competitive regional banking landscape, facing rivalry from both larger national/regional banks as well as smaller community banks. The company must balance investment in digital capabilities and branch network optimization with prudent risk management to drive profitable growth.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
6.8%
Sector: 7.8%
-13% VS SCTR
Economic Moat Analysis
Lake Shore Bancorp exhibits a narrow economic moat, derived primarily from its established local brand and customer relationships. As a community bank, LSBK benefits from strong deposit market share and deep ties to its western New York footprint, which provide a degree of customer stickiness and pricing power. The bank's wealth management services also help foster more sticky, fee-based revenue streams.
However, LSBK lacks the scale and diversification advantages of larger regional or national banks. It faces constant competitive threats from both bigger players encroaching on its markets as well as smaller community banks vying for the same retail and commercial customers. The bank's narrow product range and geographic concentration make it more vulnerable to economic downturns or disruption in its core markets.
LSBK has made modest investments in digital banking capabilities, but it still lags larger peers in terms of technological sophistication and innovation. This could hamper its ability to cost-effectively serve evolving customer preferences over the long term.
Financial Health & Profitability
Lake Shore Bancorp's financial performance has been mixed relative to its regional banking peers. The company's revenue growth of 6.8% over the past year trails the sector average of 7.9%, and its profitability metrics lag as well, with a return on equity (ROE) of 4.8% compared to the 7.7% sector average.
LSBK's gross and operating margins of 58.9% and 24.2%, respectively, are stronger than peers, indicating good cost control and efficiency. However, its net margin of 20.1% is still below the 6.3% sector norm, likely due to the bank's high valuation and modest growth.
The bank maintains a healthy balance sheet, with a current ratio of 1.23 and a debt-to-equity ratio of 1.0, in line with the industry. While LSBK generated positive free cash flow in recent quarters, its TTM FCF of -$725.98 million raises some concerns about the sustainability of its cash flow generation.
Valuation Assessment
Lake Shore Bancorp's valuation appears stretched relative to its fundamentals and growth profile. The company trades at a price-to-earnings (P/E) ratio of 46.5x, significantly higher than the 19.5x sector average. Its enterprise value-to-EBITDA (EV/EBITDA) multiple of 9.7x is in line with peers, but this metric may be skewed by LSBK's low EBITDA margins.
From a free cash flow perspective, the bank's TTM FCF yield of -6.7% is concerning, as it suggests the company is burning cash rather than generating sustainable free cash flow. This raises questions about the durability of LSBK's earnings and its ability to fund future growth and capital returns.
While LSBK's stability and strong operating margins are positive attributes, its high valuation, modest growth, and weak cash flow generation make it difficult to justify the stock's current trading levels. A more reasonable valuation would likely require a combination of improved profitability, higher growth, and/or a lower P/E multiple.
Risk & Uncertainty
The primary risks facing Lake Shore Bancorp stem from its small size, geographic concentration, and reliance on traditional banking products. As a regional community bank, LSBK is more vulnerable to economic downturns or disruption in its western New York markets compared to larger, more diversified peers.
The bank's lack of scale and limited product range also make it more susceptible to competitive threats from both bigger banks encroaching on its territory as well as smaller community banks. LSBK's ability to invest in technology and maintain a differentiated customer experience is constrained by its relatively modest resources.
Regulatory changes, such as increased capital requirements or changes to consumer protection rules, could also disproportionately impact LSBK's operations and profitability. The bank's high valuation also leaves little margin for error, as any disappointments in growth or earnings could lead to significant stock price volatility.
Bulls Say / Bears Say
The Bull Case
BULL VIEWLSBK's strong local market share and brand recognition provide a durable competitive advantage in its regional banking markets.
BULL VIEWThe bank's focus on wealth management services offers a steadier, fee-based revenue stream that can complement its traditional lending business.
The Bear Case
BEAR VIEWLSBK's high valuation, modest growth, and weak cash flow generation make it difficult to justify the stock's current trading levels.
BEAR VIEWThe bank's small size and geographic concentration leave it vulnerable to economic downturns or disruption in its core markets, limiting its long-term growth potential.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score LSBK and 4,400+ other equities.
LAKE SHORE BANCORP, INC. exhibits a 72% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
0.9%
Sector: 2.1%
Gross Margin
Pricing power and cost efficiency
58.9%
Sector: 47.4%
Operating Margin
Core business profitability
24.2%
Sector: 2.2%
Net Margin
Bottom-line profitability
20.1%
Sector: 6.3%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
