Lakeland Financial (LKFN) AI Stock Analysis

• Market Cap: $1.52B
• Dividend Yield: 3.29%
• Average Volume (3M): 241.22K
• Price to Earnings (P/E): 17.0
• Beta (1Y): 0.94
• Revenue Growth: 5.03%
• EPS Growth: -3.19%
• Country: US
• Employees: 647
• Sector: Financial
• Sector Strength: 87
• Industry: Banks - Regional
• EPS (TTM): 3.50
• Shares Outstanding: 25,556,904
• 10 Day Avg. Volume: 194,177
• 30 Day Avg. Volume: 241,222
• PEG Ratio: -4.73
• Price to Book (P/B): 2.20
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 15.58
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $69.33
• Price Target Upside: 16.48% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

Lakeland Financial demonstrates strong financial performance and positive corporate events, but the zero equity figure on the balance sheet poses a significant risk. Technical analysis suggests bearish momentum, which, combined with moderate valuation metrics, leads to a cautious overall outlook.

Lakeland Financial Business Overview & Revenue Model

Company Description

Lakeland Financial Corporation (LKFN) is a bank holding company that operates through its wholly-owned subsidiary, Lake City Bank. Headquartered in Warsaw, Indiana, the company provides a broad range of financial products and services to individuals and businesses. Its offerings include commercial and consumer loans, deposit products, wealth advisory, and treasury management services. Lakeland Financial primarily serves the regions of northern and central Indiana, focusing on community-oriented banking services.

How the Company Makes Money

Lakeland Financial makes money primarily through interest income and non-interest income. Interest income is generated from loans extended to individuals and businesses, including commercial, commercial real estate, and consumer loans. The interest differential between the interest paid on deposits and the interest received on loans contributes significantly to its earnings. Non-interest income is derived from various sources such as service charges on deposit accounts, fees from wealth management services, treasury management fees, and gains from the sale of loans. The company also benefits from partnerships with local businesses and community engagement, which help to expand its customer base and enhance revenue generation. Economic factors, such as interest rate fluctuations and regional economic health, can significantly impact Lakeland Financial's profitability.

Lakeland Financial Financial Statement Overview

Summary

Lakeland Financial shows strong revenue and profit growth with a solid cash flow position. However, the recent zero equity figure is a significant concern that warrants further investigation for long-term stability.

Income Statement

Lakeland Financial has shown a solid revenue growth trajectory, increasing from $189.6M in 2019 to $373.2M in 2024, with a significant jump in the latest year. The gross profit margin is consistently strong at 100% due to the nature of the banking industry where total revenue equals gross profit. The Net Profit Margin has also been robust, averaging over 24% in recent years. However, the EBITDA margin has seen some volatility, especially with a negative figure in the 2020 report. Overall, strong growth and profitability are evident, though some inconsistencies in margin metrics warrant attention.

Balance Sheet

The balance sheet shows a strong cash position, with cash and equivalents peaking at $2.08 billion in 2021. The company's debt-to-equity ratio is currently very favorable with zero debt in 2024, indicating strong financial leverage management. However, the equity ratio has been decreasing, which could signal increased liabilities relative to assets. A zero stockholders' equity in the latest report raises a red flag that needs investigation, as it may impact future stability.

Cash Flow

Lakeland Financial demonstrates robust cash flow management, with positive free cash flow in all years and a notable increase in operating cash flow in 2024. The free cash flow to net income ratio is consistently healthy, highlighting strong cash generation efficiency. Despite some fluctuations in investing cash flow, the company's ability to maintain positive free cash flow is a significant strength.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
332.54M	253.52M	246.89M	231.92M	210.13M	197.99M
	Gross Profit
345.15M	253.52M	241.04M	231.92M	210.13M	197.99M
	EBIT
175.31M	89.38M	101.58M	161.84M	117.44M	103.88M
	EBITDA
57.73M	0.00	0.00	130.99M	121.05M	-1.71M
	Net Income Common Stockholders
90.16M	93.48M	93.77M	103.82M	95.73M	84.34M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
728.22M	6.34M	151.82M	1.32B	2.08B	984.77M
	Total Assets
4.73B	6.68B	6.52B	6.43B	6.56B	5.83B
	Total Debt
30.93M	0.00	50.00M	275.00M	75.00M	85.50M
	Net Debt
-136.62M	-6.34M	-101.82M	144.72M	-608.24M	-164.43M
	Total Liabilities
4.25B	5.99B	5.87B	5.86B	5.85B	5.17B
	Stockholders Equity
473.24M	683.82M	649.70M	568.80M	704.82M	657.10M
Cash Flow		Free Cash Flow
97.26M	93.85M	107.99M	164.52M	107.60M	81.51M
	Operating Cash Flow
106.19M	102.48M	113.98M	169.34M	113.77M	87.23M
	Investing Cash Flow
-217.11M	-164.24M	-54.93M	-626.52M	-331.55M	-712.02M
	Financing Cash Flow
198.45M	78.13M	-37.51M	-95.78M	651.09M	775.34M

Lakeland Financial Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 59.52
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LKFN, the sentiment is Neutral. The current price of 59.52 is above the 20-day moving average (MA) of 55.22, above the 50-day MA of 57.87, and below the 200-day MA of 64.30, indicating a neutral trend. The MACD of 0.72 indicates Negative momentum. The RSI at 61.98 is Neutral, neither overbought nor oversold. The STOCH value of 90.68 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for LKFN.

Lakeland Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NWBI	76 Outperform	$1.59B	14.04	7.19%	6.42%	6.27%	-12.50%
CUBI	74 Outperform	$1.64B	13.07	8.14%	―	-5.61%	-44.11%
SRCE	74 Outperform	$1.50B	10.62	12.84%	2.33%	9.30%	15.19%
FCF	74 Outperform	$1.59B	11.61	9.91%	3.32%	6.33%	―
LKFN	68 Neutral	$1.52B	17.02	13.44%	3.29%	5.03%	-3.19%
Sector *	64 Neutral	$12.60B	9.73	7.92%	16985.68%	12.21%	-5.61%
CLBK	48 Neutral	$1.59B	97.23	-0.15%	―	4.29%	-109.93%

Lakeland Financial Corporate Events

Lakeland Financial Reports Strong Q1 2025 Performance

Lakeland Financial Corporation presented its strong financial performance and strategic focus during an investor presentation for the first quarter of 2025. The company has demonstrated consistent profitability and growth, with a long-term return on equity exceeding 13% and a compound annual growth rate in tangible book value per share over 8% from 1991 to 2024. The bank’s operations are bolstered by Indiana’s robust economic environment, characterized by low unemployment and significant capital investments, including a $13 billion investment by Eli Lilly in the state’s research and innovation district. The company is well-positioned to continue its growth trajectory, supported by a healthy capital structure and expanding net interest margins.

Spark’s Take on LKFN Stock

According to Spark, TipRanks’ AI Analyst, LKFN is a Neutral.

Lakeland Financial’s strong financial growth and strategic corporate actions are positives, but the technical analysis suggests bearish momentum, and the concerning zero equity figure warrants caution. The stock’s moderate valuation and attractive dividend offer some support, but overall stability concerns remain.

To see Spark’s full report on LKFN stock, click here.

Lakeland Financial Shareholders Approve 2025 Equity Plan

On April 8, 2025, Lakeland Financial Corporation’s shareholders approved the 2025 Equity Incentive Plan at the Annual Meeting, which was initially approved by the Board of Directors on January 14, 2025. This plan is designed to promote the company’s long-term financial success by attracting and rewarding key contributors, aligning their interests with shareholders, and providing flexible compensation options. Additionally, the shareholders elected several directors for terms expiring in 2026, approved the advisory vote on executive compensation, and ratified Crowe LLP as the independent registered public accounting firm for 2025.

Spark’s Take on LKFN Stock

According to Spark, TipRanks’ AI Analyst, LKFN is a Neutral.

Lakeland Financial demonstrates strong financial performance and strategic corporate initiatives, such as increased dividends and share buybacks, that enhance investor confidence. However, technical indicators show bearish momentum, and the zero equity figure warrants caution. The overall assessment reflects balanced prospects, with financial strengths offset by technical and balance sheet concerns.

To see Spark’s full report on LKFN stock, click here.

Lakeland Financial Declares Quarterly Dividend, Extends Buyback

On April 8, 2025, Lakeland Financial Corporation’s Board of Directors declared a quarterly cash dividend of $0.50 per share, payable on May 5, 2025, to shareholders recorded by April 25, 2025. Additionally, the Board reauthorized and extended the company’s share repurchase program through April 30, 2027, allowing for the repurchase of up to $30 million of common stock, providing flexibility in market transactions.

Spark’s Take on LKFN Stock

According to Spark, TipRanks’ AI Analyst, LKFN is a Neutral.

Lakeland Financial is supported by strong financial performance and positive corporate events, boosting investor confidence. However, technical analysis indicates bearish momentum, and valuation metrics are moderate. The concerning zero equity figure on the balance sheet requires attention, impacting the stock’s overall stability.

To see Spark’s full report on LKFN stock, click here.

Lakeland Financial Appoints New Chief Retail Banking Officer

On February 19, 2025, Lakeland Financial Corporation appointed Stephanie R. Leniski as Executive Vice President and Chief Retail Banking Officer. The appointment included a Change in Control Agreement, aligning with agreements made with other named executive officers, as filed in the company’s proxy statement for the 2024 annual meeting.