LGL Group Inc. (The) Common Stock (LGL)

FairStock Score: 20/100 — RISKY

Key Financials

Strengths

• Conservative balance sheet with debt-to-equity of just 0.01, providing financial flexibility
• Altman Z-Score of 25.3 confirms minimal bankruptcy risk and strong solvency

Concerns

• Trades significantly above Graham Number ($4) with negative 80% margin of safety—limited downside protection
• Weak Piotroski F-Score of 2/9 suggests deteriorating financial quality across multiple dimensions
• No meaningful dividend despite modest growth—total return depends entirely on multiple expansion

AI Analysis

LGL Group Inc. (The) Common Stock is a micro-cap technology company valued at $49 million. The business generates $4 million in annual revenue with a 2.6% net margin. From a quality standpoint, LGL shows weak Piotroski F-Score of 2/9 signaling deteriorating fundamentals and Altman Z-Score of 25.3 confirms fortress-level solvency. On valuation, the stock is commanding a steep 68.8x multiple, with trades above its Graham Number with a negative 80% margin. Growth dynamics show revenue growing at 5.4% and profit growth of -113.4%. Our composite FairStock Score of 20/100 reflects below-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. Operational leverage in the business model means incremental revenue growth could disproportionately boost bottom-line profitability.

Bear Case

At 69x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer