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

FairStock Score: 20/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses with durable competitive advantages, honest accounting, and a price that gives me a margin of safety. LGL Group is a tiny technology company, with only eight employees, selling time and frequency instruments. That can be a niche with switching costs, but at $2.5 million of fiscal 2025 revenue, it lacks scale and the financial weight I associate with a wide moat. The annual record is modestly profitable: fiscal 2023 revenue was $1.7 million with net income of $269,000; fiscal 2024 revenue was $2.2 million with net income of $432,000; and fiscal 2025 revenue was $2.5 million with net income of $688,000. However, the trend broke in fiscal 2026. In the quarter ended 2026-03-31, revenue was $682,000 and net loss was $622,000, or $0.10 per diluted share. In the quarter ended 2026-06-30, revenue was $750,000 and net loss was $353,000, or $0.06 per diluted share. Free cash flow for the trailing twelve months was only $28,000, so the business is not generating meaningful cash. The balance sheet is conservative, with FairStock showing debt-to-equity of 0.01 and an Altman Z-Score of 25.11. At the 2026-10-13 close of $6.71, FairStock reports P/B of 0.97, but P/E is -223.67, ROE is -0.38%, ROCE is -1.34%, and Piotroski is 3/9. FairStock Score is 20/100, and its Lynch category is TURNAROUND: returned to profit after a loss within the last three years. I would want evidence that the recent losses are temporary and that cash flow turns positive before calling this a bargain.

In plain English: LGL Group makes specialized instruments that help measure and distribute time and frequency signals, and it has only eight employees. The business is very small and its results have been uneven: it earned small annual profits in fiscal 2023 through fiscal 2025, but in the first half of fiscal 2026 it reported losses. At $6.71, the stock trades near the value of its net assets, but the weak recent earnings make the price look fair rather than clearly cheap.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q4 2025 10-K (period ended 2025-12-31) · fiscal Q3 2025 10-K (period ended 2025-09-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer