NasdaqGS:LKFN

Stock Analysis Report

Executive Summary

Lakeland Financial Corporation operates as the bank holding company for Lake City Bank that provides various banking products and services.

Rewards

Trading at 29.9% below its fair value

Earnings have grown 15.2% per year over the past 5 years

Pays a high and reliable dividend of 2.48%

Risk Analysis

Earnings are forecast to decline by an average of -1.4% per year for the next 3 years



Snowflake Analysis

Flawless balance sheet established dividend payer.


Similar Companies

Share Price & News

How has Lakeland Financial's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: LKFN has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.0%

LKFN

1.4%

US Banks

0.7%

US Market


1 Year Return

17.4%

LKFN

26.9%

US Banks

21.1%

US Market

Return vs Industry: LKFN underperformed the US Banks industry which returned 26.9% over the past year.

Return vs Market: LKFN underperformed the US Market which returned 21.1% over the past year.


Shareholder returns

LKFNIndustryMarket
7 Day2.0%1.4%0.7%
30 Day3.5%4.0%2.3%
90 Day5.3%9.8%5.0%
1 Year20.4%17.4%30.7%26.9%23.7%21.1%
3 Year10.7%3.7%34.0%24.6%47.0%37.4%
5 Year95.5%75.0%75.7%56.1%65.7%47.5%

Price Volatility Vs. Market

How volatile is Lakeland Financial's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Lakeland Financial undervalued compared to its fair value and its price relative to the market?

29.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: LKFN ($48.35) is trading below our estimate of fair value ($68.98)

Significantly Below Fair Value: LKFN is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: LKFN is poor value based on its PE Ratio (14.3x) compared to the Banks industry average (12.9x).

PE vs Market: LKFN is good value based on its PE Ratio (14.3x) compared to the US market (18.6x).


Price to Earnings Growth Ratio

PEG Ratio: LKFN's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: LKFN is overvalued based on its PB Ratio (2.1x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is Lakeland Financial forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

-1.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LKFN's earnings are forecast to decline over the next 3 years (-1.4% per year).

Earnings vs Market: LKFN's earnings are forecast to decline over the next 3 years (-1.4% per year).

High Growth Earnings: LKFN's earnings are forecast to decline over the next 3 years.

Revenue vs Market: LKFN's revenue (2.1% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: LKFN's revenue (2.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: LKFN's Return on Equity is forecast to be low in 3 years time (12.8%).


Next Steps

  • Explore growth companies in the Banks industry.

Past Performance

How has Lakeland Financial performed over the past 5 years?

15.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LKFN has high quality earnings.

Growing Profit Margin: LKFN's current net profit margins (43.9%) are higher than last year (39.5%).


Past Earnings Growth Analysis

Earnings Trend: LKFN's earnings have grown by 15.2% per year over the past 5 years.

Accelerating Growth: LKFN's earnings growth over the past year (22%) exceeds its 5-year average (15.2% per year).

Earnings vs Industry: LKFN earnings growth over the past year (22%) underperformed the Banks industry 27.1%.


Return on Equity

High ROE: LKFN's Return on Equity (14.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Lakeland Financial's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: LKFN has a low level of unsold assets or inventory.

Debt Coverage by Assets: LKFN's debt is covered by short term assets (assets are 5.2x debt).


Financial Institutions Analysis

Asset Level: LKFN's level of assets compared to its equity is low.

Allowance for Bad Loans: LKFN has a sufficient allowance for bad loans.

Low Risk Liabilities: LKFN's liabilities are made up of primarily low risk sources of funding.

Loan Level: LKFN has an acceptable proportion of non-loan assets held.

Low Risk Deposits: LKFN's loans are broadly funded by customer deposits.

Level of Bad Loans: LKFN has an appropriate level of bad loans (0.47%)


Next Steps

Dividend

What is Lakeland Financial's current dividend yield, its reliability and sustainability?

2.48%

Current Dividend Yield


Dividend Yield vs Market

company2.5%marketbottom25%1.4%markettop25%3.7%industryaverage2.7%forecastin3Years2.5%

Current dividend yield vs market & industry

Notable Dividend: LKFN's dividend (2.48%) is higher than the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: LKFN's dividend (2.48%) is low compared to the top 25% of dividend payers in the US market (3.71%).


Stability and Growth of Payments

Stable Dividend: LKFN's dividends per share have been stable in the past 10 years.

Growing Dividend: LKFN's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (34.3%), LKFN's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: LKFN's dividends in 3 years are forecast to be well covered by earnings (39.2% payout ratio).


Next Steps

Management

What is the CEO of Lakeland Financial's salary, the management and board of directors tenure and is there insider trading?

5.7yrs

Average management tenure


CEO

David Findlay (57yo)

5.7yrs

Tenure

US$1,604,171

Compensation

Mr. David M. Findlay has been the Chief Executive Officer and President at Lakeland Financial Corp. and its subsidiary Lake City Bank since April 8, 2014 and September 2010 respectively. Mr. Findlay served ...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD1.60M) is below average for companies of similar size in the US market ($USD3.87M).

Compensation vs Earnings: David's compensation has been consistent with company performance over the past year.


Management Age and Tenure

5.7yrs

Average Tenure

51yo

Average Age

Experienced Management: LKFN's management team is seasoned and experienced (5.7 years average tenure).


Board Age and Tenure

9.3yrs

Average Tenure

61.5yo

Average Age

Experienced Board: LKFN's board of directors are considered experienced (9.3 years average tenure).


Insider Trading

Insider Buying: LKFN insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$18,76403 Dec 19
Michael Gavin
EntityIndividual
Shares399
Max PriceUS$47.03
SellUS$79,65617 Sep 19
Kevin Deardorff
EntityIndividual
Role
Senior Key Executive
Executive Vice President
Shares1,812
Max PriceUS$43.96
SellUS$170,12516 Sep 19
Kevin Deardorff
EntityIndividual
Role
Senior Key Executive
Executive Vice President
Shares3,870
Max PriceUS$43.96
SellUS$21,51405 Sep 19
Emily Pichon
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares500
Max PriceUS$43.03
BuyUS$20,79026 Aug 19
Lisa O'Neill
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares500
Max PriceUS$41.58
SellUS$473,15022 Aug 19
Michael Kubacki
EntityIndividual
Role
Chairman of the Board
Chairman
Shares10,944
Max PriceUS$43.23
BuyUS$425,10015 Aug 19
M. Welch
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares10,000
Max PriceUS$42.51
BuyUS$22,40005 Aug 19
Lisa O'Neill
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares500
Max PriceUS$44.81
SellUS$73,60002 Aug 19
Kristin Pruitt
EntityIndividual
Role
Chief Administrative Officer
Executive VP
Shares1,600
Max PriceUS$46.00
SellUS$201,60001 May 19
Jill DeBatty
EntityIndividual
Role
Head of Human Resources
Senior VP & People Development Director
Shares4,200
Max PriceUS$48.00
SellUS$109,02018 Mar 19
Eric Ottinger
EntityIndividual
Role
Senior Key Executive
Executive VP & Head of Commercial Banking
Shares2,276
Max PriceUS$47.92
SellUS$72,61526 Feb 19
Kristin Pruitt
EntityIndividual
Role
Chief Administrative Officer
Executive VP
Shares1,500
Max PriceUS$48.41
BuyUS$95,88608 Feb 19
Thomas Hiatt
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,100
Max PriceUS$45.66
SellUS$89,97407 Feb 19
Jonathan Steiner
EntityIndividual
Role
Senior Key Executive
Senior Vice President of Wealth Advisory Group & Brokerage
Shares1,991
Max PriceUS$45.20
SellUS$227,15306 Feb 19
Michael Gavin
EntityIndividual
Shares5,000
Max PriceUS$45.45
SellUS$166,67206 Feb 19
Jill DeBatty
EntityIndividual
Role
Head of Human Resources
Senior VP & People Development Director
Shares3,672
Max PriceUS$45.39

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • David Findlay (57yo)

    President

    • Tenure: 5.7yrs
    • Compensation: US$1.60m
  • Kevin Deardorff (57yo)

    Executive Vice President

    • Tenure: 0yrs
    • Compensation: US$611.01k
  • Jill DeBatty

    Senior VP & People Development Director

    • Tenure: 0yrs
  • Lisa O'Neill (51yo)

    Executive VP & CFO

    • Tenure: 5.7yrs
    • Compensation: US$603.37k
  • Kristin Pruitt (47yo)

    Executive VP

    • Tenure: 2.2yrs
    • Compensation: US$647.26k
  • Eric Ottinger (49yo)

    Executive VP & Head of Commercial Banking

    • Tenure: 17.7yrs
    • Compensation: US$725.23k
  • Jon Steiner (57yo)

    Senior Vice President of Wealth Advisory Group & Brokerage

    • Tenure: 9.8yrs
  • Brok Lahrman (33yo)

    Chief Accounting Officer & Senior VP of Finance

    • Tenure: 0.8yrs
  • Stephanie Leniski

    Senior VP & Retail Banking Manager

    • Tenure: 0.9yrs

Board Members

  • David Findlay (57yo)

    President

    • Tenure: 5.7yrs
    • Compensation: US$1.60m
  • Mike Kubacki (67yo)

    Chairman

    • Tenure: 16.4yrs
    • Compensation: US$138.91k
  • Tom Hiatt (71yo)

    Independent Director

    • Tenure: 12.9yrs
    • Compensation: US$108.91k
  • M. Welch (59yo)

    Lead Independent Director

    • Tenure: 7.3yrs
    • Compensation: US$108.91k
  • Steven Ross (64yo)

    Independent Director

    • Tenure: 19.9yrs
    • Compensation: US$108.91k
  • Emily Pichon (55yo)

    Independent Director

    • Tenure: 17.9yrs
    • Compensation: US$98.91k
  • Dan Evans (69yo)

    Independent Director

    • Tenure: 9.4yrs
    • Compensation: US$108.91k
  • Blake Augsburger (56yo)

    Independent Director

    • Tenure: 8.3yrs
    • Compensation: US$98.91k
  • Ron Truex (68yo)

    Independent Director

    • Tenure: 9.2yrs
    • Compensation: US$98.91k
  • Brian Smith (54yo)

    Independent Director

    • Tenure: 8.4yrs
    • Compensation: US$113.91k

Company Information

Lakeland Financial Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Lakeland Financial Corporation
  • Ticker: LKFN
  • Exchange: NasdaqGS
  • Founded: 1872
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$1.239b
  • Shares outstanding: 25.62m
  • Website: https://www.lakecitybank.com

Number of Employees


Location

  • Lakeland Financial Corporation
  • 202 East Center Street
  • PO Box 1387
  • Warsaw
  • Indiana
  • 46581
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LKFNNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDDec 1993

Biography

Lakeland Financial Corporation operates as the bank holding company for Lake City Bank that provides various banking products and services. The company accepts various deposit products, such as noninterest ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/14 23:41
End of Day Share Price2019/12/13 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.