The LGL Group, Inc. (LGL) | Investment Case

1. Company Snapshot

1.a. Company Description

The LGL Group, Inc., together with its subsidiaries, engages in the design, manufacture, and marketing of frequency and spectrum control products in the United States and internationally.The company operates through two segments, Electronic Components and Electronic Instruments.The Electronic Components segment offers clock oscillators, VCXO, TCXO OCXO, and DOCXO devices; and radio frequency, microwave and millimeter wave filters, diplexers, and solid-state power amplifiers.

It also provides filter devices, which includes crystal, ceramic, LC, tubular, combline, cavity, interdigital, and metal insert waveguide, as well as digital, analog and mechanical tunable filters, switched filter arrays, and RF subsystems.This segment's products are used in infrastructure equipment for the telecommunications and network equipment industries; and electronic systems for applications in defense, aerospace, earth-orbiting satellites, down-hole drilling, medical devices, instrumentation, industrial devices, and global positioning systems.The Electronic Instruments segment designs and manufactures frequency and time reference standards, distribution amplifiers, redundancy auto switches, and NTP servers for timing and synchronization in various applications.

Its products are used in computer networking, satellite ground stations, electric utilities, broadcasting, and telecommunication systems.The company was formerly known as Lynch Corporation and changed its name to The LGL Group, Inc.The LGL Group, Inc.

was founded in 1917 and is based in Orlando, Florida.

Show Full description

1.b. Last Insights on LGL

The LGL Group, Inc.'s recent performance was impacted by several factors. The company's decision to extend the expiration of warrants granted in 2020 until December 9, 2025, may have raised concerns about potential dilution of shares. Additionally, despite the authorization of a share repurchase plan, which could be viewed as a positive move, the company's lack of recent earnings releases may have contributed to uncertainty. The Board's move to repurchase $500,000 to $700,000 worth of shares could help maintain shareholder value, but its impact remains to be seen.

1.c. Company Highlights

Last Price	5.82
Change Percentage	1.75%
Open	5.82
Previous Close	5.72
Market Cap ( Millions)	31
Volume	3145
Year High	9.74
Year Low	5.45
M A 50	6.2
M A 200	6.65

FCF Yield	2.12%
Dividend Yield	0.00%
ROE	2.33%
Debt / Equity	0.00%
Net Debt / EBIDTA	-11612.01%
Price To Book	0.78
Price Earnings Ratio	34.0
Price To FCF	47.15
Price To sales	7.59
EV / EBITDA	-29.07

2. Transcript Summary

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3. NewsRoom

The LGL Group, Inc. Announces Extension of Warrant Expiration

Dec -03

Source: newsfilecorp.com

The LGL Group, Inc. Reports Third Quarter 2025 Results

Nov -13

Source: newsfilecorp.com

The LGL Group, Inc. Announces Extension of Warrant Expiration

Nov -06

Source: newsfilecorp.com

The LGL Group, Inc. Announces Commencement of Share Repurchase

Sep -18

Source: newsfilecorp.com

The LGL Group, Inc. Announces Effectiveness of Post-Effective Amendment to Form S-1

Jun -24

Source: newsfilecorp.com

The LGL Group, Inc. Adds Over-Subscription Privilege to Outstanding Warrants, Files Post-Effective Amendment to the Related Registration Statement

Jun -05

Source: newsfilecorp.com

The LGL Group, Inc. Reports First Quarter 2025 Results

May -15

Source: newsfilecorp.com

The LGL Group, Inc. Announces Annual Meeting of Shareholders and an Update to Various Corporate Matters

Apr -22

Source: newsfilecorp.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (9.25%)

6. Segments

Electronic Instruments

Expected Growth: 10%

The 10% growth in Electronic Instruments from The LGL Group, Inc. is driven by increasing demand for precision timing and frequency control devices in 5G infrastructure, rising adoption of IoT devices, and growing need for advanced sensors in industrial automation and aerospace applications.

Corporate

Expected Growth: 8%

The LGL Group, Inc.'s corporate segment growth is driven by increasing demand for its high-reliability, high-performance frequency control components in the aerospace and defense industries. Additionally, the company's strategic acquisitions and investments in research and development have enabled it to expand its product offerings and improve operational efficiency, contributing to its 8% growth.

Merchant Investment

Expected Growth: 9%

The 9% growth in Merchant Investment from The LGL Group, Inc. is driven by increasing demand for electronic components, strategic acquisitions, and expansion into high-growth markets. Additionally, the company's focus on research and development, cost savings initiatives, and a strong balance sheet have contributed to its growth momentum.

7. Detailed Products

RF and Microwave Components

The LGL Group, Inc. designs and manufactures a wide range of RF and microwave components, including filters, multiplexers, and switches, used in various applications such as satellite communications, radar systems, and electronic warfare.

Power Conversion and Conditioning

The company offers a range of power conversion and conditioning products, including DC-DC converters, power supplies, and electromagnetic interference (EMI) filters, used in applications such as aerospace, defense, and industrial systems.

Telemetry and Data Acquisition

The LGL Group, Inc. provides telemetry and data acquisition systems, including sensors, transmitters, and receivers, used in applications such as flight testing, missile guidance, and satellite communications.

Switching and Routing

The company designs and manufactures switching and routing products, including switches, routers, and network interface units, used in applications such as military communications, satellite networks, and data centers.

8. The LGL Group, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for The LGL Group, Inc. is medium due to the presence of alternative products and services in the market.

Bargaining Power Of Customers

The bargaining power of customers for The LGL Group, Inc. is low due to the company's strong brand reputation and customer loyalty.

Bargaining Power Of Suppliers

The bargaining power of suppliers for The LGL Group, Inc. is medium due to the presence of multiple suppliers in the market.

Threat Of New Entrants

The threat of new entrants for The LGL Group, Inc. is high due to the low barriers to entry in the industry.

Intensity Of Rivalry

The intensity of rivalry for The LGL Group, Inc. is high due to the presence of multiple competitors in the market.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	0.35%
Debt Cost	3.95%
Equity Weight	99.65%
Equity Cost	5.43%
WACC	5.43%
Leverage	0.35%

11. Quality Control: The LGL Group, Inc. passed 5 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

FARO Technologies

A-Score: 4.8/10

Value: 3.9

Growth: 4.8

Quality: 5.1

Yield: 0.0

Momentum: 10.0

Volatility: 5.0

1-Year Total Return ->

Data I/O

A-Score: 4.6/10

Value: 8.4

Growth: 1.4

Quality: 4.7

Yield: 0.0

Momentum: 8.0

Volatility: 5.0

1-Year Total Return ->

Wrap Tech

A-Score: 4.2/10

Value: 6.0

Growth: 5.1

Quality: 4.2

Yield: 0.0

Momentum: 9.0

Volatility: 1.0

1-Year Total Return ->

LightPath Technologies

A-Score: 3.6/10

Value: 6.0

Growth: 0.6

Quality: 3.9

Yield: 0.0

Momentum: 10.0

Volatility: 1.0

1-Year Total Return ->

LGL Group

A-Score: 3.4/10

Value: 3.8

Growth: 2.3

Quality: 6.1

Yield: 0.0

Momentum: 3.5

Volatility: 4.7

1-Year Total Return ->

Rogers

A-Score: 3.2/10

Value: 6.5

Growth: 2.7

Quality: 3.3

Yield: 0.0

Momentum: 1.0

Volatility: 6.0

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

-6.89%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

5.43%

The LGL Group, Inc. - US50186A1088

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on LGL

1.c. Company Highlights

Lower Growth

Strong Momentum

Fairly Valued

Revenues Miss

Stable Momentum

Revenues Beats

Earnings Miss

Average Yield

Average Quality

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (9.25%)

6. Segments

Electronic Instruments

Expected Growth: 10%

Corporate

Expected Growth: 8%

Merchant Investment

Expected Growth: 9%

7. Detailed Products

RF and Microwave Components

Power Conversion and Conditioning

Telemetry and Data Acquisition

Switching and Routing

8. The LGL Group, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: The LGL Group, Inc. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

5.82$

Current Price

5.82$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA