Lumbee Guaranty Bank (LUMB) Fair Value & Analysis

Financial Services · US · Market cap $44.9M

A solid business, screening 25% undervalued on our models.

What matters now

• Solid quality (53/100) at a price below fair value, the discount is the argument here, not the business quality.
• For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.

Price vs Fair Value (5 years)

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 27, 2026.

How to read this chart

60‑month range $8.16 – $14.32 · fair‑value band $12.61 – $21.01 · the $13.50 price screens below the $16.81 fair value. Dashed = 300-day average. As of Jul 27, 2026.

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Analysis

Lumbee Guaranty Bank (LUMB) currently trades at $13.50, while our model-based Fair Value estimate is $16.81, implying the stock looks roughly 24.5% undervalued today. The Quality Score stands at 53/100 (solid quality), in the Financial Services sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, Lumbee Guaranty Bank generated revenue of $18.4M at a net margin of 23.6%. Revenue grew 9.5% year over year. It earns a return on equity of 8.7%. The stock trades on a trailing P/E of 10.3. Fundamentals as of Jul 27, 2026

Our scenario range runs from $12.61 (bear case) to $21.01 (bull case); at $13.50, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 6% below its 52-week high and 15% above its 52-week low, currently below its 200-day average. For context, the median of 10 Financial Services peers we cover trades at 42% fair-value upside, at 25%, LUMB screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Widest divergence: Multiples ($16.81) versus Asset-Based ($10.80). Highest evidence: Residual Income (76).

Key figures & financial health

Quality Score breakdown

About the company

Lumbee Guaranty Bank provides various financial products and services in the United States. It offers personal and business checking and savings accounts; personal certificates of deposit and individual retirement accounts; and business investment accounts.

Full company description

Lumbee Guaranty Bank provides various financial products and services in the United States. It offers personal and business checking and savings accounts; personal certificates of deposit and individual retirement accounts; and business investment accounts. The company also provides mortgage, auto, recreational vehicle, personal, agriculture, working capital, real estate development, and business loans, as well as line of credit and capital acquisition services; and insurance services. In addition, it offers online, bill pay, mobile banking and deposit capture, digital wallet, and telephone banking; and convenience services, such as check recording, safe box deposits, wire transfer, visa support and services, and lost or stolen card support, and merchant services, as well as credit and debit cards, and night deposits. The company was formerly known as Lumbee Bank and changed its name to Lumbee Guaranty Bank in 1991. Lumbee Guaranty Bank was incorporated in 1971 and is headquartered in Pembroke, North Carolina.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Lumbee Guaranty Bank reported revenue of $17.8M in FY2025 versus $15.9M in FY2021, a compound +3.0%/yr. Reported net income was $4.1M in FY2025, compounding +0.8%/yr from FY2021.

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Peer Group

Banks - Regional · 1083 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Valuation Multiples vs Banks - Regional median · lower = cheaper

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

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Frequently asked questions

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.