C&F Financial (CFFI) AI Stock Analysis

• Market Cap: $243.84M
• Dividend Yield: 2.55%
• Average Volume (3M): 5.35K
• Price to Earnings (P/E): 9.1
• Beta (1Y): 0.79
• Revenue Growth: 8.53%
• EPS Growth: 42.73%
• Country: US
• Employees: 545
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 2.07
• Shares Outstanding: 3,238,232
• 10 Day Avg. Volume: 8,617
• 30 Day Avg. Volume: 5,347
• PEG Ratio: 0.23
• Price to Book (P/B): 0.90
• Price to Sales (P/S): 1.26
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.46
• Enterprise Value/Revenue: 1.94
• Enterprise Value/Gross Profit: 2.81
• Enterprise Value/Ebitda: 9.92
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: $81.00 ▲(16.05% Upside)

The score is driven primarily by solid financial performance (profitability and stable ROE) tempered by leverage and cash-flow softness, supported by a positive price trend and an attractive valuation (low P/E with a solid dividend yield). Recent corporate events are modestly positive.

Positive Factors

Diversified revenue streams

Multiple stable revenue channels (commercial lending, mortgage origination/servicing, and wealth management) reduce reliance on any single business line. This diversification supports resilience through credit cycles and creates recurring fee income that underpins medium‑term earnings stability and strategic flexibility.

Stable profitability and healthy margins

Consistent revenue growth and strong gross and net margins indicate the franchise converts loans and fee businesses into profitable earnings. A stable ROE near double digits supports sustainable internal capital generation and the ability to fund modest growth and shareholder distributions over the next several quarters.

Governance and capital-return initiatives

Adding an experienced finance and regulation expert to the board strengthens oversight on real estate, investments and risk controls. Combined with declared dividends and a 2026 repurchase program, this signals disciplined capital allocation and governance that support long‑term shareholder value.

Negative Factors

Rising leverage

An increasing D/E ratio reduces financial flexibility and raises vulnerability to credit stress or rising rates. For a regional bank, higher leverage can amplify earnings volatility, constrain capital actions during downturns, and require more proactive capital or provisioning discipline over the medium term.

Weak operating cash conversion

Very low OCF relative to reported net income suggests earnings are not being fully converted to cash, limiting the bank's ability to organically fund loan growth, capital returns or build reserves. Persistent cash conversion weakness forces reliance on external funding or cuts to discretionary uses.

Pressure on operating margins

Declining EBIT/EBITDA margins point to rising operating costs or compression in core lending/fee spreads. If structural, margin pressure will erode profitability over time, requiring cost discipline, pricing power or scale gains to restore earnings resilience amid competitive regional banking dynamics.

C&F Financial Business Overview & Revenue Model

Company Description

C&F Financial Corporation operates as a bank holding company for Citizens and Farmers Bank that provides banking services to individuals and businesses. The company's Retail Banking offers various banking services, including checking and savings deposit accounts, as well as business, real estate, development, mortgage, home equity, and installment loans. It also provides ATMs, Internet and mobile banking, and debit and credit cards, as well as safe deposit box rentals, notary public, electronic transfer, and other customary bank services. This segment offers its services through its main office in West Point, Virginia, as well as through 30 Virginia branches located 1 each in Albermarle, Goochland, Hanover, Middlesex, Powhatan, Stafford, York, Charlottesville, Hampton, Montross, Newport News, Richmond, Warsaw, and Williamsburg; 2 each in the counties of Cumberland, James City, King George, and New Kent; and four each in the counties of Chesterfield and Henrico. The company's Mortgage Banking segment provides various residential mortgage loans; originates conventional mortgage loans, mortgage loans insured by the Federal Housing Administration, and mortgage loans guaranteed by the United States Department of Agriculture and the Veterans Administration; and ancillary mortgage loan origination services for residential appraisals, as well as various mortgage origination functions to third parties. It provides mortgage loan origination services through 11 offices in Virginia, 1 office in Maryland, and 2 offices in North Carolina, as well as through 1 each in South Carolina and West Virginia. The company's Consumer Finance segment provides automobile loans through its offices in Richmond and Hampton, Virginia. It also offers brokerage and wealth management services; and insurance products. In addition, the company provides title and settlement agency, and insurance services. C&F Financial Corporation was founded in 1927 and is headquartered in West Point, Virginia.

How the Company Makes Money

C&F Financial generates revenue through multiple streams, primarily from interest income on loans and fees associated with its banking services. The commercial banking segment contributes significantly to revenue through interest earned on loans provided to businesses and consumers. Additionally, the mortgage banking division generates income from origination fees, servicing fees, and secondary market sales of mortgages. CFFI also earns revenue from investment services, including management fees and commissions from wealth management products. Strategic partnerships with other financial institutions and service providers enhance its offerings and customer reach, further contributing to its overall earnings.

C&F Financial Financial Statement Overview

Summary

Solid profitability and revenue growth (TTM revenue +3.55%, net margin 13.89%) and stable ROE (10.55%), but rising leverage (D/E 0.61) and weaker cash-flow trends (FCF -16.28%, very low OCF/net income at 0.015) reduce the score.

Income Statement

C&F Financial shows a solid revenue growth rate of 3.55% in the TTM, indicating a positive trend. The gross profit margin is strong at 67.44%, and the net profit margin has improved to 13.89% from the previous year. However, the EBIT and EBITDA margins have slightly decreased compared to earlier years, suggesting some pressure on operational efficiency.

Balance Sheet

The debt-to-equity ratio has increased to 0.61 in the TTM, indicating rising leverage, which could pose a risk if not managed carefully. Return on equity is stable at 10.55%, reflecting consistent profitability. The equity ratio remains healthy, showing a solid capital structure.

Cash Flow

Free cash flow has declined by 16.28% in the TTM, which is a concern. The operating cash flow to net income ratio is low at 0.015, suggesting potential cash flow issues. However, the free cash flow to net income ratio remains robust at 0.91, indicating efficient cash conversion.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	186.13M	166.51M	149.76M	123.45M	139.97M
Gross Profit	129.29M	110.44M	115.05M	112.39M	131.04M
EBITDA	33.07M	27.99M	33.04M	41.32M	42.82M
Net Income	26.84M	19.83M	23.60M	29.16M	28.67M
Balance Sheet
Total Assets	2.77B	2.56B	2.44B	2.33B	2.26B
Cash, Cash Equivalents and Short-Term Investments	0.00	132.04M	537.60M	539.25M	640.82M
Total Debt	113.33M	122.61M	109.54M	92.08M	90.46M
Total Liabilities	2.51B	2.34B	2.22B	2.14B	2.05B
Stockholders Equity	262.35M	226.36M	216.88M	195.63M	210.32M
Cash Flow
Free Cash Flow	0.00	35.00M	37.35M	87.17M	152.60M
Operating Cash Flow	0.00	38.49M	38.81M	90.56M	157.39M
Investing Cash Flow	0.00	-148.64M	-56.34M	-411.28M	-138.69M
Financing Cash Flow	0.00	100.58M	66.03M	79.64M	162.38M

C&F Financial Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 69.80
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CFFI, the sentiment is Positive. The current price of 69.8 is below the 20-day moving average (MA) of 71.03, below the 50-day MA of 71.07, and above the 200-day MA of 67.23, indicating a bullish trend. The MACD of 0.69 indicates Negative momentum. The RSI at 62.90 is Neutral, neither overbought nor oversold. The STOCH value of 81.61 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CFFI.

C&F Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LCNB	73 Outperform	$242.73M	10.50	8.97%	5.32%	5.07%	228.39%
CFFI	72 Outperform	$243.84M	9.08	10.89%	2.55%	8.53%	42.73%
CBNA	70 Outperform	$228.18M	11.44	13.91%	―	―	―
HWBK	69 Neutral	$244.25M	10.32	14.27%	2.39%	0.16%	258.06%
FCCO	68 Neutral	$225.46M	11.87	12.21%	2.07%	11.59%	42.03%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
FSFG	66 Neutral	$238.37M	10.24	12.50%	1.95%	7.65%	69.41%

C&F Financial Corporate Events

C&F Financial Appoints Dr. David Downs to Board

On January 20, 2026, C&F Financial Corporation’s board appointed long-time adviser Dr. David H. Downs as a director of both the Corporation and C&F Bank, effective February 24, 2026, with his initial term running until the April 2026 annual shareholders’ meeting, when he will stand for election as a Class III director and receive compensation consistent with other non-employee directors. Downs, an endowed finance professor at Virginia Commonwealth University and director of The Kornblau Institute with a background in investments, financial regulation and real estate, as well as prior experience in the U.S. Navy’s Nuclear Submarine Program and at Booz Allen Hamilton, is expected to strengthen the bank’s governance and risk management capabilities, particularly in real estate and investment oversight, reinforcing C&F’s strategic positioning in its regional banking and lending markets.

The most recent analyst rating on (CFFI) stock is a Hold with a $75.00 price target. To see the full list of analyst forecasts on C&F Financial stock, see the CFFI Stock Forecast page.

C&F Financial Announces New Stock Repurchase Program

On December 16, 2025, C&F Financial Corporation’s Board of Directors approved a stock repurchase program allowing for the buyback of up to $5.0 million worth of its common stock during 2026, effective from January 1 through December 31, 2026. The previous repurchase program will expire on December 31, 2025, and the new initiative demonstrates a strategic approach to managing its capital, potentially influencing market perceptions and shareholder value depending on market conditions, stock price trends, and other factors.

The most recent analyst rating on (CFFI) stock is a Buy with a $76.00 price target. To see the full list of analyst forecasts on C&F Financial stock, see the CFFI Stock Forecast page.

C&F Financial Announces Cash Dividend for Shareholders

On November 19, 2025, C&F Financial Corporation announced a cash dividend of 46 cents per share, payable on January 1, 2026, to shareholders recorded by December 15, 2025. This decision reflects the board’s ongoing assessment of economic conditions, capital requirements, and projected earnings, indicating a stable financial outlook and commitment to shareholder returns.

The most recent analyst rating on (CFFI) stock is a Buy with a $77.00 price target. To see the full list of analyst forecasts on C&F Financial stock, see the CFFI Stock Forecast page.