City Holding Company (CHCO) AI Stock Analysis

• Market Cap: $1.75B
• Dividend Yield: 2.65%
• Average Volume (3M): 98.59K
• Price to Earnings (P/E): 13.6
• Beta (1Y): 0.50
• Revenue Growth: 6.09%
• EPS Growth: 11.49%
• Country: US
• Employees: 942
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 2.18
• Shares Outstanding: 14,408,651
• 10 Day Avg. Volume: 122,435
• 30 Day Avg. Volume: 98,592
• PEG Ratio: 1.01
• Price to Book (P/B): 2.11
• Price to Sales (P/S): 4.37
• P/FCF Ratio: 13.03
• Enterprise Value/Market Cap: 1.25
• Enterprise Value/Revenue: 5.57
• Enterprise Value/Gross Profit: 7.05
• Enterprise Value/Ebitda: 12.76
• 1Y Price Target: $130.00
• Price Target Upside: 5.84% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 3
• EPS Forecast (FY): 8.97
• Revenue Forecast (FY): $324.53M

• Rating: 73 Outperform
• Price Target: $137.00 ▲(11.54% Upside)
• Action: Reiterated Date: 02/26/26
• Date: Action: Reiterated 02/26/26

The score is driven primarily by strong financial performance (high profitability, solid cash conversion, and healthy ROE), partially offset by softer near-term technical momentum. Valuation is supportive with a moderate P/E and solid dividend yield, while the recent corporate update is positive but mainly reiterative.

Positive Factors

Profitability & Earnings Quality

City has delivered multi-year revenue and earnings growth with net margins in the low-30% range and free cash flow that closely tracks net income. This durable profitability underpins recurring shareholder distributions, internal capital build, and the ability to reinvest in the franchise over the medium term.

Cash Generation

Operating cash flow stability and free cash flow roughly equal to net income indicate excellent cash conversion and earnings quality. Reliable cash generation reduces dependence on capital markets, supports dividends and organic growth funding, and enhances resilience across economic cycles.

Market Position & Deposit Franchise

City's entrenched retail deposit base, high debit-card fee income and leading branch/deposit market shares provide a durable funding advantage and stable fee revenue. This competitive position supports net interest margin stability and gives room to expand selectively into adjacent higher-income markets.

Negative Factors

Rising Leverage

Debt-to-equity rising toward the mid-0.6x range weakens capital buffer compared with prior years. While still manageable, the trend increases sensitivity to credit stress and limits flexibility for aggressive loan growth or large share buybacks without rebuilding capital.

Earnings Volatility / Rate Sensitivity

City's revenue and margin profile has shown sensitivity to rate and operating cycles, producing periods of softer top-line growth and margin compression. This cyclicality makes medium-term earnings less predictable and could pressure ROE and payout capacity during unfavorable rate or loan-demand environments.

Geographic Concentration

Heavy concentration in West Virginia and eastern Kentucky concentrates credit, deposit and fee risk in a limited economic footprint. Long-term growth and risk diversification depend on successful expansion into newer, higher-income regions, which requires time and execution risk.

City Holding Company Business Overview & Revenue Model

Company Description

City Holding Company operates as a holding company for City National Bank of West Virginia that provides various banking, trust and investment management, and other financial solutions in the United States. The company offers checking, savings, and money market accounts, as well as certificates of deposit and individual retirement accounts. It also provides commercial and industrial loans that consist of loans to corporate and other legal entity borrowers primarily in small to mid-size industrial and commercial companies; commercial real estate loans comprising commercial mortgages, which are secured by nonresidential and multi-family residential properties; residential real estate loans to consumers for the purchase or refinance of residence; first-priority home equity loans; consumer loans that are secured and unsecured by automobiles, boats, recreational vehicles, certificates of deposit, and other personal property; and demand deposit account overdrafts. In addition, the company offers mortgage banking services, including fixed and adjustable-rate mortgages, construction financing, land loans, production of conventional and government insured mortgages, secondary marketing, and mortgage servicing. Further, it provides deposit services for commercial customers comprising treasury management, lockbox, and other cash management services; merchant credit card services; wealth management, trust, investment, and custodial services for commercial and individual customers; and corporate trust and institutional custody, financial and estate planning, and retirement plan services, as well as automated-teller-machine, interactive-teller-machine, mobile banking, interactive voice response systems, and credit and debit card services. The company operates through a network of 94 branches and 905 full-time equivalent associates in West Virginia, Virginia, Kentucky, and Ohio. City Holding Company was founded in 1957 and is headquartered in Charleston, West Virginia.

How the Company Makes Money

City Holding Company generates revenue primarily through interest income from loans and fees associated with banking services. The company offers various types of loans, including commercial, consumer, and mortgage loans, which yield interest payments that contribute significantly to its earnings. Additionally, CHCO earns non-interest income from fees related to deposit accounts, ATM transactions, investment services, and wealth management. The bank also benefits from strategic partnerships, which enhance its service offerings and expand its customer base. Factors such as the economic environment, interest rate fluctuations, and changes in regulatory frameworks can also impact its revenue streams.

City Holding Company Financial Statement Overview

Summary

Strong profitability and earnings quality: multi-year revenue/earnings growth with very strong net margins and solid cash conversion (free cash flow closely tracking net income). Balance sheet is generally sound with mid-teens ROE, though gradually rising leverage and some cycle-related variability in growth/margins temper the score.

Income Statement

Revenue and earnings show a solid multi-year upward trajectory, with 2025 revenue up from 2024 and meaningful growth versus 2022–2023. Profitability is a key strength: net margins remain very strong (low-30%s in 2023–2025) and operating profitability is consistently high. The main weakness is some volatility in growth and margins over time (notably the softer top-line period in 2020–2021 and the step-down in margins from the very elevated 2021–2022 levels), suggesting results can be somewhat rate-cycle/operating-environment sensitive.

Balance Sheet

Capitalization looks sound with equity building over time and returns on equity consistently in the mid-teens, indicating efficient profitability. Leverage is moderate for the period shown, with debt-to-equity generally around the mid-0.6x range recently (2023–2025), which is manageable but higher than 2020–2022. Total assets have grown steadily, but the gradual increase in leverage is the key balance-sheet watch item.

Cash Flow

Cash generation is a clear positive: operating cash flow is steady and free cash flow closely tracks it, with free cash flow essentially matching net income in each year (near 1.0x), indicating good earnings quality. Free cash flow growth is strong in 2025 after a modest decline in 2024, pointing to some year-to-year variability. Overall cash flow stability is solid, though the growth cadence is not perfectly consistent.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	392.11M	371.25M	334.45M	255.73M	228.65M
Gross Profit	309.80M	283.24M	279.18M	245.60M	221.92M
EBITDA	171.23M	157.72M	153.83M	143.11M	125.81M
Net Income	130.49M	117.10M	114.36M	102.07M	88.08M
Balance Sheet
Total Assets	6.72B	6.46B	6.17B	5.88B	6.00B
Cash, Cash Equivalents and Short-Term Investments	101.93M	240.80M	1.49B	1.71B	2.04B
Total Debt	517.67M	475.65M	434.86M	290.96M	312.46M
Total Liabilities	5.91B	5.73B	5.49B	5.30B	5.32B
Stockholders Equity	809.68M	730.66M	677.07M	577.85M	681.11M
Cash Flow
Free Cash Flow	131.37M	129.19M	134.62M	113.68M	98.95M
Operating Cash Flow	131.37M	131.90M	137.58M	115.82M	102.27M
Investing Cash Flow	-269.92M	-252.26M	14.68M	-410.45M	-191.17M
Financing Cash Flow	105.08M	189.48M	-195.98M	-140.00M	194.87M

City Holding Company Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 122.83
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CHCO, the sentiment is Negative. The current price of 122.83 is below the 20-day moving average (MA) of 124.97, below the 50-day MA of 123.48, and above the 200-day MA of 121.47, indicating a neutral trend. The MACD of -0.05 indicates Positive momentum. The RSI at 44.99 is Neutral, neither overbought nor oversold. The STOCH value of 25.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CHCO.

City Holding Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CASH	83 Outperform	$2.02B	11.30	23.62%	0.27%	7.80%	19.38%
FCF	76 Outperform	$1.84B	12.08	9.71%	3.11%	3.80%	-6.23%
CHCO	73 Outperform	$1.75B	13.58	16.42%	2.65%	6.09%	11.49%
OFG	71 Outperform	$1.82B	9.02	14.82%	2.73%	3.98%	6.75%
NWBI	68 Neutral	$1.85B	13.73	7.22%	6.48%	15.86%	16.50%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

City Holding Company Corporate Events

City Holding Highlights Strong Performance at 2026 Investor Forum

On February 4–5, 2026, City Holding Company’s Executive Vice President and CFO, David L. Bumgarner, presented the bank’s financial performance and strategic profile to investors at the 2026 Janney CEO Forum in Scottsdale, Arizona, highlighting the institution’s positioning as a perennial high‑performing regional bank. The presentation underscored City’s consistently strong earnings and returns from 2016 through 2025, including rising EPS, ROA near 2%, high returns on tangible common equity, solid net interest margin outperformance in higher‑rate environments, and exceptionally low levels of nonperforming assets, past‑due loans, and net charge‑offs. Management emphasized the competitive advantages of City’s granular, low‑cost deposit base, high debit card revenues relative to asset size, and dominant retail market shares across core West Virginia and eastern Kentucky markets, while also pointing to growth opportunities in newer, higher‑income, faster‑growing regions and among younger customers supported by the bank’s technology capabilities and strong customer satisfaction scores. These attributes, combined with branch consolidation among competitors and City’s leading branch and deposit shares in key markets, reinforce its positioning as a resilient, high‑performing franchise with room to expand in both legacy and newer markets.

The most recent analyst rating on (CHCO) stock is a Hold with a $135.00 price target. To see the full list of analyst forecasts on City Holding Company stock, see the CHCO Stock Forecast page.

City Holding Declares Dividend for Shareholders

On November 18, 2025, City Holding Company‘s Board of Directors declared a dividend of $0.87 per common share. This dividend is for shareholders of record as of January 15, 2026, and will be payable on January 30, 2026.

The most recent analyst rating on (CHCO) stock is a Hold with a $125.00 price target. To see the full list of analyst forecasts on City Holding Company stock, see the CHCO Stock Forecast page.