City Holding Company (CHCO) AI Stock Analysis

• Market Cap: $1.78B
• Dividend Yield: 2.65%
• Average Volume (3M): 98.59K
• Price to Earnings (P/E): 14.3
• Beta (1Y): 0.49
• Revenue Growth: 6.09%
• EPS Growth: 11.49%
• Country: US
• Employees: 942
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 2.41
• Shares Outstanding: 14,408,651
• 10 Day Avg. Volume: 122,435
• 30 Day Avg. Volume: 98,592
• PEG Ratio: 3.90
• Price to Book (P/B): 2.38
• Price to Sales (P/S): 4.68
• P/FCF Ratio: 13.46
• Enterprise Value/Market Cap: 1.23
• Enterprise Value/Revenue: 5.67
• Enterprise Value/Gross Profit: 7.29
• Enterprise Value/Ebitda: 12.87
• 1Y Price Target: $130.00
• Price Target Upside: 4.71% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 78 Outperform
• Price Target: $140.00 ▲(12.77% Upside)

City Holding Company scores well due to its strong financial performance and reasonable valuation. The technical indicators suggest a positive trend, although caution is advised due to potential overbought conditions. The recent dividend increase further supports the stock's attractiveness.

Positive Factors

Dividend Increase

The dividend increase signals strong capital and liquidity positions, reflecting confidence in sustained financial performance and commitment to shareholder value.

Profitability

High profitability and a strong net profit margin indicate effective cost management and pricing power, supporting long-term financial stability.

Leverage Management

Improved leverage management enhances financial flexibility and reduces risk, supporting sustainable growth and resilience against economic fluctuations.

Negative Factors

Free Cash Flow Growth

Negative free cash flow growth could strain liquidity and limit the company's ability to invest in growth opportunities or return capital to shareholders.

Gross Profit Margin

A declining gross profit margin may indicate rising costs or pricing pressures, potentially impacting profitability if not addressed.

Equity Ratio

A low equity ratio increases financial risk, as the company relies more on debt, which could affect its ability to weather economic downturns.

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

City Holding Company exhibits strong financial health with robust revenue growth, solid profitability margins, and efficient cash flow management. The balance sheet reflects a stable capital structure with manageable leverage. While there are areas for improvement, such as maintaining gross profit margins, the company is well-positioned for continued growth and stability in the regional banking sector.

Income Statement

City Holding Company has demonstrated strong revenue growth with a TTM revenue growth rate of 1.18%, indicating a positive trajectory. The gross profit margin remains robust at 76.83%, and the net profit margin is healthy at 32.12%. EBIT and EBITDA margins are also solid at 39.35% and 42.99%, respectively, showcasing efficient operations. However, there is a slight decline in gross profit margin compared to previous years, which could be a point of concern if it continues.

Balance Sheet

The company's debt-to-equity ratio is 0.64, reflecting a moderate level of leverage, which is typical for the banking industry. The return on equity is strong at 16.33%, indicating effective use of equity to generate profits. The equity ratio stands at 11.57%, suggesting a stable capital structure. While the debt level has increased over time, it remains manageable given the company's equity base.

Cash Flow

City Holding Company shows a positive free cash flow growth rate of 3.6% in the TTM period, indicating improved cash generation. The operating cash flow to net income ratio is low at 0.23, but the free cash flow to net income ratio is high at 98.29%, suggesting that the company efficiently converts its earnings into cash. The consistent free cash flow generation supports the company's financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	384.32M	371.25M	334.45M	255.73M	228.65M	255.05M
Gross Profit	299.36M	283.24M	279.18M	245.60M	221.92M	220.71M
EBITDA	169.41M	157.72M	153.83M	143.11M	125.81M	121.98M
Net Income	127.57M	117.10M	114.36M	102.07M	88.08M	89.59M
Balance Sheet
Total Assets	6.67B	6.46B	6.17B	5.88B	6.00B	5.76B
Cash, Cash Equivalents and Short-Term Investments	1.02B	240.80M	1.49B	1.71B	2.04B	1.71B
Total Debt	519.01M	475.65M	434.86M	290.96M	312.46M	295.96M
Total Liabilities	5.87B	5.73B	5.49B	5.30B	5.32B	5.06B
Stockholders Equity	798.94M	730.66M	677.07M	577.85M	681.11M	701.11M
Cash Flow
Free Cash Flow	127.65M	129.19M	134.62M	113.68M	98.95M	84.25M
Operating Cash Flow	130.79M	131.90M	137.58M	115.82M	102.27M	89.80M
Investing Cash Flow	-308.61M	-252.26M	14.68M	-410.45M	-191.17M	-285.29M
Financing Cash Flow	109.47M	189.48M	-195.98M	-140.00M	194.87M	584.01M

City Holding Company Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 124.15
• 50DMA: Positive
• 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 Positive. The current price of 124.15 is above the 20-day moving average (MA) of 123.73, above the 50-day MA of 121.52, and above the 200-day MA of 120.15, indicating a bullish trend. The MACD of 1.04 indicates Positive momentum. The RSI at 53.33 is Neutral, neither overbought nor oversold. The STOCH value of 39.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CHCO.

City Holding Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CASH	79 Outperform	$1.67B	9.38	21.81%	0.27%	7.80%	19.38%
OFG	78 Outperform	$1.86B	9.57	14.82%	2.72%	3.98%	6.75%
CHCO	78 Outperform	$1.78B	14.28	16.42%	2.65%	6.09%	11.49%
FCF	76 Outperform	$1.79B	12.40	9.71%	3.10%	3.80%	-6.23%
NWBI	69 Neutral	$1.82B	14.03	6.55%	6.48%	15.86%	16.50%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
VBTX	59 Neutral	―	―	7.25%	3.50%	-1.28%	32.40%

City Holding Company Corporate Events

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.

City Holding Announces Executive Vice President Retirement

City Holding Company announced the retirement of John A. DeRito, Executive Vice President of Commercial Banking, effective December 31, 2025. During his 21-year tenure, DeRito significantly expanded the bank’s commercial loan portfolio and market reach, leaving a legacy of growth and strong credit practices.

City Holding Company Increases Quarterly Dividend by 10%

On September 24, 2025, City Holding Company announced a 10% increase in its quarterly cash dividend to 87 cents per common share, payable on October 31, 2025, for shareholders of record as of October 15, 2025. This decision reflects the company’s strong capital and liquidity position, as well as its confidence in sustaining financial performance, thereby reaffirming its commitment to returning value to shareholders.