City Holding Company (CHCO) AI Stock Analysis

• Market Cap: $1.83B
• Dividend Yield: 2.65%
• Average Volume (3M): 98.59K
• Price to Earnings (P/E): 14.1
• 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): 2.18
• 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: 0.00
• Enterprise Value/Market Cap: 1.23
• Enterprise Value/Revenue: 5.73
• Enterprise Value/Gross Profit: 7.25
• Enterprise Value/Ebitda: 13.12
• 1Y Price Target: $130.00
• Price Target Upside: 2.31% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 77 Outperform
• Price Target: $142.00 ▲(11.75% Upside)

The score is driven primarily by strong profitability and solid balance-sheet trends, partially tempered by weaker cash-flow conversion and negative TTM free-cash-flow growth. Technicals are supportive with the stock trading above key moving averages and positive momentum, while valuation is reasonable with a mid-teens P/E and a ~2.6% dividend yield. A recent investor presentation added moderately positive reinforcement around performance and credit quality.

Positive Factors

High Profitability

Sustained net margins above 30% and strong EBIT indicate the franchise converts revenue to profit efficiently. This durable profitability underpins internal capital generation, funds dividends, supports ROE, and provides a buffer to absorb credit or cyclical pressure over the next several quarters.

Strong Capital & Leverage Trends

Improving leverage metrics and a reported CET1 ratio near industry-strong levels enhance solvency and regulatory resilience. Better leverage management increases lending capacity and reduces financial risk, enabling steady operations and capital return policies across multiple macro cycles.

Defensive Deposit Base & Market Position

A low-cost, granular deposit mix and leading retail share in core West Virginia/eastern Kentucky markets provide a structural funding advantage. Combined with high debit-card revenues and strong customer loyalty, this supports margin stability and scalable organic growth versus peers over time.

Negative Factors

Weak Cash-Flow Conversion

Low conversion of reported earnings into operating cash and negative free-cash-flow growth could limit capacity to self-fund loan growth, buybacks, or higher dividends if persistent. It raises reliance on careful working capital and capital management to sustain returns.

Low Equity Ratio / Reliance on Debt

A relatively low equity ratio, even with improving debt-to-equity, leaves the bank more sensitive to credit shocks or deposit stress. This structural reliance can constrain strategic flexibility and may necessitate retained earnings or external capital in adverse scenarios.

Recent Margin Pressure

A declining gross margin suggests rising funding costs or pricing pressure that could erode profitability if not offset by efficiency gains or higher-yield assets. Persistent margin compression would pressure ROE and require management actions to restore margin structure.

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 positive revenue growth support the score, along with improved leverage management and robust ROE. The main offset is weaker cash-flow quality (low operating cash flow vs. net income and negative free-cash-flow growth in the TTM period), which lowers confidence in sustainability.

Income Statement

City Holding Company demonstrates strong profitability with a consistent net profit margin above 30% and a healthy EBIT margin. The revenue growth rate is positive, indicating a steady increase in revenue over the years. However, the gross profit margin has decreased in the TTM period, which could suggest rising costs or pricing pressures.

Balance Sheet

The company's debt-to-equity ratio has improved significantly in the TTM period, indicating better leverage management. Return on equity remains robust, reflecting efficient use of equity to generate profits. However, the equity ratio is relatively low, suggesting a higher reliance on debt financing.

Cash Flow

The free cash flow to net income ratio is nearly 1, indicating strong cash generation relative to net income. However, the free cash flow growth rate is negative in the TTM period, which could be a concern if it persists. The operating cash flow to net income ratio is low, suggesting potential challenges in converting income into cash.

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	0.00	129.19M	134.62M	113.68M	98.95M
Operating Cash Flow	0.00	131.90M	137.58M	115.82M	102.27M
Investing Cash Flow	0.00	-252.26M	14.68M	-410.45M	-191.17M
Financing Cash Flow	0.00	189.48M	-195.98M	-140.00M	194.87M

City Holding Company Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 127.07
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 127.07 is above the 20-day moving average (MA) of 122.74, above the 50-day MA of 122.43, and above the 200-day MA of 120.69, indicating a bullish trend. The MACD of 0.79 indicates Negative momentum. The RSI at 62.78 is Neutral, neither overbought nor oversold. The STOCH value of 77.84 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	80 Outperform	$2.03B	11.09	23.62%	0.27%	7.80%	19.38%
CHCO	77 Outperform	$1.83B	14.06	16.42%	2.65%	6.09%	11.49%
FCF	76 Outperform	$1.96B	12.64	9.71%	3.11%	3.80%	-6.23%
OFG	73 Outperform	$1.80B	9.05	14.82%	2.73%	3.98%	6.75%
NWBI	71 Outperform	$1.96B	14.37	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.