Chemung Financial (CHMG) AI Stock Analysis

• Market Cap: $250.61M
• Dividend Yield: 2.41%
• Average Volume (3M): 12.70K
• Price to Earnings (P/E): 22.0
• Beta (1Y): 0.50
• Revenue Growth: -6.64%
• EPS Growth: -51.99%
• Country: US
• Employees: 343
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 1.31
• Shares Outstanding: 4,790,939
• 10 Day Avg. Volume: 7,946
• 30 Day Avg. Volume: 12,698
• PEG Ratio: -1.62
• Price to Book (P/B): 1.08
• Price to Sales (P/S): 1.56
• P/FCF Ratio: 8.89
• Enterprise Value/Market Cap: 1.22
• Enterprise Value/Revenue: 2.25
• Enterprise Value/Gross Profit: 3.74
• Enterprise Value/Ebitda: 18.94
• 1Y Price Target: $57.50
• Price Target Upside: 8.04% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 72 Outperform
• Price Target: $56.00 ▲(5.22% Upside)

Chemung Financial's overall score reflects stable financial performance and positive technical indicators. The company's strategic initiatives and dividend increases are positive, but high valuation and declining revenue growth are concerns.

Chemung Financial Business Overview & Revenue Model

Company Description

Chemung Financial Corporation operates as the holding company for Chemung Canal Trust Company that provides a range of banking, financing, fiduciary, and other financial services. The company provides demand, savings, and time deposits; non-interest and interest-bearing checking accounts; and insured money market accounts. It also offers commercial and agricultural loans comprising loans to small to mid-sized businesses; commercial mortgage loans; residential mortgage loans; consumer loans, including home equity lines of credit and home equity term loans; and interest rate swaps, letters of credit, wealth management, employee benefit plans, mutual fund, insurance products, and brokerage services. Further, it provides securities, insurance, and tax preparation services. Additionally, it offers guardian, custodian, and trustee services, as well as acts as an agent for pension, profit-sharing, and other employee benefit trusts; and various investment, pension, estate planning, and employee benefit administrative services. The company operates 31 branch offices located in 13 counties in New York and Bradford County in Pennsylvania. Chemung Financial Corporation was founded in 1833 and is headquartered in Elmira, New York.

How the Company Makes Money

Chemung Financial generates revenue primarily through interest income from loans and investment securities, as well as non-interest income from service fees, wealth management services, and insurance commissions. Key revenue streams include interest earned on mortgages, business loans, and other credit products, which are fundamental to its banking operations. Additionally, the bank collects fees for various services, such as account maintenance and transaction processing. The company also earns money through its investment management and trust services, which provide advisory services and manage client assets for a fee. Strategic partnerships with other financial institutions and service providers further enhance its offerings, contributing to its overall earnings.

Chemung Financial Financial Statement Overview

Summary

Chemung Financial presents a solid financial profile characterized by consistent revenue growth, robust equity position, and effective cash management. While profitability margins have shown some pressure recently, the overall financial health remains strong, supported by low leverage and significant equity growth.

Income Statement

Chemung Financial has demonstrated consistent revenue growth over the years, with a notable increase in total revenue from $86.9 million in 2020 to $150.3 million in TTM (Trailing-Twelve-Months) 2025. The gross profit margin remains strong, averaging around 63%, and the net profit margin has been stable, indicating effective cost management. However, there is a decline in EBIT and EBITDA margins in the TTM period compared to prior years, suggesting potential pressures on operating efficiencies.

Balance Sheet

The balance sheet of Chemung Financial reflects strong equity growth, with stockholders' equity increasing from $199.7 million in 2020 to $228.3 million in TTM 2025. The debt-to-equity ratio remains low, enhancing financial stability, typical for regional banks. The equity ratio is healthy, indicating a robust financial structure and low leverage risk. This stability is crucial for a financial institution, reducing risk exposure.

Cash Flow

Cash flow analysis reveals a positive trend in operating cash flow, which increased significantly from $28.6 million in 2020 to $29.0 million in TTM 2025. The Free Cash Flow to Net Income ratio is favorable, suggesting effective cash management and operational efficiency. However, fluctuations in free cash flow growth indicate some volatility in cash generation, which could affect future liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	135.84M	149.61M	136.58M	101.91M	91.84M	86.86M
Gross Profit	81.64M	96.15M	94.70M	95.17M	88.41M	78.63M
EBITDA	16.12M	32.10M	34.30M	39.91M	37.26M	28.13M
Net Income	11.21M	23.67M	25.00M	28.78M	26.43M	19.26M
Balance Sheet
Total Assets	2.85B	2.78B	2.71B	2.65B	2.42B	2.28B
Cash, Cash Equivalents and Short-Term Investments	323.16M	468.77M	620.84M	688.46M	819.01M	663.15M
Total Debt	108.08M	118.52M	40.80M	105.76M	25.54M	11.11M
Total Liabilities	2.62B	2.56B	2.52B	2.48B	2.21B	2.08B
Stockholders Equity	234.97M	215.31M	195.24M	166.39M	211.46M	199.70M
Cash Flow
Free Cash Flow	29.11M	26.19M	30.42M	34.62M	35.09M	27.79M
Operating Cash Flow	32.32M	29.82M	30.88M	35.05M	35.46M	28.66M
Investing Cash Flow	152.98M	-57.72M	-82.38M	-252.62M	-242.48M	-495.85M
Financing Cash Flow	64.54M	38.10M	32.48M	246.46M	125.47M	453.82M

Chemung Financial Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 53.22
• 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 CHMG, the sentiment is Positive. The current price of 53.22 is above the 20-day moving average (MA) of 52.38, above the 50-day MA of 51.75, and above the 200-day MA of 48.78, indicating a bullish trend. The MACD of 0.64 indicates Negative momentum. The RSI at 55.30 is Neutral, neither overbought nor oversold. The STOCH value of 37.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CHMG.

Chemung Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LCNB	77 Outperform	$227.66M	10.75	8.28%	5.48%	14.84%	169.99%
PWOD	76 Outperform		―		―	14.11%	29.41%
MBCN	76 Outperform	$244.78M	13.50	8.60%	2.84%	7.42%	15.82%
CHMG	72 Outperform	$250.61M	22.05	5.18%	2.41%	-6.64%	-51.99%
Sector *	68 Neutral	$17.80B	11.94	9.89%	3.74%	9.69%	1.17%
EVBN	60 Neutral		―		―	-6.85%	-51.70%
FRST	57 Neutral	$275.26M	93.08	0.79%	3.58%	4.72%	―

Chemung Financial Corporate Events

Chemung Financial Engages Investors Amid Financial Restructuring

In September 2025, Chemung Financial Corporation’s management plans to engage with institutional investors to discuss strategies and performance. The company has recently undertaken significant financial restructuring, including issuing $45 million in subordinated notes and selling $245.5 million in securities, resulting in a $17.5 million pre-tax loss. These moves aim to optimize the balance sheet, enhance profitability, and support growth strategies, potentially impacting stakeholders positively by improving capital ratios and expanding market presence.

Chemung Financial Announces Dividend Increase

On August 19, 2025, Chemung Financial Corporation announced a dividend increase of $0.02 per share, resulting in a quarterly cash dividend of $0.34 per share, payable on October 1, 2025, to shareholders of record as of September 17, 2025. This marks the second dividend increase in 2025, representing a 6.3% rise over the previous quarter’s dividend and bringing the total increase for the year to 9.7%.

Chemung Financial Highlights Growth at KBW Conference

Chemung Financial Corporation announced its participation in the 2025 KBW Community Bank Investor Conference, where management will meet with institutional investors to discuss strategies and recent financial performance. The company highlighted its stable deposit base, strategic balance sheet restructuring, and expansion into higher growth markets like Albany and Buffalo. Recent financial activities include issuing $45 million in subordinated notes and selling $245.5 million in securities, resulting in a $17.5 million pre-tax loss. These moves are expected to enhance profitability metrics and support capital ratios, reflecting a strategic focus on growth and operational efficiency.

Chemung Financial Completes Strategic Balance Sheet Repositioning

Chemung Financial Corporation announced the completion of a strategic balance sheet repositioning by selling securities worth approximately $242 million, resulting in a pre-tax loss of $17 million to be recognized in the second quarter of 2025. The proceeds will be used to reduce non-core funding liabilities and support loan growth, with expectations of improved financial metrics from the third quarter of 2025, despite reporting a net loss for the second quarter.

Chemung Financial Issues $45M Subordinated Notes

On June 10, 2025, Chemung Financial Corporation issued $45 million in subordinated notes due 2035 to accredited investors and institutional buyers. This move aims to support the company’s growth initiatives and regulatory capital ratios, potentially involving balance sheet restructuring. The notes, maturing in 2035, will initially bear a fixed interest rate of 7.75% until 2030, after which they will switch to a floating rate. This strategic financial maneuver is expected to enhance Chemung’s capital structure and support its expansion efforts.