Community Heritage Financial (CMHF) AI Stock Analysis

• Market Cap: $69.86M
• Dividend Yield: 1.16%
• Average Volume (3M): 1.05K
• Price to Earnings (P/E): 10.6
• Beta (1Y): >-0.01
• Revenue Growth: 4.66%
• EPS Growth: 37.32%
• Country: US
• Employees: 174
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.80
• Shares Outstanding: 2,251,320
• 10 Day Avg. Volume: 1,224
• 30 Day Avg. Volume: 1,049
• PEG Ratio: 0.20
• Price to Book (P/B): 0.89
• Price to Sales (P/S): 1.22
• P/FCF Ratio: 12.24
• Enterprise Value/Market Cap: 1.79
• Enterprise Value/Revenue: 2.36
• Enterprise Value/Gross Profit: 4.58
• Enterprise Value/Ebitda: 11.48
• 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: 62 Neutral
• Price Target: $31.00 ▲(13.35% Upside)
• Action: Reiterated Date: 10/31/25
• Date: Action: Reiterated 10/31/25

Community Heritage Financial's stock score is primarily driven by strong financial performance, particularly in revenue growth and cash management. However, technical indicators suggest potential short-term weakness, which tempers the overall score. The stock's reasonable valuation further supports its attractiveness, although the lack of recent earnings call data and corporate events limits additional insights.

Positive Factors

Revenue Growth

Strong revenue growth indicates the company's ability to expand its market presence and increase its customer base, which is crucial for long-term sustainability and competitiveness in the regional banking sector.

Cash Generation

Significant growth in free cash flow enhances the company's ability to invest in growth opportunities, pay down debt, and return capital to shareholders, supporting long-term financial health.

Balance Sheet Stability

A moderate debt-to-equity ratio suggests prudent financial management, providing the company with flexibility to navigate economic fluctuations and invest in future growth.

Negative Factors

Cost Management Issues

Decreasing gross profit margins may indicate rising costs or pricing pressures, which could impact profitability if not addressed, posing a risk to long-term financial performance.

Cash Conversion Efficiency

Low cash conversion efficiency suggests challenges in translating income into cash, which could limit the company's ability to fund operations and growth initiatives effectively.

Profit Margin Pressure

While net profit margins are stable, declining gross margins could signal future profitability challenges, necessitating improved cost controls to maintain earnings quality.

Community Heritage Financial Business Overview & Revenue Model

Company Description

Community Heritage Financial, Inc., through its subsidiaries, provides retail and commercial banking services to individuals and businesses in Maryland, Pennsylvania, Virginia, West Virginia, and the District of Columbia. It operates in two segments, Commercial Banking and Mortgage Banking. The Commercial Banking segment offers commercial loans, real estate loans, installment loans, and consumer loans, as well as other business financing services; and deposit products, including demand deposit accounts, savings accounts, time deposit, and certificates of deposit. The Mortgage Banking segment primarily engages in the origination of residential mortgages for sale into the secondary market. The company also provides life insurance services. It operates through a network of eight branches located in Frederick and Washington Counties, Maryland. The company was incorporated in 2018 and is based in Middletown, Maryland.

How the Company Makes Money

CMHF generates revenue through multiple key streams, including interest income from loans such as mortgages, personal loans, and business financing. The company also earns fees from its investment services and insurance products, which include financial planning, asset management, and various types of insurance policies. Additionally, CMHF benefits from service fees associated with checking and savings accounts, as well as transaction fees from debit and credit card usage. Strategic partnerships with local businesses and community organizations enhance its service offerings and customer reach, contributing to its overall profitability. By focusing on community-oriented services and maintaining a strong customer base, CMHF ensures a steady flow of revenue while promoting financial literacy and stability in the areas it serves.

Community Heritage Financial Financial Statement Overview

Summary

Community Heritage Financial demonstrates strong revenue growth and efficient cash management, although there are concerns regarding cost control and cash conversion efficiency. The balance sheet reflects a stable financial position with moderate leverage, supporting the company's growth trajectory.

Income Statement

Community Heritage Financial has shown a positive revenue growth rate of 14.81% in the most recent year, indicating strong top-line growth. However, the gross profit margin has decreased compared to previous years, suggesting potential cost management issues. The net profit margin is stable at 11.57%, and the EBIT margin remains healthy at 15.40%, reflecting good operational efficiency.

Balance Sheet

The company maintains a moderate debt-to-equity ratio of 0.37, indicating a balanced approach to leveraging. Return on equity is reasonable at 8.39%, showing effective use of equity to generate profits. The equity ratio stands at 7.73%, suggesting a stable financial position with a solid equity base.

Cash Flow

Free cash flow has grown significantly by 519.63%, indicating improved cash generation capabilities. However, the operating cash flow to net income ratio is low at 0.74%, suggesting potential challenges in converting income into cash. The free cash flow to net income ratio is strong at 94.85%, reflecting efficient cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	52.91M	57.30M	30.13M	36.23M	34.09M	32.43M
Gross Profit	27.33M	33.63M	46.75M	30.57M	30.80M	32.43M
EBITDA	10.90M	10.24M	-639.08K	10.65M	9.47M	6.90M
Net Income	8.13M	6.63M	4.30M	6.86M	6.02M	4.13M
Balance Sheet
Total Assets	1.10B	1.02B	990.57M	932.09M	819.33M	689.58M
Cash, Cash Equivalents and Short-Term Investments	0.00	16.51M	16.66M	15.39M	41.26M	28.79M
Total Debt	28.93M	29.03M	35.38M	17.75M	19.01M	25.94M
Total Liabilities	1.01B	943.07M	917.40M	864.95M	762.37M	636.62M
Stockholders Equity	83.94M	79.03M	71.23M	67.14M	56.95M	52.96M
Cash Flow
Free Cash Flow	0.00	5.72M	8.17M	8.40M	12.14M	-2.22M
Operating Cash Flow	0.00	6.03M	8.50M	9.89M	14.38M	-1.73M
Investing Cash Flow	0.00	-28.46M	-61.72M	-148.41M	-132.00M	-155.32M
Financing Cash Flow	0.00	22.28M	54.50M	112.66M	130.09M	160.76M

Community Heritage Financial Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 27.35
• 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 CMHF, the sentiment is Positive. The current price of 27.35 is below the 20-day moving average (MA) of 30.55, below the 50-day MA of 28.55, and below the 200-day MA of 27.68, indicating a bullish trend. The MACD of 0.70 indicates Positive momentum. The RSI at 64.70 is Neutral, neither overbought nor oversold. The STOCH value of 34.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CMHF.

Community Heritage Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BOTJ	73 Outperform	$90.50M	10.03	10.86%	2.18%	6.17%	-6.13%
FUSB	72 Outperform	$88.12M	15.28	5.50%	2.08%	1.03%	-35.72%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
CMHF	62 Neutral	$69.86M	10.59	10.28%	1.16%	4.66%	37.32%
BYFC	54 Neutral	$71.15M	-2.50	0.22%	―	2.54%	-174.74%
FNWB	46 Neutral	$87.71M	-19.09	-4.68%	2.88%	8.02%	21.36%