ChoiceOne Financial Services (COFS) AI Stock Analysis

• Market Cap: $379.77M
• Dividend Yield: 4.37%
• Average Volume (3M): 63.02K
• Price to Earnings (P/E): 7.8
• Beta (1Y): 0.85
• Revenue Growth: 21.70%
• EPS Growth: 15.99%
• Country: US
• Employees: 336
• Sector: Financial
• Sector Strength: 83
• Industry: Banks - Regional
• EPS (TTM): 3.25
• Shares Outstanding: 14,975,034
• 10 Day Avg. Volume: 73,904
• 30 Day Avg. Volume: 63,025
• PEG Ratio: 0.49
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.77
• Price to Cash Flow (P/CF): 2.70
• P/FCF Ratio: 1.90
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $38.50
• Price Target Upside: 51.81% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

ChoiceOne Financial Services is positioned well within the regional banking industry, with strong financial performance and a positive outlook from the recent merger. The stock is attractively valued, though current technical indicators show weak momentum. Overall, the company’s solid financial health and strategic initiatives indicate a promising future, despite the current bearish technical trend.

ChoiceOne Financial Services Business Overview & Revenue Model

Company Description

ChoiceOne Financial Services, Inc. operates as the bank holding company for ChoiceOne Bank that provides community banking services to corporations, partnerships, and individuals in Michigan. The company offers various deposit products, including time, savings, and demand deposits, safe deposit, and automated transaction machine services. It also provides commercial loans, such as business, industry, agricultural, construction, inventory, and real estate loans; and consumer loans comprising direct and indirect loans to consumers and purchasers of residential and real properties. In addition, the company offers safe deposit and automated transaction machine services; and alternative investment products, including annuities and mutual funds, as well as sells insurance policies, such as life and health for commercial and consumer clients. It operates 32 full-service offices in Kent, Muskegon, Newaygo, and Ottawa, Lapeer, Macomb, and St. Clair counties, Michigan. The company also operates three loan production offices. ChoiceOne Financial Services, Inc. was founded in 1898 and is headquartered in Sparta, Michigan.

How the Company Makes Money

ChoiceOne Financial Services generates revenue through interest income on loans, mortgages, and credit products extended to individuals and businesses. Additionally, the company earns money from fees associated with various banking services, such as account maintenance fees, transaction fees, and service charges. Investment services and wealth management also contribute to the company's earnings through management fees and commission-based products. Collaborations with financial partners and leveraging local market presence further enhance ChoiceOne's ability to attract and retain customers, thereby sustaining its revenue streams.

ChoiceOne Financial Services Financial Statement Overview

Summary

ChoiceOne Financial Services demonstrates strong financial health with robust revenue growth and profitability. The income statement shows an impressive EBIT margin and net profit margin, though missing EBITDA data. The balance sheet is solid with no debt and a strong equity position, despite moderate ROE. Cash flow is positive with potential for optimization in free cash flow conversion.

Income Statement

ChoiceOne Financial Services has demonstrated consistent revenue growth, increasing from $36.89M in 2019 to $121.10M in 2024, reflecting robust expansion. The EBIT margin is impressive, rising to 97.30% in 2024, indicating efficient cost management and operational excellence. However, the EBITDA data for the latest year is missing, which could provide additional insight into cash earnings. Overall, the strong net profit margin of 22.08% signifies solid profitability.

Balance Sheet

The company exhibits a strong equity position with a stockholders' equity of $260.42M in 2024. The absence of total debt in the latest year highlights a low-risk leverage profile. The equity ratio of 9.56% suggests a conservative asset financing approach. However, the return on equity (ROE) of 10.26% is moderate, indicating room for improved equity efficiency.

Cash Flow

ChoiceOne shows a positive trend in free cash flow, increasing from $6.63M in 2020 to $48.65M in 2024. The operating cash flow to net income ratio of 1.82 in 2024 suggests strong cash earnings. However, the free cash flow to net income ratio, while positive, indicates that net income is not fully converting into free cash flow, signaling potential areas for optimizing cash management.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
121.10M	80.79M	81.39M	79.83M	73.77M
	Gross Profit
121.10M	80.64M	81.39M	79.83M	73.77M
	EBIT
117.84M	25.57M	35.40M	26.50M	18.89M
	EBITDA
0.00	0.00	41.00M	38.92M	26.59M
	Net Income Common Stockholders
26.73M	21.26M	23.64M	22.04M	15.61M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
575.52M	569.68M	590.84M	1.13B	654.31M
	Total Assets
2.72B	2.58B	2.39B	2.37B	1.92B
	Total Debt
210.75M	235.51M	135.26M	85.02M	12.42M
	Net Debt
114.00M	180.07M	91.32M	53.13M	-67.10M
	Total Liabilities
2.46B	2.38B	2.22B	2.15B	12.42M
	Stockholders Equity
260.42M	195.63M	168.87M	221.67M	227.29M
Cash Flow		Free Cash Flow
48.65M	42.25M	43.85M	34.94M	6.63M
	Operating Cash Flow
48.65M	46.48M	45.02M	37.70M	8.48M
	Investing Cash Flow
-97.91M	-181.37M	-90.50M	-521.37M	-250.75M
	Financing Cash Flow
90.58M	146.37M	57.54M	436.04M	262.23M

ChoiceOne Financial Services Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 25.36
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For COFS, the sentiment is Negative. The current price of 25.36 is below the 20-day moving average (MA) of 27.67, below the 50-day MA of 29.85, and below the 200-day MA of 30.87, indicating a bearish trend. The MACD of -1.29 indicates Positive momentum. The RSI at 26.98 is Positive, neither overbought nor oversold. The STOCH value of 8.81 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for COFS.

ChoiceOne Financial Services Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
COFS	79 Outperform	$379.77M	7.80	11.72%	4.37%	21.70%	15.99%
ACNB	75 Outperform	$405.37M	10.31	10.97%	3.33%	14.82%	0.62%
UNTY	74 Outperform	$396.17M	9.23	15.17%	1.34%	6.99%	12.46%
BHB	70 Outperform	$424.29M	9.74	9.78%	4.32%	7.81%	-3.54%
SHBI	65 Neutral	$392.89M	8.93	8.34%	4.07%	30.29%	103.33%
Sector *	63 Neutral	$13.51B	9.48	9.36%	4.87%	16.09%	-8.30%
FFIC	46 Neutral	$368.17M	16.43	-4.49%	8.07%	-3.66%	-196.64%

ChoiceOne Financial Services Corporate Events

ChoiceOne Financial Completes Merger with Fentura Financial

On March 1, 2025, ChoiceOne Financial Services, Inc. completed its merger with Fentura Financial, Inc., resulting in a combined organization with assets exceeding $4 billion and 56 offices across Michigan. This merger, announced on March 3, 2025, is expected to enhance ChoiceOne’s community bank franchise, expand its geographical reach into Central and Southeastern Michigan, and provide a greater range of commercial and consumer lending services. The consolidation of The State Bank into ChoiceOne Bank will occur on March 14, 2025, under the ChoiceOne name and brand. The merger also led to the expansion of ChoiceOne’s Board of Directors to include former Fentura directors, Brian Petty and Randy Hicks, who will serve on various committees.

ChoiceOne Financial Unveils 2025 Investor Presentation

ChoiceOne Financial Services, Inc. released investor presentation materials for meetings starting February 18, 2025, highlighting its financial performance and strategic vision. The presentation underscores the company’s commitment to maintaining a community bank feel with large bank capabilities, focusing on superior service and community involvement, as reflected in its numerous awards and recognitions.