ChoiceOne Financial Services (COFS) AI Stock Analysis

• Market Cap: $454.92M
• Dividend Yield: 3.66%
• Average Volume (3M): 143.83K
• Price to Earnings (P/E): 24.5
• Beta (1Y): 0.87
• Revenue Growth: 38.01%
• EPS Growth: -58.08%
• Country: US
• Employees: 605
• Sector: Financial
• Sector Strength: 75
• Industry: Banks - Regional
• EPS (TTM): 0.91
• Shares Outstanding: 14,984,253
• 10 Day Avg. Volume: 81,111
• 30 Day Avg. Volume: 143,827
• PEG Ratio: 6.92
• Price to Book (P/B): 0.11
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 18.46
• Enterprise Value/Market Cap: 0.66
• Enterprise Value/Revenue: 2.86
• Enterprise Value/Gross Profit: 11.39
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $36.00
• Price Target Upside: 18.58% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 69 Neutral
• Price Target: $33.00 ▲(8.70%Upside)

ChoiceOne Financial Services scores well due to strong financial performance and positive technical indicators. The company shows consistent revenue growth and efficient cash flow management. However, a relatively high P/E ratio suggests potential overvaluation, which is balanced by a healthy dividend yield.

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 several key streams. The primary source of income is interest income from loans and mortgages provided to personal and business clients. This includes commercial and industrial loans, consumer loans, and real estate loans. Additionally, the bank earns non-interest income from service charges on deposit accounts, transaction fees, and wealth management services, including investment advisory and insurance products. The company also benefits from strategic partnerships with financial technology providers to enhance its service offerings and customer experience. Factors such as interest rate environments, economic conditions, and regulatory changes significantly influence the company's earnings.

ChoiceOne Financial Services Financial Statement Overview

Summary

ChoiceOne Financial Services demonstrates a solid financial foundation with consistent revenue growth and strong cash flow management. While profitability margins show some pressures in the TTM, the balance sheet and cash flow statements reflect a stable financial position. The company should monitor its increasing debt levels and operational costs to sustain profitability and financial health moving forward.

Income Statement

ChoiceOne Financial Services has shown consistent revenue growth with a notable increase in total revenue from 2020 to TTM 2025. The gross profit margin is strong, reflecting efficient cost management. However, the decline in EBIT and EBITDA margins in the TTM suggests increasing operational costs or other pressures on profitability. The net profit margin remains healthy, albeit with a slight decrease in the TTM period.

Balance Sheet

The balance sheet is stable with a reasonable debt-to-equity ratio, indicating manageable leverage levels. Stockholders' equity has steadily increased, enhancing financial resilience. The equity ratio remains robust, showcasing strong asset backing by equity. However, total debt has increased in the TTM, which could pose future financial strain if not controlled.

Cash Flow

Cash flow performance is solid with strong free cash flow generation and an improving operating cash flow to net income ratio, indicating efficient cash conversion from operations. Free cash flow growth rate is positive, although there is a notable decline in free cash flow in the TTM compared to the annual period, which could impact future liquidity positions if unaddressed.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	139.10M	113.89M	89.13M	83.81M	78.41M
Gross Profit	91.81M	80.64M	81.14M	79.42M	69.77M
EBITDA	45.42M	38.00M	41.00M	38.92M	26.59M
Net Income	26.73M	21.26M	23.64M	22.04M	15.61M
Balance Sheet
Total Assets	2.72B	2.58B	2.39B	2.37B	1.92B
Cash, Cash Equivalents and Short-Term Investments	575.52M	570.03M	573.69M	1.13B	654.31M
Total Debt	210.75M	235.51M	85.26M	85.02M	12.42M
Total Liabilities	2.46B	2.38B	2.22B	2.15B	1.69B
Stockholders Equity	260.42M	195.63M	168.87M	221.67M	227.27M
Cash Flow
Free Cash Flow	46.94M	42.25M	43.16M	34.94M	6.63M
Operating Cash Flow	48.65M	46.48M	44.33M	37.70M	8.48M
Investing Cash Flow	-97.91M	-181.37M	-89.81M	-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: Positive
• Last Price: 30.36
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For COFS, the sentiment is Positive. The current price of 30.36 is above the 20-day moving average (MA) of 29.56, above the 50-day MA of 29.27, and below the 200-day MA of 30.94, indicating a neutral trend. The MACD of 0.15 indicates Negative momentum. The RSI at 59.57 is Neutral, neither overbought nor oversold. The STOCH value of 60.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for COFS.

ChoiceOne Financial Services Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HBCP	79 Outperform	$425.10M	10.62	10.55%	1.93%	8.03%	15.18%
GCBC	77 Outperform	$427.71M	13.74	14.00%	1.43%	13.07%	25.72%
AROW	77 Outperform	$447.73M	14.66	7.72%	4.13%	8.36%	-2.24%
BWB	73 Outperform	$442.70M	13.28	8.31%	―	12.19%	12.88%
COFS	69 Neutral	$454.92M	24.52	4.37%	3.66%	38.01%	-58.08%
Sector *	68 Neutral	$17.21B	11.20	9.71%	3.57%	11.12%	-4.52%
FFWM	53 Neutral	$409.46M	―	-8.68%	0.20%	3.61%	65.61%

ChoiceOne Financial Services Corporate Events

ChoiceOne Financial Appoints New Director Steven T. Krause

On June 25, 2025, ChoiceOne Financial Services announced the appointment of Steven T. Krause as a director, effective July 5, 2025, following the retirement of Jack Hendon. Mr. Krause, deemed independent under Nasdaq’s listing standards, is expected to join the Audit and Risk Committees and will receive compensation consistent with other directors.

The most recent analyst rating on (COFS) stock is a Buy with a $37.00 price target. To see the full list of analyst forecasts on ChoiceOne Financial Services stock, see the COFS Stock Forecast page.

ChoiceOne Financial Services Holds Annual Shareholder Meeting

On May 21, 2025, ChoiceOne Financial Services held its annual shareholder meeting where four key matters were voted upon. Shareholders elected five directors, approved the executive compensation, decided on an annual advisory vote for executive compensation, and ratified Plante & Moran PLLC as the independent accounting firm for 2025. These decisions are expected to influence the company’s governance and financial oversight in the coming year.

The most recent analyst rating on (COFS) stock is a Buy with a $37.00 price target. To see the full list of analyst forecasts on ChoiceOne Financial Services stock, see the COFS Stock Forecast page.

ChoiceOne Financial Services Announces Chairman Retirement

On May 21, 2025, ChoiceOne Financial Services announced the retirement of Chairman Jack G. Hendon from the Boards of Directors, effective July 5, 2025, due to the company’s mandatory retirement policy. Hendon, who has been with ChoiceOne since 2013 and served as Chairman since 2021, is recognized for his significant contributions in accounting and finance. Gregory A. McConnell will succeed Hendon as Chairman, and Roxanne M. Page will assume the role of Vice Chairwoman, both effective July 5, 2025. McConnell brings extensive experience from his previous roles in banking and insurance, while Page offers substantial expertise in accounting and finance.

The most recent analyst rating on (COFS) stock is a Buy with a $37.00 price target. To see the full list of analyst forecasts on ChoiceOne Financial Services stock, see the COFS Stock Forecast page.

ChoiceOne Financial Prepares for Annual Shareholder Meeting

ChoiceOne Financial Services, Inc. is preparing presentation materials for their annual shareholder meeting scheduled for May 21, 2025. This event is significant for stakeholders as it provides insights into the company’s strategic direction and operational updates.

The most recent analyst rating on (COFS) stock is a Buy with a $37.00 price target. To see the full list of analyst forecasts on ChoiceOne Financial Services stock, see the COFS Stock Forecast page.