ChoiceOne Financial Services (COFS) AI Stock Analysis

• Market Cap: $431.18M
• Dividend Yield: 3.69%
• Average Volume (3M): 83.75K
• Price to Earnings (P/E): 14.3
• Beta (1Y): 0.76
• Revenue Growth: 50.36%
• EPS Growth: -56.64%
• Country: US
• Employees: 605
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.92
• Shares Outstanding: 15,023,732
• 10 Day Avg. Volume: 91,020
• 30 Day Avg. Volume: 83,751
• PEG Ratio: -0.38
• Price to Book (P/B): 0.88
• Price to Sales (P/S): 2.13
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.55
• Enterprise Value/Revenue: 2.94
• Enterprise Value/Gross Profit: 4.55
• Enterprise Value/Ebitda: 13.71
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 3.48
• Revenue Forecast (FY): $175.55M

• Rating: 58 Neutral
• Price Target: $30.00 ▲(1.63% Upside)
• Action: Downgraded Date: 02/21/26
• Date: Action: Downgraded 02/21/26

The score is primarily held back by financial performance—especially the sharp 2025 deterioration to zero reported operating/free cash flow alongside weaker revenue and margins. Technicals are neutral with slightly negative momentum, while valuation is supportive (reasonable P/E and a solid dividend yield). Corporate updates are constructive on strategy and scale, but the post-2025 loan mix shift toward property exposure adds risk.

Positive Factors

Diversified revenue streams

ChoiceOne earns from loans (interest), fee services, and investment/AUM fees, giving multiple stable revenue pillars. Over 2–6 months this mix cushions net interest margin swings and provides recurring fee income that supports earnings even if one channel softens.

Improved balance-sheet cushion

The company reports materially higher equity and lower leverage versus 2023, providing greater capital cushion. This stronger capital base supports lending capacity, absorbes shocks, and offers longer-term flexibility for growth or loss absorption without immediate funding pressure.

Scale expansion via M&A

Recent merger and prior acquisitions materially grow assets, deposits and loan base, improving market position in Michigan. Greater scale can drive cost efficiencies, diversify local market exposure, and strengthen competitive placement for commercial and retail banking over coming quarters.

Negative Factors

Cash-flow collapse in 2025

A drop to zero operating and free cash flow in 2025 marks a sharp deviation from 2021–2024 trends and creates durable uncertainty about cash conversion. This undermines internal funding for loans, dividends, and M&A, raising structural funding and liquidity risks until cash generation normalizes.

Loan mix shift to property exposure

Management's shift toward commercial real estate and residential property lending increases concentration in cyclical sectors. That structural change heightens sensitivity to property markets and economic downturns, raising credit volatility and the chance of higher loan losses over the medium term.

Revenue and margin weakness in 2025

After 2021–2024 growth, 2025 produced a meaningful revenue pullback and compressed margins. Sustained weaker top-line and narrower spreads reduce return on equity and limit reinvestment capacity, pressuring profitability and making earnings harder to restore without structural revenue or cost changes.

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 multiple streams, primarily from interest income on loans and mortgages issued to customers. The company earns money by charging interest on various types of loans, including personal loans, commercial loans, and home mortgages. In addition to interest income, COFS generates fee-based revenue from services such as account maintenance fees, transaction fees, and advisory fees related to its investment management services. The company may also benefit from partnerships with local businesses and organizations to offer tailored financial products, enhancing its client base and revenue opportunities. Additionally, any increase in assets under management can lead to higher fees, contributing to the overall financial performance of COFS.

ChoiceOne Financial Services Financial Statement Overview

Summary

Income statement and balance sheet are generally stable (solid profitability, moderate leverage, and equity growth), but 2025 shows a revenue decline and margin compression. The biggest negative is the reported drop to zero operating cash flow/free cash flow in 2025, which raises material uncertainty around cash conversion and near-term financial flexibility.

Income Statement

Revenue expanded strongly from 2021–2024, but 2025 saw a meaningful pullback (about -5%), suggesting momentum has weakened. Profitability remains solid with positive operating and net margins, but margins have compressed versus prior years (notably lower net margin in 2025 vs. 2024), which points to rising costs/pressure on spreads. Net income has held relatively steady despite the revenue decline, indicating some resilience, but the overall trajectory is less favorable than the 2022–2024 run-rate.

Balance Sheet

Leverage looks moderate overall, with debt running below equity in 2025 and an improved leverage profile versus 2023 when leverage was higher. Equity has increased materially over the period, which adds balance-sheet cushion. That said, returns on equity have trended down from the stronger 2022–2024 levels to a lower level in 2025, implying the balance sheet is currently generating less profit per dollar of equity.

Cash Flow

Cash generation was strong and consistently supportive of earnings from 2021–2024, with free cash flow closely matching net income. However, 2025 shows operating cash flow and free cash flow at zero (with free cash flow growth at -100%), a sharp deterioration versus history. Whether driven by reporting/one-time movements or underlying pressure, the latest period introduces significant uncertainty around cash conversion and near-term funding flexibility.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	192.89M	139.10M	113.89M	89.13M	83.81M
Gross Profit	112.19M	91.81M	80.64M	81.14M	79.42M
EBITDA	34.19M	45.42M	38.00M	41.00M	38.92M
Net Income	28.18M	26.73M	21.26M	23.64M	22.04M
Balance Sheet
Total Assets	4.41B	2.72B	2.58B	2.39B	2.37B
Cash, Cash Equivalents and Short-Term Investments	642.41M	575.52M	570.03M	573.69M	1.13B
Total Debt	313.25M	210.75M	235.51M	85.26M	85.02M
Total Liabilities	3.95B	2.46B	2.38B	2.22B	2.15B
Stockholders Equity	465.35M	260.42M	195.63M	168.87M	221.67M
Cash Flow
Free Cash Flow	0.00	46.94M	42.25M	43.16M	34.94M
Operating Cash Flow	0.00	48.65M	46.48M	44.33M	37.70M
Investing Cash Flow	0.00	-97.91M	-181.37M	-89.81M	-521.37M
Financing Cash Flow	-96.75M	90.58M	146.37M	57.54M	436.04M

ChoiceOne Financial Services Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 29.52
• 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 COFS, the sentiment is Positive. The current price of 29.52 is above the 20-day moving average (MA) of 29.44, above the 50-day MA of 29.49, and above the 200-day MA of 29.17, indicating a bullish trend. The MACD of -0.04 indicates Negative momentum. The RSI at 52.06 is Neutral, neither overbought nor oversold. The STOCH value of 54.19 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
GCBC	79 Outperform	$382.93M	10.48	14.53%	1.63%	13.16%	37.40%
AROW	75 Outperform	$552.63M	12.68	8.49%	3.59%	6.86%	6.11%
HBCP	73 Outperform	$463.90M	10.10	10.86%	1.92%	6.25%	24.92%
BWB	71 Outperform	$512.25M	12.83	8.63%	―	13.96%	25.74%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
COFS	58 Neutral	$431.18M	14.28	6.16%	3.69%	50.36%	-56.64%
FFWM	49 Neutral	$494.82M	-3.28	-16.22%	―	-6.47%	-75.82%

ChoiceOne Financial Services Corporate Events

ChoiceOne Presents Updated Investor Overview and Strategy

ChoiceOne Financial Services has released investor presentation materials to be used in meetings with investors beginning February 4, 2026, outlining its financial profile, management team, accolades and merger activity through year-end 2025. As of December 31, 2025, the company reported $4.4 billion in assets, $3.6 billion in deposits, $3.0 billion in gross loans, a market capitalization of about $443 million, and solid adjusted profitability metrics, while highlighting recent awards that reinforce its position as a leading Michigan community bank and its growth strategy, including the March 2025 merger with Fentura Financial, which followed a series of prior acquisitions to expand scale and market reach.

The most recent analyst rating on (COFS) stock is a Hold with a $31.00 price target. To see the full list of analyst forecasts on ChoiceOne Financial Services stock, see the COFS Stock Forecast page.