ChoiceOne Financial Services (COFS) AI Stock Analysis

• Market Cap: $422.56M
• Dividend Yield: 3.97%
• Average Volume (3M): 67.99K
• Price to Earnings (P/E): 23.4
• Beta (1Y): 0.83
• Revenue Growth: 24.39%
• EPS Growth: -56.57%
• Country: US
• Employees: 605
• Sector: Financial
• Sector Strength: 73
• Industry: Banks - Regional
• EPS (TTM): 0.86
• Shares Outstanding: 14,984,253
• 10 Day Avg. Volume: 79,681
• 30 Day Avg. Volume: 67,992
• PEG Ratio: -0.91
• Price to Book (P/B): 0.76
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 17.16
• Enterprise Value/Market Cap: 0.73
• Enterprise Value/Revenue: 0.81
• Enterprise Value/Gross Profit: 3.43
• Enterprise Value/Ebitda: 8.81
• 1Y Price Target: $36.00
• Price Target Upside: 27.66% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 70 Neutral
• Price Target: $31.00 ▲(9.93%Upside)

ChoiceOne Financial Services' strong financial performance with robust revenue growth and a solid balance sheet is the most significant factor, contributing positively to the stock score. However, weak technical indicators and a relatively high valuation limit upside potential.

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 strong financial health with robust revenue growth and profitability, supported by a solid balance sheet with no debt in the latest year. While cash flow generation is positive, there is potential for optimizing free cash flow conversion. The company is well-positioned within the banking industry, with consistent financial performance over recent years.

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
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
116.79M	92.44M	80.79M	81.39M	79.83M	69.77M
	Gross Profit
89.98M	91.81M	80.79M	81.39M	79.83M	69.77M
	EBIT
57.10M	34.13M	25.57M	27.66M	26.50M	18.89M
	EBITDA
0.00	34.13M	25.57M	27.66M	26.50M	0.00
	Net Income Common Stockholders
7.19M	26.73M	21.26M	23.64M	22.04M	15.61M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
620.07M	575.52M	570.03M	43.94M	31.89M	654.31M
	Total Assets
4.31B	2.72B	2.58B	2.39B	2.37B	1.92B
	Total Debt
185.52M	210.75M	235.51M	85.26M	85.02M	12.42M
	Net Debt
46.09M	114.00M	180.07M	41.32M	53.13M	-67.10M
	Total Liabilities
3.88B	2.46B	2.38B	2.22B	2.15B	1.69B
	Stockholders Equity
4.31B	260.42M	195.63M	168.87M	221.67M	227.27M
Cash Flow		Free Cash Flow
24.63M	46.94M	42.25M	43.85M	34.94M	6.63M
	Operating Cash Flow
26.86M	48.65M	46.48M	45.02M	37.70M	8.48M
	Investing Cash Flow
151.45M	-97.91M	-181.37M	-90.50M	-521.37M	-250.75M
	Financing Cash Flow
-189.02M	90.58M	146.37M	57.54M	436.04M	262.23M

ChoiceOne Financial Services Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 28.20
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 28.2 is below the 20-day moving average (MA) of 29.29, above the 50-day MA of 28.10, and below the 200-day MA of 30.99, indicating a neutral trend. The MACD of 0.09 indicates Positive momentum. The RSI at 42.04 is Neutral, neither overbought nor oversold. The STOCH value of 32.93 is Neutral, 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
UNTY	77 Outperform	$437.96M	10.24	15.17%	1.28%	6.99%	12.46%
ACNB	74 Outperform	$439.48M	14.14	7.44%	3.24%	22.17%	-15.57%
SHBI	74 Outperform	$487.93M	9.85	9.27%	3.28%	15.26%	160.27%
BHB	72 Outperform	$441.73M	10.13	9.67%	4.44%	6.33%	3.44%
COFS	70 Neutral	$422.56M	23.42	2.27%	3.97%	24.39%	-56.57%
Sector *	64 Neutral	$12.77B	9.71	7.85%	78.06%	12.07%	-7.97%
FFIC	48 Neutral	$414.78M	16.43	-6.53%	7.57%	-5.55%	-242.78%

ChoiceOne Financial Services Corporate Events

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.