ChoiceOne Financial Services (COFS) AI Stock Analysis

• Market Cap: $457.47M
• Dividend Yield: 3.69%
• Average Volume (3M): 83.75K
• Price to Earnings (P/E): 15.1
• Beta (1Y): 0.74
• 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: 0.68
• Price to Book (P/B): 1.12
• Price to Sales (P/S): 2.09
• P/FCF Ratio: 6.20
• Enterprise Value/Market Cap: 1.48
• Enterprise Value/Revenue: 3.33
• Enterprise Value/Gross Profit: 5.25
• Enterprise Value/Ebitda: 15.40
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: $34.00 ▲(13.26% Upside)

The score is primarily driven by solid financial performance (strong revenue and free cash flow growth plus low leverage), partially offset by declining margins and modest ROE. Technicals are constructive but not strong due to slightly negative MACD, while valuation is supportive with a reasonable P/E and a solid dividend yield. Corporate updates are positive, but the loan-mix shift toward CRE/residential adds risk.

Positive Factors

Strong revenue & free cash flow

Double-digit TTM revenue growth with FCF up ~125% shows durable cash generation. Sustained free cash flow supports organic investment, dividend funding, and merger integration costs, improving long-term financial flexibility and the ability to pursue strategic growth without overreliance on external capital.

Very low leverage / strong balance sheet

A debt-to-equity of ~0.06 signals a conservative capital structure, reducing funding risk and interest burden. This strong balance-sheet footing increases resilience to credit cycles, supports lending capacity, and provides headroom for opportunistic M&A or capital returns over the medium term.

Scale expansion via merger and deposits

The Fentura merger and asset base (~$4.4B) materially increase market presence and deposit funding, enabling better loan diversification and operating leverage. Greater scale improves competitiveness in Michigan community banking and supports longer-term revenue diversification and cost-synergy realization.

Negative Factors

Declining profit margins

Falling gross and net margins, despite revenue growth, indicate margin compression that can erode sustainable profitability. Over time this constrains retained earnings and slows capital accumulation, forcing tougher tradeoffs between lending growth, provisioning, and shareholder returns.

Modest ROE & weak operating cash conversion

A low ROE (~1.6%) signals limited effectiveness in generating shareholder returns from equity. Coupled with weak operating cash conversion, it raises concerns about earnings quality and the bank's ability to internally fund growth or dividends at attractive rates without improving asset yields or expense efficiency.

Rising CRE/residential loan concentration

A shift toward CRE and residential loans increases cyclical credit exposure and concentration risk. In downturns or property-market stress, higher CRE/residential shares can amplify loss rates and capital strain, requiring larger provisions and potentially constraining lending and strategic initiatives.

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

Strong TTM revenue growth (+14.21%) and very strong free cash flow growth (+125.21%) support the score, alongside low leverage (debt-to-equity 0.06). Offsetting factors include declining profit margins and modest ROE (1.59%), plus a low operating cash flow to net income ratio.

Income Statement

ChoiceOne Financial Services has demonstrated strong revenue growth with a 14.21% increase in TTM. The gross profit margin is solid at 43.10%, although it has decreased from previous years. The net profit margin of 10.96% indicates profitability, but it has also declined from prior periods. Overall, the company shows positive revenue growth, but declining margins could be a concern.

Balance Sheet

The company's debt-to-equity ratio has improved significantly to 0.06 in TTM, indicating a strong balance sheet with low leverage. Return on equity is modest at 1.59%, suggesting room for improvement in generating returns for shareholders. The equity ratio is healthy, reflecting a stable financial position.

Cash Flow

Free cash flow growth is impressive at 125.21% in TTM, highlighting strong cash generation capabilities. The free cash flow to net income ratio is nearly 1, indicating efficient conversion of income to cash. However, the operating cash flow to net income ratio is low, suggesting potential issues in cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	203.18M	139.10M	113.89M	89.13M	83.81M	78.41M
Gross Profit	128.93M	91.81M	80.64M	81.14M	79.42M	69.77M
EBITDA	43.91M	45.42M	38.00M	41.00M	38.92M	26.59M
Net Income	21.47M	26.73M	21.26M	23.64M	22.04M	15.61M
Balance Sheet
Total Assets	4.30B	2.72B	2.58B	2.39B	2.37B	1.92B
Cash, Cash Equivalents and Short-Term Investments	107.63M	575.52M	570.03M	573.69M	1.13B	654.31M
Total Debt	246.37M	210.75M	235.51M	85.26M	85.02M	12.42M
Total Liabilities	3.85B	2.46B	2.38B	2.22B	2.15B	1.69B
Stockholders Equity	449.62M	260.42M	195.63M	168.87M	221.67M	227.27M
Cash Flow
Free Cash Flow	36.62M	46.94M	42.25M	43.16M	34.94M	6.63M
Operating Cash Flow	41.79M	48.65M	46.48M	44.33M	37.70M	8.48M
Investing Cash Flow	183.29M	-97.91M	-181.37M	-89.81M	-521.37M	-250.75M
Financing Cash Flow	-272.04M	90.58M	146.37M	57.54M	436.04M	262.23M

ChoiceOne Financial Services Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 30.02
• 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 30.02 is above the 20-day moving average (MA) of 28.86, above the 50-day MA of 29.91, and above the 200-day MA of 29.01, indicating a bullish trend. The MACD of 0.07 indicates Negative momentum. The RSI at 58.45 is Neutral, neither overbought nor oversold. The STOCH value of 79.54 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
AROW	75 Outperform	$590.28M	13.55	8.49%	3.59%	6.86%	6.11%
HBCP	73 Outperform	$485.42M	10.56	10.86%	1.92%	6.25%	24.92%
COFS	73 Outperform	$457.47M	15.15	6.16%	3.69%	50.36%	-56.64%
BWB	71 Outperform	$547.01M	13.30	8.63%	―	13.96%	25.74%
GCBC	69 Neutral	$414.77M	11.35	14.53%	1.63%	13.16%	37.40%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
FFWM	49 Neutral	$538.75M	-3.41	-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.

ChoiceOne Financial Updates Investor Presentation Materials

ChoiceOne Financial Services, Inc. announced that it will be using new presentation materials in meetings with investors starting November 6, 2025. This move is likely aimed at enhancing investor relations and providing updated insights into the company’s operations and strategic direction.

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.