ChoiceOne Financial Services (COFS) AI Stock Analysis

• Market Cap: $433.48M
• Dividend Yield: 3.82%
• Average Volume (3M): 83.75K
• Price to Earnings (P/E): 21.3
• Beta (1Y): 0.99
• Revenue Growth: 50.36%
• EPS Growth: -56.64%
• Country: US
• Employees: 605
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.97
• Shares Outstanding: 15,015,000
• 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: 1.20
• Enterprise Value/Revenue: 2.67
• Enterprise Value/Gross Profit: 6.19
• Enterprise Value/Ebitda: 13.54
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: $31.00 ▲(5.84% Upside)

ChoiceOne Financial Services exhibits strong revenue growth and effective leverage management, which are significant strengths. However, challenges in profitability and cash flow generation weigh on the overall score. The technical analysis suggests a neutral market sentiment, while the valuation indicates moderate pricing with limited upside. The absence of earnings call data and corporate events means these factors do not influence the score.

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 channels. The primary revenue streams include interest income from loans, such as personal loans, mortgages, and commercial lending, which constitute a significant portion of their earnings. Additionally, COFS earns non-interest income from fees associated with banking services, wealth management, and insurance products. The company may also engage in investment activities, generating returns from its investment portfolio. Strategic partnerships with other financial institutions and service providers enhance their product offerings and customer reach, contributing to overall revenue growth.

ChoiceOne Financial Services Financial Statement Overview

Summary

ChoiceOne Financial Services demonstrates strong revenue growth and effective leverage management, but faces challenges in profitability and cash flow generation. The company needs to address rising costs and improve cash flow efficiency to enhance overall financial health. Despite these challenges, the firm maintains operational efficiency and a solid capital structure, positioning it for future growth.

Income Statement

ChoiceOne Financial Services shows strong revenue growth with a 17.27% increase in TTM, indicating robust business expansion. However, the gross profit margin has decreased from 66% to 61.4% in the TTM, suggesting rising costs or pricing pressure. The net profit margin also declined significantly from 19.21% to 7.96%, reflecting reduced profitability. Despite these challenges, the company maintains a positive EBIT margin of 9.74% and EBITDA margin of 15.31%, showcasing operational efficiency.

Balance Sheet

The company's debt-to-equity ratio improved to 0.57 in the TTM, indicating better leverage management compared to previous years. However, the return on equity has decreased to 4.14%, suggesting lower profitability relative to shareholder equity. The equity ratio remains stable, reflecting a solid capital structure. Overall, the balance sheet shows a mix of strengths in leverage management but weaknesses in profitability.

Cash Flow

ChoiceOne's free cash flow growth rate is negative at -33.98% in the TTM, indicating potential cash flow challenges. The operating cash flow to net income ratio is low at 0.56%, suggesting limited cash generation from operations relative to net income. However, the free cash flow to net income ratio remains healthy at 80.97%, indicating efficient cash conversion. The cash flow statement highlights potential liquidity concerns but also strengths in cash conversion efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	195.80M	139.10M	113.89M	89.13M	83.81M	78.41M
Gross Profit	84.39M	91.81M	80.64M	81.14M	79.42M	69.77M
EBITDA	38.58M	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	643.00M	575.52M	570.03M	573.69M	1.13B	654.31M
Total Debt	246.12M	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	4.30B	260.42M	195.63M	168.87M	221.67M	227.27M
Cash Flow
Free Cash Flow	41.13M	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: 29.29
• 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 29.29 is above the 20-day moving average (MA) of 28.65, above the 50-day MA of 29.02, and above the 200-day MA of 29.08, indicating a bullish trend. The MACD of 0.21 indicates Negative momentum. The RSI at 53.72 is Neutral, neither overbought nor oversold. The STOCH value of 42.11 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
BWB	71 Outperform	$463.70M	12.80	8.63%	―	13.96%	25.74%
HBCP	70 Outperform	$416.54M	9.47	10.86%	2.07%	6.25%	24.92%
AROW	68 Neutral	$499.19M	14.60	8.49%	3.68%	6.86%	6.11%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
COFS	68 Neutral	$433.48M	21.27	6.16%	3.82%	50.36%	-56.64%
GCBC	61 Neutral	$378.00M	11.20	14.53%	1.67%	13.16%	37.40%
FFWM	41 Neutral	$430.88M	-2.67	-16.22%	―	-6.47%	-75.82%