ChoiceOne Financial Services (COFS) AI Stock Analysis

• Market Cap: $461.11M
• Dividend Yield: 3.65%
• Average Volume (3M): 62.71K
• Price to Earnings (P/E): 24.8
• Beta (1Y): 0.89
• Revenue Growth: 38.01%
• EPS Growth: -58.08%
• Country: US
• Employees: 605
• Sector: Financial
• Sector Strength: 73
• Industry: Banks - Regional
• EPS (TTM): 0.91
• Shares Outstanding: 15,015,000
• 10 Day Avg. Volume: 64,772
• 30 Day Avg. Volume: 62,713
• 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: 1.13
• Enterprise Value/Revenue: 2.94
• Enterprise Value/Gross Profit: 4.79
• Enterprise Value/Ebitda: 19.20
• 1Y Price Target: $35.00
• Price Target Upside: 15.21% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 70 Outperform
• Price Target: $34.00 ▲(11.92% Upside)

ChoiceOne Financial Services scores well due to strong technical indicators and solid financial performance, despite challenges in profitability and cash flow. The high P/E ratio is a concern, but the dividend yield provides some compensation. The absence of earnings call data and corporate events limits further insights.

Positive Factors

Revenue Growth

The significant revenue growth indicates robust business expansion, suggesting effective market penetration and product adoption, which is crucial for long-term sustainability.

Leverage Management

Improved leverage management reflects a stronger balance sheet, enhancing financial stability and flexibility, which is vital for enduring economic fluctuations.

Operational Efficiency

Maintaining healthy margins demonstrates operational efficiency, allowing the company to sustain profitability even amidst rising costs or pricing pressures.

Negative Factors

Profitability Challenges

The decline in net profit margin indicates reduced profitability, which could impact the company's ability to reinvest in growth and innovation over the long term.

Cash Flow Concerns

Negative cash flow growth suggests potential liquidity issues, which could limit the company's ability to fund operations and strategic initiatives, affecting future growth.

Rising Costs

The decrease in gross profit margin suggests rising costs or pricing pressure, which could erode profitability if not managed effectively, impacting long-term competitiveness.

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 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	177.66M	139.10M	113.89M	89.13M	83.81M	78.41M
Gross Profit	109.08M	91.81M	80.64M	81.14M	79.42M	69.77M
EBITDA	27.20M	45.42M	38.00M	41.00M	38.92M	26.59M
Net Income	14.13M	26.73M	21.26M	23.64M	22.04M	15.61M
Balance Sheet
Total Assets	4.31B	2.72B	2.58B	2.39B	2.37B	1.92B
Cash, Cash Equivalents and Short-Term Investments	635.71M	575.52M	570.03M	573.69M	1.13B	654.31M
Total Debt	246.71M	210.75M	235.51M	85.26M	85.02M	12.42M
Total Liabilities	3.88B	2.46B	2.38B	2.22B	2.15B	1.69B
Stockholders Equity	431.76M	260.42M	195.63M	168.87M	221.67M	227.27M
Cash Flow
Free Cash Flow	16.26M	46.94M	42.25M	43.16M	34.94M	6.63M
Operating Cash Flow	20.08M	48.65M	46.48M	44.33M	37.70M	8.48M
Investing Cash Flow	165.11M	-97.91M	-181.37M	-89.81M	-521.37M	-250.75M
Financing Cash Flow	-129.91M	90.58M	146.37M	57.54M	436.04M	262.23M

ChoiceOne Financial Services Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 30.38
• 50DMA: Positive
• 100DMA: Positive
• 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 Neutral. The current price of 30.38 is below the 20-day moving average (MA) of 30.50, above the 50-day MA of 29.88, and below the 200-day MA of 30.62, indicating a neutral trend. The MACD of 0.27 indicates Positive momentum. The RSI at 51.69 is Neutral, neither overbought nor oversold. The STOCH value of 29.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for COFS.

ChoiceOne Financial Services Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AROW	77 Outperform	$483.86M	16.02	7.72%	3.91%	8.36%	-2.24%
HBCP	76 Outperform	$436.78M	10.70	10.55%	1.93%	8.03%	15.18%
GCBC	75 Outperform	$383.95M	12.33	14.00%	1.64%	13.07%	25.72%
BWB	74 Outperform	$452.50M	13.57	8.31%	―	12.19%	12.88%
COFS	70 Outperform	$461.11M	24.76	4.37%	3.65%	38.01%	-58.08%
Sector *	68 Neutral	$17.85B	11.54	9.95%	3.76%	9.70%	1.08%
FFWM	51 Neutral	$486.90M	―	-9.79%	0.20%	-1.29%	-1023.82%

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.