Eagle Financial Services (EFSI) AI Stock Analysis

• Market Cap: $174.79M
• Dividend Yield: 3.11%
• Average Volume (3M): 19.01K
• Price to Earnings (P/E): 12.3
• Beta (1Y): 0.31
• Revenue Growth: -1.45%
• EPS Growth: -31.32%
• Country: US
• Employees: 225
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.81
• Shares Outstanding: 5,376,346
• 10 Day Avg. Volume: 8,761
• 30 Day Avg. Volume: 19,012
• PEG Ratio: -0.41
• Price to Book (P/B): 1.13
• Price to Sales (P/S): 2.04
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.31
• Enterprise Value/Revenue: 2.19
• Enterprise Value/Gross Profit: 3.55
• Enterprise Value/Ebitda: 21.80
• 1Y Price Target: $43.00
• Price Target Upside: 32.27% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 3.99
• Revenue Forecast (FY): $86.55M

• Rating: 53 Neutral
• Price Target: $33.00 ▲(1.51% Upside)
• Action: Reiterated Date: 03/17/26
• Date: Action: Reiterated 03/17/26

The score is held back mainly by deteriorating cash flow (OCF at $0 and negative free cash flow) and a clear technical downtrend (price below major moving averages with very weak momentum). Offsetting factors include improved leverage on the balance sheet, a moderate P/E with a solid dividend yield, and generally positive recent corporate developments.

Positive Factors

Balance Sheet Leverage

A materially lower debt-to-equity ratio indicates a stronger capital posture and reduced financial risk. This improved leverage gives the bank more headroom to absorb shocks, support lending or strategic investments, and lowers refinancing pressure, improving medium-term resilience.

Net Interest Margin & Repositioning

Management’s repositioning—selling low-yield securities, raising capital and executing mortgage pool sales—has already lifted net interest margin. These are structural actions that increase recurring net interest income potential and liquidity, supporting sustainable margin expansion if loan yields and spreads persist.

Board & Governance Strengthening

Adding directors with public-company accounting, technology and risk oversight experience improves governance and strategic oversight. Better board expertise can raise execution quality on capital markets access, reporting, risk controls and digital initiatives, supporting steadier execution over the medium term.

Negative Factors

Operating Cash Flow Deterioration

A collapse in operating cash flow and negative free cash flow indicate weak cash conversion versus reported earnings. This undermines the firm’s ability to self-fund dividends, loan growth or buybacks, increases reliance on external funding, and represents a durable liquidity and sustainability concern.

Profitability Compression

Sharp compression in net income and margins reduces internal capital generation and highlights pressure on core franchise profitability. Unless margin gains from asset repositioning and NII are sustained, lower profitability will persistently limit reinvestment, dividend sustainability and return restoration.

Reduced Return on Equity

A substantially lower ROE signals reduced capital efficiency and weaker shareholder returns. Even with lighter leverage improving safety, persistent low ROE can constrain strategic flexibility and investor support unless earnings recover materially, making medium-term value creation more difficult.

Eagle Financial Services Business Overview & Revenue Model

Company Description

Eagle Financial Services, Inc. operates as the bank holding company for Bank of Clarke County that provides various retail and commercial banking products and services in the Shenandoah Valley and Northern Virginia. The company's deposit products include checking, NOW, money market, and regular savings accounts; and demand and time deposits. Its loan portfolio comprises one-to-four-family residential real estate, commercial real estate, construction and land development, and commercial and industrial loans, as well as secured and unsecured consumer loans, which include personal installment loans, personal lines of credit, automobile loans, and credit card loans. The company also offers personal and retirement plan services; investment services comprising tax-deferred annuities, IRAs and rollovers, mutual funds, retirement plans, college savings plans, life insurance, long term care insurance, fixed income investing, brokerage CDs, and full service or discount brokerage services; non-deposit investment products; and title insurance products. In addition, it provides ATM and debit cards; and telephone, internet, and mobile banking services, as well as other commercial deposit account services, such as ACH origination and remote deposit capture services. The company operates through twelve full-service branches, two loan production offices, one wealth management office, and one drive-through only facility, as well as 13 ATM locations in the Virginia communities of Berryville, Winchester, Boyce, Stephens City, Purcellville, Warrenton, Leesburg, Ashburn, and Fairfax. Eagle Financial Services, Inc. was founded in 1881 and is headquartered in Berryville, Virginia.

Eagle Financial Services Financial Statement Overview

Summary

Mixed fundamentals: the balance sheet improved materially (debt-to-equity ~0.37 vs ~1.26 last year), but profitability weakened (TTM net income down to $8.2M from $15.3M and net margin fell to ~7.9% from ~14.5%). The biggest concern is cash generation: operating cash flow reported at $0 and free cash flow turned negative (-$2.5M) versus ~$17.7M previously.

Income Statement

TTM (Trailing-Twelve-Months) revenue is essentially flat versus the last annual period (down slightly), and profitability has compressed materially: net income fell to $8.2M from $15.3M, with net margin declining to ~7.9% from ~14.5%. While revenue growth is still positive over the longer run, the sharp step-down in operating and net profitability in TTM (Trailing-Twelve-Months) is a key weakness.

Balance Sheet

Leverage has improved significantly, with debt-to-equity down to ~0.37 in TTM (Trailing-Twelve-Months) from ~1.26 last year (and much higher levels in 2022–2023), indicating a materially stronger capital posture. The trade-off is weaker shareholder returns: return on equity fell to ~4.5% in TTM (Trailing-Twelve-Months) versus ~12.9% in the last annual period, reflecting lower profitability despite a more conservative balance sheet.

Cash Flow

Cash generation deteriorated sharply in TTM (Trailing-Twelve-Months): operating cash flow is reported at $0 and free cash flow turned negative (-$2.5M) versus strong positive free cash flow (~$17.7M) in the last annual period. This disconnect versus positive net income (cash flow not keeping pace with earnings) is the primary concern and raises questions around cash conversion and sustainability of shareholder-friendly uses of cash.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	104.54M	105.92M	95.92M	66.73M	52.66M
Gross Profit	64.45M	63.28M	61.43M	59.43M	49.50M
EBITDA	9.93M	19.88M	11.63M	18.65M	13.78M
Net Income	8.21M	15.34M	9.36M	14.52M	11.02M
Balance Sheet
Total Assets	1.89B	1.87B	1.83B	1.62B	1.30B
Cash, Cash Equivalents and Short-Term Investments	137.27M	176.72M	249.51M	216.05M	256.16M
Total Debt	69.58M	149.51M	194.44M	237.36M	0.00
Total Liabilities	1.70B	1.75B	1.72B	1.51B	1.19B
Stockholders Equity	188.84M	118.99M	108.38M	101.73M	110.28M
Cash Flow
Free Cash Flow	0.00	17.74M	5.80M	12.98M	15.94M
Operating Cash Flow	0.00	18.76M	6.88M	13.81M	16.46M
Investing Cash Flow	0.00	16.75M	-130.28M	-331.34M	-193.22M
Financing Cash Flow	0.00	19.30M	194.87M	320.35M	160.91M

Eagle Financial Services Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 32.51
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EFSI, the sentiment is Negative. The current price of 32.51 is below the 20-day moving average (MA) of 35.48, below the 50-day MA of 37.62, and below the 200-day MA of 35.55, indicating a bearish trend. The MACD of -1.54 indicates Positive momentum. The RSI at 17.30 is Positive, neither overbought nor oversold. The STOCH value of 27.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EFSI.

Eagle Financial Services Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FRAF	73 Outperform	$223.20M	10.64	9.91%	2.51%	12.06%	10.38%
OPBK	69 Neutral	$195.66M	7.44	11.75%	3.32%	9.10%	12.36%
VABK	69 Neutral	$213.57M	11.15	11.02%	3.41%	1.11%	14.44%
HWBK	68 Neutral	$231.14M	10.24	14.66%	2.39%	0.16%	258.06%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
FXNC	66 Neutral	$238.88M	10.33	9.98%	2.49%	48.94%	11.61%
EFSI	53 Neutral	$174.79M	12.33	6.63%	3.11%	-1.45%	-31.32%

Eagle Financial Services Corporate Events

Eagle Financial Services Announces Board Leadership Transition

On January 21, 2026, Eagle Financial Services, Inc. announced that its Board of Directors had appointed Brian T. Strosser and Susan D. Davies as new directors of both the company and its subsidiary, Bank of Clarke, effective February 25, 2026, adding substantial expertise in strategic governance, technology-sector leadership, risk oversight, and complex public-company accounting and reporting. The same day, long-serving director Robert W. Smalley, Jr., a key figure in the bank’s development over more than 35 years through roles including Vice Chair and chairing and serving on key committees, notified the board of his intention to retire at the company’s 2026 annual shareholders’ meeting, signaling a significant transition in board composition that blends seasoned continuity with fresh operational and financial oversight capabilities.

The most recent analyst rating on (EFSI) stock is a Hold with a $43.00 price target. To see the full list of analyst forecasts on Eagle Financial Services stock, see the EFSI Stock Forecast page.

Eagle Financial Services Reports Q4 Results, Highlights 2025 Transformation

On January 26, 2026, Eagle Financial Services reported fourth quarter 2025 net income of $4.3 million, down from $5.6 million in the prior quarter and $6.2 million a year earlier, with earnings per share of $0.81, annualized return on average equity of 9.18% and return on average assets of 0.91%. The year-ago quarter’s results were elevated by a one-time gain from a 2024 sale-leaseback transaction; excluding that, adjusted fourth quarter 2024 net income was $3.1 million, meaning underlying earnings rose year over year, driven by a $2.9 million increase in net interest income and a $919,000 rise in wealth management fee income, partly offset by $2.0 million higher noninterest expenses. Fourth quarter 2025 performance was supported by higher noninterest income to average assets (up to 1.12%), a 25.8% quarter-over-quarter increase in wealth management fee income to $2.3 million, and an improved net interest margin of 3.61% as loan yields and net interest spread both expanded. Management highlighted 2025 as a pivotal year marked by a capital raise, balance sheet repositioning, a sale of lower-yielding securities in favor of higher-yielding instruments, a pool sale of mortgage loans to bolster liquidity ahead of a public offering, and an uplisting to Nasdaq, all of which strengthened the balance sheet, enhanced net interest margin and return on assets, and are intended to position the franchise for sustained growth and competitiveness.

The most recent analyst rating on (EFSI) stock is a Hold with a $42.00 price target. To see the full list of analyst forecasts on Eagle Financial Services stock, see the EFSI Stock Forecast page.

Eagle Financial Services Declares Dividend, Schedules Earnings Call

On January 21, 2026, Eagle Financial Services, Inc. declared a regular cash dividend of $0.31 per common share, payable on February 13, 2026, to shareholders of record as of February 2, 2026, underscoring the company’s ongoing capital return to investors. The company also set January 26, 2026, as the date it will release financial results for the quarter and year ended December 31, 2025, and announced plans to host a listen-only conference call and webcast on January 27, 2026, to discuss fourth-quarter performance, signaling upcoming visibility into its recent operating and financial trends for shareholders and analysts.

The most recent analyst rating on (EFSI) stock is a Buy with a $44.00 price target. To see the full list of analyst forecasts on Eagle Financial Services stock, see the EFSI Stock Forecast page.