Eagle Financial Services (EFSI) AI Stock Analysis

• Market Cap: $170.77M
• Dividend Yield: 3.87%
• Average Volume (3M): 35.96K
• Price to Earnings (P/E): 7.4
• Beta (1Y): 0.12
• Revenue Growth: 11.19%
• EPS Growth: 62.65%
• Country: US
• Employees: 234
• Sector: Financial
• Sector Strength: 78
• Industry: Banks - Regional
• EPS (TTM): 4.32
• Shares Outstanding: 5,378,653
• 10 Day Avg. Volume: 58,181
• 30 Day Avg. Volume: 35,962
• PEG Ratio: 0.12
• Price to Book (P/B): N/A
• Price to Sales (P/S): 3.29
• Price to Cash Flow (P/CF): 5.60
• P/FCF Ratio: 5.60
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $40.00
• Price Target Upside: 26.98% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

Eagle Financial Services shows strong revenue growth and a stable financial position, which are significant strengths. However, challenges in operational profitability and cash flow generation constrain the score. The stock's attractive valuation and dividend yield provide additional support, though technical indicators suggest limited immediate upside.

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.

How the Company Makes Money

Eagle Financial Services makes money primarily through management fees and commissions charged on the assets under management (AUM) in their investment portfolios. The company also generates revenue from advisory fees for personalized financial planning and wealth management services. Additionally, EFSI earns income from transaction fees and interest on financial products it offers, such as retirement accounts and investment funds. Strategic partnerships with banks and financial institutions further bolster EFSI's revenue streams by expanding its product offerings and client base.

Eagle Financial Services Financial Statement Overview

Summary

Eagle Financial Services presents strong revenue growth and gross profit margins, indicating operational efficiency. However, the net profit margin and cash flow challenges suggest areas for improvement in profitability and liquidity. The balance sheet shows moderate leverage and adequate liquidity, though reliance on liabilities could pose risks. Overall, financial performance is solid but could benefit from enhanced cash flow management and profitability.

Income Statement

Eagle Financial Services shows a solid revenue growth with a 49.55% increase in the TTM compared to the previous year. The gross profit margin stands at 88.78%, indicating strong cost management. However, the net profit margin of 12.23% suggests room for improvement in converting revenue into net income. The EBIT margin of 34.46% is robust, although a low EBITDA margin of 4.61% raises concerns about high non-operating expenses or depreciation impacting profits.

Balance Sheet

The company's debt-to-equity ratio of 1.69 indicates moderate leverage, typical for the banking industry. The return on equity (ROE) is 9.80%, reflecting adequate profitability on shareholders' investments. An equity ratio of 6.26% suggests a reliance on liabilities for asset financing, which could pose risks in volatile markets. The balance sheet shows adequate liquidity with significant cash reserves.

Cash Flow

Eagle Financial Services exhibits a declining free cash flow growth rate, with a sharp drop to a mere 0.53% in the TTM. The operating cash flow to net income ratio of 0.39 suggests some difficulty in translating net income into cash, which could affect liquidity. However, the company maintains a positive free cash flow, indicating some level of financial flexibility.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
94.41M	63.12M	61.36M	50.98M	43.34M	37.25M
	Gross Profit
83.82M	63.03M	61.36M	50.98M	43.34M	37.25M
	EBIT
32.53M	0.00	24.07M	12.79M	13.31M	11.57M
	EBITDA
4.35M	0.00	18.65M	13.78M	14.33M	12.75M
	Net Income Common Stockholders
11.55M	9.36M	14.52M	11.02M	11.17M	9.76M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
24.39M	152.86M	224.92M	257.21M	245.92M	199.61M
	Total Assets
549.55M	1.83B	1.62B	1.30B	1.13B	877.32M
	Total Debt
57.25M	199.10M	204.38M	5.29M	4.11M	3.68M
	Net Debt
49.55M	82.38M	137.85M	-58.55M	-75.58M	-29.73M
	Total Liabilities
496.50M	1.72B	1.51B	1.19B	4.11M	780.99M
	Stockholders Equity
53.05M	108.38M	101.73M	110.28M	105.07M	96.33M
Cash Flow		Free Cash Flow
61.00K	5.80M	12.98M	13.70M	10.55M	10.03M
	Operating Cash Flow
4.51M	6.88M	13.81M	14.22M	11.01M	11.35M
	Investing Cash Flow
-33.67M	-130.28M	-331.34M	-190.98M	-201.47M	-57.98M
	Financing Cash Flow
68.31M	194.87M	320.35M	160.91M	236.73M	61.94M

Eagle Financial Services Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 31.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• 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 31.5 is below the 20-day moving average (MA) of 32.61, below the 50-day MA of 33.24, and below the 200-day MA of 33.11, indicating a bearish trend. The MACD of -0.10 indicates Negative momentum. The RSI at 46.53 is Neutral, neither overbought nor oversold. The STOCH value of 47.37 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
CCBG	75 Outperform	$577.29M	10.86	11.22%	2.69%	3.47%	-1.52%
EFSI	71 Outperform	$170.77M	7.35	13.50%	3.87%	11.19%	62.65%
FSBC	67 Neutral	$538.99M	11.18	13.39%	3.16%	17.32%	-18.15%
Sector *	63 Neutral	$12.86B	9.17	9.14%	4.78%	16.41%	-10.11%
NKSH	59 Neutral	$161.38M	20.52	5.13%	5.95%	16.02%	-54.07%
BMRC	57 Neutral	$321.37M	―	-1.92%	4.99%	-16.98%	-141.53%
BYFC	56 Neutral	$52.90M	133.03	0.67%	―	20.43%	-92.31%

Eagle Financial Services Corporate Events

Eagle Financial Services Prepares for Leadership Transition

Thomas T. Gilpin, Chair of the Board of Directors at Eagle Financial Services, has announced his intention to retire at the company’s 2025 annual meeting. The Board’s Corporate Governance and Nominating Committee is planning to recommend a current director to succeed Mr. Gilpin, ensuring a smooth transition of leadership.

Eagle Financial Services Presents at Bison Select Conference

Eagle Financial Services, Inc. is set to participate in the D.A. Davidson Financial Institutions Group Virtual Bison Select Conference, where they will present their financial results and business strategies to shareholders and investors. The presentation includes forward-looking statements about future operations and financial performance, but these estimates are subject to risks and uncertainties that could cause actual results to differ significantly. Investors are advised to be cautious as the projections are not guaranteed and should not solely guide investment decisions.