Eagle Financial Services (EFSI) AI Stock Analysis

• Market Cap: $174.27M
• Dividend Yield: 3.77%
• Average Volume (3M): 41.59K
• Price to Earnings (P/E): 7.5
• Beta (1Y): 0.09
• Revenue Growth: 11.19%
• EPS Growth: 62.65%
• Country: US
• Employees: 225
• Sector: Financial
• Sector Strength: 83
• Industry: Banks - Regional
• EPS (TTM): 4.32
• Shares Outstanding: 5,378,653
• 10 Day Avg. Volume: 25,024
• 30 Day Avg. Volume: 41,587
• 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: 23.46% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

Eagle Financial Services scores well due to strong financial performance and attractive valuation metrics, including a low P/E ratio and solid dividend yield. While technical analysis shows moderate momentum, the financial strength and valuation provide a strong foundation for potential growth. However, attention to cash flow management and operational efficiencies is necessary to sustain future performance.

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: Positive
• Last Price: 32.40
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EFSI, the sentiment is Positive. The current price of 32.4 is above the 20-day moving average (MA) of 31.62, above the 50-day MA of 32.25, and below the 200-day MA of 33.07, indicating a neutral trend. The MACD of -0.15 indicates Negative momentum. The RSI at 54.64 is Neutral, neither overbought nor oversold. The STOCH value of 87.08 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EFSI.

Eagle Financial Services Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EFSI	75 Outperform	$174.27M	7.52	13.50%	3.77%	11.19%	62.65%
FCCO	72 Outperform	$182.82M	12.12	27.79%	2.48%	19.34%	38.96%
WNEB	66 Neutral	$190.21M	17.42	4.65%	3.06%	8.70%	-10.56%
BCBP	65 Neutral	$145.20M	58.13	1.40%	7.57%	-5.71%	-90.24%
OPBK	64 Neutral	$180.91M	8.43	10.44%	3.96%	12.70%	1.31%
Sector *	63 Neutral	$12.32B	9.52	7.89%	79.24%	12.74%	-4.55%
FXNC	58 Neutral	$182.16M	20.28	4.93%	3.01%	32.97%	-24.82%

Eagle Financial Services Corporate Events

Eagle Financial Reports Q1 2025 Loss Amid Repositioning

Eagle Financial Services, Inc. announced its first quarter 2025 financial results, reporting a net loss of $7.0 million due to a $12.4 million loss on the sale of securities as part of a balance sheet repositioning. Despite the loss, the company experienced strong core deposit growth and reduced borrowings, positioning itself for future shareholder value improvement. The company also completed a public offering, raising $53.5 million, and announced a quarterly dividend of $0.31 per share. Additionally, Cary Nelson was appointed as the new Chair of the Board, succeeding Tom Gilpin.

Spark’s Take on EFSI Stock

According to Spark, TipRanks’ AI Analyst, EFSI is a Outperform.

Eagle Financial Services scores well due to strong financial performance and attractive valuation metrics, including a low P/E ratio and solid dividend yield. While technical analysis shows moderate momentum, the financial strength and valuation provide a strong foundation for potential growth. However, attention to cash flow management and operational efficiencies is necessary to sustain future performance.

To see Spark’s full report on EFSI stock, click here.