Eagle Financial Services (EFSI) AI Stock Analysis

• Market Cap: $205.97M
• Dividend Yield: 3.11%
• Average Volume (3M): 19.01K
• Price to Earnings (P/E): 24.1
• Beta (1Y): 0.27
• 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: 0.14
• Price to Book (P/B): 1.09
• Price to Sales (P/S): 1.22
• P/FCF Ratio: 7.29
• Enterprise Value/Market Cap: 0.93
• Enterprise Value/Revenue: 1.88
• Enterprise Value/Gross Profit: 3.18
• Enterprise Value/Ebitda: 14.39
• 1Y Price Target: $43.00
• Price Target Upside: 12.24% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: $43.00 ▲(12.24% Upside)

The score is driven primarily by mixed financial performance—strong cash generation and reduced leverage offset by a notable TTM decline in revenue and profitability/returns. Technicals add support with a constructive uptrend, while valuation is fair with a moderate P/E and a ~3.1% yield. Recent corporate events are incrementally positive due to governance upgrades and strategic balance-sheet actions.

Positive Factors

Strong cash generation

Sustained free cash flow roughly matching net income provides durable financial flexibility: it funds dividends, debt reduction, and strategic investments without relying on equity issuance. Reliable cash conversion reduces refinancing risk and supports multi-quarter execution of growth plans.

Improved balance-sheet leverage

Meaningful deleveraging materially lowers solvency and funding risk, improving capital cushions and lending capacity. A stronger capital structure increases resilience to credit cycles, provides flexibility for targeted acquisitions or returns, and supports steady operations over the medium term.

Governance and strategic repositioning

Board refresh brings expertise in technology, risk oversight and complex accounting during a strategic transition (uplisting, capital raise). Stronger governance should improve execution of strategic initiatives, risk controls and reporting quality over the next several quarters.

Negative Factors

Sharp revenue decline

A near-30% top-line drop and margin compression materially reduce the firm’s core earnings power, limiting reinvestment capacity and making dividend and capital-return plans more vulnerable. Persistent revenue weakness would strain long-term profitability and strategic optionality.

Collapsed return on equity

Very low ROE signals poor capital efficiency and weak profitability relative to equity base; this undermines shareholder returns and may force management to reprice risk, cut costs, or pursue structural changes to lift long-term returns, constraining growth decisions.

Rising noninterest costs and revenue mix risk

Higher operating expenses coupled with a greater dependence on fee-based income increases earnings volatility and compresses sustainable margins. If fee inflows or wealth volumes slow, elevated expense levels could persistently weigh on profitability and cash returns over multiple quarters.

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 generates revenue through multiple streams, primarily from fees and commissions related to its financial advisory services and investment management. The company charges asset management fees based on the total assets under management (AUM) for its investment portfolios. Additionally, EFSI earns commission income from insurance brokerage activities and financial product sales, including life, health, and property insurance. The firm may also receive performance-based fees tied to the success of its investment strategies. Strategic partnerships with financial institutions and technology providers enhance its service offerings and contribute to its earnings by expanding its market reach and operational efficiency.

Eagle Financial Services Financial Statement Overview

Summary

Mixed fundamentals: strong TTM operating/free cash flow ($22.9M/$22.6M) and improved leverage (debt-to-equity ~0.38) support stability, but TTM profitability weakened with revenue down ~28%, net margin compressing to ~6%, and ROE falling to ~2.7%.

Income Statement

Profitability has weakened meaningfully in TTM (Trailing-Twelve-Months): revenue fell about 28% versus the prior period and net margin compressed to ~6% (from ~14% in 2024). While the company remains profitable and still posts positive operating earnings, the step-down in revenue and margins versus 2022–2024 highlights a less favorable earnings trajectory and higher sensitivity to the rate/credit cycle typical for regional banks.

Balance Sheet

Leverage has improved substantially: debt-to-equity declined to ~0.38 in TTM (Trailing-Twelve-Months) from ~1.26 in 2024 and ~1.79–2.01 in 2022–2023, which reduces balance-sheet risk. However, returns on equity also dropped sharply to ~2.7% in TTM (Trailing-Twelve-Months) from ~12.9% in 2024, suggesting the stronger capital/leverage position is currently coming with much weaker profitability.

Cash Flow

Cash generation is a relative bright spot: TTM (Trailing-Twelve-Months) operating cash flow and free cash flow were strong ($22.9M and $22.6M), and free cash flow grew ~8%. Free cash flow is also roughly in line with net income (near 1x), indicating earnings are generally supported by cash. The main watch item is that cash flow metrics have been more volatile across years (notably weaker in 2023), which can happen in banking due to working-capital and balance-sheet movements.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	102.23M	105.92M	95.92M	66.73M	52.66M	46.62M
Gross Profit	60.35M	63.28M	61.43M	59.43M	49.50M	41.88M
EBITDA	13.35M	19.88M	11.63M	18.65M	13.78M	14.34M
Net Income	10.07M	15.34M	9.36M	14.52M	11.02M	11.17M
Balance Sheet
Total Assets	1.93B	1.87B	1.83B	1.62B	1.30B	1.13B
Cash, Cash Equivalents and Short-Term Investments	226.66M	176.72M	249.51M	216.05M	256.16M	244.65M
Total Debt	69.66M	149.51M	194.44M	237.36M	0.00	4.11M
Total Liabilities	1.75B	1.75B	1.72B	1.51B	1.19B	1.03B
Stockholders Equity	185.58M	118.99M	108.38M	101.73M	110.28M	105.07M
Cash Flow
Free Cash Flow	21.44M	17.74M	5.80M	12.98M	15.94M	10.55M
Operating Cash Flow	22.89M	18.76M	6.88M	13.81M	16.46M	11.01M
Investing Cash Flow	37.44M	16.75M	-130.28M	-331.34M	-193.22M	-201.47M
Financing Cash Flow	26.61M	19.30M	194.87M	320.35M	160.91M	236.73M

Eagle Financial Services Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 38.31
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EFSI, the sentiment is Neutral. The current price of 38.31 is below the 20-day moving average (MA) of 39.48, below the 50-day MA of 38.89, and above the 200-day MA of 34.88, indicating a neutral trend. The MACD of -0.06 indicates Positive momentum. The RSI at 39.66 is Neutral, neither overbought nor oversold. The STOCH value of 16.09 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for EFSI.

Eagle Financial Services Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OPBK	70 Outperform	$208.10M	8.13	10.99%	3.32%	9.10%	12.36%
HWBK	69 Neutral	$244.25M	10.32	14.27%	2.39%	0.16%	258.06%
VABK	69 Neutral	$220.69M	11.53	10.41%	3.41%	1.11%	14.44%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
EFSI	67 Neutral	$205.97M	24.09	6.63%	3.11%	-1.45%	-31.32%
FRAF	67 Neutral	$228.48M	10.76	9.91%	2.51%	12.06%	10.38%
FXNC	66 Neutral	$237.44M	13.42	7.36%	2.49%	48.94%	11.61%

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.