COFS

ChoiceOne Financial Servs

Fundamental data last updated:April 13, 2026

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company profile

SECTOR

Financial Services

industry

Banks - Regional

Exchange

Nasdaq

County of HQ

United States

Next Earnings Date

04/29/26

Business Summary

ChoiceOne Financial Services operates as a regional banking institution, generating revenue primarily through net interest income and spread capture between deposits and loans, supplemented by fee-based banking services. Its economic engine depends on disciplined credit underwriting, local market relationships, and balance sheet management rather than scale-driven national dominance. Cash flow is created through prudent loan growth and maintaining spreads wide enough to cover operating costs, currently reflected in a 6.10% operating margin. The moat is relationship-based and geographic, relying on customer stickiness and community presence rather than structural pricing power.

 


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VALUATION

P/E

15

Market Cap ($M USD)

$449

Forward P/E

8.2

PEG

1.5

PRICE TO SALES

2.6

PRICE TO BOOK

1

EV / EBITDA

-

5-Year Average P/E

Free Cash Flow Yield

DCF Value

Graham Number

Price to FCF

EV to FCF

Earnings Yield

FCF Yield

DIVIDEND

Yield

3.80%

Annual Payout

$1.16

Payout Ratio

55.90%

Consecutive Years of Dividend Growth

10+

5-Year Dividend Growth Rate

5.70%

Financial Health & Profitability

Earnings Per Share

$2.02

Next Year EPS Growth Estimate

$3.67

Next Year Revenue Growth Estimate

4.60%

Return on Equity (ROE)

6.10%

FREE CASH FLOW

Operating Margin

41.00%

Debt-to-Equity

0.7

Piotroski F-Score

7

Altman Z-Score

0.2

Return on Invested Capital (ROIC)

12.10%

Current Ratio

-

Quick Ratio

Net Debt to EBITDA

Interest Coverage

Gross Profit margin

FCF PER SHARE

REVENUE PER SHARE

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Gainseekers Quantitative Analysis

Summary

At 15x earnings and just 8.2x forward earnings, the stock screens optically cheap, but the 0.2 Altman Z-Score is a flashing red distress signal that overwhelms the surface-level valuation appeal. A forward PEG of 1.5 suggests growth is not dramatically undervalued relative to expectations, so this is not a screaming growth bargain despite the compressed multiple. With ROE at only 4.60% and operating margin at 6.10%, profitability is mediocre, which likely explains why the market is not assigning a premium multiple. This is a statistically inexpensive regional bank with improving forward optics, but the balance sheet risk implied by the Altman score makes it a high-risk value play rather than a clean GARP opportunity.

AI Exposure / Tech Reliance

As a regional bank in Financial Services, the company’s AI exposure is primarily operational rather than product-driven, centered on underwriting automation, fraud detection, and cost efficiency. Technology adoption in this industry directly affects operating margin, which at 6.10% leaves room for efficiency gains if management executes well. However, banks of this size typically lack the capital scale to be technology leaders, making adaptation necessary but not necessarily a competitive differentiator.

The Bull Case

A disciplined value investor could argue the setup is compelling: a 7 Piotroski F-Score signals solid fundamental health trends, while ROIC at 12.10% meaningfully exceeds ROE at 4.60%, suggesting capital deployment efficiency that could translate into future equity returns. The forward P/E of 8.2 against a current P/E of 15 implies earnings expansion, reinforced by estimated EPS next year of $2.02. Price-to-book at 1 indicates the market is valuing the bank roughly at its net asset base, limiting multiple compression risk if asset quality stabilizes. Add in a modest short interest of 5.70% and 33.00% institutional ownership, and you have a moderately followed small-cap financial that could rerate higher if operating margin expands from 6.10% and forward estimates are met.

The Bear Case

The bear case is rooted in structural fragility: a 0.2 Altman Z-Score is distress-level territory, and a Debt/Equity ratio of 41.00% adds balance sheet sensitivity in a cyclical industry. ROE of 4.60% is weak for a bank, signaling subpar shareholder return generation, while the PEG Forward of 1.5 implies growth is not cheap enough to compensate for the risk profile. Short interest at 5.70% is not extreme but reflects measurable skepticism. When profitability is thin and financial stability metrics are flashing red, even a low forward multiple can be a value trap.

Market Sentiment & Smart Money

Short Interest %

1.40%

Analyst Consensus

2

Average Analyst Price Target

$33.00

Institutional Ownership %

40.90%

1-Year Beta

0.86

Insider Buying % (6 Mo)

6.20%%

Distance to 52-Week High

84.80%

Distance to 52-Week Low

120.70%

EARNINGS SURPRISE %

50-DAY SMA

200-DAY SMA

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.