City Holding Company
City Holding Company Fundamental Analysis
City Holding Company (CHCO) shows strong financial fundamentals with a PE ratio of 13.94, profit margin of 33.28%, and ROE of 16.68%. The company generates $0.4B in annual revenue with strong year-over-year growth of 11.01%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 69.9/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze CHCO's fundamental strength across five key dimensions:
Efficiency Score
WeakCHCO struggles to generate sufficient returns from assets.
Valuation Score
ModerateCHCO shows balanced valuation metrics.
Growth Score
ModerateCHCO shows steady but slowing expansion.
Financial Health Score
ModerateCHCO shows balanced financial health with some risks.
Profitability Score
ExcellentCHCO achieves industry-leading margins.
Key Financial Metrics
Is CHCO Expensive or Cheap?
P/E Ratio
CHCO trades at 13.94 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, CHCO's PEG of 5.05 indicates potential overvaluation.
Price to Book
The market values City Holding Company at 2.25 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 8.48 times EBITDA. This is generally considered low.
How Well Does CHCO Make Money?
Net Profit Margin
For every $100 in sales, City Holding Company keeps $33.28 as profit after all expenses.
Operating Margin
Core operations generate 41.46 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $16.68 in profit for every $100 of shareholder equity.
ROA
City Holding Company generates $1.94 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
City Holding Company generates strong operating cash flow of $131.29M, reflecting robust business health.
Free Cash Flow
City Holding Company generates strong free cash flow of $128.37M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $8.95 in free cash annually.
FCF Yield
CHCO converts 7.09% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
13.94
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
5.05
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.25
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.64
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.64
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.03
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.17
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How CHCO Stacks Against Its Sector Peers
| Metric | CHCO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 13.94 | 19.21 | Better (Cheaper) |
| ROE | 16.68% | 817.00% | Weak |
| Net Margin | 33.28% | -464.00% (disorted) | Strong |
| Debt/Equity | 0.64 | 12.73 | Strong (Low Leverage) |
| Current Ratio | 0.03 | 659.50 | Weak Liquidity |
| ROA | 1.94% | -24814.00% (disorted) | Weak |
CHCO outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews City Holding Company's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
58.34%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
45.68%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
39.57%
Industry Style: Value, Dividend, Cyclical
High Growth