City Holding Co (CHCO) stock analysis

P/E above its 5-year median

City's P/E of 15.6 is above its own 5-year median of 14.4.

P/E above the industry

City's P/E of 15.6 is above the Commercial Banks median of 12.1.

P/S above the industry

City's price-to-sales of 6.18 is above the Commercial Banks median of 3.60.

P/B above the industry

City's price-to-book of 2.56 is above the Commercial Banks median of 1.29.

Trading above fair value

The share price of $142.46 is above our fair value estimate of $110.48.

Margin of safety under 20%

The price is 28.9% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew 2.9% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew 9.5% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew 2.9% over the last twelve months, against a 5-year average of 7.8% a year.

Growing slower than the industry

Revenue grew 5.8% over the last twelve months; the Commercial Banks median is 11.3%.

Company guidance

No outlook found in earnings releases from the last twelve months.

Gross margin trend

Banks and insurers do not report gross profit.

Return on equity over 15%

Return on equity was 16.6% over the last twelve months and averaged 16.2% over five years.

Return on assets over 1%

Return on assets was 2.0%; for a bank or insurer, 1% or more is considered good.

Return on equity above the industry

City's return on equity of 16.6% is above the Commercial Banks median of 11.5%.

Earnings grew over 5 years

Net income grew 7.8% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 40.5% over the last twelve months, against a 5-year average of 158%.

Net margin above the industry

City's net margin of 40.5% is above the Commercial Banks median of 30.3%.

Well capitalized

Equity is 11.5% of total assets; 8% or more is a comfortable cushion.

Loans funded by deposits

Needs loans and deposits.

Adequate loan-loss reserve

The allowance for credit losses is not reported.

Efficient operations

Non-interest expense takes 49.0% of revenue; under 60% is efficient for a bank.

Deposits growing

Deposits grew 1.9% over the past year.

Borrowings

Needs debt and equity figures.

Pays a dividend

City paid dividends worth 2.5% of the share price over the last twelve months.

Yield below Treasuries

The 2.5% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; City yields 2.5%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Covered by earnings

Dividends take 38.0% of net income.

Covered by free cash flow

Dividends take 36.2% of free cash flow.