C&F Financial (CFFI) AI Stock Analysis

• Market Cap: $181.46M
• Dividend Yield: 3.18%
• Average Volume (3M): 12.98K
• Price to Earnings (P/E): 9.3
• Beta (1Y): 0.89
• Revenue Growth: 10.65%
• EPS Growth: -12.80%
• Country: US
• Employees: 545
• Sector: Financial
• Sector Strength: 84
• Industry: Banks - Regional
• EPS (TTM): 6.03
• Shares Outstanding: 3,239,867
• 10 Day Avg. Volume: 16,942
• 30 Day Avg. Volume: 12,977
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.02
• Price to Cash Flow (P/CF): 1.60
• P/FCF Ratio: 1.30
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

C&F Financial Corporation demonstrates strong profitability and effective cash conversion, supported by a prudent increase in dividends. The low P/E ratio suggests potential undervaluation, making the stock attractive from a valuation perspective. However, technical indicators highlight short-term downward momentum, which could pose risks. Overall, the company's financial stability and attractive valuation outweigh the technical weaknesses, resulting in a solid stock score.

C&F Financial Business Overview & Revenue Model

Company Description

C&F Financial Corporation operates as a bank holding company for Citizens and Farmers Bank that provides banking services to individuals and businesses. The company's Retail Banking offers various banking services, including checking and savings deposit accounts, as well as business, real estate, development, mortgage, home equity, and installment loans. It also provides ATMs, Internet and mobile banking, and debit and credit cards, as well as safe deposit box rentals, notary public, electronic transfer, and other customary bank services. This segment offers its services through its main office in West Point, Virginia, as well as through 30 Virginia branches located 1 each in Albermarle, Goochland, Hanover, Middlesex, Powhatan, Stafford, York, Charlottesville, Hampton, Montross, Newport News, Richmond, Warsaw, and Williamsburg; 2 each in the counties of Cumberland, James City, King George, and New Kent; and four each in the counties of Chesterfield and Henrico. The company's Mortgage Banking segment provides various residential mortgage loans; originates conventional mortgage loans, mortgage loans insured by the Federal Housing Administration, and mortgage loans guaranteed by the United States Department of Agriculture and the Veterans Administration; and ancillary mortgage loan origination services for residential appraisals, as well as various mortgage origination functions to third parties. It provides mortgage loan origination services through 11 offices in Virginia, 1 office in Maryland, and 2 offices in North Carolina, as well as through 1 each in South Carolina and West Virginia. The company's Consumer Finance segment provides automobile loans through its offices in Richmond and Hampton, Virginia. It also offers brokerage and wealth management services; and insurance products. In addition, the company provides title and settlement agency, and insurance services. C&F Financial Corporation was founded in 1927 and is headquartered in West Point, Virginia.

How the Company Makes Money

C&F Financial Corporation generates revenue primarily through its banking operations. The company earns income from interest charged on loans and mortgages provided to individuals and businesses. It also collects fees from account maintenance, transaction processing, and other banking services. Additionally, C&F Financial benefits from investment services by offering wealth management and financial planning, which contribute to fee-based income. The bank's earnings are influenced by its ability to attract deposits from customers, which are used to fund its lending activities. Partnerships with local businesses and a focus on community banking play a significant role in the company's revenue generation strategy.

C&F Financial Financial Statement Overview

Summary

C&F Financial presents strong profitability with a high EBIT margin of 96.54% and sound cost management. The balance sheet shows conservative leverage but a low equity ratio, suggesting potential financial stability risks. Cash flow metrics are indicative of effective earnings conversion to cash, though revenue growth is moderate.

Income Statement

C&F Financial shows a strong gross profit margin of 100% and a positive net profit margin of 14.21% for 2024, indicating profitability. However, the revenue growth rate from 2023 to 2024 was 17.25%, which, while positive, is not exceptionally high. The EBIT margin is significantly high at 96.54%, indicating efficient cost management. No data for EBITDA margin was available.

Balance Sheet

The company has a low debt-to-equity ratio of 0.13 in 2024, suggesting a conservative leverage approach. The return on equity is relatively modest at 8.74%, indicating moderate profitability. The equity ratio is 8.85%, reflecting a low proportion of equity financing compared to total assets, which may present some risks in terms of financial stability.

Cash Flow

C&F Financial's free cash flow grew by 3.04% from 2023 to 2024, reflecting slight improvement in cash generation. The operating cash flow to net income ratio is 1.94, suggesting solid cash conversion. Free cash flow to net income ratio stands at 1.94, highlighting that the company is effectively converting earnings into cash.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
139.59M	119.05M	1.68M	134.53M	138.95M
	Gross Profit
139.59M	119.05M	1.68M	134.53M	138.95M
	EBIT
134.77M	39.34M	44.64M	38.08M	29.22M
	EBITDA
0.00	0.00	41.32M	42.82M	33.41M
	Net Income Common Stockholders
19.83M	23.60M	29.16M	28.67M	22.12M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
434.79M	478.83M	539.25M	640.82M	373.06M
	Total Assets
2.56B	2.44B	2.33B	2.27B	2.09B
	Total Debt
28.99M	109.54M	92.08M	90.46M	76.17M
	Net Debt
12.83M	34.38M	65.42M	-177.28M	-10.50M
	Total Liabilities
2.34B	2.22B	2.14B	2.05B	1.89B
	Stockholders Equity
226.97M	216.88M	196.23M	211.02M	194.47M
Cash Flow		Free Cash Flow
38.49M	37.35M	87.17M	152.60M	-90.60M
	Operating Cash Flow
38.49M	38.81M	90.56M	157.39M	-80.37M
	Investing Cash Flow
-148.64M	-56.34M	-411.28M	-138.69M	-183.29M
	Financing Cash Flow
100.58M	66.03M	79.64M	162.38M	184.90M

C&F Financial Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 56.01
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CFFI, the sentiment is Negative. The current price of 56.01 is below the 20-day moving average (MA) of 66.35, below the 50-day MA of 73.04, and below the 200-day MA of 64.51, indicating a bearish trend. The MACD of -1.86 indicates Positive momentum. The RSI at 38.67 is Neutral, neither overbought nor oversold. The STOCH value of 16.05 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CFFI.

C&F Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OPOF	72 Outperform	$187.61M	19.58	8.61%	1.52%	6.90%	21.84%
CFFI	70 Outperform	$181.46M	9.32	8.95%	3.18%	10.65%	-12.80%
HWBK	69 Neutral	$186.06M	10.22	14.14%	2.85%	9.65%	1820.32%
FINW	69 Neutral	$182.25M	14.58	7.51%	―	14.11%	-28.06%
Sector *	64 Neutral	$13.34B	9.25	9.42%	4.85%	16.07%	-8.44%
FVCB	59 Neutral	$183.62M	12.21	6.66%	―	22.60%	284.38%
FUNC	58 Neutral	$175.04M	8.60	12.06%	3.11%	16.56%	40.31%

C&F Financial Corporate Events

C&F Financial Increases Quarterly Dividend by 5%

On February 20, 2025, C&F Financial Corporation announced that its board of directors declared a regular cash dividend of 46 cents per share, payable on April 1, 2025. This marks a 5% increase from the previous quarter’s dividend of 44 cents per share, reflecting the board’s ongoing evaluation of economic conditions, capital requirements, and expected earnings. This decision underscores the company’s commitment to returning value to shareholders and maintaining a strong financial position.