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Chemung Financial (CHMG)
NASDAQ:CHMG
US Market

Chemung Financial (CHMG) AI Stock Analysis

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Chemung Financial

(NASDAQ:CHMG)

71Outperform
Chemung Financial shows strong financial fundamentals with revenue growth and stable profitability. The balance sheet is robust, but cash flow concerns may need addressing. Technical indicators are mixed, with potential overbought conditions. The stock appears undervalued with an attractive dividend yield, supporting a moderately positive outlook.

Chemung Financial (CHMG) vs. S&P 500 (SPY)

Chemung Financial Business Overview & Revenue Model

Company DescriptionChemung Financial Corporation (CHMG) is a financial holding company headquartered in Elmira, New York. It operates primarily through its principal subsidiary, Chemung Canal Trust Company, which provides a wide range of financial services. These services include personal and commercial banking, wealth management, and investment services. The company targets individual, business, and municipal customers, primarily across the Southern Tier of New York and Northern Tier of Pennsylvania.
How the Company Makes MoneyChemung Financial Corporation generates revenue primarily through its banking and financial services. The company's key revenue streams include interest income from loans and investment securities, fees for banking services, and income from wealth management and investment advisory services. The interest income is generated from various types of loans, including commercial, residential, and consumer loans. Another significant source of revenue is non-interest income, which comes from service charges on deposit accounts, trust and investment services, and other fee-based services. The company benefits from strong customer relationships within its regional market and strategic partnerships that enhance its service offerings and market reach.

Chemung Financial Financial Statement Overview

Summary
Chemung Financial displays solid financial health with strong revenue growth and profitability margins. The balance sheet is stable, supported by low leverage and good equity growth. However, cash flow performance has weakened, which may impact liquidity if not addressed.
Income Statement
78
Positive
Chemung Financial has demonstrated strong revenue growth, with total revenue increasing from $95.74M in 2023 to $141.75M in the TTM period. The gross profit margin is robust, standing at approximately 74.34% for the TTM. The net profit margin for the TTM is 15.21%, indicating good profitability. However, there is a slight decline in EBIT and EBITDA margins compared to previous periods, reflecting rising operational costs.
Balance Sheet
82
Very Positive
The balance sheet of Chemung Financial shows a stable financial position with an equity ratio of 7.95% in the TTM, though slightly lower than in previous years. The debt-to-equity ratio is low at 0.27 for the TTM, indicating conservative leverage. Return on equity (ROE) is strong at 9.77%, reflecting efficient use of equity to generate profits. The company's equity has grown over time, supporting financial stability.
Cash Flow
70
Positive
The cash flow statement shows a decline in operating cash flow from $30.88M in 2023 to $5.62M in the TTM, which may raise concerns about cash generation efficiency. Free cash flow has also decreased, with a growth rate of -81.53% compared to the previous period. The operating cash flow to net income ratio is low at 0.26, indicating a need for improved cash conversion. Despite these challenges, the company maintains positive free cash flow.
Breakdown
TTMDec 2023Dec 2022Dec 2021Dec 2020Dec 2019
Income StatementTotal Revenue
141.75M95.74M94.61M88.42M82.87M79.90M
Gross Profit
105.39M95.74M94.61M88.42M82.87M79.90M
EBIT
28.46M31.50M44.19M33.76M23.87M19.04M
EBITDA
29.27M34.30M39.91M37.26M28.13M23.48M
Net Income Common Stockholders
21.56M25.00M28.78M26.43M19.26M15.61M
Balance SheetCash, Cash Equivalents and Short-Term Investments
372.23M630.17M688.46M819.01M663.15M405.99M
Total Assets
1.76B2.71B2.65B2.42B2.28B1.79B
Total Debt
4.30M40.80M201.57M25.86M11.11M12.17M
Net Debt
-125.67M3.95M145.70M-1.12M-97.42M-109.73M
Total Liabilities
1.59B2.52B2.48B2.21B2.08B1.61B
Stockholders Equity
165.03M195.24M166.39M211.46M199.70M182.63M
Cash FlowFree Cash Flow
5.62M30.42M34.62M35.09M27.79M25.52M
Operating Cash Flow
5.62M30.88M35.05M35.46M28.66M26.41M
Investing Cash Flow
-43.35M-82.38M-252.62M-242.48M-495.85M-32.71M
Financing Cash Flow
21.04M32.48M246.46M125.47M453.82M-1.76M

Chemung Financial Technical Analysis

Technical Analysis Sentiment
Negative
Last Price48.81
Price Trends
50DMA
49.26
Negative
100DMA
49.84
Negative
200DMA
47.66
Positive
Market Momentum
MACD
-0.47
Positive
RSI
42.31
Neutral
STOCH
27.76
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CHMG, the sentiment is Negative. The current price of 48.81 is below the 20-day moving average (MA) of 50.35, below the 50-day MA of 49.26, and above the 200-day MA of 47.66, indicating a neutral trend. The MACD of -0.47 indicates Positive momentum. The RSI at 42.31 is Neutral, neither overbought nor oversold. The STOCH value of 27.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CHMG.

Chemung Financial Risk Analysis

Chemung Financial disclosed 39 risk factors in its most recent earnings report. Chemung Financial reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Chemung Financial Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
71
Outperform
$232.27M9.6711.53%2.58%9.42%-6.09%
71
Outperform
$2.37B10.119.72%3.88%9.95%-11.02%
68
Neutral
$86.56M8.879.70%3.24%13.06%9.31%
67
Neutral
$683.27M19.034.78%4.20%10.94%26.35%
65
Neutral
$850.17M10.599.62%2.71%17.70%3.88%
TMTMP
65
Neutral
$930.30M12.7710.25%3.88%41.65%668.73%
64
Neutral
$14.07B10.399.05%4.28%17.01%-7.59%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CHMG
Chemung Financial
48.81
8.02
19.66%
FFBC
First Financial Bancorp
24.85
4.56
22.47%
HBNC
Horizon Bancorp
15.63
4.42
39.43%
TMP
Tompkins Financial Corporation
64.45
19.37
42.97%
UBOH
United Bancshares
27.60
9.45
52.07%
FMBH
First Mid-Illinois Bancshares
35.45
6.62
22.96%
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.