City Holding Company (CHCO) AI Stock Analysis

City Holding Company serves as the holding entity for City National Bank of West Virginia, offering a comprehensive array of financial services through a network of 94 branches. Its retail banking offerings include checking, savings, money market accounts, certificates of deposit, and individual retirement accounts. The company provides commercial and industrial lending, commercial real estate loans, residential mortgages, home equity loans, and consumer financing. It also provides treasury management, lockbox solutions, and merchant credit card services for commercial clients, alongside wealth management, corporate trust, institutional custody, and financial planning solutions.

Between FY2021 and FY2025, annual revenue increased from $228.7M to $392.1M, reflecting a 5-year revenue CAGR of 9.0%. Net income rose from $88.1M in FY2021 to $130.5M in FY2025, while diluted earnings per share grew from $5.67 to $8.94. Operating margin stood at 48.6% in FY2021 and concluded at 41.5% in FY2025. Over the trailing twelve months, revenue reached $320.5M with a profit margin of 41.1% and a return on equity of 16.8%. In the latest quarter ended June 30, 2026, quarterly revenue growth was 0.9% year-over-year, and quarterly earnings increased 2.8% year-over-year.

As of June 30, 2026, City Holding Company held $1.77B in cash and short-term investments against total debt of $527.6M, resulting in net cash of $1.25B and total assets of $6.77B. Shareholders' equity stood at $808.9M, with a debt-to-equity ratio of 0.65 and a current ratio of 0.31. In FY2025, operating cash flow reached $131.4M and free cash flow was $128.4M. Capital expenditures totaled $2.9M, while the company allocated $45.8M to share buybacks and paid $47.3M in dividends.

At $141.69 per share, City Holding Company carries a market capitalization of $1.99B and an enterprise value of $2.25B. The stock trades at a trailing P/E of 15.5x and a forward P/E of 16.4x, higher than the median of its US-listed Financial Services peers of 12.1x and 10.8x, respectively. Its price-to-sales ratio is 6.2x compared to the peer median of 3.2x. Over the past year, CHCO generated a 24.5% return, outperforming the S&P 500's 16.8% return, while its 5-year return of 113.2% beat the benchmark's 83.0%.

City Holding Company pays a quarterly dividend with an annual forward dividend of $4.00, representing a dividend yield of 2.82%. The company has paid consecutive dividends for 25 years and achieved a 5-year annualized dividend growth rate of 7.3%. Its payout ratio is 39.5%, supported by $128.4M of free cash flow generated in FY2025.

All 5 analysts covering City Holding Company assign the stock a Hold rating. The mean price target of $142.40 indicates upside of 0.5% relative to the last close of $141.69. For the fiscal year ending December 31, 2026, consensus expectations anticipate revenue of $328.4M and EPS of $9.28. CHCO beat EPS estimates in 3 of the last 4 quarters, and its next earnings date is October 28, 2026.

This page is an AI-written research summary of City Holding Company (CHCO). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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