📊 CHCO Key Takeaways
Is City Holding Co (CHCO) a Good Investment?
CHCO exhibits strong profitability metrics with exceptional ROE of 16.1% and robust free cash flow generation of $128.4M, but faces severe data quality issues that undermine confidence in the analysis. The dramatic 76.9% YoY revenue decline coupled with unusually high operating and net margins (217.4% and 175.6%) suggests data anomalies or significant one-time gains that require clarification before making investment decisions.
City Holding appears fundamentally strong for a bank, with solid earnings stability, double-digit EPS growth, and high-quality profitability reflected in 16.1% ROE and 1.9% ROA. Balance sheet leverage looks manageable, cash generation is strong, and capital spending needs are low, but the sharp reported revenue decline and unusual margin figures suggest bank-specific accounting noise or presentation issues that warrant caution on headline growth.
Why Buy City Holding Co Stock? CHCO Key Strengths
- Exceptional free cash flow generation at $128.4M with 172.9% FCF margin provides strong financial flexibility
- Solid ROE of 16.1% indicates effective capital deployment and shareholder value creation
- Conservative leverage with 0.19x debt-to-equity ratio and 4.0x interest coverage demonstrates financial stability
- Strong cash position of $191.9M provides adequate liquidity buffer
- Strong profitability with 16.1% ROE, 1.9% ROA, and modest net income growth
- EPS growth of 13.2% outpaced net income growth, indicating good capital allocation and/or share count support
- Conservative financial position with low debt-to-equity, positive operating cash flow, and strong free cash flow generation
CHCO Stock Risks: City Holding Co Investment Risks
- Severe 76.9% YoY revenue collapse indicates potential business disruption or data integrity concerns requiring urgent clarification
- Abnormally high operating margin (217.4%) and net margin (175.6%) suggest non-recurring gains, accounting adjustments, or data errors that distort true operating performance
- Limited visibility into normalized earnings quality due to questionable margin metrics and revenue volatility
- Reported revenue fell 76.9% YoY, raising questions about underlying top-line momentum or financial statement classification effects
- Interest coverage of 4.0x is adequate but not especially strong if funding costs remain elevated
- As a commercial bank, results are sensitive to credit quality deterioration, deposit competition, and regional economic weakness
Key Metrics to Watch
- Core revenue trends and organic growth excluding any one-time items or gains
- Normalized operating margins and sustainability of profitability after adjustments
- Net interest margin trends given banking sector focus
- Return on assets trajectory to assess operational efficiency
- Net interest income and net interest margin trend
- Credit quality metrics including nonperforming assets and loan loss provisions
City Holding Co (CHCO) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 172.9% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. The current ratio below 1.0x warrants monitoring of short-term liquidity.
CHCO Profit Margin, ROE & Profitability Analysis
CHCO vs Finance Sector: How City Holding Co Compares
How City Holding Co compares to Finance sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is City Holding Co Stock Overvalued? CHCO Valuation Analysis 2026
Based on fundamental analysis, City Holding Co appears fundamentally strong relative to the Finance sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
City Holding Co Balance Sheet: CHCO Debt, Cash & Liquidity
CHCO Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: City Holding Co's revenue has grown significantly by 14% over the 5-year period, indicating strong business expansion. The most recent EPS of $7.61 reflects profitable operations.
CHCO Revenue Growth, EPS Growth & YoY Performance
CHCO Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2019 | $14.6M | $16.4M | $1.33 |
| Q2 2019 | $14.2M | $18.5M | $1.35 |
| Q1 2019 | $13.5M | $9.4M | $1.13 |
| Q3 2018 | $14.6M | $13.9M | $0.89 |
| Q2 2018 | $14.2M | $14.7M | $0.94 |
| Q1 2018 | $13.5M | $9.4M | $1.04 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
City Holding Co Dividends, Buybacks & Capital Allocation
CHCO SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for City Holding Co (CIK: 0000726854)
📋 Recent SEC Filings
❓ Frequently Asked Questions about CHCO
What is the AI rating for CHCO?
City Holding Co (CHCO) has a Combined AI Rating of BUY from Claude (HOLD) and ChatGPT (BUY) with 59% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are CHCO's key strengths?
Claude: Exceptional free cash flow generation at $128.4M with 172.9% FCF margin provides strong financial flexibility. Solid ROE of 16.1% indicates effective capital deployment and shareholder value creation. ChatGPT: Strong profitability with 16.1% ROE, 1.9% ROA, and modest net income growth. EPS growth of 13.2% outpaced net income growth, indicating good capital allocation and/or share count support.
What are the risks of investing in CHCO?
Claude: Severe 76.9% YoY revenue collapse indicates potential business disruption or data integrity concerns requiring urgent clarification. Abnormally high operating margin (217.4%) and net margin (175.6%) suggest non-recurring gains, accounting adjustments, or data errors that distort true operating performance. ChatGPT: Reported revenue fell 76.9% YoY, raising questions about underlying top-line momentum or financial statement classification effects. Interest coverage of 4.0x is adequate but not especially strong if funding costs remain elevated.
What is CHCO's revenue and growth?
City Holding Co reported revenue of $74.3M.
Does CHCO pay dividends?
City Holding Co pays dividends, with $47.3M distributed to shareholders in the trailing twelve months.
Where can I find CHCO SEC filings?
Official SEC filings for City Holding Co (CIK: 0000726854) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is CHCO's EPS?
City Holding Co has a diluted EPS of $8.93.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is CHCO a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, City Holding Co has a BUY rating with 59% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is CHCO stock overvalued or undervalued?
Valuation metrics for CHCO: ROE of 16.1% (sector avg: 12%), net margin of 175.6% (sector avg: 25%). Higher ROE suggests strong returns relative to peers.
Should I buy CHCO stock in 2026?
Our dual AI analysis gives City Holding Co a combined BUY rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is CHCO's free cash flow?
City Holding Co's operating cash flow is $131.4M, with capital expenditures of $2.9M. FCF margin is 172.9%.
How does CHCO compare to other Finance stocks?
Vs Finance sector averages: Net margin 175.6% (avg: 25%), ROE 16.1% (avg: 12%), current ratio N/A (avg: 1.2).