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COFS Stock Analysis - CHOICEONE FINANCIAL SERVICES INC AI Rating

COFS Nasdaq State Commercial Banks MI CIK: 0000803164
Recently Updated • Analysis: Mar 22, 2026 • SEC Data: 2025-12-31
AI Rating
HOLD
62% Confidence

📊 COFS Key Takeaways

Revenue: $227.6M
Net Margin: 12.4%
Free Cash Flow: $25.2M
Current Ratio: N/A
Debt/Equity: 0.00x
EPS: $2.01
AI Rating: HOLD with 62% confidence

Investment Thesis

ChoiceOne Financial demonstrates solid profitability with a 12.4% net margin and healthy free cash flow generation of $25.2M, but faces concerning headwinds including dramatically declining EPS (-38.2% YoY) and weak returns on equity (6.1%) that question capital efficiency. The anomalous 1098.5% revenue spike requires scrutiny regarding sustainability and accounting drivers, while the low 1.5x interest coverage ratio signals limited cushion for interest rate volatility in a banking environment.

COFS Strengths

  • + Strong net profit margin of 12.4% demonstrates solid operational efficiency
  • + Positive free cash flow of $25.2M with 11.1% FCF margin indicates healthy cash generation
  • + Conservative leverage with 0.00x debt-to-equity ratio reflects strong balance sheet structure
  • + Substantial asset base of $4.4B provides scale and diversification for a regional bank

COFS Risks

  • ! EPS declined 38.2% YoY despite flat net income growth, suggesting significant share dilution or restructuring
  • ! Unusually high revenue growth of 1098.5% YoY is not supported by proportional earnings growth and warrants investigation
  • ! Interest coverage ratio of 1.5x is dangerously low for a financial institution, limiting ability to handle rate increases
  • ! ROE of 6.1% and ROA of 0.6% are weak for a bank, indicating poor returns on shareholder capital
  • ! High insider trading activity (21 Form 4 filings) in 90 days may signal management uncertainty or valuation concerns

Key Metrics to Watch

COFS Financial Metrics

Revenue
$227.6M
Net Income
$28.2M
EPS (Diluted)
$2.01
Free Cash Flow
$25.2M
Total Assets
$4.4B
Cash Position
$88.0M

💡 AI Analyst Insight

The current ratio below 1.0x warrants monitoring of short-term liquidity.

COFS Profitability Ratios

Gross Margin N/A
Operating Margin 15.0%
Net Margin 12.4%
ROE 6.1%
ROA 0.6%
FCF Margin 11.1%

COFS vs Finance Sector

How CHOICEONE FINANCIAL SERVICES INC compares to Finance sector averages

Net Margin
COFS 12.4%
vs
Sector Avg 25.0%
COFS Sector
ROE
COFS 6.1%
vs
Sector Avg 12.0%
COFS Sector
Current Ratio
COFS 0.0x
vs
Sector Avg 1.2x
COFS Sector
Debt/Equity
COFS 0.0x
vs
Sector Avg 2.0x
COFS Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

COFS Balance Sheet & Liquidity

Current Ratio
N/A
Quick Ratio
N/A
Debt/Equity
0.00x
Debt/Assets
89.4%
Interest Coverage
1.45x
Long-term Debt
N/A

COFS 5-Year Financial Trend

COFS 5-year financial data: Year 2025: Revenue $19.0M, Net Income $21.3M, EPS $2.82.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: CHOICEONE FINANCIAL SERVICES INC's revenue has remained relatively flat over the 5-year period, with a 0% decline. The most recent EPS of $2.82 reflects profitable operations.

COFS Growth Metrics (YoY)

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
11.1%
Free cash flow / Revenue

COFS Quarterly Performance

Quarterly financial performance data for CHOICEONE FINANCIAL SERVICES INC including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q3 2025 $3.4M $7.3M $0.85
Q2 2025 $3.2M -$372.0K $-0.03
Q1 2025 $3.0M $5.6M $0.74
Q3 2024 $2.9M $5.1M $0.68
Q2 2024 $2.8M $5.2M $0.69
Q1 2024 $2.8M $5.6M $0.74
Q3 2023 $2.9M $5.1M $0.68
Q2 2023 $2.8M $5.2M $0.69

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

COFS Capital Allocation

Operating Cash Flow
$31.8M
Cash generated from operations
Stock Buybacks
$2.7M
Shares repurchased (TTM)
Capital Expenditures
$6.6M
Investment in assets
Dividends Paid
$16.9M
Returned to shareholders

COFS SEC Filings

Access official SEC EDGAR filings for CHOICEONE FINANCIAL SERVICES INC (CIK: 0000803164)

📋 Recent SEC Filings

Date Form Document Action
Mar 16, 2026 4 xslF345X05/ownership.xml View →
Mar 13, 2026 10-K cofs-20251231.htm View →
Mar 12, 2026 4 xslF345X05/ownership.xml View →
Mar 9, 2026 4 xslF345X05/ownership.xml View →
Mar 4, 2026 4 xslF345X05/ownership.xml View →

Frequently Asked Questions about COFS

What is the AI rating for COFS?

CHOICEONE FINANCIAL SERVICES INC (COFS) has an AI rating of HOLD with 62% confidence, based on fundamental analysis of SEC EDGAR filings.

What are COFS's key strengths?

Strong net profit margin of 12.4% demonstrates solid operational efficiency. Positive free cash flow of $25.2M with 11.1% FCF margin indicates healthy cash generation.

What are the risks of investing in COFS?

EPS declined 38.2% YoY despite flat net income growth, suggesting significant share dilution or restructuring. Unusually high revenue growth of 1098.5% YoY is not supported by proportional earnings growth and warrants investigation.

What is COFS's revenue and growth?

CHOICEONE FINANCIAL SERVICES INC reported revenue of $227.6M.

Does COFS pay dividends?

CHOICEONE FINANCIAL SERVICES INC pays dividends, with $16.9M distributed to shareholders in the trailing twelve months.

Where can I find COFS SEC filings?

Official SEC filings for CHOICEONE FINANCIAL SERVICES INC (CIK: 0000803164) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is COFS's EPS?

CHOICEONE FINANCIAL SERVICES INC has a diluted EPS of $2.01.

How is the AI analysis conducted?

Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.

Disclaimer: This analysis is generated by Claude AI based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: Mar 22, 2026 | Data as of: 2025-12-31 | Powered by Claude AI