C&F Financial (NasdaqGS:CFFI) - Share price, News & Analysis

Q: What is the Fair Price of CFFI when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

CFFI ($45.88) is trading below our estimate of [[fair value]] ($109.67)

CFFI fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	0/6
Past Performance	3/6
Financial Health	6/6
Dividends	4/6

CFFI Stock Overview

C&F Financial Corporation operates as a bank holding company for Citizens and Farmers Bank that provides banking services to individuals and businesses.

Rewards

Trading at 58.2% below our estimate of its fair value

Earnings have grown 22.3% per year over the past 5 years

Pays a reliable dividend of 3.49%

Risk Analysis

Significant insider selling over the past 3 months

C&F Financial Competitors

GrandSouth Bancorporation

OTCPK:GRRB

US$159.4m

Hawthorn Bancshares

NasdaqGS:HWBK

US$166.2m

FNCB Bancorp

NasdaqCM:FNCB

US$157.5m

Finward Bancorp

NasdaqCM:FNWD

US$162.9m

Price History & Performance

Summary of all time highs, changes and price drops for C&F Financial
Historical stock prices
Current Share Price	US$45.88
52 Week High	US$55.00
52 Week Low	US$45.01
Beta	0.45
1 Month Change	-10.32%
3 Month Change	-8.51%
1 Year Change	-10.04%
3 Year Change	-15.99%
5 Year Change	-2.18%
Change since IPO	282.33%

Recent News & Updates

Jun 10

C&F Financial (NASDAQ:CFFI) Is Due To Pay A Dividend Of US$0.40

C&F Financial Corporation ( NASDAQ:CFFI ) will pay a dividend of US$0.40 on the 1st of July. This payment means that...

May 27

C&F Financial (NASDAQ:CFFI) Will Pay A Dividend Of US$0.40

The board of C&F Financial Corporation ( NASDAQ:CFFI ) has announced that it will pay a dividend of US$0.40 per share...

Shareholder Returns

	CFFI	US Banks	US Market
7D	-0.3%	3.7%	6.6%
1Y	-10.0%	-17.7%	-18.4%

Return vs Industry: CFFI exceeded the US Banks industry which returned -17.7% over the past year.

Return vs Market: CFFI exceeded the US Market which returned -18.4% over the past year.

Price Volatility

Is CFFI's price volatile compared to industry and market?
CFFI volatility
CFFI Average Weekly Movement	3.3%
Banks Industry Average Movement	3.8%
Market Average Movement	8.1%
10% most volatile stocks in US Market	16.6%
10% least volatile stocks in US Market	3.2%

Stable Share Price: CFFI is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: CFFI's weekly volatility (3%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1927	650	Tom Cherry	https://www.cffc.com

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.

C&F Financial Fundamentals Summary

How do C&F Financial's earnings and revenue compare to its market cap?
CFFI fundamental statistics
Market Cap	US$162.23m
Earnings (TTM)	US$27.24m
Revenue (TTM)	US$127.13m

6.0x

P/E Ratio

0.8x

P/B Ratio

Is CFFI overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
CFFI income statement (TTM)
Revenue	US$127.13m
Cost of Revenue	US$0
Gross Profit	US$127.13m
Other Expenses	US$99.89m
Earnings	US$27.24m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	7.70
Gross Margin	100.00%
Net Profit Margin	21.42%
Debt/Equity Ratio	44.5%

How did CFFI perform over the long term?

See historical performance and comparison

Dividends

3.5%

Current Dividend Yield

21%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is CFFI undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for CFFI?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for CFFI. This is calculated by dividing CFFI's market cap by their current preferred multiple.
What is CFFI's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$162.23m

CFFI key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	n/a
Enterprise Value/EBITDA	n/a
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does CFFI's PE Ratio compare to its peers?

CFFI PE Ratio vs Peers

The above table shows the PE ratio for CFFI vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	9.5x
GRRB GrandSouth Bancorporation	10.1x	4.2%	US$159.4m
HWBK Hawthorn Bancshares	7.1x	n/a	US$166.2m
FNCB FNCB Bancorp	7.9x	n/a	US$157.5m
FNWD Finward Bancorp	13x	26.1%	US$162.9m
CFFI C&F Financial	6x	n/a	US$162.2m

Forward PE

Price-To-Earnings vs Peers: CFFI is good value based on its Price-To-Earnings Ratio (6x) compared to the peer average (9.5x).

Price to Earnings Ratio vs Industry

How does CFFI's PE Ratio compare vs other companies in the US Banks Industry?

Price-To-Earnings vs Industry: CFFI is good value based on its Price-To-Earnings Ratio (6x) compared to the US Banks industry average (9.6x)

Price to Earnings Ratio vs Fair Ratio

What is CFFI's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

CFFI PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	6x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate CFFI's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of CFFI when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: CFFI ($45.88) is trading below our estimate of fair value ($109.67)

Significantly Below Fair Value: CFFI is trading below fair value by more than 20%.

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate CFFI's PEG Ratio to determine if it is good value.

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Future Growth

How is C&F Financial forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

10.6%

Forecasted Banks industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as C&F Financial has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

Discover growth companies

Examine whether C&F Financial is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.

Past Performance

How has C&F Financial performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

22.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: CFFI has high quality earnings.

Growing Profit Margin: CFFI's current net profit margins (21.4%) are higher than last year (18.7%).

Past Earnings Growth Analysis

Earnings Trend: CFFI's earnings have grown significantly by 22.3% per year over the past 5 years.

Accelerating Growth: CFFI's earnings growth over the past year (6.4%) is below its 5-year average (22.3% per year).

Earnings vs Industry: CFFI earnings growth over the past year (6.4%) underperformed the Banks industry 20.7%.

Return on Equity

High ROE: CFFI's Return on Equity (13.8%) is considered low.

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Financial Health

How is C&F Financial's financial position? (This company is analysed differently as a bank or financial institution)

Financial Health Score

6/6

Financial Health Score 6/6

Asset Level
Allowance for Bad Loans
Low Risk Liabilities
Loan Level
Low Risk Deposits
Level of Bad Loans

Financial Position Analysis

Debt to Equity History and Analysis

Balance Sheet

Financial Institutions Analysis

Asset Level: CFFI's Assets to Equity ratio (11.4x) is moderate.

Allowance for Bad Loans: CFFI has a sufficient allowance for bad loans (5198%).

Low Risk Liabilities: 94% of CFFI's liabilities are made up of primarily low risk sources of funding.

Loan Level: CFFI has an appropriate level of Loans to Assets ratio (61%).

Low Risk Deposits: CFFI's Loans to Deposits ratio (71%) is appropriate.

Level of Bad Loans: CFFI has an appropriate level of bad loans (0.1%).

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Dividend

What is C&F Financial current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

3.49%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: CFFI's dividend (3.49%) is higher than the bottom 25% of dividend payers in the US market (1.57%).

High Dividend: CFFI's dividend (3.49%) is low compared to the top 25% of dividend payers in the US market (4.24%).

Stability and Growth of Payments

Stable Dividend: CFFI's dividends per share have been stable in the past 10 years.

Growing Dividend: CFFI's dividend payments have increased over the past 10 years.

Current Payout to Shareholders

Earnings Coverage: With its low payout ratio (21%), CFFI's dividend payments are well covered by earnings.

Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years or that it will be covered by earnings.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

8.4yrs

Average management tenure

CEO

Tom Cherry (52 yo)

8.42yrs

Tenure

US$1,157,133

Compensation

Mr. Thomas F. Cherry, also known as Tom, has been the President of C&F Financial Corporation and Citizens and Farmers Bank (formerly known as Citizens & Farmers Bank) since 2014. He has been Chief Executiv...

CEO Compensation Analysis

Compensation vs Market: Tom's total compensation ($USD1.16M) is below average for companies of similar size in the US market ($USD1.69M).

Compensation vs Earnings: Tom's compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: CFFI's management team is seasoned and experienced (8.4 years average tenure).

Board Members

Experienced Board: CFFI's board of directors are seasoned and experienced ( 11.2 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: CFFI insiders have only sold shares in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/06/26 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31