NasdaqGS:CHCO

Stock Analysis Report

Executive Summary

City Holding Company operates as a holding company for City National Bank of West Virginia that provides various banking, trust and investment management, and other financial solutions in the United States.

Snowflake

Fundamentals

Flawless balance sheet established dividend payer.


Similar Companies

Share Price & News

How has City Holding's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-0.3%

CHCO

1.7%

US Banks

1.3%

US Market


1 Year Return

2.7%

CHCO

0.3%

US Banks

5.9%

US Market

Return vs Industry: CHCO exceeded the US Banks industry which returned 0.3% over the past year.

Return vs Market: CHCO underperformed the US Market which returned 5.9% over the past year.


Shareholder returns

CHCOIndustryMarket
7 Day-0.3%1.7%1.3%
30 Day-4.2%-2.4%-1.9%
90 Day0.3%1.0%-1.8%
1 Year5.7%2.7%3.2%0.3%8.3%5.9%
3 Year67.9%54.7%52.1%41.7%45.6%36.2%
5 Year105.8%76.5%69.8%51.4%66.1%47.9%

Price Volatility Vs. Market

How volatile is City Holding's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is City Holding undervalued compared to its fair value and its price relative to the market?

5.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: CHCO ($75.02) is trading below our estimate of fair value ($79.73)

Significantly Undervalued: CHCO is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: CHCO is poor value based on its PE Ratio (15.9x) compared to the Banks industry average (12.5x).

PE vs Market: CHCO is good value based on its PE Ratio (15.9x) compared to the US market (17.5x).


Price to Earnings Growth Ratio

Low PEG Ratio: CHCO is poor value based on its PEG Ratio (7x)


Price to Book Ratio

PB vs Industry: CHCO is overvalued based on its PB Ratio (1.9x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is City Holding forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

2.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CHCO's forecast earnings growth (2.3% per year) is below the savings rate (2.7%).

Earnings vs Market: CHCO's earnings (2.3% per year) are forecast to grow slower than the US market (14.4% per year).

High Growth Earnings: CHCO's earnings are forecast to grow, but not significantly.

Revenue vs Market: CHCO's revenue (3.5% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: CHCO's revenue (3.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: CHCO's Return on Equity is forecast to be low in 3 years time (13.1%).


Next Steps

Past Performance

How has City Holding performed over the past 5 years?

6.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: CHCO's earnings have grown by 6.7% per year over the past 5 years.

Accelerating Growth: CHCO's earnings growth over the past year (22.1%) exceeds its 5-year average (6.7% per year).

Earnings vs Industry: CHCO earnings growth over the past year (22.1%) underperformed the Banks industry 31.8%.


Return on Equity

High ROE: CHCO's Return on Equity (11.9%) is considered low.


Return on Assets

ROA vs Industry: CHCO has a higher Return on Assets than the Banks industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate CHCO's Return on Capital Employed to determine if it has improved over the past 3 years.


Next Steps

Financial Health

How is City Holding's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: CHCO has a low level of unsold assets or inventory.

Debt Coverage by Assets: CHCO's debt is not covered by short term assets (assets are 0.9x debt).


Financial Institutions Analysis

Asset Level: CHCO's level of assets compared to its equity is low.

Allowance for Bad Loans: CHCO has a sufficient allowance for bad loans.

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

Loan Level: CHCO has an acceptable proportion of non-loan assets held.

Low Risk Deposits: CHCO's loans are broadly funded by customer deposits.

Level of Bad Loans: CHCO has an appropriate level of bad loans (0.34%)


Next Steps

Dividend

What is City Holding's current dividend yield, its reliability and sustainability?

3.04%

Current Dividend Yield


Dividend Yield vs Market

company3.0%marketbottom25%1.5%markettop25%3.8%industryaverage3.1%forecastin3Years3.0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: CHCO's dividend (3.04%) is higher than the bottom 25% of dividend payers in the US market (1.47%).

High Dividend: CHCO's dividend (3.04%) is low compared to the top 25% of dividend payers in the US market (3.77%).

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (45%), CHCO's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CHCO's dividends in 3 years are forecast to be well covered by earnings (44% payout ratio).


Next Steps

Management

What is the CEO of City Holding's salary, the management and board of directors tenure and is there insider trading?

14.7yrs

Average management tenure


CEO

Skip Hageboeck (57yo)

14.7yrs

Tenure

US$1,327,625

Compensation

Mr. Charles R. Hageboeck, also known as Skip, Ph.D has served as a Director of City Holding Company since 2005. He has been Chief Executive Officer and President of City Holding Company and City National B ...


CEO Compensation Analysis

Compensation vs. Market: Skip's total compensation ($USD1.33M) is below average for companies of similar size in the US market ($USD4.07M).

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


Management Age and Tenure

14.7yrs

Average Tenure

56yo

Average Age

Experienced Management: CHCO's management team is seasoned and experienced (14.7 years average tenure).


Board Age and Tenure

18.8yrs

Average Tenure

69yo

Average Age

Experienced Board: CHCO's board of directors are seasoned and experienced ( 18.8 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$202,27309 Aug 19
Craig Stilwell
EntityIndividual
Role
Senior Key Executive
Executive VP of Retail Banking
Shares2,700
Max PriceUS$75.41
SellUS$76,65026 Jul 19
David Bumgarner
EntityIndividual
Role
Chief Financial Officer
Senior VP & CFO
Shares1,000
Max PriceUS$76.65
SellUS$642,15207 May 19
Charles Hageboeck
EntityIndividual
Role
Chief Executive Officer
President
Shares8,000
Max PriceUS$80.47
SellUS$231,07503 May 19
Craig Stilwell
EntityIndividual
Role
Senior Key Executive
Executive VP of Retail Banking
Shares2,925
Max PriceUS$79.00
SellUS$85,54130 Apr 19
David Bumgarner
EntityIndividual
Role
Chief Financial Officer
Senior VP & CFO
Shares1,069
Max PriceUS$80.02
SellUS$193,53001 Mar 19
Craig Stilwell
EntityIndividual
Role
Senior Key Executive
Executive VP of Retail Banking
Shares2,431
Max PriceUS$79.61
SellUS$126,64401 Mar 19
Charles Hageboeck
EntityIndividual
Role
Chief Executive Officer
President
Shares1,593
Max PriceUS$79.50
SellUS$64,91128 Feb 19
Craig Stilwell
EntityIndividual
Role
Senior Key Executive
Executive VP of Retail Banking
Shares818
Max PriceUS$79.35
SellUS$133,58927 Feb 19
Charles Hageboeck
EntityIndividual
Role
Chief Executive Officer
President
Shares1,691
Max PriceUS$79.00
SellUS$331,38426 Feb 19
Charles Hageboeck
EntityIndividual
Role
Chief Executive Officer
President
Shares4,154
Max PriceUS$79.77
BuyUS$7,70019 Nov 18
Diane Strong-Treister
EntityIndividual
Shares100
Max PriceUS$77.00

Ownership Breakdown


Management Team

  • Jeff Legge (55yo)

    Senior VP

    • Tenure: 14.7yrs
    • Compensation: US$396.96k
  • Skip Hageboeck (57yo)

    President

    • Tenure: 14.7yrs
    • Compensation: US$1.33m
  • Craig Stilwell (63yo)

    Executive VP of Retail Banking

    • Tenure: 14.7yrs
    • Compensation: US$786.16k
  • John DeRito (69yo)

    Executive VP of Commercial Banking

    • Tenure: 15.3yrs
    • Compensation: US$580.53k
  • Dave Bumgarner (54yo)

    Senior VP & CFO

    • Tenure: 14.7yrs
    • Compensation: US$414.97k
  • Michael Quinlan (50yo)

    Senior Vice President of Branch Banking

    • Tenure: 18.3yrs
    • Compensation: US$279.13k
  • Vikki Evans-Faw

    Senior VP & Corporate Secretary

    • Tenure: 0yrs

Board Members

  • Robert Fisher (66yo)

    Director

    • Tenure: 25.8yrs
    • Compensation: US$70.25k
  • Jay Goldman (75yo)

    Director

    • Tenure: 31.8yrs
    • Compensation: US$70.75k
  • Tracy Hylton (70yo)

    Director

    • Tenure: 20.8yrs
    • Compensation: US$102.29k
  • C. Kayser (67yo)

    Chairman of the Board

    • Tenure: 3.8yrs
    • Compensation: US$89.00k
  • Charles Fairchilds (71yo)

    Director

    • Tenure: 6.8yrs
    • Compensation: US$69.50k
  • Sharon Rowe (68yo)

    Director

    • Tenure: 18.8yrs
    • Compensation: US$70.25k
  • Skip Hageboeck (57yo)

    President

    • Tenure: 14.7yrs
    • Compensation: US$1.33m
  • William File (71yo)

    Director

    • Tenure: 18.8yrs
    • Compensation: US$115.31k
  • James Rossi (64yo)

    Director

    • Tenure: 18.8yrs
    • Compensation: US$79.50k
  • John Elliot (73yo)

    Director

    • Tenure: 12.8yrs
    • Compensation: US$72.00k

Company Information

City Holding Company's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: City Holding Company
  • Ticker: CHCO
  • Exchange: NasdaqGS
  • Founded: 1957
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$1.230b
  • Shares outstanding: 16.40m
  • Website: https://www.bankatcity.com

Number of Employees


Location

  • City Holding Company
  • 25 Gatewater Road
  • Charleston
  • West Virginia
  • 25313
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CHCONasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJun 1987

Biography

City Holding Company operates as a holding company for City National Bank of West Virginia that provides various banking, trust and investment management, and other financial solutions in the United States ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 23:33
End of Day Share Price2019/10/14 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.