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 Analysis

Excellent balance sheet with solid track record and pays a dividend.


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

Stable Share Price: CHCO has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.0%

CHCO

-1.2%

US Banks

-1.0%

US Market


1 Year Return

-1.9%

CHCO

10.3%

US Banks

18.0%

US Market

Return vs Industry: CHCO underperformed the US Banks industry which returned 10.3% over the past year.

Return vs Market: CHCO underperformed the US Market which returned 18% over the past year.


Shareholder returns

CHCOIndustryMarket
7 Day-1.0%-1.2%-1.0%
30 Day-2.3%-1.3%0.6%
90 Day-1.9%-0.3%7.9%
1 Year0.9%-1.9%13.6%10.3%20.4%18.0%
3 Year27.6%17.6%24.1%15.2%48.0%38.5%
5 Year96.6%69.0%74.1%54.3%72.2%53.3%

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?

32.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CHCO ($78.01) is trading below our estimate of fair value ($115.95)

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


Price To Earnings Ratio

PE vs Industry: CHCO is poor value based on its PE Ratio (14.4x) compared to the Banks industry average (12.6x).

PE vs Market: CHCO is good value based on its PE Ratio (14.4x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: CHCO's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


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 5 analysts?

-3.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CHCO's earnings are forecast to decline over the next 3 years (-3.1% per year).

Earnings vs Market: CHCO's earnings are forecast to decline over the next 3 years (-3.1% per year).

High Growth Earnings: CHCO's earnings are forecast to decline over the next 3 years.

Revenue vs Market: CHCO's revenue (1% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: CHCO's revenue (1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CHCO's Return on Equity is forecast to be low in 3 years time (13.6%).


Next Steps

Past Performance

How has City Holding performed over the past 5 years?

9.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CHCO has high quality earnings.

Growing Profit Margin: CHCO's current net profit margins (38.3%) are higher than last year (34.5%).


Past Earnings Growth Analysis

Earnings Trend: CHCO's earnings have grown by 9.6% per year over the past 5 years.

Accelerating Growth: CHCO's earnings growth over the past year (27.7%) exceeds its 5-year average (9.6% per year).

Earnings vs Industry: CHCO earnings growth over the past year (27.7%) exceeded the Banks industry 12.1%.


Return on Equity

High ROE: CHCO's Return on Equity (13.6%) is considered low.


Return on Assets


Return on Capital Employed


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 0.7x debt).


Financial Institutions Analysis

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

Allowance for Bad Loans: CHCO has a low 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 (0.33%)


Next Steps

Dividend

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

2.92%

Current Dividend Yield


Dividend Yield vs Market

company2.9%marketbottom25%1.4%markettop25%3.7%industryaverage2.9%forecastin3Years3.1%

Current dividend yield vs market & industry

Notable Dividend: CHCO's dividend (2.92%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: CHCO's dividend (2.92%) is low compared to the top 25% of dividend payers in the US market (3.73%).


Stability and Growth of Payments

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 (40.5%), 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 (47% payout ratio).


Next Steps

Management

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

15.0yrs

Average management tenure


CEO

Skip Hageboeck (57yo)

15yrs

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 ($USD1.33M) is below average for companies of similar size in the US market ($USD3.80M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Charles Hageboeck
President15yrsUS$1.33m0.36% $4.6m
David Bumgarner
Executive VP & CFO15yrsUS$414.97k0.080% $1.0m
Jeffrey Legge
Executive VP15yrsUS$396.96k0.082% $1.0m
Craig Stilwell
Executive VP of Retail Banking15yrsUS$786.16k0.11% $1.3m
John DeRito
Executive VP of Commercial Banking15.7yrsUS$580.53k0.11% $1.5m
Victoria Evans-Faw
Senior VP & Corporate Secretary0yrsno datano data
Michael Quinlan
Senior Vice President of Branch Banking18.6yrsUS$279.13kno data

15.0yrs

Average Tenure

56yo

Average Age

Experienced Management: CHCO's management team is seasoned and experienced (15 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Charles Hageboeck
President15yrsUS$1.33m0.36% $4.6m
Robert Fisher
Independent Director26.1yrsUS$70.25k0.21% $2.6m
Jay Goldman
Independent Director32.1yrsUS$70.75k0.16% $2.0m
Tracy Hylton
Independent Director21.2yrsUS$102.29k0.36% $4.6m
C. Kayser
Chairman of the Board4.1yrsUS$89.00k0.14% $1.8m
Charles Fairchilds
Independent Director7.1yrsUS$69.50k0.057% $731.0k
Sharon Rowe
Independent Director19.1yrsUS$70.25k0.071% $908.8k
William File
Independent Director19.1yrsUS$115.31k0.16% $2.0m
James Rossi
Independent Director19.1yrsUS$79.50k0.11% $1.4m
John Elliot
Independent Director13.1yrsUS$72.00k0.059% $757.5k

19.1yrs

Average Tenure

69yo

Average Age

Experienced Board: CHCO's board of directors are seasoned and experienced ( 19.1 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: CHCO insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 5.8%.


Top Shareholders

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$1.274b
  • Shares outstanding: 16.30m
  • 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. The company accepts various deposit products, such as checking, savings, and money market accounts, as well as certificates of deposit and individual retirement accounts. It also provides commercial and industrial loans that consist of loans to corporate and other legal entity borrowers primarily in small to mid-size industrial and commercial companies; commercial real estate loans comprising commercial mortgages, which are secured by nonresidential and multi-family residential properties; residential real estate loans to consumers for the purchase or refinance of a residence; first-priority home equity loans; consumer loans that are secured and unsecured by automobiles, boats, recreational vehicles, certificates of deposit, and other personal property; and demand deposit account overdrafts. In addition, the company offers mortgage banking services, including fixed and adjustable-rate mortgages, construction financing, production of conventional and government insured mortgages, secondary marketing, and mortgage servicing. Further, it provides deposit services for commercial customers comprising treasury management, lockbox, and other cash management services; merchant credit card services; wealth management, trust, investment, and custodial services for commercial and individual customers; and corporate trust and institutional custody, financial and estate planning, and retirement plan services, as well as automated-teller-machine, interactive-teller-machine, mobile banking, and debit card services. As of February 27, 2019, the company operated through a network of 97 branches in West Virginia, Virginia, Kentucky, and Ohio. City Holding Company was founded in 1957 and is headquartered in Charleston, West Virginia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/22 00:30
End of Day Share Price2020/02/21 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.