NasdaqGS:CHMG

Stock Analysis Report

Executive Summary

Chemung Financial Corporation operates as a bank.

Rewards

Trading at 44% below its fair value

Earnings are forecast to grow 6.67% per year

Pays a high and reliable dividend of 2.68%

Risk Analysis

High level of non-cash earnings



Snowflake Analysis

Flawless balance sheet, undervalued and pays a dividend.


Similar Companies

Share Price & News

How has Chemung Financial's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-0.05%

CHMG

0.5%

US Banks

1.8%

US Market


1 Year Return

-17.0%

CHMG

12.1%

US Banks

20.1%

US Market

Return vs Industry: CHMG underperformed the US Banks industry which returned 12.1% over the past year.

Return vs Market: CHMG underperformed the US Market which returned 20.1% over the past year.


Shareholder returns

CHMGIndustryMarket
7 Day-0.05%0.5%1.8%
30 Day-6.2%-1.2%1.4%
90 Day-15.1%1.5%8.8%
1 Year-15.1%-17.0%15.4%12.1%22.7%20.1%
3 Year17.8%9.7%25.2%16.2%50.1%40.4%
5 Year65.5%43.3%76.0%56.0%72.9%53.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Chemung Financial undervalued compared to its fair value and its price relative to the market?

44.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CHMG ($38.85) is trading below our estimate of fair value ($69.38)

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


Price To Earnings Ratio

PE vs Industry: CHMG is good value based on its PE Ratio (12.1x) compared to the Banks industry average (12.6x).

PE vs Market: CHMG is good value based on its PE Ratio (12.1x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: CHMG is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: CHMG is good value based on its PB Ratio (1x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

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

6.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CHMG's forecast earnings growth (6.7% per year) is above the savings rate (1.7%).

Earnings vs Market: CHMG's earnings (6.7% per year) are forecast to grow slower than the US market (14.5% per year).

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

Revenue vs Market: CHMG's revenue (5.4% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: CHMG's revenue (5.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CHMG's Return on Equity is forecast to be low in 3 years time (9.1%).


Next Steps

Past Performance

How has Chemung Financial performed over the past 5 years?

16.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CHMG has a high level of non-cash earnings.

Growing Profit Margin: CHMG's current net profit margins (20.9%) are lower than last year (24.4%).


Past Earnings Growth Analysis

Earnings Trend: CHMG's earnings have grown by 16.5% per year over the past 5 years.

Accelerating Growth: CHMG's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CHMG had negative earnings growth (-20.5%) over the past year, making it difficult to compare to the Banks industry average (12.1%).


Return on Equity

High ROE: CHMG's Return on Equity (8.5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Chemung Financial'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: CHMG has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if CHMG's debt is covered by short term assets.


Financial Institutions Analysis

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

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

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

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

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

Level of Bad Loans: CHMG has an appropriate level of bad loans (1.38%)


Next Steps

Dividend

What is Chemung Financial's current dividend yield, its reliability and sustainability?

2.68%

Current Dividend Yield


Dividend Yield vs Market

company2.7%marketbottom25%1.4%markettop25%3.7%industryaverage2.8%forecastin3Years2.7%

Current dividend yield vs market & industry

Notable Dividend: CHMG's dividend (2.68%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: CHMG's dividend (2.68%) is low compared to the top 25% of dividend payers in the US market (3.69%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (32.4%), CHMG's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CHMG's dividends in 3 years are forecast to be well covered by earnings (28.2% payout ratio).


Next Steps

Management

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

4.8yrs

Average management tenure


CEO

Anders Tomson (52yo)

3.2yrs

Tenure

US$801,997

Compensation

Mr. Anders M. Tomson has been the Chief Executive Officer and Director of Chemung Canal Trust Company and Chemung Financial Corporation since December 22, 2016. Mr. Tomson has been the President of Chemung ...


CEO Compensation Analysis

Compensation vs Market: Anders's total compensation ($USD802.00K) is about average for companies of similar size in the US market ($USD1.11M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Anders Tomson
President3.2yrsUS$802.00k0.64% $1.2m
Karl Krebs
CFO, Executive VP & Treasurer6.3yrsUS$439.81k0.16% $306.1k
Daniel Fariello
President of Capital Bank Division - Chemung Canal Trust Company2.1yrsUS$341.06k0.10% $189.9k
Kathleen McKillip
Assistant VP & Corporate Secretary0yrsno datano data
Michael Wayne
Senior VP & Director of Marketing14.1yrsno datano data
Pamela Burns
Senior Vice President of Human Resources0yrsno datano data
Norman Ward
SVP, Chief Auditor & Senior Investment Officer0yrsno datano data
Catherine Crandall
Senior Vice President of WMG Estate Administration0yrsno datano data
Robert Pichette
Senior Vice President of Commercial Lending0yrsno datano data
Marianne Kalec
Senior Vice President of Retail Lending0yrsno datano data

4.8yrs

Average Tenure

58yo

Average Age

Experienced Management: CHMG's management team is considered experienced (4.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Anders Tomson
President3.2yrsUS$802.00k0.64% $1.2m
Ronald Bentley
Director12.9yrsUS$102.36k0.88% $1.7m
Bruce Boyea
Independent Director8.9yrsUS$33.40k0.11% $213.3k
David Dalrymple
Chairman of the Board27.1yrsUS$81.61k7.69% $14.6m
Robert Dalrymple
Independent Director25.1yrsUS$44.28k5.09% $9.7m
Stephen Lounsberry
Independent Director25.1yrsUS$50.30k0.35% $659.8k
Richard Swan
Independent Director36.1yrsUS$47.87k1.47% $2.8m
Larry Becker
Independent Director8.8yrsUS$41.68k0.80% $1.5m
Thomas Tyrrell
Independent Director6yrsUS$43.37k0.12% $224.3k
G. Tranter
Independent Director6yrsUS$43.77k0.47% $896.3k

10.9yrs

Average Tenure

66.5yo

Average Age

Experienced Board: CHMG's board of directors are seasoned and experienced ( 10.9 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Chemung Financial Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Chemung Financial Corporation
  • Ticker: CHMG
  • Exchange: NasdaqGS
  • Founded: 1833
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$189.938m
  • Shares outstanding: 4.89m
  • Website: https://www.chemungcanal.com

Number of Employees


Location

  • Chemung Financial Corporation
  • One Chemung Canal Plaza
  • Elmira
  • New York
  • 14901
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CHMGNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJan 1975

Biography

Chemung Financial Corporation operates as a bank. The bank offers demand deposits and interest and non-interest bearing time and savings deposits. It's deposits include jumbo deposits and retail time deposits. The bank provides commercial and industrial loans, consumer loans, commercial real estate loans, and other loans and leases. The company offers consumer loans, including credit card loans, revolving credit plans, and automotive loans. The company offers commercial real estate loans for land development and on-site construction of industrial, commercial, residential, or farm buildings in the United States; real estate-backed residential loans; and commercial loans collateralized by real estate properties. The company offers domestic and foreign commercial and industrial loans. The company offers loans for the purpose of financing agricultural production; loans which include planned and unplanned overdrafts, to governments in non-U.S. countries, to their official institutions, and to international and regional institutions. For 2017, it has an asset value of 1.7 million USD. The bank has generated a net income of 7,430 USD in December 31, 2017. Chemung Financial Corporation was founded in 1833 and is based in Elmira, New York. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/16 23:35
End of Day Share Price2020/02/14 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.