Eagle Financial Services (EFSI) AI Stock Analysis

• Market Cap: $200.65M
• Dividend Yield: 3.33%
• Average Volume (3M): 19.31K
• Price to Earnings (P/E): 17.3
• Beta (1Y): 0.18
• Revenue Growth: -1.51%
• EPS Growth: -26.72%
• Country: US
• Employees: 225
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.98
• Shares Outstanding: 5,376,346
• 10 Day Avg. Volume: 21,145
• 30 Day Avg. Volume: 19,314
• PEG Ratio: 0.14
• Price to Book (P/B): 1.09
• Price to Sales (P/S): 1.22
• P/FCF Ratio: 7.29
• Enterprise Value/Market Cap: 1.13
• Enterprise Value/Revenue: 2.29
• Enterprise Value/Gross Profit: 4.11
• Enterprise Value/Ebitda: 21.71
• 1Y Price Target: $39.50
• Price Target Upside: 6.18% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 69 Neutral
• Price Target: $41.00 ▲(10.22% Upside)

Eagle Financial Services scores well due to its solid financial performance and strong cash flow generation. The technical analysis indicates bullish momentum, although caution is warranted due to overbought signals. The valuation is reasonable, with a decent dividend yield enhancing its attractiveness. The record Q2 results further bolster the company's outlook.

Eagle Financial Services Business Overview & Revenue Model

Company Description

Eagle Financial Services, Inc. operates as the bank holding company for Bank of Clarke County that provides various retail and commercial banking products and services in the Shenandoah Valley and Northern Virginia. The company's deposit products include checking, NOW, money market, and regular savings accounts; and demand and time deposits. Its loan portfolio comprises one-to-four-family residential real estate, commercial real estate, construction and land development, and commercial and industrial loans, as well as secured and unsecured consumer loans, which include personal installment loans, personal lines of credit, automobile loans, and credit card loans. The company also offers personal and retirement plan services; investment services comprising tax-deferred annuities, IRAs and rollovers, mutual funds, retirement plans, college savings plans, life insurance, long term care insurance, fixed income investing, brokerage CDs, and full service or discount brokerage services; non-deposit investment products; and title insurance products. In addition, it provides ATM and debit cards; and telephone, internet, and mobile banking services, as well as other commercial deposit account services, such as ACH origination and remote deposit capture services. The company operates through twelve full-service branches, two loan production offices, one wealth management office, and one drive-through only facility, as well as 13 ATM locations in the Virginia communities of Berryville, Winchester, Boyce, Stephens City, Purcellville, Warrenton, Leesburg, Ashburn, and Fairfax. Eagle Financial Services, Inc. was founded in 1881 and is headquartered in Berryville, Virginia.

How the Company Makes Money

Eagle Financial Services generates revenue through multiple streams, primarily from fees charged for asset management and advisory services. The company typically earns a percentage-based fee on the assets it manages for clients, which can vary depending on the investment strategy and account size. Additionally, EFSI may charge hourly or project-based fees for financial planning and consulting services. Significant partnerships with financial institutions and technology providers enhance EFSI's offerings, allowing for improved client service and operational efficiency. These collaborations can also lead to referral agreements that contribute to the company's earnings. Furthermore, EFSI may engage in performance-based fee structures where additional earnings are generated based on the investment performance exceeding predetermined benchmarks.

Eagle Financial Services Financial Statement Overview

Summary

Eagle Financial Services demonstrates solid financial health with consistent revenue growth and strong cash flow generation. Despite some compression in profitability margins, the company has effectively managed its leverage, improving its debt-to-equity ratio. Overall, the financial statements suggest a stable and efficiently managed company.

Income Statement

Eagle Financial Services has shown consistent revenue growth, with a TTM revenue growth rate of 3.75%. However, margins have compressed over time, with the TTM gross profit margin at 55.65% and net profit margin at 7.96%, both lower than previous periods. Despite this, the company maintains a positive EBIT margin of 9.66% and EBITDA margin of 10.34%, indicating operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has improved significantly to 0.39 in the TTM, indicating reduced leverage compared to previous years. However, the return on equity has decreased to 5.33%, reflecting lower profitability on equity. The equity ratio remains stable, suggesting a solid capital structure.

Cash Flow

Eagle Financial Services has demonstrated strong cash flow performance with a TTM free cash flow growth rate of 27.81%. The operating cash flow to net income ratio is 1.26, indicating efficient cash generation relative to net income. The free cash flow to net income ratio remains robust at 94.13%, highlighting effective cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	99.34M	105.92M	95.92M	66.73M	52.66M	46.62M
Gross Profit	55.29M	63.28M	61.82M	59.43M	49.50M	41.88M
EBITDA	10.47M	19.88M	11.63M	18.65M	13.78M	14.33M
Net Income	7.91M	15.34M	9.36M	14.52M	11.02M	11.17M
Balance Sheet
Total Assets	2.04B	1.87B	1.83B	1.62B	1.30B	1.13B
Cash, Cash Equivalents and Short-Term Investments	142.09M	176.72M	249.51M	216.05M	257.21M	245.92M
Total Debt	69.72M	149.51M	194.44M	237.36M	0.00	4.11M
Total Liabilities	1.86B	1.75B	1.72B	1.51B	1.19B	1.03B
Stockholders Equity	179.65M	118.99M	108.38M	101.73M	110.28M	105.07M
Cash Flow
Free Cash Flow	20.89M	17.74M	5.80M	12.98M	15.94M	10.55M
Operating Cash Flow	22.20M	18.76M	6.88M	13.81M	16.46M	11.01M
Investing Cash Flow	29.16M	16.75M	-130.28M	-331.34M	-193.22M	-201.47M
Financing Cash Flow	221.00M	19.30M	194.87M	320.35M	160.91M	236.73M

Eagle Financial Services Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 37.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EFSI, the sentiment is Neutral. The current price of 37.2 is below the 20-day moving average (MA) of 38.01, above the 50-day MA of 36.17, and above the 200-day MA of 33.18, indicating a neutral trend. The MACD of 0.31 indicates Positive momentum. The RSI at 47.38 is Neutral, neither overbought nor oversold. The STOCH value of 17.04 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for EFSI.

Eagle Financial Services Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FRAF	72 Outperform	$203.37M	13.91	9.88%	2.85%	15.18%	5.13%
FXNC	71 Outperform	$204.14M	22.91	5.43%	2.75%	43.39%	-21.38%
EFSI	69 Neutral	$200.65M	17.27	5.44%	3.33%	-1.51%	-26.72%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
VABK	66 Neutral	$208.24M	11.67	11.01%	3.63%	2.41%	14.29%
OPBK	63 Neutral	$204.97M	9.29	10.74%	3.55%	11.05%	8.18%
HWBK	62 Neutral	$205.66M	10.06	14.00%	2.57%	2.03%	390.32%

Eagle Financial Services Corporate Events

Eagle Financial Services Reports Record Q2 2025 Results

Eagle Financial Services, Inc. announced its second quarter 2025 financial results, reporting a record net income of $5.3 million and earnings per share of $0.98. The company saw a significant increase in net interest income and a reduction in FHLB borrowings, contributing to a strengthened funding profile and improved balance sheet efficiency. The Board of Directors declared a quarterly cash dividend of $0.31 per share, payable on August 15, 2025.