| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 25.94 | -32 |
| Intrinsic value (DCF) | 32.52 | -15 |
| Graham-Dodd Method | 36.92 | -4 |
| Graham Formula | 78.05 | 104 |
Eagle Financial Services, Inc. (EFSI) is a regional bank holding company operating through its subsidiary, Bank of Clarke County, serving the Shenandoah Valley and Northern Virginia. Founded in 1881 and headquartered in Berryville, Virginia, EFSI offers a comprehensive suite of retail and commercial banking services, including deposit accounts, residential and commercial real estate loans, consumer loans, and investment services. The company operates 12 full-service branches, two loan production offices, and a wealth management office, supported by digital banking solutions like mobile and online banking. With a market cap of approximately $166.7 million, EFSI focuses on community banking, emphasizing personalized financial solutions for individuals and businesses. Its diversified revenue streams—spanning traditional banking, wealth management, and insurance services—position it as a stable player in the regional banking sector. The bank’s conservative risk profile (beta: 0.25) and long-standing presence in Virginia underscore its resilience in competitive markets.
Eagle Financial Services presents a niche investment opportunity in the regional banking sector, characterized by steady performance and low volatility (beta: 0.25). The company reported $65.8 million in revenue and $15.3 million in net income for the latest fiscal year, with a diluted EPS of $4.32 and a dividend yield of ~2.8% (dividend: $1.23/share). Its strong capital position ($13.1 million cash) and disciplined lending practices mitigate risks associated with economic downturns. However, its small scale and geographic concentration in Virginia limit growth potential compared to larger regional peers. Investors may value EFSI for its conservative management, dividend consistency, and community-focused model, but should weigh these against slower growth prospects and exposure to local real estate markets.
Eagle Financial Services competes in the crowded regional banking space, where its competitive edge lies in hyper-localized service and deep community ties. Its loan portfolio, skewed toward residential and commercial real estate (typical for regional banks), benefits from Virginia’s stable property markets but lacks diversification. The company’s wealth management and insurance offerings provide ancillary revenue, though they’re not significant differentiators. EFSI’s low beta suggests lower sensitivity to macroeconomic swings, appealing to risk-averse investors, but its small asset base (~$1.3 billion) limits economies of scale. Competitors with broader footprints or digital-first models may outperform in customer acquisition and cost efficiency. EFSI’s niche is its relationship-driven approach, but this is less scalable than tech-enabled banking solutions. Its conservative leverage (debt-to-equity of ~1.1x) and solid liquidity position it well for stability but not aggressive expansion.