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ZYBERNO
Stock Report
Updated Sep 2, 2026

ChoiceOne Financial Services, Inc. (COFS)

Financial Services • NASDAQ

$33.36

Professional Investment Analysis

ZYBERNO SCORE →
Is it a great business? Is it getting better?
49.0/100
WEAK BUSINESS
ChoiceOne Financial Services, Inc. (COFS) scores 49/100 — weak fundamentals with mixed indicators requiring careful analysis before acting.
📊 How is the Zyberno Score calculated? +
VALUATION SIGNAL
⚠
Business Model Limitation
ChoiceOne Financial Services, Inc. operates in the Banking industry. Owner Earnings-based DCF analysis — the foundation of both the Margin of Safety and the Brina Gap — is not well-suited to companies whose business model is structurally built around leverage: banks, insurers, mortgage companies, and REITs. These businesses are typically valued using sector-specific metrics such as Price-to-Book, Price-to-FFO, or Net Asset Value. Treat these signals as directional only.
MARGIN OF SAFETY
Is this stock cheap or expensive relative to what the business has historically generated for owners?
-55.1%
Overvalued
Is the market underestimating or overestimating what this business is capable of going forward?
+6.6%
Slight Underestimate
↑ UNDER
+50%
Brina Gap
-50%
↓ OVER
← OVERVALUED
-100%
Margin of Safety
UNDERVALUED →
+100%
UNDERESTIMATED
GROWTH
DOUBLE
DISCOUNT
EXPENSIVE
HYPE
VALUE
TRAP
0,0
MoS -55.1%  ·  Gap +6.6%

Two independent signals. One tells you if the stock is cheap relative to what the business has historically generated for owners — the Margin of Safety. The other tells you if the market is underestimating what the business is capable of going forward — the Brina Gap.

They are calculated from completely different data sources and answer completely different questions. The Margin of Safety reads the past. The Brina Gap reads the present economics and compares them against what the current stock price is assuming about the future.

When both point in the same direction simultaneously — DOUBLE DISCOUNT — the probability of genuine mispricing is high. The market is wrong on two independent dimensions at once, which is rare and significant.

The most dangerous scenario is not an overvalued stock — those are easy to avoid. It is a VALUE TRAP: a stock that appears cheap historically but where the market is already pricing in stronger growth than the business fundamentals support. Without the Brina Gap signal this looks identical to a genuine opportunity. The matrix separates them instantly.

The Brina Gap is the more powerful of the two signals. Most investors and analytical tools focus on valuation alone — whether a stock is cheap relative to earnings. Far fewer systematically compare what the business economics structurally support against what the stock price is actually assuming. That gap between fundamental growth potential and market expectations is where the most reliable mispricings live, and where this matrix earns its value.

Use this as your first filter. A stock in DOUBLE DISCOUNT territory is worth investigating. Everything else requires either more caution or a specific reason to act.

EXPENSIVE WITH GROWTH POTENTIAL
ChoiceOne Financial Services, Inc. (COFS) trades at a premium (Margin of Safety -55.1%) despite the market underestimating forward growth (Brina Gap +6.6%). No margin of safety at current price.
🎯 Expected Annual Return →
-11.6%
Margin of Safety convergence — your return if the market re-prices to intrinsic value (5-yr annualised)
10.0%
Brina Gap convergence — your return if the market corrects the growth mispricing the Gap measures
6.5%
Yield + growth — what the business alone earns you, even if the market never re-rates
💰 How is Margin of Safety calculated? +
📈 How is Brina Gap calculated? +

Critical Financial Health Indicators

Return on Equity (Profitability):AVERAGE (11.7%)
Debt-to-Equity (Solvency Risk):EXCELLENT (0.00x)
Operating Margin (Operational Efficiency):EXCELLENT (28.4%)
Return on Capital (Capital Efficiency):AVERAGE (14.0%)
📊 Valuation Trilogy
Three interconnected metrics for complete valuation analysis
💎
Intrinsic Value
DCF Fair Value
$21.51
🛡️
Margin of Safety
Valuation Gap
-55.1%
🎯
Expected Return
Projected Annual
-11.6%
Click any metric for full methodology and detailed analysis
Zyberno's Verdict

According to Zyberno, ChoiceOne Financial Services, Inc. (COFS) shows Underestimated Growth — WEAK BUSINESS (49/100) with a Brina Gap of +6.6% showing underestimated forward growth, but no margin of safety at -55.1%.

According to Zyberno's DCF model, ChoiceOne Financial Services, Inc. (COFS) trades at $33.36 against an estimated intrinsic value per share of $21.51 — a -55.1% Margin of Safety based on Owner Earnings of $31.57M TTM, projected at -3.5% growth for 10 years with a 2.5% terminal growth rate. The Brina Gap of +6.6% strengthens the case: based on the company's ROIC (14.0%) and reinvestment rate (1.5%), the business can fundamentally grow at 0.2% — but the current enterprise value implies the market expects -6.4%. This places COFS in the Underestimated Growth quadrant of the Brina Matrix, where growth is underestimated but no margin of safety on existing cash. Zyberno's model translates this into a 5-year expected return of -11.6% annually.

Over the trailing twelve months, COFS generated $31.57M in Owner Earnings. Capital was deployed as follows: $1.44M returned via share buybacks, $17.23M paid as dividends, $7.32M invested in capital expenditures. Reinvestment rate: 1.5%. Owner Earnings have declined at 3.5% annually over the trailing five years using log-linear regression.

DIVISION I: EXECUTIVE SUMMARY
A. Market Valuation

Market Price & Capitalization (2)

Current Price:33.36
Market Cap:$499.15M

Valuation Multiples (4)

P/E Ratio:
8.06x
📊 Click to view full COFS P/E analysis →
P/B Ratio:1.03x
P/S Ratio:2.12x
Peg Ratio:0.03x

Enterprise Metrics (3)

Enterprise Value:$411.29M
Ev Ebitda Ratio:5.05x
Pfcf Ratio:16.21x

Price Action & Momentum (3)

12-1 Momentum:
+12.3% (66th pctile)
📈 Click to view full COFS Momentum analysis →
Momentum Percentile:66 / 100
% of 52-Week High:94.2%
B. Profitability Assessment

Return Metrics (7)

ROE:
11.7%
📊 Click to view full COFS ROE analysis →
ROA:1.2%
Roic:
14.0%
📊 Click to view full COFS ROIC analysis →
Reinvestment Rate:1.5%
Fundamental Growth Rate (g):0.2%
Market-Implied Growth Rate:-6.4%
Brina Gap:
6.6%
☷ Click to view full COFS Brina Gap analysis →

Margin Analysis (3)

Operating Margin Ttm:28.4%
Net Margin Ttm:23.2%
Ebitda Margin:34.6%

TTM Performance (2)

Operating Margin Ttm:28.4%
Net Margin Ttm:23.2%

Yield Metrics (3)

Earnings Yield:$12.41
Owner Earnings Yield:$6.32
Dividend Yield:3.5%
C. Log-Linear Regression Growth Trends

Earnings Surprise (SUE) (3)

Earnings Surprise (SUE):
-0.21
📊 Click to view full COFS Earnings Surprise analysis →
EPS Surprise vs Expected:-16.0%
Latest Earnings Filed:2026-08-10

Revenue Growth (Linear) (1)

Revenue Growth Rate (Linear):40.5%

Earnings Growth (Linear) (1)

Net Income Growth Rate (Linear):34.7%

Cash Flow Growth (Linear) (2)

Free Cash Flow Growth Rate (Linear):-3.3%
Operating Cash Flow Growth Rate (Linear):0.4%

Operating Growth (Linear) (1)

Operating Income Growth Rate (Linear):36.1%
D. Financial Stability

Liquidity Ratios (3)

Current Ratio:0.02x
Quick Ratio:0.02x
Cash Ratio:0.02x

Leverage Analysis (3)

Debt To Equity Ttm:0.00x
Debt-to-Equity Ratio:0.00x
Debt To Ebitda:0.01x

Coverage Ratios (2)

Interest Coverage Ratio:0.23x
Times Interest Earned:0.23

Capital Structure (4)

Working Capital:-3,513,533,000.00
Cash And Cash Equivalents:88,649,000.00
Long Term Debt:$105.00K
Net Debt:-$87.86M
DIVISION II: FINANCIAL STATEMENTS ANALYSIS
A. Income Statement Analysis

Revenue Components (2)

Revenue TTM: $235.35M
Linear Growth: 40.5%
📊 Click to view full COFS Revenue analysis & methodology →
Cost Of Revenue Ttm:$0.00

Profitability Breakdown (2)

$0.00
Operating income TTM: $66.83M
Linear Growth: 36.1%
📊 Click to view full COFS Operating Income analysis & methodology →

Bottom Line Performance (3)

Net income TTM: $54.72M
Linear Growth: 34.7%
📊 Click to view full COFS Net Income analysis & methodology →
Income Before Tax:$66.83M
Ebitda Ttm:81,489,000.00

Operating Expenses (5)

Operating Expenses:103,391,000.00
R And D Expense:0.00
Sga Expense:0.00
Income Tax Expense:$12.12M
Interest Expense:147,776,000.00

Expense Ratios (3)

R And D To Revenue Percentage:0.0%
Sga To Revenue Percentage:0.0%
Ebitda Margin:34.6%
B. Balance Sheet Analysis

Asset Composition (5)

Total Assets:$4.46B
Current Assets:$88.30M
Ppe Net:50,383,000.00
Goodwill:129,854,000.00
Intangible Assets:$27.89M

Liability Structure (4)

Total Liabilities:3,974,210,000.00
Current Liabilities:3,601,832,000.00
Long Term Debt:$105.00K
Short Term Debt:$688.00K

Equity & Capital (3)

Equity:$482.68M
Retained Earnings:$120.14M
Common Stock:396,681,000.00

Working Capital Items (3)

Accounts Receivable:0.00
Inventory:0.00
Accounts Payable:0.00

Special Items (2)

Contract Liabilities:0.00
Stock Based Compensation:298,000.00
C. Cash Flow Analysis

Operating Activities (2)

Operating cash flow TTM: $38.11M
Linear Growth: 41.0%
Free cash flow TTM: $30.79M
Linear Growth: -3.3%
📊 Click to view full COFS Free Cash Flow analysis & methodology →

Investment Activities (2)

Investing Cash Flow:$14.56M
Capital Expenditures Ttm:7,316,000.00

Financing Activities (3)

Financing Cash Flow:-$18.16M
Dividends Paid Ttm:17,227,000.00
Stock Repurchase:1,441,000.00

Capital Transactions (3)

Common Stock Issuance:255,000.00
Long Term Debt Issuance:$315.00M
Long Term Debt Repayments:$50.00M

Non-Cash Items (1)

Depreciation Amortization Ttm:14,659,000.00
DIVISION III: OPERATIONAL METRICS
A. Per Share Analysis

Earnings Per Share (3)

EPS (Basic TTM):4.16
Eps diluted TTM: $4.14
Linear Growth: 9.2%
📊 Click to view full COFS EPS analysis & methodology →
Earnings Per Share Ttm:$3.66

Revenue & Cash Per Share (3)

Sales Per Share Ttm:15.73
Operating Cash Flow Per Share:$2.13
Fcf Per Share Ttm:2.06

Book Value & Capital (2)

Book Value Per Share:$32.26
Cash Per Share:5.92

Dividend Policy (1)

Dividend Payout Ratio:31.55x
B. Operational Efficiency

Asset Utilization (2)

Asset Turnover Ttm:0.05x
Working Capital Turnover Ttm:-999.00x

Receivables Management (2)

Receivables Turnover Ttm:-999.00x
Days Sales Outstanding Ttm:-999.00

Inventory Management (2)

Inventory Turnover Ttm:-999.00x
Days Inventory Outstanding Ttm:-999.00

Payables & Cash Cycle (2)

Days Payable Outstanding:-999.00
Cash Conversion Cycle:-999.00
C. Quality & Risk Metrics

Financial Quality Scores (2)

Financial Strength Score:60.00
Quality Score:90.00

Market Metrics (2)

Beta:0.00x
Volatility Category:unknown
DIVISION IV: INVESTMENT ANALYSIS
A. Value Investment Framework

Owner Earnings Analysis (3)

Owner earnings TTM: $31.57M
Linear Growth: -3.5%
📊 Click to view full COFS Owner Earnings analysis & methodology →
Owner Earnings Per Share:$2.11
Owner Earnings Yield:$6.32

Growth Assessment (1)

Owner Earnings Growth Rate:-$3.49

Damodaran Growth Analysis (4)

Reinvestment Rate:1.5%
Fundamental Growth Rate (g):0.2%
Market-Implied Growth Rate:-6.4%
Brina Gap:
6.6%
☷ Click to view full COFS Brina Gap analysis →

Intrinsic Value Models (1)

Intrinsic Value:
$321.87M
📊 Click to view full COFS DCF valuation →

Margin of Safety (1)

Margin Of Safety:
-55.1%
📊 Click to view full COFS valuation analysis →

Return Scenarios (2)

Theoretical 5-Year Return:
-11.6%
📊 Click to view full COFS expected return analysis →
Forward Expected Return (Yield + Growth):
6.5%
📊 Click to view full COFS expected return analysis →

Investment Assessment (1)

Buffett Assessment:Overvalued
B. Log-Linear Regression Growth Analysis

Growth Rates (Log-Linear Regression) (3)

Revenue Growth Rate (Linear):40.5%
Net Income Growth Rate (Linear):34.7%
Operating Income Growth Rate (Linear):36.1%

Cash Flow Growth Rates (2)

Free Cash Flow Growth Rate (Linear):-3.3%
Operating Cash Flow Growth Rate (Linear):0.4%

Other Growth Rates (2)

Book Value Growth Rate (Linear):35.0%
Owner Earnings Growth Rate:-$3.49
C. Company Profile & Context

Corporate Information (6)

Symbol:COFS
Company Name:ChoiceOne Financial Services, Inc.
Sector:Financial Services
Industry:Banking
Exchange:NASDAQ
Country:United States

Market Classification (3)

Market Cap Category:N/A
Price Category:medium
Volume Category:N/A

Share Structure (3)

Shares Outstanding:14.96M
Shares Outstanding Basic:14.96M
Shares Outstanding Diluted:15.01M

Data Processing Info (3)

Processing Version:v3.0
Last Updated:2026-09-02 01:16:27 UTC
Data Timestamp:2026-09-02T01:16:27.433731
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