Fundamental analysis: Chemung Financial Corporation (CHMG)

Awarener score: 6.0

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Average), the business stability (Superb) and growth (Lacking), and the company's inclination to return cash to the stockholders (Good).

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 7.0

Business has been slightly shrinking. It's been below average when measured against peer companies.
Chemung Financial Corporation business trend is extremely stable, which is best. It looks better than most rivals.

Margins score: 9.0

CHMG profit margins -on goods and services sold- are usually huge. They stand well ranked against rival companies.
Business profit on sales tends to be very good. It's below average when measured against competitors.
Profits on sales made -available to repay debt and purchase properties- are usually excellent. They remain in a very weak position compared to peers.
Earnings -before income taxes and interests on loans taken- tend to be excellent in relation to total revenues. They're still worse than most similar companies.
Profits -before income taxes- are usually excellent considering total sales, and remain below average when measured against rivals.
Total net profit tends to be excellent when confronted to sales. Company stands below average when measured against comparable firms.

Growth score: 5.7

Chemung Financial Corporation profit growth -on goods and services sold- has been almost stagnant. It's been in a weak position compared to competitors.
In recent years, earnings -on operations- have been growing at an excellent step, which has been slightly better than comparable firms.
Profits -available to repay debt and purchase properties- have been growing at a low pace, which compares encouraging in relation to peer enterprises.
Earnings -before income taxes and interests on loans taken- have been growing at a normal tempo. It turns to be a slight improvement compared to similar stocks.
In past years, profits -before income taxes- grew at a normal speed. It was somewhat better than rivals.
In the previous years, growth on total net profit has been low, and similar to peer companies.
Earnings per share have grown at a normal rhythm in past years. It's been a slight improvement compared to industry peers.

Miscellaneous score: 6.0

CHMG had to pay sparse income taxes in relation to profits made in the past years. It's been somewhat better than peers.
The company does not report R&D expenses. It's meaningless to measure in relation to competitors.
We have insufficient data to estimate how effective is research and development effort. It stands unknown against rival companies.

Profitability score: 6.8

Chemung Financial Corporation usually gets hardly sufficient returns on the resources it controls. It proves substantially worse when measured against peer firms.
The company normally gets excellent proceeds -on the resources directly invested in the business-. They remain in good shape compared to similar companies.
There's usually abundant profitability -in relation to owned resources-. It ranks more than average in relation to competitors.
In the past, got barely sufficient returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's substantially worse when measured against comparable enterprises.

Usage of Funds score: 3.2

CHMG on average doesn't generate genuine funds, so to buy or replace property, plants and equipment must either burn existing cash or increase debt. It stands substantially worse when measured against rival firms.
The company is usually replacing part of the property, plant, and equipment that gets old, keeping some funds for something else. It can't keep forever, which is substantially worse when measured against industry peers.
In the past twelve months it paid some dividends, considering the current stock price. It came somewhat worse than competitors.
In recent years, has cut back dividend payments. It could be traversing challenging times. The company has behaved in a very weak position compared to similar firms.
The company generates very few genuine funds. Dividend payments are usually on borrowed money, which isn't sustainable in the long run. Unless business prospects improve greatly, future payments could be at risk. Sustainability looks bottom tier against comparable companies.
The company usually neither enlarges nor reduces the pool of investors, resulting in approximately the same mouths feeding on the pie of profits. It remains a slight improvement compared to peer enterprises.
Repurchase effectiveness metric is very complex. Run again in analytical mode if you're interested in a technical explanation. It stands in a weak position compared to rivals.
The company generates very few genuine funds. Investor rewards must be paid burning existing cash or by borrowing money, which isn't sustainable in the long run. Unless business prospects improve greatly, stockholder compensation could be at risk. It still looks last-in-rank when measured against competitors.

Balance Sheet score: 5.4

Chemung Financial Corporation intangible assets (like brands and goodwill) represent a small portion of resources controlled, according to accounting books. It isn't that a significant risk of liquidating them if the company ever gets in financial distress. It happens to be almost average when measured against peer companies.
The company has roughly triple short-term resources than short-term obligations. Liquidity concerns are most likely unimportant. It turns to be in a very weak position compared to similar firms.
Very few resources controlled were provided for with financial debt. Financial strength is very solid. Company could increase debt if it wished so, to reinvest in business, to buy a smaller company or to reward stockholders. It remains somewhat better than rival firms.
Controlled resources might be only very slowly turned into cash and equivalents, which is riskier. It looks last-in-rank when measured against rivals.
For every dollar of short-term obligations, the company has more than enough dollars in cash and short-term receivables. It's in a very weak position compared to peer firms.
For every dollar of short-term obligations, the company has almost another of cash and equivalents, which is bottom tier against similar enterprises.
Usually, sales are on many months credit. It still ranks substantially worse when measured against peers.
Days of inventory outstanding are not known. It comes up as a big question mark against competitors.
We could not gauge the normal operating cycle of the company. It happens to be a mystery against peers.
Unfortunately, we had not enough data to estimate the days of payables outstanding. It ranks unknown against industry peers.
Cash conversion cycle remains unknown, due to not having enough inputs. It's incomparable against similar companies.
Company earns net interest income on its investments and therefore is in a quite comfortable financial position. It stands top-notch against rival firms.
Business earnings have usually been good when measured against loans taken. Cutting back reinvesting in the business, it could take less than three years to repay the obligations with current profitability. It ranks encouraging in relation to comparable enterprises.
Revenues are reasonable in relation to property, plant, and equipment required to operate. This metric is likely dependent on the industry the company operates in. The more property, plant, and equipment used, the more the company must reinvest to fight obsolescence, which usually means less available funds for the shareholders in the long run. It looks in good shape compared to similar firms.
Resources exploitation is virtually zero, as the firm hardly reports any sales. It's still somewhat better than peer companies.

Valuation score: 7.3

Chemung Financial Corporation looks very cheap in relation to profits and financial position. It happens to be almost average when measured against competitors.
Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains close to average when compared to peers.
In the past twelve months, the company generated excellent free funds in relation to the stock price, which stands slightly worse than similar companies.
The company usually consumes plenty more funds than can genuinely generate. Business needs are meet by borrowing money or consuming preexistent cash, which can only keep up until a certain limit. Unless the company is driving outstanding business growth, genuine profitability may be brought into question. It's still almost average when measured against industry firms.
In the past twelve months, the company has barely rewarded investors, considering both dividends and share on the pie of earnings. It came up lacking compared to peer ventures.
The company is indebted, it should focus on loan repayment. It looks mediocre against similar enterprises.
Considering the past twelve months, traditional Price-to-Earnings relation looks very cheap. Possible reasons are that the market might be betting current earnings will be hard to sustain through time, or that the company has very high fund needs, or a weak financial position, among others. If that isn't the case, the current stock price might be very attractive. It ranks great when measured against peer companies.
Comparing the current stock price with the past twelve-months revenues gives a roughly two to one relationship. This is an important metric to check its evolution through time, and to compare to industry peers. It looks excellent in relation to rival firms.
The relation between the stock price and accounting book value might be more than reasonable. It's important both to check this metric through time and to compare it with rival companies. The company remains somewhat worse than peer firms.
In the past twelve months, the operating business earned huge money when compared to the current stock price and financial position. It happens to be below average when measured against industry peers.
In an alternate metric of bang for the buck, the company has usually shown an extreme earnings power ability when measured against the current stock price and financial position. Further analysis is recommended, as the stock might currently be significantly undervalued. It's still in a weak position compared to peer companies.

Total score: 6.3

Company at a glance: Chemung Financial Corporation (CHMG)

Sector, industry: Financial Services, Banks—Regional

Market Cap: 0.17 billions

Revenues TTM: 0.10 billions

Chemung Financial Corporation operates as the holding company for Chemung Canal Trust Company that provides a range of banking, financing, fiduciary, and other financial services. The company provides demand, savings, and time deposits; non-interest and interest-bearing checking accounts; and insured money market accounts. It also offers commercial and agricultural loans comprising loans to small to mid-sized businesses; commercial mortgage loans; residential mortgage loans; consumer loans, including home equity lines of credit and home equity term loans; and interest rate swaps, letters of credit, wealth management, employee benefit plans, mutual fund, insurance products, and brokerage services. Further, it provides securities, insurance, and tax preparation services. Additionally, it offers guardian, custodian, and trustee services, as well as acts as an agent for pension, profit-sharing, and other employee benefit trusts; and various investment, pension, estate planning, and employee benefit administrative services. The company operates 31 branch offices located in 13 counties in New York and Bradford County in Pennsylvania. Chemung Financial Corporation was founded in 1833 and is headquartered in Elmira, New York.