Alerus Financial (ALRS) AI Stock Analysis

• Market Cap: $531.54M
• Dividend Yield: 3.71%
• Average Volume (3M): 86.42K
• Price to Earnings (P/E): 10.1
• Beta (1Y): 1.07
• Revenue Growth: 42.22%
• EPS Growth: 1207.84%
• Country: US
• Employees: 846
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.66
• Shares Outstanding: 25,396,307
• 10 Day Avg. Volume: 80,477
• 30 Day Avg. Volume: 86,419
• PEG Ratio: 0.54
• Price to Book (P/B): 0.82
• Price to Sales (P/S): 1.23
• P/FCF Ratio: 24.41
• Enterprise Value/Market Cap: 1.63
• Enterprise Value/Revenue: 2.21
• Enterprise Value/Gross Profit: 3.23
• Enterprise Value/Ebitda: 9.99
• 1Y Price Target: $24.00
• Price Target Upside: 8.45% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: $23.00 ▲(3.93% Upside)

Alerus Financial's overall stock score is driven by strong financial performance and attractive valuation metrics. The company's strategic initiatives and growth prospects are promising, though technical indicators suggest caution in the short term. The earnings call sentiment is cautiously optimistic, with a focus on strategic growth and risk management. Investors should be aware of potential risks related to nonperforming assets and fee income declines.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for Alerus's products and services, supporting long-term business expansion and market presence.

Cash Flow Generation

Strong cash flow generation enhances financial flexibility, allowing Alerus to invest in growth opportunities and manage debt effectively.

Platform Upgrade

The platform upgrade strengthens Alerus's competitive position by improving client service and facilitating future growth in wealth management.

Negative Factors

Nonperforming Assets

Rising nonperforming assets can strain financial resources and increase risk, potentially impacting profitability and asset quality over time.

Fee Income Decline

A decline in fee income may signal challenges in maintaining revenue from non-interest sources, affecting overall revenue diversification.

Operational Efficiency

Decreasing operational efficiency can pressure profitability, indicating a need for cost management and process improvements to sustain margins.

Alerus Financial Business Overview & Revenue Model

Company Description

Alerus Financial Corporation (ALRS) is a diversified financial services company providing banking, investment, and insurance solutions to individuals and businesses. Headquartered in Grand Forks, North Dakota, Alerus operates primarily in the financial services sector, offering products such as personal and commercial banking, mortgage lending, wealth management, and retirement planning. The company focuses on delivering personalized service and innovative solutions to help clients achieve their financial goals.

How the Company Makes Money

Alerus makes money through several key revenue streams, including interest income from loans and mortgages, fees from banking services, wealth management fees, and commissions from insurance products. The company earns interest income primarily from its loan portfolio, which includes commercial, consumer, and residential mortgages. Additionally, Alerus generates non-interest income through service fees for account maintenance, transaction processing, and financial advisory services. Strategic partnerships with other financial institutions and service providers further enhance its offerings and contribute to revenue growth, while a focus on customer retention and satisfaction helps maintain a steady client base.

Alerus Financial Financial Statement Overview

Summary

Alerus Financial demonstrates a strong financial position with consistent revenue growth and improved profitability margins. The balance sheet is stable with a manageable level of debt, though there is potential for better equity utilization. Cash flow generation has improved significantly, indicating strong cash management. Overall, the company is on a positive trajectory with solid financial health, though there are areas for potential improvement in operational efficiency and equity utilization.

Income Statement

Alerus Financial shows a solid performance in its income statement with a consistent revenue growth rate of 5.14% in the TTM period. The gross profit margin is strong at 62.45%, and the net profit margin has improved to 15.99%, indicating enhanced profitability. However, the EBIT and EBITDA margins have decreased compared to previous years, suggesting some pressure on operational efficiency.

Balance Sheet

The balance sheet reflects a moderate debt-to-equity ratio of 0.54, showing a manageable level of leverage. The return on equity is 9.63%, which is a positive sign of profitability, though it has decreased from previous years. The equity ratio stands at 10.33%, indicating a stable capital structure. Overall, the balance sheet is stable but shows some room for improvement in equity utilization.

Cash Flow

Cash flow analysis reveals a significant improvement in free cash flow growth at 64.33% in the TTM period, which is a positive indicator of cash generation. The operating cash flow to net income ratio is 0.30, suggesting a reasonable conversion of income to cash. However, the free cash flow to net income ratio of 0.92 indicates that most of the net income is being converted into free cash flow, which is a positive aspect.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	392.24M	330.41M	243.16M	224.58M	235.79M	239.77M
Gross Profit	268.44M	197.73M	164.06M	208.77M	233.74M	216.61M
EBITDA	86.78M	38.04M	24.36M	60.42M	77.89M	67.44M
Net Income	50.42M	17.74M	11.70M	40.01M	52.68M	44.67M
Balance Sheet
Total Assets	5.33B	5.26B	3.91B	3.78B	3.39B	3.01B
Cash, Cash Equivalents and Short-Term Investments	92.04M	649.29M	616.63M	775.57M	1.10B	765.30M
Total Debt	296.07M	317.02M	378.88M	442.82M	63.21M	66.60M
Total Liabilities	4.78B	4.77B	3.54B	3.42B	3.03B	2.68B
Stockholders Equity	550.69M	495.41M	369.13M	356.87M	359.40M	330.16M
Cash Flow
Free Cash Flow	55.67M	16.59M	25.71M	101.18M	148.13M	-26.06M
Operating Cash Flow	60.71M	28.96M	28.98M	102.97M	149.83M	-22.25M
Investing Cash Flow	-99.32M	-330.03M	-51.99M	-292.62M	-417.66M	-538.39M
Financing Cash Flow	64.68M	232.42M	94.76M	5.59M	337.18M	589.60M

Alerus Financial Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 22.13
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ALRS, the sentiment is Positive. The current price of 22.13 is above the 20-day moving average (MA) of 21.49, above the 50-day MA of 21.55, and above the 200-day MA of 20.68, indicating a bullish trend. The MACD of 0.10 indicates Negative momentum. The RSI at 58.51 is Neutral, neither overbought nor oversold. The STOCH value of 81.43 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ALRS.

Alerus Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SHBI	71 Outperform	$582.96M	10.23	10.25%	2.71%	6.01%	38.05%
HIFS	69 Neutral	$632.49M	14.13	10.23%	0.86%	8.26%	94.53%
ALRS	69 Neutral	$531.54M	10.10	11.37%	3.71%	42.22%	1207.84%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
MOFG	64 Neutral	$814.79M	14.06	10.01%	2.39%	89.00%	―
HONE	62 Neutral	―	―	4.56%	2.89%	5.00%	72.45%
WASH	52 Neutral	$548.59M	―	-4.73%	7.57%	-27.82%	-159.63%

Alerus Financial Corporate Events

Alerus Financial’s Earnings Call: Strategic Growth Amid Challenges

Alerus Financial Corporation’s recent earnings call conveyed a cautiously optimistic sentiment, emphasizing strong organic growth in its banking segments and successful platform upgrades. The company demonstrated a promising outlook for its retirement business, despite facing challenges such as an increase in nonperforming assets and a decline in fee income. The overall tone was one of strategic growth and careful risk management.

Alerus Financial Reports Q3 2025 Earnings

On October 30, 2025, Alerus Financial Corporation reported a net income of $16.9 million for the third quarter of 2025, a decrease from $20.3 million in the previous quarter but an increase from $5.2 million in the same quarter of 2024. The company achieved a record net interest income of $43.1 million and maintained a strong return on average total assets. Alerus continues to see growth in loans, deposits, and assets under management, driven by strategic acquisitions and enhancements in its commercial wealth bank. The company’s focus on disciplined execution and client expansion aims to deliver superior returns and shareholder value despite potential economic uncertainties.

The most recent analyst rating on (ALRS) stock is a Buy with a $24.00 price target. To see the full list of analyst forecasts on Alerus Financial stock, see the ALRS Stock Forecast page.

Alerus Financial Declares Increased Quarterly Dividend

On August 28, 2025, Alerus Financial Corporation announced that its board of directors declared a regular quarterly cash dividend of $0.21 per common share, marking a 5% increase from the previous year. The dividend is scheduled to be paid on October 10, 2025, to stockholders of record as of September 26, 2025, reflecting the company’s ongoing commitment to providing value to its shareholders.

The most recent analyst rating on (ALRS) stock is a Buy with a $24.00 price target. To see the full list of analyst forecasts on Alerus Financial stock, see the ALRS Stock Forecast page.