Alerus Financial (ALRS) AI Stock Analysis

• Market Cap: $573.45M
• Dividend Yield: 3.59%
• Average Volume (3M): 86.96K
• Price to Earnings (P/E): 13.4
• Beta (1Y): 1.06
• Revenue Growth: 40.69%
• EPS Growth: 373.32%
• Country: US
• Employees: 846
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.72
• Shares Outstanding: 25,396,307
• 10 Day Avg. Volume: 65,955
• 30 Day Avg. Volume: 86,961
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.51
• Enterprise Value/Revenue: 2.32
• Enterprise Value/Gross Profit: 3.53
• Enterprise Value/Ebitda: 12.64
• 1Y Price Target: $25.63
• Price Target Upside: 13.51% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 76 Outperform
• Price Target: $25.00 ▲(10.72% Upside)

Alerus Financial's overall stock score of 76 reflects its strong financial performance and positive technical indicators. The company's robust earnings and strategic management are offset by challenges in the deposit market and modest net profit margins. The valuation is fair, with a solid dividend yield providing additional investor appeal.

Alerus Financial Business Overview & Revenue Model

Company Description

Alerus Financial Corporation, through its subsidiary, Alerus Financial, National Association, provides various financial services to businesses and consumers. The company operates in four segments: Banking, Retirement and Benefit Services, Wealth Management, and Mortgage. It offers various deposit products, including demand deposits, interest-bearing transaction accounts, money market accounts, time and savings deposits, checking accounts, and certificates of deposit; and treasury management products, including electronic receivables management, remote deposit capture, cash vault services, merchant services, and other cash management services. The company also provides commercial loans, business term loans, lines of credit, and commercial real estate loans, as well as construction and land development loans; consumer lending products, including residential first mortgage loans; installment loans and lines of credit; and second mortgage loans. In addition, it offers retirement plan administration and investment advisory services, employee stock ownership plan, fiduciary services, payroll, health savings accounts, and other benefit services, as well as individual retirement accounts; and financial planning, investment management, personal and corporate trust, estate administration, and custody services. Further, the company provides debit and credit cards, online banking, mobile banking/wallet, payment, private banking, payroll accounts, flex spending accounts, administration, and government health insurance program services. It offers banking services through fourteen offices in North Dakota, Minnesota, and Arizona; and retirement and benefit plans in 50 states through offices located in Michigan, Minnesota, and Colorado. The company was formerly known as First National Bank North Dakota and changed its name to Alerus Financial Corporation in 2000. Alerus Financial Corporation was founded in 1879 and is headquartered in Grand Forks, North Dakota.

How the Company Makes Money

Alerus Financial generates revenue through multiple key streams. Primarily, the company earns income from interest on loans made to customers, which includes personal, commercial, and mortgage loans. Additionally, Alerus collects fees for various banking services, such as account maintenance and transaction fees. The wealth management segment contributes to revenue through advisory fees on assets under management and commissions from investment products. Mortgage origination fees and interest income from mortgage loans also serve as significant revenue sources. Furthermore, Alerus has established partnerships and collaborations that may enhance its service offerings and expand its client base, thereby contributing to its overall earnings.

Alerus Financial Financial Statement Overview

Summary

Alerus Financial shows strong revenue growth and efficient cost management, with high gross profit margins. Operational efficiency is solid, though net profit margins have slightly decreased. The balance sheet shows moderate leverage but a low equity base, indicating potential financial risk. Cash flow metrics reveal challenges in cash generation, which could impact future investment or debt servicing capabilities.

Income Statement

Alerus Financial demonstrates a strong gross profit margin of 96.29% in TTM, indicating efficient cost management. However, net profit margin shows a decline to 8.36% in TTM from 8.24% in 2024. The revenue growth rate from 2024 to TTM is robust at 36.61%. EBIT and EBITDA margins are at 10.92% and 15.37% respectively, showing solid operational efficiency, though slightly decreased from previous years.

Balance Sheet

The debt-to-equity ratio in TTM is 0.54, reflecting a moderate leverage level. Return on Equity (ROE) is at 4.80%, showcasing a stable but modest return on shareholders' equity. The equity ratio is 9.63%, indicating a low equity base relative to total assets, which may suggest higher financial risk.

Cash Flow

The free cash flow growth rate is negative, indicating a decline in free cash flow generation. The operating cash flow to net income ratio is 0.07, reflecting low operating cash flow relative to net income. Free cash flow to net income ratio is negative, showing challenges in converting profits to free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	373.08M	330.41M	243.16M	224.58M	235.79M	239.77M
Gross Profit	245.46M	197.73M	164.06M	208.77M	233.74M	216.61M
EBITDA	68.61M	38.04M	24.36M	60.42M	77.89M	67.44M
Net Income	41.97M	17.74M	11.70M	40.01M	52.68M	44.67M
Balance Sheet
Total Assets	5.32B	5.26B	3.91B	3.78B	3.39B	3.01B
Cash, Cash Equivalents and Short-Term Investments	80.90M	649.29M	616.63M	775.57M	1.10B	765.30M
Total Debt	373.73M	317.02M	378.88M	442.82M	63.21M	66.60M
Total Liabilities	4.79B	4.77B	3.54B	3.42B	3.03B	2.68B
Stockholders Equity	533.15M	495.41M	369.13M	356.87M	359.40M	330.16M
Cash Flow
Free Cash Flow	33.88M	16.59M	25.71M	101.18M	147.41M	-26.06M
Operating Cash Flow	46.87M	28.96M	28.98M	102.97M	149.83M	-22.25M
Investing Cash Flow	-224.52M	-330.03M	-51.99M	-292.62M	-417.66M	-538.39M
Financing Cash Flow	-179.59M	232.42M	94.76M	5.59M	337.18M	589.60M

Alerus Financial Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 22.58
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 22.58 is above the 20-day moving average (MA) of 21.96, above the 50-day MA of 21.95, and above the 200-day MA of 20.36, indicating a bullish trend. The MACD of 0.27 indicates Negative momentum. The RSI at 57.49 is Neutral, neither overbought nor oversold. The STOCH value of 77.16 is Neutral, 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
AROW	78 Outperform	$482.54M	15.97	7.72%	3.86%	8.36%	-2.24%
ALRS	76 Outperform	$573.45M	13.43	9.19%	3.59%	40.69%	373.32%
PFIS	76 Outperform	$529.12M	15.81	8.08%	4.67%	67.70%	39.18%
GNTY	76 Outperform	$562.16M	15.75	11.28%	1.98%	1.61%	38.81%
NFBK	74 Outperform	$498.38M	13.80	5.02%	4.36%	7.66%	28.75%
ACNB	73 Outperform	$470.10M	16.65	7.36%	2.94%	32.18%	-26.13%
Sector *	68 Neutral	$17.80B	11.87	10.23%	3.74%	9.69%	1.18%

Alerus Financial Corporate Events

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.

Alerus Financial Reports Strong Q2 2025 Earnings

On July 28, 2025, Alerus Financial Corporation reported a significant increase in net income for the second quarter of 2025, reaching $20.3 million, compared to $13.3 million in the previous quarter and $6.2 million in the same quarter of 2024. The company attributed this growth to its diversified business model and disciplined execution, including strategic sales and proactive credit risk management, which improved its balance sheet and risk profile.