Alerus Financial (ALRS) AI Stock Analysis

• Market Cap: $533.07M
• Dividend Yield: 3.81%
• Average Volume (3M): 86.42K
• Price to Earnings (P/E): 12.5
• Beta (1Y): 1.04
• 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: 80,477
• 30 Day Avg. Volume: 86,419
• 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: 1.63
• Enterprise Value/Revenue: 2.32
• Enterprise Value/Gross Profit: 3.53
• Enterprise Value/Ebitda: 12.64
• 1Y Price Target: $25.63
• Price Target Upside: 18.44% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 71 Outperform
• Price Target: $24.00 ▲(10.91% Upside)

Alerus Financial's overall stock score is driven by strong financial performance and positive earnings call insights, despite mixed technical indicators and competitive pressures in the deposit market. The stock's reasonable valuation and attractive dividend yield further support its investment appeal.

Alerus Financial Business Overview & Revenue Model

Company Description

Alerus Financial Corporation (ALRS) is a diversified financial services company headquartered in Grand Forks, North Dakota. The company operates primarily in the banking, wealth management, and mortgage sectors, providing a comprehensive suite of financial solutions to individuals and businesses. Alerus offers products such as personal and commercial banking services, investment management, retirement planning, and mortgage lending, aiming to enhance the financial well-being of its clients through tailored services and innovative financial solutions.

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: 21.64
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• 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 21.64 is below the 20-day moving average (MA) of 21.71, below the 50-day MA of 22.02, and above the 200-day MA of 20.45, indicating a neutral trend. The MACD of -0.21 indicates Positive momentum. The RSI at 48.37 is Neutral, neither overbought nor oversold. The STOCH value of 68.16 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
ALRS	71 Outperform	$533.07M	12.49	9.19%	3.81%	40.69%	373.32%
HONE	70 Outperform	$581.78M	20.81	4.56%	2.53%	5.00%	72.45%
HIFS	68 Neutral	$633.01M	14.14	10.23%	0.83%	8.26%	94.53%
SHBI	68 Neutral	$531.34M	9.87	9.88%	3.02%	2.66%	128.06%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
WASH	52 Neutral	$514.13M	―	-4.73%	8.14%	-27.77%	-159.63%
MOFG	51 Neutral	$589.09M	―	-9.58%	3.40%	-35.26%	-305.96%

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.

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’s Strong Earnings and Strategic Growth

Alerus Financial Corporation’s recent earnings call painted a picture of robust financial health, marked by significant gains in fee income and strategic loan sales, alongside improved efficiency ratios. Despite facing challenges such as deposit shrinkage and nonperforming assets, the company remains well-positioned with stable capital levels and growth in its wealth and retirement segments.

Alerus Financial Reports Strong Q2 2025 Earnings

Alerus Financial Corporation, a commercial wealth bank and national retirement services provider, operates in the financial services sector, offering a range of banking, wealth management, and retirement services across multiple states in the U.S. In the second quarter of 2025, Alerus Financial Corporation reported a significant increase in net income, reaching $20.3 million, up from $13.3 million in the previous quarter and $6.2 million in the same quarter of the previous year. This growth underscores the company’s strong financial performance and strategic execution. Key financial metrics for the quarter include a return on average total assets of 1.53% and a return on average tangible common equity of 22.65%. The company also reported a net interest income of $43.0 million, a 4.6% increase from the prior quarter, and a 15% increase in noninterest income, driven by gains in mortgage banking and loan sales. Alerus continues to optimize its balance sheet with strategic loan sales and maintains a strong capital position, reflected in its increased tangible book value per share. Looking ahead, Alerus Financial Corporation remains committed to executing its long-term strategy, focusing on enhancing client relationships and driving sustainable growth across its integrated banking, wealth, and retirement services businesses.

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.

The most recent analyst rating on (ALRS) stock is a Hold with a $22.00 price target. To see the full list of analyst forecasts on Alerus Financial stock, see the ALRS Stock Forecast page.