Alerus Financial (ALRS) AI Stock Analysis

• Market Cap: $534.96M
• Dividend Yield: 3.85%
• Average Volume (3M): 83.85K
• Price to Earnings (P/E): 17.4
• Beta (1Y): 1.09
• Revenue Growth: 40.06%
• EPS Growth: 145.33%
• Country: US
• Employees: 846
• Sector: Financial
• Sector Strength: 81
• Industry: Banks - Regional
• EPS (TTM): 0.56
• Shares Outstanding: 25,365,662
• 10 Day Avg. Volume: 92,188
• 30 Day Avg. Volume: 83,846
• PEG Ratio: 0.67
• Price to Book (P/B): 0.87
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 22.55
• Enterprise Value/Market Cap: 1.34
• Enterprise Value/Revenue: 0.73
• Enterprise Value/Gross Profit: 2.36
• Enterprise Value/Ebitda: 4.98
• 1Y Price Target: $21.50
• Price Target Upside: 1.94% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 71 Outperform
• Price Target: $23.00 ▲(9.06%Upside)

Alerus Financial's overall stock score is driven by solid financial performance, positive technical indicators, and strategic corporate events. The company's strong revenue growth and cost management are offset by cash flow challenges. Technical analysis shows a bullish trend, while valuation metrics suggest balanced growth potential. Positive earnings call highlights and corporate actions further enhance the stock's attractiveness.

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 makes money through a diversified revenue model comprising several key streams. The company earns income from interest on loans and investments in its banking segment, which is a primary source of revenue. Additionally, Alerus generates fee-based income through its wealth management and retirement services divisions, where it provides advisory services and manages client assets. The mortgage segment contributes to revenue through origination fees and interest from mortgage loans. Furthermore, Alerus leverages strategic partnerships with other financial institutions and service providers to enhance its offerings and expand market reach, which also supports its earnings.

Alerus Financial Financial Statement Overview

Summary

Alerus Financial displays a mixed financial performance with improved leverage and stable cash flows, but declining revenues and inconsistent profitability are concerns. The balance sheet shows strengthening equity, yet the income statement reflects volatility that could impact future performance.

Income Statement

Alerus Financial shows significant volatility in its revenue trends with a decline in total revenue from $230.2M in 2021 to $166.0M in 2023. The net profit margin improved from 5.3% in 2023 to 10.7% in 2024, but this was partly due to reduced total revenue. Gross profit margins could not be calculated due to missing data for 2024.

Balance Sheet

The debt-to-equity ratio improved from 1.03 in 2023 to 0.64 in 2024, indicating better leverage management. Stockholders' equity increased significantly, reflecting a stronger equity position. However, the equity ratio decreased slightly, suggesting a higher asset base with increased liabilities.

Cash Flow

Free cash flow in 2024 remained stable compared to 2023, indicating consistent cash generation. The operating cash flow to net income ratio was 1.63 in 2024, showing efficient cash conversion. However, significant negative investing cash flows suggest high capital expenditure or investment outflows.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
215.87M	166.01M	208.77M	230.24M	228.18M
	Gross Profit
215.87M	166.17M	208.77M	230.24M	228.18M
	EBIT
0.00	0.00	71.51M	69.08M	58.52M
	EBITDA
38.04M	0.00	60.42M	77.89M	67.44M
	Net Income Common Stockholders
17.78M	11.70M	40.01M	52.68M	44.67M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
61.24M	28.89M	775.57M	1.10B	765.30M
	Total Assets
5.26B	3.91B	3.78B	3.39B	3.01B
	Total Debt
317.02M	378.88M	442.82M	63.21M	66.60M
	Net Debt
255.78M	248.98M	384.58M	-179.10M	-106.37M
	Total Liabilities
4.77B	3.54B	3.42B	63.21M	66.60M
	Stockholders Equity
495.41M	369.13M	356.87M	359.40M	330.16M
Cash Flow		Free Cash Flow
16.59M	25.81M	101.18M	147.41M	-26.07M
	Operating Cash Flow
28.96M	28.98M	102.97M	149.12M	-22.26M
	Investing Cash Flow
-330.03M	-52.09M	-292.62M	-416.94M	-538.38M
	Financing Cash Flow
232.42M	94.76M	5.59M	337.18M	589.60M

Alerus Financial Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 21.09
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 21.09 is below the 20-day moving average (MA) of 21.26, above the 50-day MA of 19.07, and above the 200-day MA of 20.45, indicating a neutral trend. The MACD of 0.68 indicates Positive momentum. The RSI at 57.10 is Neutral, neither overbought nor oversold. The STOCH value of 16.91 is Positive, 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
PFIS	75 Outperform	$482.88M	22.71	4.88%	4.68%	51.62%	-34.65%
ACNB	74 Outperform	$439.69M	14.44	7.44%	3.05%	22.17%	-15.57%
NFBK	71 Outperform	$486.79M	14.89	4.48%	4.55%	10.00%	2.81%
ALRS	71 Outperform	$534.96M	17.44	6.27%	3.85%	40.06%	145.33%
GNTY	71 Outperform	$460.90M	13.94	10.62%	2.39%	0.13%	19.68%
AROW	67 Neutral	$427.22M	15.10	7.25%	4.29%	11.46%	-1.07%
Sector *	64 Neutral	$12.67B	9.74	7.58%	17015.08%	12.21%	-6.96%

Alerus Financial Corporate Events

Alerus Financial Increases Quarterly Dividend by 5%

On May 22, 2025, Alerus Financial Corporation announced a 5% increase in its quarterly cash dividend to $0.21 per common share, payable on July 11, 2025, to stockholders of record as of June 27, 2025. This decision reflects the company’s commitment to providing value to its shareholders and may enhance its attractiveness in the financial market.

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.

Alerus Financial Holds Annual Meeting, Elects Directors

Alerus Financial held its Annual Meeting on May 8, 2025, where 85.32% of the outstanding shares were represented. During the meeting, nine directors were elected, executive compensation was approved on a non-binding basis, and it was decided that advisory votes on executive compensation would continue annually until 2031. Additionally, RSM US LLP was ratified as the independent accounting firm, and an amendment to increase authorized shares was approved.

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.

Alerus Financial Reports Q1 2025 Net Income Growth

Alerus Financial Corporation reported a net income of $13.3 million for the first quarter of 2025, marking a significant improvement from the previous quarter’s net loss. The company achieved growth in loans and deposits, leading to a strengthened net interest margin, and emphasized its commitment to strategic integration following its merger with Home Federal. The company’s proactive risk management and focus on efficiency aim to deliver long-term shareholder value.