Alerus Financial (ALRS) AI Stock Analysis

• Market Cap: $534.20M
• Dividend Yield: 3.8%
• Average Volume (3M): 72.98K
• Price to Earnings (P/E): 17.4
• Beta (1Y): 1.07
• Revenue Growth: 40.06%
• EPS Growth: 145.33%
• Country: US
• Employees: 846
• Sector: Financial
• Sector Strength: 76
• Industry: Banks - Regional
• EPS (TTM): 0.56
• Shares Outstanding: 25,365,662
• 10 Day Avg. Volume: 65,396
• 30 Day Avg. Volume: 72,980
• PEG Ratio: -0.37
• Price to Book (P/B): 1.22
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 4.30
• Enterprise Value/Market Cap: 1.53
• Enterprise Value/Revenue: 0.85
• Enterprise Value/Gross Profit: 2.89
• Enterprise Value/Ebitda: 7.64
• 1Y Price Target: $21.50
• Price Target Upside: 1.90% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 71 Outperform
• Price Target: $23.00 ▲(9.00%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 (ALRS) is a diversified financial services company headquartered in Grand Forks, North Dakota. It operates in the banking, retirement and benefits, wealth management, and mortgage sectors. The company provides a comprehensive range of financial products and services, including personal and business banking, investment and trust services, retirement plan administration, and employee benefits solutions. Alerus Financial aims to deliver tailored financial solutions to its clients through a combination of personalized service and advanced technology.

How the Company Makes Money

Alerus Financial makes money through a variety of revenue streams derived from its diversified service offerings. In the banking sector, the company earns interest income from loans issued to consumers and businesses, as well as fees from various banking services such as account maintenance, transaction processing, and overdraft protection. In its retirement and benefits segment, Alerus generates revenue from fees charged for retirement plan administration, record-keeping, and advisory services provided to employers and employees. The wealth management division contributes to earnings through investment management fees, financial planning services, and trust administration fees. Additionally, the mortgage segment of Alerus Financial earns revenue from origination fees and interest income from home loans. The company's earnings are further supported by strategic partnerships and a focus on cross-selling its financial services to existing clients.

Alerus Financial Financial Statement Overview

Summary

Alerus Financial shows strong revenue growth and efficient cost management, evidenced by high gross profit margins. Operational efficiency remains 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
295.00M	215.87M	166.01M	208.77M	230.24M	227.51M
	Gross Profit
284.01M	215.87M	166.17M	208.77M	230.24M	228.18M
	EBIT
32.20M	23.16M	48.44M	90.46M	69.08M	58.52M
	EBITDA
45.33M	38.04M	0.00	52.18M	77.89M	67.44M
	Net Income Common Stockholders
24.66M	17.78M	11.70M	40.01M	52.68M	44.67M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
653.75M	652.60M	616.63M	775.57M	1.10B	765.30M
	Total Assets
5.34B	5.26B	3.91B	3.78B	3.39B	3.01B
	Total Debt
277.61M	317.02M	378.88M	442.82M	63.21M	66.60M
	Net Debt
194.63M	255.78M	248.98M	384.58M	-179.10M	-106.37M
	Total Liabilities
4.83B	4.77B	3.54B	3.42B	3.03B	2.68B
	Stockholders Equity
514.23M	495.41M	369.13M	356.87M	359.40M	330.16M
Cash Flow		Free Cash Flow
-2.52M	16.59M	25.71M	101.18M	147.41M	-26.06M
	Operating Cash Flow
1.76M	28.96M	28.98M	102.97M	149.83M	-22.25M
	Investing Cash Flow
-333.41M	-330.03M	-51.99M	-292.62M	-417.66M	-538.39M
	Financing Cash Flow
-131.14M	232.42M	94.76M	5.59M	337.18M	589.60M

Alerus Financial Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 21.10
• 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 21.1 is below the 20-day moving average (MA) of 21.14, above the 50-day MA of 20.12, and above the 200-day MA of 20.47, indicating a neutral trend. The MACD of 0.16 indicates Positive momentum. The RSI at 51.98 is Neutral, neither overbought nor oversold. The STOCH value of 18.68 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	78 Outperform	$471.15M	22.16	4.88%	5.24%	51.62%	-34.65%
AROW	76 Outperform	$415.72M	14.69	7.25%	4.46%	11.46%	-1.07%
ACNB	73 Outperform	$430.57M	14.14	7.44%	3.31%	22.16%	-15.57%
ALRS	71 Outperform	$534.20M	17.42	6.27%	3.80%	40.06%	145.33%
GNTY	68 Neutral	$460.79M	13.94	10.62%	2.47%	0.13%	19.68%
NFBK	68 Neutral	$495.32M	15.15	4.48%	4.62%	10.00%	2.81%
Sector *	64 Neutral	$12.73B	9.92	7.90%	78.88%	12.06%	-7.95%

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.